The Must Read PSA Weekly Research Round-up (week to 07 Jun)

REPORTS: Pharma Strategy; US Auto Sales May 2019; CyberAgent’s (4751 JT) Long-Term Growth Prospects Remain Intact; Consumer Electronics: 8K TVs: Why They Matter; Can Toyota (7203 JT) Beat Its Guidance – And Does It Matter / MACRO: METI CYi9 Q1 corporate data series surprisingly good / Plus 18 INDUSTRY & COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

E3 opens on Tuesday June 11, although press conferences begin on Saturday June 8 with Electronic Arts (EA US), while Square Enix (9684 JT) takes the popular Monday 6pm slot. Pelham Smithers take a look at what this E3 means for Japanese gaming companies.

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

1. US Auto Sales Stabilise in May on Lower Interest Rates, Backlog Demand
2. Japan Pharma Sector Strategy
3. CyberAgent’s (4751 JT) Long-Term Growth Prospects Remain Intact
4. 8K TVs: Why They Matter – Implications for Sony (6758 JT)
5. Toyota (7203 JT) Guidance Assessment and Possible Impact of Upgrade

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics / Gaming

1. Google (GOOG US) Stadia Reveal Suggests System Not Yet a Value Proposition
2. Square Enix (9684 JT) in AR Mobile Game Move
3. 8K TVs: Why They Matter

Technology: Electronic Components and Precision

4. Rakuten (4755 JT) Selects NEC (6701 JT) in 5G Base Station Move
5. Toshiba (6502 JT) Sells LNG Position to Total (FP FP)

Chemicals / Materials

6. Kuraray (3405 JT) Expands LCP for 5G


7. Toyota (7203 JT) Diversifies its Battery Supply
8. FCA (FCAU US) Walks Away from Renault (RNO FP): Nissan (7201 JT) Seen as Deal Breaker
9. US Auto Market Stabilises in May; Toyota and Subaru Gain
10. Auto Sector Reflects on Trade Situation

Auto Parts / Machinery

11. Bridgestone (5108 JT) Hikes Tire Prices

Internet / eCommerce

12. CyberAgent (4751 JT): We Maintain our Positive View
13. DeNA (2432 JT): Racing Ahead on High Hopes for Mario Kart Tour
14. Rakuten (4755 JT) and LINE (3938 JT) Announce Cashless Payment Tie-ups
15. Might Japan Also Have an Anti-trust Problem in its Internet Sector?

Enterprise Software

16. Germany’s SAP Launching Start-Up Incubator in Japan
17. Enterprise Software and Outsourcing Stocks Join the Broader Market Rally


18. Pharma Sector Review: Good News for Shionogi (4507 JT) / Mixed News for Astellas (4503 JT) / Warnings on Oncology

Macro / Market

19. METI Q1 Corporate Series Data Surprisingly Good

PSA Company Visits, Tours and Interviews

• Visited: TDK (6762 JT), Zeon Corp (4205 JT), Sekisui Chemical (4204 JT), Nitto Denko (6988 JT), Toray (3402 JT), Mitsubishi Chemical Holdings (4188 JT), Kuraray (3405 JT), Sumco (3436 JT), Nissan Chemical (4021 JT), Ube Industries (4208 JT)
• Attended earnings meetings / participated in earnings calls at: Sumitomo Chemical (4005), Hosokawa Micron (6277 JT), Sumitomo Seika (4008 JT), Rasa Industries (4022 JT)
• Attended strategy / mid-term plan announcement meetings at: Asahi Kasei (3407 JT), Nitto Denko (6988 JT), JEOL (6951 JT), Mitsui Chemicals (4183 JT), Sakai Chemical (4078 JT), Hitachi (6501 JT)
• Interviewed / Conference Call with: TIS (3626 JT), IHI (7013 JT), Aisin Seiki (7259 JT)

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