The Must Read PSA Weekly Research Round-up (week to 6 June)
Reports / Flash Notes Summaries
1. Much Discontent over Toyota Industries Privatisation Deal
With details of Toyota Industries’ privatisation plan finally revealed, questions of corporate governance are being raised. Analyst Julie Boote investigates.
2. SBI Holdings (8473 JT) – Migrating from Star Broker to Star Banker
Pelham Smithers reviews the changing face of SBI Holdings. The firm is widely viewed as an online broker with other financial services tagged on. In fact, broking is not its biggest business, as banking accounts for over 50% of core profits. This report explains how the firm developed into the entity it is today and outlines the future value of the SBI Shinsei listing, with a compare and contrast to Rakuten Bank. There is also talk of Ripple Labs being listed. We question whether these two factors are fully reflected in the valuation.
3. Timee Inc (215A JT) – Not Shaken by Intensifying Competition
Timee is by far the dominant leader in the on-demand job market, which is estimated to reach ¥5tril in 2030. In this initiation report, analyst Thao Nguyen explains the business and its competitive advantages and provides forecasts.
4. Kakuyasu Group (7686 JT) – Attractive Dividend Yield & New Opportunity
In the wake of Kakuyasu’s strategic acquisition of Daiwa Express, which will enable it to expand its delivery services and achieve higher margins, analyst Hiroyuki Terada adjusts his numbers.
5. Moriya Transportation Engineering & Maintenance (6226 JT) – Solid Repairs Continue
Having reviewed the FY24 performance and FY25 outlook of Moriya, analyst Hiroyuki Terada has revised up his forecasts. Despite the shares having doubled, he finds that the stock is still on undemanding valuations.
Industry Insights
Video games industry round-up
Japanese AI stocks revisited
Auto sector concern over supply disruption
US auto sales May: Mixed performance from Japan’s assemblers
Defence plays continue to rise
Automation continues to be sold off
Company Insights: News / Previews & Results
The Switch 2 has launched; now we wait
Is making mid-budget movies enough for Sony?
Elden Ring Nightreign player numbers start to slip
SoftBank and Intel in AI memory chip JV
Toyota Industries buyout details / share price speculation
Santen myopia drug approved in EU
Insource reports May KPIs
Net Protections shares firm
Timee waives fees for rice mill plants
Intermestic May KPIs: tough hurdles
Miscellaneous / Market / Macro
Japan’s population has declined for 18 consecutive years
How weak is Japan’s household spending really
FY24 Q4 Capex +6% YoY
The Weekly Comment by Pelham Smithers
The turnaround of Shinsei Bank by SBI Holdings is only the latest in a series of successful turnarounds for Japanese corporate brands.
As in the case of Nissan Motor, the turnaround itself may run into trouble, but that it is happening at all is interesting, thinks Pelham Smithers.
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Video Games Industry Round-Up
2. The Switch 2 Has Launched; Now We Wait
3. Is Making Mid-Budget Movies Enough for Sony?
4. Elden Ring Nightreign Player Numbers Start to Slip
5. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
6. Japanese AI Stocks Revisited
7. SoftBank and Intel in AI Memory Chip JV
8. Other News & Moves That Caught Our Eye
Chemicals / Materials
9. Restructuring Continues at Japan’s Petrochemical Suppliers
10. Other News & Moves That Caught Our Eye
Autos / New Mobility
11. Auto Sector Concerned over Supply Disruptions
12. May US Auto Sales: Mixed Results from Japanese Assemblers
13. Other News & Moves That Caught Our Eye
Auto Parts / Machinery / Capital Goods
14. Toyota Industries Buyout Details Announced / Share Price Speculation
15. Defence-Plays Performance Strong
Internet / eCommerce
16. Japan’s Population Has Declined for 18 Consecutive Years
17. Net Protections: Strong Momentum Continues
18. Timee Waives Fees for Rice Mill Plants
19. Other News & Moves That Caught Our Eye
Pharma / Healthcare
20. Santen Myopia Drug Approved in EU
21. Other News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
22. Insource Reports May KPIs
23. Intermestic May KPIs: Tough Hurdles
Miscellaneous / Market / Strategy / Macro
24. How Weak is Japan’s Household Spending Really?
25. FY24 Q4 Capex +6% YoY
26. Other News & Moves That Caught Our Eye
PSA in the Press
The FT Lex column [30 May] cites PSA: Nissan’s big problem is not profitability — it’s BYD
Julie Boote’s views on the price of the TOB for Toyota Industries in the following article: Toyota Industries Buyout Hinges on Squeezing Minority Investors – Bloomberg [4 Jun]
PSA Company Visits, Tours and Interviews
Visited: Kakuyasu Group (7686 JT), Moriya Transportation Engine & Mfg (6226 JT), Kaneka (4118 JT)
1-1 Call with: Kyoritsu Maintenance (9616 JT), Insource (6200 JT), Intermestic (262A JT)
Presentations at: Kioxia (285A)
Small Meeting: Asahi Kasei (3407 JT)
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