The Must Read PSA Weekly Research Round-up (week to 26 Jan)
REPORTS: Insource (6200 JT) / TIS Inc (3626 JT) / MISCELLANEOUS, MARKET & MACRO: Japan earnings season early reports preview / 10yr / 20yr JGB yields rising / Dec export data / Jan PMI up / Japan Dec department store sales +5.4% YoY / Jan Tokyo CPI up just +1.6% YoY as prices fall MoM / COMPANY PREVIEWS & RESULTS: Is Sony’s gaming division OP set to drive overall profits up +40%? / Disco FY23 Q3 OP +25% YoY / Nidec lowers FY23 profit guidance on China EV woes / Hioki EE: FY23 Q4 OP -27% YoY, FY24e short of consensus / Koa Corp’s FY23 Q3 beats consensus / Shin-Etsu Polymer / Shin-Etsu Chem’s FY23 Q3 results / Fanuc and HCM’s FY23 Q3 results suggest rising tides / Fujitsu General slashes FY23OP guidance / Did Shift get too big for its boots, or does it just need to get new, larger ones? / OBC’s stellar FY23 Q3 / Insource’s FY24 Q1 results show improved profitability
The Weekly Comment by Pelham Smithers
As in 2023, Japan looks to be doing well on the surface, but is it flattering to deceive? Almost unbelievably, despite Tokyo’s strong start, Topix has underperformed MSCI World in USD terms YTD. Pelham Smithers highlights one key reason for the poor performance and suggests what returns the market could generate in the year of the Dragon.
Reports / Flash Notes Published This Week: Headlines at a Glance
1. Insource Co Ltd (6200 JT) – Turning Headwinds into Tailwinds
2. TIS Inc (3626 JT) – A Steady Ship Sailing in Fair Winds
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Bandai Namco (9832 JT) Key Game Tekken 8 to be Released on 26 Jan
2. Sony (6758 JT) Confirms Zee Merger Terminated
3. Is Sony’s Gaming Division OP Set to Drive a +40% Boost in Overall Profits?
4. Other Consumer Elec / Gaming News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
5. NEC (6701 JT) Brings “Beyond 5G / 6G” to the Market’s Attention
6. Murata (6981 JT) May Build 4th Plant in Shimane – Kyodo
7. Disco’s (6146 JT) FY23 Q3 OP +25% YoY
8. Nidec (6594 JT) Lowers FY23 Profit Guidance on China EV Woes
9. Hioki EE (6866 JT): FY23 Q4 OP -27% YoY, FY24 CE Short of Consensus
10. Koa Corp (6999 JT) FY23 Q3 OP -48% YoY, but Beat Expectations
11. Other Tech-Related News & Moves That Caught Our Eye
Chemicals / Materials
12. Shin-Etsu Polymer Cuts FY23 Full-Year Guidance
13. Shin-Etsu’s (4063 JT) FY23 Q3 OP Affected by One-Time Write-Downs
14. Other Chemical / Material-Related News & Moves That Caught Our Eye
Autos
15. Honda (7267 JT) Upbeat about US Sales Outlook
16. Tesla’s (TSLA US) Q4 Disappoints
17. Honda (7267 JT) / GM Start Hydrogen Fuel Cell System Production
Auto Parts / Machinery
18. Daikin (6367 JT) Expanding in Africa; Chinese Competition Increasing for Daifuku (6383 JT)
19. Fanuc (6954 JT) FY23 Q3 Preview / Results
20. HCM (6305 JT) FY23 Q3 Preview / Results
21. Fujitsu General (6755 JT) Slashes its FY23 OP Forecast (again)
Enterprise Software / IT Services
22. Did Shift (3697 JT) Get Too Big for Its Boots? Or Does It Just Need to Get New, Larger Ones?
23. OBC (4733 JT) Gains on its Stellar FY23 Q3 Results
Small- / Mid-Cap Insights
24. Insource’s (6200 JT) FY24 Q1 Shows Improved Profitability
Miscellaneous / Market / Strategy / Macro
25. Japan Earnings Season Early Reports Preview
26. Japan Dec Department Store Sales Rise +5.4% YoY
27. Rising JGB Yields
28. Jan Tokyo CPI Up Just +1.6% YoY as Prices Fall MoM
29. Other News & Moves That Caught Our Eye
PSA Company Visits, Tours and Interviews
Visited: Nidec (6594 JT)
Conference Calls with: Hamee (3134 JT), Insource (6200 JT), WingArc1st (4432 JT)
Presentations at: Shin-Etsu Chemical (4063 JT), Nitto Denko (6988 JT). Fanuc (6954 JT), HCM (6305 JT)
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