The Must Read PSA Weekly Research Round-up (week to 18 Jan)

REPORTS OUT THIS WEEK: JSR (4185 JT) – Life at the End of the Tunnel / Japan’s App Industry in 2018 / INDUSTRY/SECTOR THEMATIC INSIGHTS: We discuss two recent events that could focus further attention on cobalt and DRC / Ocean waste and plastics is gaining more attention / COMPANY INSIGHTS: We see a mixed outlook for Indian autos which will likely put pressure on earnings at Suzuki and Maruti Suzuki / Further disruptions ahead are likely for Nissan, though the tensions with Renault may be overstated

The Weekly Comment by Thao Nguyen

Japan’s app industry is one of the most mature app markets globally. While download growth has slowed, user engagement and consumer spend have both risen. Recently, even the revenue expansion rate has decelerated in Japan. App Store Consumer Spend in Japan grew by 30% for the 2016~2018 period, compared to China’s 140%, the US’s 70% and a worldwide 75% rate. The type of app which appeals to people in Japan is particular to that country. Consequently, until recently developers outside Japan have struggled to establish a meaningful presence in the land of the rising sun. Things are now starting to change, however, for both game and non-game apps.

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

1. JSR (4185 JT) – Life at the End of the Tunnel Nexon (3659 JT)
2. Japan’s App Industry in 2018

Company / Sector / Thematic Comments at a Glance

Technology

1. Nintendo (7974 JT) Launches 40 Titles on Switch This Month
2. Nexon (3659 JT) Surged as Big Names Enter the Bidding War
Chemicals / Materials
3. TSMC’s (2330 TT) Weak Q1 Guidance
4. Cobalt Blues
5. Plastic Value Chain Companies Target Ocean Waste
6. Fujifilm’s (4901 JT) Healthcare is Work in Progress

Autos

7. Mixed Outlook for India Auto Sales
8. China Auto Sales Decline in 2018 – What Next?
9. Subaru (7270 JT) Working on Turnaround
10. Nissan’s (7201 JT) Widened Investigation Could Prove Disruptive
11. Nissan Renault (RNO FP) Tensions May Be Overstated

Auto Parts / Machinery

12. Automation Advances
13. IHI (7013 JT) Up on New Aero-Engine Office

Internet / eCommerce

14. Kakaku.com (2371 JT) Rises on a Broker Upgrade  

Enterprise Software

15. National Police Agency Experimenting with AI as Policing Support
16. Fujitsu (6702 JT) to Test AI Technology on the Foreign Tourist Industry
17. Japan’s First Robot Hotel Sacks Half its Staff

PSA Company Visits, Tours and Interviews

• Attended earnings meeting for: ABC Mart (2670 JT), Inter Action Corp (7725 JT)
• Attended company presentations for: Fujifilm Holdings (4901 JT)

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