The Must Read PSA Weekly Research Round-up (week to 27 Mar)

REPORTS: Japan Market Strategy / MACRO: Sector performance on Mar 23 underscores defensive, balance sheet, and oil sensitivity of the market / INDUSTRY INSIGHTS: US auto market in crisis / Flash, DRAM prices diverging / Will Covid-19 end the LBP business model? / Plus additional COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Pelham Smithers notes how the Japanese stock market’s reaction to the Covid-19 pandemic falls into two neat blocks each a month long. He discusses what, as of now, are the opportunities offered by the market to institutional investors.

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

1. Japan Stock Market Strategy – Spread of Covid-19 in Japan

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Sony (6758 JT) Seems to Reverse Upward Revision
2. Square Enix (9684 JT) Weekly iOS Run-Rate US$10mil
3. Launch of Nintendo’s (7974 JT) Animal Crossing: New Horizons Huge

Technology: Industrial Electronics, SPE, Components

4. TDK (6762 JT) Revises Down
5. Flash, DRAM Prices Diverging
6. Holon (7748 JT) Upward Revision a Reminder that EUV Story is Intact
7. Canon (7751 JT): One of the First to Report March Quarter Numbers
8. Does Covid-19 End the LBP Business Model?
9. Ricoh (7752 JT) to Return an Additional ¥100bil to Shareholders (Apparently)

Chemicals / Materials

10. Asahi Kasei’s (3407 JT) Subsidiary Zoll Ramps Up Ventilator Production
11. JSR (4185 JT) Hit by Weak Tire Demand
12. W-Scope (6619 JT) Faces a Potential Credit Crunch
13. Mitsubishi Chemical (4188 JT) and Ube (4208 JT) Combine Some LiB Operations

Autos

14. US Auto Market in Crisis
15. Toyota (7203 JT) to Partner with NTT on Smart Cities
16. Mitsubishi Corp (7058 JT) to Invest in Renault (RNO FP)?

Auto Parts / Machinery

17. Daifuku’s (6383 JT) Stock Has Outperformed Considerably
18. IHI (7013 JT) Subside after a Shipbuilding Bounce

Internet / eCommerce

19. mixi (2121 JT) Revises Upward Again
20. Kakaku.com (2371 JT) Assailed by Covid-19 from Multiple Directions
21. istyle (3660 JT) & ZOZO (3092 JT): Two E-Commerce Firm Not Benefiting from Covid-
22. Cybozu (4776 JT): Strong Feb 2020 Sales Growth
23. PKSHA (3993 JT): What Does the Toyota-NTT Capital Alliance Mean for this AI Start-Up?
24. Oracle Japan (4716 JT) Maintains FY19 Sales and EPS Forecasts Despite Covid-19 Pandemic

Telecom

25. SoftBank Group (9984 JT) Selling Assets / Buying Back Shares

Miscellaneous

26. Yamato (9064 JT) Ties Up with Z Holdings (4689 JT)

Market / Macro

27. Mar 23 Sector Performance Underscores Defensive, Balance Sheet & Oil Sensitivity Nature of Market
28. Japan and Covid-19

PSA Company Visits, Tours and Interviews

• Interviewed / Conference Call with: Asahi Kasei (3407 JT)

PSA in the Press

• Pelham Smithers is quoted in a Bloomberg article on Mar 26, SoftBank’s Big Bet on Sharing Economy Backfires with Coronavirus.

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