The Must Read PSA Weekly Research Round-up (week to 06 March)
Reports / Flash Notes Summaries
Japanese Video Games Industry Outlook – Picking Winners as Memory Chips and AI Threaten the Status Quo
The Japanese video game sector joined in the global sell-off in video game stocks that has been in place since mid-2025. However, the sector put in a decent set of numbers in 2025 Q4 and has got off to a good start in 2026. We remain wary of the impact of higher memory chip prices, but view AI concerns as misplaced, at least when it comes to content producers. Several Japanese video game stocks have potential hits in 2026, but Pelham Smithers notes that one stock in particular stands out.
Nidec (6594 JT) Releases Results of Third-Party Accounting Investigation
On 3 March, Nidec (6594 JT) presented some interim findings of its Third-Party Committee investigation into the firm’s accounting misconduct, and top management followed up a press conference an hour later. Analyst Julie Boote reviews the findings thus far, discusses the consequences – both organisational and financial – and considers what could be next for the motor maker.
Intermestic (262A JT) SSS Growth Ahead to be Catalyst for Stock
Small- / medium-cap specialist Hiroyuki Terada provides feedback from a web meeting with Intermestic to review its FY25 (Dec yr-end) Q4 results and to discuss the business outlook for FY26 Q1 and beyond.
Visional (4194 JT) FY26 Q2 Preview – Another Earnings Beat?
Visional will report FY26 Q2 results on 17 March. It is trading on attractive FY26 EV/OP of 9.5x (consensus estimates) and 8.5x (PSAe). With a track record of beating consensus estimates, analyst Lindsay Whipp thinks it is in a good position to at least meet and potentially beat this time as well – depending on the level of marketing outlays. The wild card is the strength of the labour market. Although the company is positive about demand on its BizReach platform, the broader market has been gradually softening for some time.
Industry Insights
Video games round-up
“Plus P&P” adding to rising costs for exporters
Macro / Market / Misc.
“Union wages” & “actual wages”: Japan’s parallel employment universes
Company Insights: News / Previews & Results
Hitachi sets sights on acquisitions of ¥1tril+
Murata completes sale of micro primary battery business on 800G testing equipment opportunity
Anritsu bucking market selloff
Shin-Etsu Chemical to invest again in the US PVC chain
Denso to Buy Rohm?
Fuji Electric hit by Denso-Rohm news
JX Advanced Metals attracting attention on recycling front
Toyota raises Toyota Industries TOB to close deal
Suzuki’s vulnerability to Middle East conflict
Impact of Middle East conflict on Isuzu and Hino
PayPay launches the roadshow for its US IPO
DeCurret in digital currency POC with Gamba Osaka
Park24 – meeting takeaway
Intermestic’s KPIs likely to be solid again in March
The Weekly Comment by Pelham Smithers
One of the features of recent weak inflation numbers in Japan has been lower utility rates.
The spike in oil prices brought about by the attack on Iran poses a double problem for monetary policy. Pelham Smithers discusses.
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Video Games Round-Up [Week to 22 Feb]
2. “Plus Postage & Packaging” Adding to Rising Costs for Sony and Nintendo
3. Resident Evil Requiem Launch Sales Hit 5mil, +60% on Previous RE Games
4. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
5. Hitachi Sets Sights on Acquisitions of ¥1tril+
6. Murata Completes Sale of Micro Primary Battery Business
7. Details of Nidec’s Fraudulent Accounting (Finally) Come to Light
8. Anritsu Bucking Market Selloff On 800G+ Testing Equipment
9. Denso to Buy Rohm?
10. Fuji Electric Hit by Denso-Rohm News
11. Other News & Moves That Caught Our Eye
Chemicals / Materials
12. Shin-Etsu Chemical to Invest Again in the US PVC Chain
13. JX Advanced Attracting Attention on Recycling Front
14. Other News & Moves That Caught Our Eye
Autos / New Mobility
15. Toyota Raises Toyota Industries TOB to Close Deal
16. Suzuki’s Vulnerability to Middle East Conflict
17. Impact of Middle East Conflict on Isuzu and Hino
18. Other News & Moves That Caught Our Eye
Internet / eCommerce
19. PayPay Launches the Roadshow for Its US IPO
20. Timee’s FY26 Q1 Results Preview
21. Other News & Moves That Caught Our Eye
Enterprise Software / IT Services
22. DeCurret in Digital Currency POC with Osaka Gamba
Small- / Mid-Cap Insights
23. Park24 – Meeting Takeaway
24. Intermestic’s KPIs Likely to be Solid Again in March
Macro / Market / Strategy / Misc.
25. “Union Wages” / “Actual Wages”: Japan’s Parallel Employment Universes
26. Other News & Moves That Caught Our Eye
PSA in the Press
Toyota’s buyout deal is a bigger win for Elliott than for governance | Reuters – [3 Mar]
https://www.reuters.com/sustainability/sustainable-finance-reporting/toyotas-buyout-deal-is-bigger-win-elliott-than-governance-2026-03-03/
Excerpt: While the deal was widely seen as a test case for corporate governance in Japan, Julie Boote, auto analyst at Pelham Smithers Associates, said the outcome showed there was still a long way to go for safeguarding minority shareholders’ rights in Japan. “The recent developments do not demonstrate that Japanese corporate governance reforms have prompted changes among companies’ attitudes towards shareholders’ rights – given that Toyota was forced to cave in and put up a fight not to do so,” she said in a note to clients.
Technology Analyst and Market Strategist Pelham Smithers features in the following article:
Nintendo’s Biggest Money-Maker Under Siege From Chip Price Surge – Bloomberg [5 Mar]
Excerpt: Besides consumer unhappiness about having to spend $50 plus – the cost of a new game – for MicroSD Express cards that can provide additional storage, the problem poses long-term risks for the company, said Pelham Smithers, managing director at Pelham Smithers Associates. “If the Switch 2 gets a reputation for being just a vehicle for Nintendo games, then third parties may stop trying, which can start a domino effect in terms of consumer interest,” he said.
PSA Company Visits, Tours and Interviews
Visited: Intermestic (262A JT), Park24 (4666 JT)
Presentations at: Nidec (6594 JT)
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