The Must Read PSA Weekly Research Round-up (week to DD MMM)

REPORTS: Cybozu (4776 JT) – Olympic-paced Growth for an Olympic Year / Tosoh (4042 JT) Initiation / Fanuc (6954 JT) FY19 Q3 Results: Orders Weak and No Recovery for Robomachines / RESULTS: NEC – Issue of Trust / Nintendo Q3 Not Brilliant but Good / Canon puts the squeeze on Canon Electronics / Koa’s results – a read across to Murata? / Koei Tecmo’s Q3 OP +24% / Shin-Etsu Chemical’s resilient trend / JSR’s life sciences maintain an upward trend / MISCELLANEOUS: Regenerative medical stocks moving / Plus INDUSTRY & COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Canon Is like a ship that’s been waiting for the right wind to come along, all the while depleting reserves. Then, thanks to the improving semiconductor market, that’s what happened. But just as conditions were improving, the corona virus hit, begging the question has the outbreak just done for one of Japan’s most storied companies?

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

1. Cybozu (4776 JT) – Olympic-paced Growth for an Olympic Year
2. Tosoh Initiation (4042 JT): Improving Risk-Reward Profile – Balanced Mix of Cyclical and Growth
3. Fanuc (6954 JT) FY19 Q3 Results: Orders Weak and No Recovery for Robomachines

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Nintendo (7974 JT) FY19 3Q OP Not Brilliant but Good
2. Koei Tecmo’s ( 3635 JT) FY19 3Q OP +24% YoY
3. Readthrough For Japanese Firms from Apple Results and UK Huawei Decision
4. Quick Summaries of Consumer Electronic Company Results

Technology: Industrial Electronics, Electronic Components, SPE & Precision

5. NEC – Issue of Trust
6. Are Xilinx’s Problems Specific to US Firms or Should Japanese Investors Worry?
7. Koa’s Results a Read-Across to Murata?
8. Canon (7751 JT) Puts the Squeeze on Canon Electronics (7739 JT)
9. Hitachi (6501 JT) – Mixed Results; To Offer for High-Tech (8036 JT)
10. Quick Summaries of Component / SPE / Industrial Electronics Company Results

Chemicals / Electronic Materials

11. JSR’s (4185 JT) Life Sciences Maintain an Upward Trend
12. Shin-Etsu Chemical’s (4063 JT) Resilient Trend
13. Quick Summaries of Chemical / Electronic Material Company Results

Autos

14. Coronavirus Pandemic Set to Hurt China Auto Production
15. MMC (7211 JT) Reports Q3 Operating Loss on Weak Sales, Quality- Related Costs

Auto Parts / Machinery

16. FY19 Q3 Fanuc (6954 JT) Preview and a Look at Daifuku (6383 JT)
17. We Still Like Daifuku (6383 JT)
18. HCM (6305 JT) FY19 Q3 Results: Sudden Europe / US Weakness; Komatsu Sees Indonesia Mining and US Weakness
19. Fanuc (6954 JT), HCM (6305 JT): Nikkei Hype Helps and Hurts
20. Toyota Industries (6201 JT) Hit by Oct Typhoon
21. Denso (6902 JT) Lowers Guidance Again; Aisin Delays Expenses to Q4

Internet

22. CyberAgent’s (4751 JT) Good FY20 Start
23. LINE Corp (3938 JT) Shares Unmoved Despite Big Earnings Miss
24. ZOZO’s (3092 JT) FY19 Q3: A Negative Surprise

Enterprise Software

25. Cybozu (4776 JT) Announces Dividend of ¥11/Share for FY20
26. Obic (4684 JT) Misses FY19 Q3 Market Estimates but Raises Dividends
27. NRI (4307 JT) Raises FY19 OP Forecast Yet Again
28. PCA Corp’s (9629 JT) Revision Up Just Wasn’t Enough

Telecom

29. Low Expectations at NTT DOCOMO (9437 JT) Led to an Easy Beat
30. KDDI (9433 JT) – Record 3Q OP +13% YoY

Pharma

31. Regenerative Medical Stocks Perky

PSA Company Visits, Tours and Interviews

• Attended earnings meetings at: TDK (6762 JT), JSR (4185 JT), Nitto Denko (6988 JT), Shin-Etsu Chemical (4063 JT), Hitachi Chemical (4217 JT), Zeon Corp (4205 JT), Sekisui Chemical (4204 JT), Dexerials (4980 JT)
• Interviewed / Conference Call with: Tosoh (4042 JT), Nomura Research Institute (4307 JT), Cybozu (4776 JT), HCM (6305 JT), Fanuc (6954 JT), NGK Spark Plug (5334 JT), Denso (6902 JT), Toyota Industries (6201 JT), Komatsu (6301 JT), Aisin Seiki (7259 JT), Toyoda Gosei (7282 JT)
• Results information meeting / calls with: ZOZO (3082 JT)
• Webcasts: CyberAgent (4751 JT)
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