The Must Read PSA Weekly Research Round-up (week to 26 Jul)
REPORTS: Shin-Etsu Chemical (4063 JT) / SPE Strategy / Modec (6269 JT) / GNI Group (2160 JT) / INDUSTRY INSIGHTS: Video games sector earnings preview / Video games round-up / MISCELLANEOUS MARKET & MACRO: Interest rate discussion heats up as government cuts GDP forecast / June PPI Services +3% YoY adds to rate hike odds / July Tokyo CPI below expectations / COMPANY INSIGHTS, NEWS, PREVIEWS & RESULTS: Koa’s FY24 Q1 OP -73% YoY / Nidec raises FY24 guidance / to expand part production for liquid cooling systems / Renesas Q2 OP below consensus / Canon FY24 Q2 OP +28% YoY / Screen FY24 Q1 OP +107%, raises full-year forecasts / Keyence FY24 Q1 OP +11% YoY / Tokyo Ohka Kogyo hikes FY24 guidance / Shin-Etsu’s guidance looks conservative / Hino: Struggles continue in Asia, but gradual recovery in Japan / MMC misses FY24 Q1 estimates, NA situation deteriorating / Nissan sees sharp drop in FY24 Q1 profits on US weakness
The Weekly Comment by Pelham Smithers
Results season so far is proving a mixed bag both in Japan and globally, comments Pelham Smithers. While at the index level this is problematic, as markets have generally done well this year, it is generating some interesting buying opportunities as well.
Reports / Flash Notes Published This Week: Headlines at a Glance
1. Is a Buying Opportunity Appearing in SPE Names?
2. Shin-Estu Chemical (4063 JT) Rock Solid – Growth to be Driven by Electronic Materials
3. Modec (6269 JT) – Record Profits in FY23 Look Sustainable, not One-Off
4. GNI Group (2160 JT): Booming on China Demand for Fibrosis Treatment
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Video Games Sector Earnings Preview
2. Video Games Industry Round-up
3. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
4. Koa Corp FY24 Q1 OP -73% YoY
5. Nidec to Expand Part Production for Liquid Cooling Systems
6. Nidec Reports FY24 Q1 Results above Estimates, Raises Guidance
7. Renesas Q2 OP Below Expectations
8. Canon FY34 Q2 OP +28% YoY
9. Screen FY24 Q1 OP +107%, Raises Full-Year Forecasts
10. Keyence FY24 Q1 OP +11% YoY
11. Other News & Moves That Caught Our Eye
Chemicals / Materials
12. Shin-Etsu Polymer’s Guidance Exceeds Consensus
13. Tokyo Ohka Kogyo Hikes FY24 Guidance
14. Tokyo Steel FY24 Q1 OP -21% YoY
15. Other News & Moves That Caught Our Eye
Autos / New Mobility
16. MMC Misses FY24 Q1 Estimates, NA Situation Deteriorating
17. Nissan Sees Sharp Drop in FY24 Q1 Profits on US Weakness
18. Hino’s FY24 Q1: Struggles Continue in Asia, but Gradual Recovery in Japan
19. Other News & Moves That Caught Our Eye
Auto Parts / Machinery / Capital Goods
20. Furukawa Electric to Sell Furukawa Battery
21. HCM Q1 OP Comes in 30% Below Consensus
Enterprise Software / IT Services
22. NRI FY24 Q1 Preview / Results Show Solid Start to FY24
23. TIS FY24 Q1 Preview
24. OBC Has Solid Start to FY24
25. Obic’s FY24 Q1 Misses Market Expectations
26. Other News & Moves That Caught Our Eye
Pharma / Healthcare-Related
27. Prescription Drugs Now Available Online Through Amazon Japan
28. Chugai’s FY24 Q2 OP +27% YoY
29. M3 Inc Reports FY24 Q1 OP -6% YoY
30. Other News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
31. CUC: Strong FY24 Q1 but Full- Year Guidance Maintained / Meeting Feedback
32. CUC Meeting Takeaways
Miscellaneous / Market / Strategy / Macro
33. Interest Rate Discussion Heats Up as Government Cuts GDP Forecast
34. PPI Services Rise +3% YoY in June – Adding to Rate Hike Odds
35. Tokyo July CPI Comes in Below Expectations
36. Other News & Moves That Caught Our Eye
PSA Company Visits, Tours and Interviews
Visited / Had Calls with: Insource (6200 JT), CUC (9158 JT), Open Up Group (2154 JT)
Presentations at: Shin-Etsu Chemical (4063 JT), Nitto Denko (6988 JT), Tokuyama Corp (4043 JT)
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