The Must Read PSA Weekly Research Round-up (week to 24 Jan)

REPORTS: Square Enix (9684 JT) – Looking Beyond FY19 / EU Proposed Moratorium on Facial Recognition: Implications for NEC (6701 JT) / RESULTS: Nidec’s FY19 3Q disappoints / Disco’s FY19 3Q – good and not so good / MACRO/MISCELLANEOUS: Japan’s exports underscore Old Economy / New division / Why are we getting parent / child battles? / China virus-related moves this week / Plus 26 additional INDUSTRY & COMPANY INSIGHT

The Weekly Comment by Pelham Smithers

What can we conclude about FY19 Q3 earnings from the forerunner results reported by Tokyo Steel, Nidec and Disco this week and which should be our focus for next week? Pelham Smithers sets it out and takes the market’s temperature.

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

1. Square Enix (9684 JT) – Looking Beyond FY19
2. EU Proposed Moratorium on Facial Recognition – Implications for NEC (6701 JT)

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Video Games Market Likely Shrank in 2019 (Part 2)
2. Consumer Electronics-Moves / News Snippets that Caught Our Eye

Technology: Electronic Components and Precision

3. Implications for NEC of EU Proposed Moratorium on Facial Recognition
4. Disco’s (6146 JT) FY19 Q3 Results – Good and Not So Good
5. NAND Prices Picking Up
6. Nidec’s (6594 JT) FY19 3Q Disappoints
7. Industrial Electronics / Precision-Moves / News Snippets that Caught Our Eye

Chemicals / Materials

8. Bleak Nikkei Review for Graphite Electrode Maker Tokai Carbon (5301 JT)
9. Asahi Kasei (3407 JT), Mitsubishi Chem (4188 JT) Naphtha Restart Delayed

Autos

10. Toyota (7203 JT) Takes Steps to Improve its North America Operations
11. Subaru (7270 JT) Announces Electrification Plan for Its Fleet
12. Subaru (7270 JT) Positive on US Sales in 2020
13. Mitsubishi Motors Faces Probe into Emission Manipulation in Germany

Auto Parts / Machinery

14. Komatsu (6301 JT) and HCM (6305 JT): China Market Share One-Third of 2008’s
15. China Virus: Daikin Hits Record High, Micro-Cap Airtech +40% in Two Weeks

Internet

16. CyberAgent (4751 JT): Pressure on AbemaTV Increases
17. Mercari (4385 JT) Continues to Lose Favour

Telecom

18. Rakuten (4755 JT) Confirms Full-Scale Launch of the MNO Service in April
19. The Contrasting Paths of Z Holdings and ZOZO

Enterprise Software

20. Net One Systems (7518 JT) / NS Solutions (2327 JT) Under Investigation
21. TIS takes Majority Stake in US Tokenisation Start-Up
22. RPA Holdings (6572 JT): Are the Shares Close to a Bottom?
23. Local Broker Upgrades Sansan (4443 JT)

Pharma

24. Chugai Pharmaceutical (4519 JT) Does a 3:1 Stock Split
25. Astellas (4503 JT) Completes Exit from JV with Amgen (AMGN US)
26. Ono Pharm’s (4528 JT) Opdivo Miss

Miscellaneous

27. Why We Are Getting Parent / Child Battles
28. Small-Cap Company Results Out on Friday
29. Coronavirus-Related Moves
30. Tokyo Steel (5423 JT) Kicks off Q3 Results

Macro

31. Japan’s Exports Underscore Old Economy / New Economy Division
32. Jibun Bank Jan PMI Improves

PSA Company Visits, Tours and Interviews

• Attended earnings meetings at: Nachi-Fujikoshi (6474 JT)
• Interviewed / Conference Call with: Asahi Kasei (3407 JT), Mitsubishi Chemical Holdings (4188 JT), Mitsubishi Gas Chemical (4182 JT), Zeon Corp (4205 JT), Kanto Denka Kogyo (4042 JT)
• Information meeting with: Nissan Chemical (4021 JT)

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