The Must Read PSA Weekly Research Round-up (week to 10 Jul)

REPORTS: Oro (3983 JT) / Yaskawa Electric (6506 JT) / Densan Systems (3630 JT) /
MARKET / MACRO: The “Lying-V” shape recovery / Masayoshi vs Masatoshi / Latest Japan data indicates economy on a knife edge / Economy Watchers Survey ahead of expectations / PPI better than expected / Plus additional INDUSTRY and COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Canon’s slow shift in status from poster child of Japan Inc to problem child is a source of endless fascination to the seasoned market watchers who work at PSA. Pelham Smithers here discusses how the July 28 2Q results are likely to mark a further stage in the decline of the company’s fortunes. Is Mitarai the man to heal its ills?

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

1. An Introduction to Oro Co (3983 JT) – Not Quite the Pot of Gold for Investors
2. Yaskawa Electric (6506 JT) FY20 Q1 Preview: Strong post-Q1 guidance could lift Machinery Sector higher
3. An Introduction to Japan’s Accidental Fintech Player – Densan System Co Ltd (3630 JT)

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Worries Grow Over State of Global Music Business
Technology: Industrial Electronics and Electronic Components
2. Has Japan Finally “Got” New NEC (6701 JT)?
3. NEC (6701 JT) in SomaLogics Tie Up
4. Apple to Use OLED on All New iPhones
5. Small-Cap Value EV-Play Hioki EE (6866 JT) Making Some Big Moves

Technology: Semiconductor Production Equipment & Precision

6. Philadelphia Semiconductor Index Bounce Sends SPE Stocks Higher

Chemicals / Materials

7. Fujifilm Holdings’ (4901 JT) Avigan Fails Efficacy Study
8. Petrochemicals – Live Long and Prosper?
9. Asahi Kasei (3407 JT) / Sekisui Chemical (4204 / JT) June Housing Orders
10. Flooding Disrupts Business in Southern Japan

Autos

11. Fuel Cell Trucks in the Spotlight
12. Bridgestone Develops EV-Specific Tyre

Auto Parts / Machinery

13. If it Ain’t Broke…Big Ones Close at New Listing Highs: Yaskawa July 10 FY20 Q1 Disappoints
14. Yaskawa FY20 Q1 OP (-21% YoY) Unlikely to Boost Machinery Sector

Internet / eCommerce

15. BASE Inc (4477 JT): The Number of BASE Shops Exceeds 1.1mil
16. BASE Inc (4477 JT) on its Competitor, GMO Pepabo (3633 JT)
17. Still Confident in CyberAgent (4751 JT)

Enterprise Software

18. Sansan (4443 JT) Raises its FY19 Forecasts
19. Densan System (3630 JT) Hits an All-time High

Telecom

20. Pepper Goes to the Ball Game

Pharma

21. Eisai (4523 JT)-Linked Drugs in the News

Miscellaneous

22. MonotaRO (3064 JT) June Sales +31% YoY
23. Takashimaya’s (8233 JT) FY20 1Q: Impressive Damage Control but Macro Implications Worrisome
24. Downward Revision for Tosei Corp (8923 JT) vs Upside at GA Technologies
25. Masayoshi vs Masatoshi

Market / Strategy

26. The “Lying-V”-Shaped Recovery
27. Covid Cases Rising, Tokyo Governor Koike’s Strategies
28. Nikkei 225 Substitutions
29. Global Concerns Drag Tokyo Down; New Lows Logged Aplenty

Macro

30. Latest Japan Data Indicates Economy on a Knife Edge
31. Economy Watchers’ Survey Ahead of Expectations
32. PPI +0.6% MoM, Higher than Expected

PSA Company Visits, Tours and Interviews

• Interviewed / Conference Calls with: Olympus Corp (7733 JT), Nitto Denko (6988 JT)
• Participated in earnings call with: Yaskawa (6506 JT)

*If you would like access to the full weekly the reports highlighted, or the full Weekly (which includes the full comment) and if you would like to see the list of reports produced YTD, please contact our sales team.
You can also find PSA research on FactSet, Thomson Reuters (Reuters Knowledge, Thomson One Analytics, Starmine), Capital IQ, Bloomberg (under PSAZ < GO> or by typing in the < stock code> equity CN PSA), Research Exchange and ResearchPool.