The Must Read PSA Weekly Research Round-up (week to 11 Jun)

REPORTS: Shinko Electric (6967 JT) / Toyota Motor (7203 JT) / INDUSTRY INSIGHTS: Japan goes national with its semiconductor project / Japan MedTech stocks rally on expectations for clearer regulation / KKR to raise investments in Japanese cloud software start-ups: report / Vaccination program plays moving / COMPANY INSIGHTS: Growing ARM-Based CPU adoption seen as positive for Shinko, Ibiden / Tokyo Electron’s ASML research deal set to secure NA EUV era market / Is the market too pessimistic about TDK? / Plus additional COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Pelham Smithers comments on Hitachi’s IR Day, which he was pleased to discover was more worthwhile than expected.

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

1. Shinko Electric (6967 JT) – Upside Potential
2. Toyota’s Electrification Strategy – Getting the Message Across

Company / Sector / Thematic Comments at a Glance

Technology: Consumer & Industrial Electronics / Electronic Components / Semis & SPE

1. Japan Goes National with Its Semiconductor Project
2. Tokyo Electron’s (8035 JT) Research Deal with ASML Set to Secure NA EUV Era Market
3. Growing ARM-Based CPU Adoption Seen as a Positive for Shinko, Ibiden
4. Other Tech News & Moves That Caught Our Eye

Chemicals / Materials

5. Showa Denko (4004 JT): To Divest PWBs / Working with Seagate on HAMR Tech-Based Media
6. Is the Market Too Pessimistic About TDK (6762 JT)?
7. Nissha’s (7815 JT) Medical Business Looks Promising

Auto Parts / Machinery

8. Daikin (6699 JT): Further M&A to Weigh on Medium-Term OPM
9. Diamond Elec (6699 JT) FY20 Results Call Neutral but We Remain Positive
10. Komatsu (6301 JT) / HCM (6305 JT): China Competition Tough; Read Across to Nabtesco (6268 JT)
11. May Machine Tool Orders +140% YoY Should Benefit Fanuc (6954 JT)

Internet / eCommerce / Fintech

12. Internet / eCommerce Moves & News That Caught Our Eye

Enterprise Software

13. Japan MedTech Stocks Rally on Hopes for Clearer Regulation
14. KKR to Raise Investments in Japanese Cloud Software Start-Ups: Report
15. Money Forward (3994 JT) to Move to TSE1
16. PKSHA (3993 JT) Teams up with: Microsoft’s Teams

Pharma

17. Eisai (4523 JT) / Biogen (BIIB US): Aducanumab Decision / Aduhelm Prospects
18. Vaccination Program Plays Moving

Miscellaneous

19. MonotaRO’s (3064 JT) May Sales +19%
20. Other Moves & News That Caught Our Eye

PSA in the Press

Financial Times: “Unhedged: we are Japan, circa 1987 – Is a huge rally coming?” by Robert Armstrong [June 9th]. Pelham Smithers recalls lessons from the past with regard to earnings, the yen and the economy. 

PSA Company Visits, Tours and Interviews

• Visited: TDK (6762 JT), Kaneka (4118 JT), Mitsui Chemicals (4183 JT), Toyota Ind (6201 JT), Diamond Electric (6699 JT), Daikin (6367 JT)
• Conference Calls with: Email Q&A with Medley Inc, Olympus (7733 JT), Diamond Electric (6699 JT)
• Presentations at: Fujifilm Holdings (4901 JT), Mitsui Chemicals (4183 JT), Nissha (7915 JT), Ohara Inc (5218 JT), Daikin (6367 JT)

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