The Must Read PSA Weekly Research Round-up (week to 20 July)

Reports published this week on Honda (7267 JP): Concerns over the medium-term with US Operations & Product Cycle / Esai (4523 JP): Pipeline & Earnings Outlook / Valuation Update on the Chemicals & Electronic Materials Sectors / Pelham Smithers looks at the good news Panasonic (6752 JP) received from the latest teardown on the Tesla Model 3 from Munro & Associates / Pelham also provides a preview on Sony’s (6758 JP) results / Joel Scheiman provides an interesting read across to Nitto Denko (6988 JP)

The Weekly Comment by Pelham Smithers

Over the next two months, there is likely to be a steady build-up in interest in the next generation of iPhones, both from a user viewpoint and from an investor viewpoint. It is probably fair to say that the iPhone situation has been pretty grim through the 1H 2018, as the damage done by the disappointing 2017 / 18 range really starts to bite. (It was really only in 1H 2013 when we saw how truly damaging the underwhelming iPhone 5 was to sales.) Against a backdrop of slowing smartphone sales, Apple’s misjudgments (under investment in iPhone 8 specs, overpricing of iPhone X and chaotic launch of both) have made a tough situation worse.

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

1. Honda (7267 JP): Concerns over the Medium Term – US Operations and Product Cycle
2. Eisai (4523 JP): Pipeline and Earnings Outlook
3. Chemical / Electronic Materials: Valuation Update

Company / Sector / Thematic Comments at a Glance

1. Sony (6758 JP) 1Q FY18 Preview
2. Casino Bill Goes to Upper House
3. Panasonic’s (6752 JP) Batteries Behind Tesla Model 3 Cost Advantage?

Chemicals

4. TSMC’s (2330 TT) Guidance Auspicious for Shin-Etsu Chemical (4063 JP)
5. Asahi Kasei (3407 JP) Announces a US$1bil Auto Interior Acquisition
6. Fujifilm (4901 JP) – Tissue Engineering Potential
7. Japan Tissue Engineering (7774 JP) to Maybe Tackle Knee Pain
8. Nucleic Acid Drugs May Finally be Taking Off – Read Across to Nitto Denko (6988 JP)

Autos

9. Suzuki (7269 JP) – a Risky Hedge?
10. US Auto Financing Environment Deteriorates
11. A/C Makers Still Hot

Auto Parts / Machinery

12. China Construction Demand Strong say Nachi-Fujikoshi (6474 JP)
13. Construction Machinery Pick Up

Pharma

14. Astellas (4503 JP) Considering Sale of East European Assets

Miscellaneous

15. Results Season – Week 1 Preview

PSA Company Visits, Tours and Interviews

• Analyst Meeting with Nachi-Fujikoshi (6474 JP)
• Conference call with Asahi Kasei (3407)

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