The Must Read PSA Weekly Research Round-up (week to 08 Jun)

The PSA Must Read Weekly Research Round-Up: Reports published this week on US Auto Sales for May / Internet Initiative japan (3774 JP) / SMC (6273 JP) / Pelham Smithers looks at Canon’s (7751 JP) plans to boost OLED deposition systems and also takes a look at the IC Market / Pelham also looks at Japan’s Equivalents to FANG stocks and Mobile Game Stocks to consider

The Weekly Comment by Pelham Smithers

“I respect Bitmain, but we will top them” GMO Internet CEO Masatoshi Kumagai.
Bitmain is one of those “very large companies that you may never have heard of”, although that may be about to change as indications are that the company is looking to IPO. The company, which is only five years old, makes Bitcoin (XBT) mining chips. In 2017, it purportedly had revenues of US$2.5bil, such was the demand from the burgeoning crypto-currency mining industry. Bitmain’s chips are generally sold as part of a mining rig – Antminer – which sells for $400~$3,000. Such rigs resemble servers, but with much of the innards taken out and replaced by between 20 and 400 identical chips. Bitmain was, by a long way, the largest such provider of these rigs in 2017, with an estimated market share of 75%. Behind it was Canaan Technologies with a share of around 15%. Canaan has already filed for an IPO with a targeted valuation of around US$1bil, suggesting that should Bitmain proceed as well, it could probably garner a valuation of around US$8bil…..

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

1. US Auto Sales May: SAAR Drops Below 17mil Units
2. Internet: Internet Initiative Japan (3774 JP) – New Sources of Growth in MNVO and Cryptocurrency
3. SMC (6273 JP) – Expanding Share via Semiconductors

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. What are Japan’s Equivalents to FATMANG?
2. Hot Apps Having Implications for Japanese Mobile Game Stocks
3. Nintendo Shares Slump Early in the Week Despite Pokémon for Switch
4. Capcom (9697 JP) Sets Date for Rockman XI Release
5. How Different Will Japanese Casinos Be?

Technology: Industrial Electronics / SPE / Electronic Components / Precision

6. Trouble in the IC Market?
7. Engadget Flags the Mirrorless Issue
8. Why Our Meeting with Canon (7751 JP) Was Worrisome
9. Value in Hitachi (6501 JP)

Technology: Blockchain / Bitcoin / Cryptocurrency

10. IIJ (3774 JP) in Major Crypto / Blockchain Move

Chemical

11. Nitto Denko (6988 JP) to Benefit from OLED and LCD
12. Fujifilm (4901 JP) – Know When to Walk Away
13. Petrochemical Spreads are Exceeding Guidance
14. Japan Slow to Recognize Ocean Plastic Pollution

Automobile

15. Honda (7267 JP) and GM to Cooperate on Batteries
16. Japanese Automaker’s May US Sales Performance
17. Mazda3 (7261 JP): Smart Looks and Smart Technology
18. Further Issues with Subaru’s (7270 JP) Test Procedures

Auto Parts / Machinery

19. Attractive 3yr Targets for Daikin
20. Fanuc (6954 JP) Automotive Robotics Likely to Rise in FY18

Telecom

21. SoftBank’s (9984 JP) ARM to Sell Majority Stake in China Venture

Internet

22. Kakaku.com (2371 JP): 25,000 Restaurants Have Signed Up for the New Pricing Plans
23. Start Today (3092 JP): ZOZO Launches New Product Line

Macro

24. Little Change to Japanese GDP Numbers
25. Japan Capex +17% in F18 – Nikkei Survey
26. Disappointing April Wage Data

PSA Company Visits, Tours and Interviews

  • Visited Mitsubishi Chemical Holdings (4188 JP), Kuraray (3405 JP), Zeon Corp (4205 JP)
  • Attended earnings meetings at Nihon Dengi (1723 JP), Rasa Industries (4022 JP)
  • Attended information meeting at Ube Industries (4208 JP)
  • Conference call with Yahoo Japan (4689 JP)

PSA in the Press

PSA quoted by Reuters and the Wall Street Journal on the SoftBank / ARM sale [https://www.wsj.com/articles/softbanks-arm-holdings-to-sell-majority-stake-in-china-business-1528204432]

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