The Must Read PSA Weekly Research Round-up (week to 17 Jan)

REPORTS: LCD & OLED Market Outlook; iPhone Assumptions / MACRO: Machine tool orders -34% YoY in Dec / One-offs boost November core machinery orders +18% MoM; possible summer recovery? / INDUSTRY INSIGHTS: Why web-based SaaS is becoming the Holy Grail for Japan’s enterprise software companies: China exposure for machinery plays / Plus 19 COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Two weeks in, how is the Japan market looking? What does performance so far indicate for investors in 2020? Pelham Smithers sifts the factors

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

1. LCD and OLED Market Outlook; iPhone Assumptions

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Square Enix (9684 JT) Console Game Delays / FFBE Mirroring Success of DQW
2. Sony (6758 JT) to Skip E3, Plans Feb Announcement

Technology: Electronic Components and Precision

3. Toshiba (6502 JT) Completes NuFlare (6256 JT) Acquisition
Technology: Bitcoin / Cryptocurrency and Blockchain
4. Changes in Crypto Regulations

Chemicals / Materials

5. TSMC Guidance Positive for Suppliers
6. Fujifilm Holdings (4901 JT) Reportedly Bidding for Curium
7. Asahi Kasei (3407 JT), Mitsubishi Chemical Holdings (4188 JT) Naphtha Unit Trouble
8. Asahi Kasei and Sekisui Chemical, Weak Housing Orders
9. Time to Reappraise Showa Denko’s (4004 JT) Acquisition of Hitachi Chem (4217 JT)?

Autos

10. Nissan (7201 JT) Rumoured to have Contingency Plan for Potential Split with Renault (RNO FP)
11. Toyota (7203 JT) Invests in Aviation Start-Up

Auto Parts / Machinery

12. IHI (7013 JT) Boosted by Punchy Nikkei Article on FY20 Prospects
13. China Theme: Daikin (6367 JT), Komatsu (6301 JT), HCM (6305 JT), Nabtesco (6268 JT)

Telecom

14. SoftBank Group (9984 JT): Mixed News
15. KDDI (9433 JT) Cuts Unlimited Data Plan Price by 20%

Enterprise Software

16. Sansan (4443 JT) Has Steady FY19 H1, Forms Tie-Up with Refinitiv
17. Japanese SaaS Comps; a Look at Laggard RPA Holdings (6572 JT)
18. Why Web-based SaaS is Becoming the Holy Grail for Japan’s Enterprise Software Companies
19. Kitanotatsujin (2930 KT) FY19 3Q OP +56% YoY

Miscellaneous

20. Brief Earnings Comments and Share Price Reactions

Macro

21. Dec 2019 Machine Tool Orders -34% YoY
22. One-offs Boost Nov 2019 Core Machinery Orders; Possible Summer Recovery?

PSA Company Visits, Tours and Interviews

• Attended earnings at: Inter Action (7725 JT)
• Interviewed / Conference call with: Japan Display (6740 JT)

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