The Must Read PSA Weekly Research Round-up (week to 27 March)
Reports / Flash Notes Summaries
1. Nitto Boseki (3110 JT) – Glass ‘Full to the Brim’
Advanced materials analyst Nicky Karanasou-Demertzi provides a deep dive into the technology behind Nitto Boseki’s glass fibre range – particularly for its T-glass product, which is used within copper-clad laminates in advanced semiconductor packing to control warpage and help with signal transmission. This report highlights the firm’s entrenched position within hyperscalers’ supply chains, alongside forecast revisions reflecting the anticipated evolution of semiconductor industry demand.
2. Nabtesco (6268 JT) – Nvidia Chips & New Reduction (Robot) Gear Line
William Nestuk outlines the upside to Nabtesco’s earnings as he sees the recovery in Reduction (Robot) Gears as the main earnings catalyst followed by expanding high margin MRO (maintenance, repair, operations)-related work. Moreover, given the good earnings visibility, he sees FY28 fair value at ¥6,300 (+55% upside) producing a PER of 23x and EV/OP of 15.5x based on PSA forecasts.
3. Trend Micro (4704 JT) – First-class Solutions Driving Platform Adoption
Trend Micro is navigating one of the most important strategic transitions in its 35 year history as it shifts from a traditional security vendor to a unified, platform centric cybersecurity leader. This update by Thao Nguyen explores the market’s reaction to Anthropic’s Claude Code Security launch, Trend Micro’s competitive edge across threat intelligence and global partnerships, and the enterprise and consumer dynamics shaping its path toward FY28 targets.
4. Denso (6902 JT) – Rising Costs Limiting Earnings Growth
Ahead of Denso’s presentation of its mid-term strategy plan next week, analyst Julie Boote reviews the company’s business and earnings outlook. Denso is facing challenges on the sales side, such as the slowdown in EV sales growth, surging R&D expenses, quality expenses and rising input costs. Market expectations are high for a strong earnings growth as Denso expands its software related businesses, but risks are rising that expectations won’t be met.
Industry Insights
Video games round up
Does DLSS 5 remove video game design’s “uncanny valley” issue?
Spot DRAM prices down again
Naphtha supply issue
Japan rare earth theme takes on US dimension
Will rising oil prices support EV sales?
Japanese automakers continue to struggle in Europe
Inbound tourism for Feb
Macro / Market / Misc.
BoJ likely to leave rates unchanged; new inflation data ex-effect of government policy to come
Japan Feb Nationwide CPI, PMIs weaken in March
Foreign selling
Company Insights: News / Previews & Results
Switch 2 production cut
Monster Hunter Stories 3 solid start in UK, Steam rankings
Kadokawa – is it salvageable?
Spider-man: Brand New Day trailer crosses 1bil views mark
Disappointing 24 hours for Sony
Alphabet spurs sell-off in memory stocks with TurboQuant reveal
NEC in data centre revamp
Nvidia Rubin GPU launch Issues
Renesas: power semi realignment
SK Hynix: massive EUV order as it targets US$10bil US listing
Murata – price hikes from April
Rigaku attracting attention on SSD / HBM demand
Toshiba, Rohm, Melco in chip merger talks
Nippon Sanso unveils new MTP
Shin-Etsu raises Japan PVC prices
Fujikura’s capex plans eases overspend worries
Furukawa listing high
Nissan / Wayve testing robotaxis with Uber
Honda cancels Afeela
GA Technologies Q1 OP loss; FY guidance unchanged
Net Protections gets sued
LY Corp to become the largest shareholder of Kakao Games
Visional: FY26 Q2 preview / results beat
PKSHA: PropTech and software acquisitions
ValueAct raises stake in Money Forward
Park24 – Feb KPIs / UK business liquidation
Anicom’s Feb KPIs remain firm
The Weekly Comment by William Nestuk
Cable maker stocks have been rallying since the early days of ChatGPT, but even after another excellent quarter, they are still hitting new highs.
Driving them higher this time, are strong orders for transceiver – something that analyst William thinks looks set to be in place for some time to come.
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Video Games Round Up Part 1
2. Video Games Round Up Part 2
3. Monster Hunter Stories 3 Shows Solid Start in UK, Steam Rankings
4. Sony Gives Back All of its Relative Performance Gains Since 2020
5. Good News for Sony’s Film Division / Spider-man: Brand New Day Trailer Crosses 1bil Views Mark
6. Disappointing 24 Hours [26 Mar] for Sony
7. Kadokawa – Is It Salvageable?
8. Nintendo Cuts Switch 2 Production
9. Will Nintendo’s Price Cut Work?
10. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
11. Spot DRAM Prices Continue to Slide
12. Nvidia Rubin GPU Faces Launch Issues
13. Murata – Price Hikes from April
14. Does DLSS 5 Remove the “Uncanny Valley” Issue for Video Game Design?
15. Rigaku Attracting Attention on SSD / HBM Demand
16. Renesas Sets Out Position on Power Semiconductor Realignment
17. SK Hynix in Massive EUV Order as It Targets US$10bil US Listing
18. Alphabet Spurs Sell-Off in Memory Stocks with TurboQuant Reveal
19. NEC in Data Centre Revamp
20. Toshiba, Rohm and Melco in Chip Merger Talks
21. Nidec’s CEO to Step Down from Board of Directors
22. Other News & Moves That Caught Our Eye
Chemicals / Materials
23. Japan Government Tries to Reassure Markets Over Naphtha Supplies
24. Naphtha Supply Becomes a Pressing Issue
25. Japan Rare Earth Theme Takes on US Dimension
26. Nippon Sanso’s New MTP, Aiming for OPM, Ebitda Margin Expansion
27. Shin-Etsu Chemical Raises Japanese PVC Prices
28. Other News & Moves That Caught Our Eye
Autos / New Mobility
29. Will Rising Oil Prices Support EV Sales?
30. Japanese Automakers Continue to Struggle in Europe
31. Nissan and Wayve Testing Robotaxis with Uber
32. Honda Cancels Afeela
33. Other News & Moves That Caught Our Eye
Capital Goods / Machinery
34. Fujikura Capex Plans Ease Overspend Worries
35. Furukawa Listing High; Positive Read
Internet / eCommerce
36. J-Tech Posts Q1 Operating Loss; Keeps FY Target / Shares Up 4-Days in a Row
37. Net Protections Gets Sued
38. LY Corp to Become the Largest Shareholder of Kakao Games
39. Askul Revises Down its FY26 Guidance
40. Other News & Moves That Caught Our Eye
Enterprise Software / IT Services
41. Visional: FY26 Q2 Preview / Results
42. PKSHA Adds to Acquisitions / Its GenAI Chatbot Gets a New Client
43. ValueAct Raises Stake in Money Forward
44. Other News & Moves That Caught Our Eye
Pharma / Healthcare
45. Pharma News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
46. Park24 – Solid February KPIs
47. Park24: UK Business Fate Announced / Analyst Meeting Feedback
48. Inbound Tourist Numbers Rise +6.4% YoY in Feb 2026
49. Anicom February KPIs Remain Firm
Macro / Market / Strategy / Misc.
50. BoJ Expected to Leave Rates Unchanged, but Post Market Comments Could be Key
51. BoJ To Announce New Inflation Data That Strips Out Effect of Government Policy
52. Japan Feb Nationwide CPI Falls MoM, PMIs Weaken in March
53. Foreigners Net Sellers for First Time in 2026
54. Other News & Moves That Caught Our Eye
PSA in the Press
Autos / New Mobility analyst Julie Boote features in the following article:
Bikes Keep Honda Afloat Yet Even That Business Is Under Pressure – Bloomberg [25 Mar]
Excerpt: Ramping up motorcycle production could be a double-edged sword. Even if Honda manages to increase sales, that could dilute its profit margins, according to Julie Boote, an analyst at London-based research firm Pelham Smithers Associates Ltd. “You might still have the branding but it’s a different game now, with different players.”
ERP Software / IT Services analyst Lindsay Whipp features in the following article:
Low Japan AI Use Spurs Hunt for Software Winners: Taking Stock – Bloomberg [26 Mar]
Excerpt: “This gives Japan’s system integrators something of a cushion, which they can turn to their further advantage by consistently offering value-added proposals that keep them indispensable,” said Lindsay Whipp, an analyst at Pelham Smithers Associates. Pelham’s Whipp sees the broader selloff as an opportunity to identify potential outperformers. “Over time, the distinction between winners and losers should become clearer,” she said, adding that firms with large volumes of proprietary data and those operating in highly regulated industries have an advantage.
PSA Company Visits, Tours and Interviews
Visited: Shin-Etsu Chemical (4063 JT)
1-1 Call with: Park24 (4666 JT)
Presentations at: Shin-Etsu Chemical (4063 JT), Toray (3402 JT), Resonac (4004 JT), Park24 (4666 JT)
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