The Must Read PSA Weekly Research Round-up (week to 7 Feb)

REPORTS: PSA’s 2020 Global Autos Sales Report / Sony FY19 Q3: PSA’s SOTP Calculation / INDUSTRY INSIGHTS: 2019 4Q Global Smartphone Shipments / MISCELLANEOUS: IIJ (3774 JT): FY19 3Q OP +22% YoY / MonotaRO’s (3064 JT) Disappointing FY20 Guidance / MACRO: More Weak Economic Data from Japan / Plus additional COMPANY RESULTS & INSIGHTS

The Weekly Comment by Pelham Smithers

This week Pelham Smithers addressed the 5th Research for Investors Conference in London on the subject of ‘Why Was the Market So Bearish About Tech at the End of 2018, But so Bullish at the End of 2019?’ The impact from the symbiosis between EUV and 5G is explained.

Reports / Flash Notes Published This Week: Headlines at a Glance

1. Global Autos: Sales Outlook for 2020
2. Sony FY19 Q3 Results – Delivers Solid, Unexciting Results; PSA’s SOTP Calculation

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. 2019 Q4 Global Smartphone Shipments +3% YoY
2. Dragon Quest Walk Developers Colopl and SQE Deliver Strong Dec Quarter
3. Bandai Namco (7832 JT): FY19 3Q OP -7% YoY
4. Panasonic (6752 JT) Delivers FY19 3Q OP Gain but Problems are Evident
5. Sony (6758 JT) Delivers Solid but Unexciting 3Q
6. Capcom (9697 JT) 3Q OP +51% YoY

Technology: Industrial Electronics, SPE, Electronic Components and Precision

7. Murata (6981 JT): FY19 3Q Beat on Strong Module OP
8. Lasertec (6920 JT): Impressive FY20 2Q but Underwhelming Earnings Revision
9. Nikon (7731 JT): FY19 3Q OP -81% YoY
10. Ricoh (7752 JT) FY19 3Q OP -24% YoY
11. Taiyo Yuden (6976 JT: FY19 3Q OP -20% YoY
12. Quick Results Comments

Chemicals / Electronic Materials

13. Tosoh Corp (4042 JT): FY19 3Q OP +7% YoY, Beats Expectations
14. W-Scope (6619 JT) Rebounds After Patent Infringement Story Sees Share Slump
15. Fujifilm (4901 JT) Lowers Guidance, Talks Up Documents

Autos

16. Toyota (7203 JT): FY19 Q3 Earnings Fall on Forex Losses but FYOP CE Raised
17. Honda (7267 JT): FY19 Q3 Profit Falls on Currency Losses, Lower Sales
18. Mazda: FY19 Q3 Earnings Hit by Japan Sales Drop, Forex Losses
19. Subaru (7270 JT): FY19 Q3 Results Hit by Warranty Expenses

Auto Parts / Machinery

20. Minebea Mitsumi Ups Mitsumi (Switch) FY19 OP Guidance; Lowers Bearings
21. KHI (70102 JT) Raises FY19 OP by 7% Partly on Accounting Change
22. IHI Lowers FY19 OP by 8%

Telecom

23. Activist Excitement in we had activist excitement SoftBank Group (9984 JT)
24. SoftBank Corp (9434 JT): FY19 3Q OP +15% YoY
25. KDDI (9433 JT): Looking Good to Beat FY19 Guidance

Internet

26. Mercari’s FY20 Q2 Op Loss Wider than Expected / JV with DOCMO (9437 JT)
27. Z Holdings’ (4689 JT) FY19 Q3 Earnings Beat
28. DeNA Slumps on FY19 Q3 Huge Losses
29. mixi (2121 JT) Revises FY Guidance Upward but We Remain Uninterested 19

Enterprise Software

30. TIS Inc: FY19 Q3 Outperforms, Announces 3:1 Stock Split
31. SCSK (9719 JT) Produces Steady FY19 Q3 Results
32. Bottom of the Class for NTT Data (9613 JT) in FY19 Q3: The Case for Glass Half Full
33. NS Solutions (2327 JT): Revises Down Years of Results; Suspicious Transactions

Pharma

34. Shionogi (4507 JT): FY19 3Q OP +2% but Revises Down on Weak Xofluza Sales

Miscellaneous

35. IIJ (3774 JT): FY19 3Q OP +22% YoY
36. MonotaRO’s (3064 JT) Disappointing FY20 Guidance

Macro

37. More Weak Economic Data from Japan

PSA Company Visits, Tours and Interviews

• Visited: JSR (4185 JT)
• Attended earnings meetings at: Hoya Corp (7741 JT), Teijin (3401 JT), Fujifilm Holdings (4901 JT)

Interviewed / Conference Call with:

• Asahi Kasei (3407 JT), Tosoh (4042 JT), IHI (7013 JT)

Watched earnings webcast of:

• Z Holdings (4689 JT), Mercari (4385 JT)

Participated in earnings call with:

• Mitsui Chemicals (4183 JT), Mitsubishi Chemical Holdings (4188 JT), Asahi Kasei (3407 JT), Sumitomo Chemical (4005 JT), Nissan Chemical (4021 JT), Tosoh (4042 JT), Ube Industries (4208 JT), KHI (7012 JT), Minebea-Mitsumi (6479 JT), Fujikura (5803 JT) 

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