The Must Read PSA Weekly Research Round-up (week to DD MMM)

REPORTS: IT System Integrators: FY19 Q4 Earnings Preview / Fanuc (6954 JT) FY19 Results / Gloomy Outlook for Motorcycle Sales / INDUSTRY INSIGHTS: The car’s new function: as protective equipment / Lockdown video game update / SoftBank’s 5G network underscores backhaul is key for now / Tokyoites are shunning ATMs and that augurs well for digital payments / MACRO / MARKET: Japan slides ahead of Golden Week / Plus additional EARNINGS PREVIEWS / RESULTS and COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Politics and business, China and the world. Covid-19 is incubating issues for investors which will last beyond the duration of the pandemic’s effect of shutting down the world. Pelham Smithers analyses the situation.

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

1. IT System Integrators: FY19 Q4 Earnings Preview
2. Fanuc (6954 JT): FY19 Q4 N. America Robotics Soar
3. Gloomy Outlook for Motorcycle Sales: When the Car Business Sneezes, Motorcycles Catch a Cold

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Panasonic’s (6752 JT) Non-Revision Revised Earnings
2. Lockdown Video Games Update

Technology: Electronic Components, SPE & Precision

3. Murata FY19 4Q OP +25% YoY
4. Pros and Cons for Nidec (6594 JT)
5. Lasertec (6920 JT): FY20 3Q OP +48% YoY
6. Mitarai Takes Back Control at Canon (7751 JT)

Technology: Bitcoin / Cryptocurrency and Blockchain

7. SBI Holdings (8473 JT) Sees Strong Performance in Financial Services

Chemicals / Electronic Materials

8. Shin-Etsu Chemical: Good Not to be Surprised
9. Sekisui Chemical’s (4204 JT) Shocking FY20 1H Guidance
10. Nitto Denko (6988 JT) Guides for FY20 1H OP to Fall 14.8% YoY
11. Chemical Company Results
12. Koei Chemical (4367 JT) Supplies Both Avigan and Remdesivir

Autos

13. Nissan (7201 JT) Expects Significantly Lower Profits Compared to Feb Guidance
14. The Car’s New Function: as Protective Equipment

Auto Parts / Machinery

15. Denso April Sales Fall only 50% YoY; Aisin Continues Write-offs
16. Nabtesco Posts Record FY20 Q1 OP +33% YoY on Doors and Robot Gears
17. Fanuc (6954 JT) and Supplier Nabtesco (6268 JT) Soar on Automotive Optimism

Telecom

18. NTT DOCOMO (9437 JT): FY20 1Q OP Falls 40% YoY
19. SoftBank Group’s (9984 JT) Losses Widen
20. SoftBank Corp (9434 JT) 5G Network Underscores Backhaul is Key for Now

Internet / eCommerce

21. Z Holdings’ FY19 Beat
22. Mercari’s (4385 JT) Promising Outlook
23. LINE’s Unimpressive FY20 Q1
24. LINE (3938 JT) Boosts Stake in Demae-Can

Enterprise Software

25. Tokyoites are Shunning ATMs and That Augurs Well for Digital Payments
26. NRI (4307 JT) Forecasts Flat OP and Low Sales Growth for FY20
27. Cybozu Q1: Signs of Accelerated Demand; Delay to FY20 Full Earnings
28. Otsuka Corp (4768 JT) and Covid-19: Teleworking Wave Drowning Demand for Office Printing

Pharma

29. How Much Does Remdesivir Change Things?
30. DSK (4568 JT) Eyes Sharp Fall in FY20 OP
31. Pharma Moves That Caught Our Eye This Week

Market

32. Japan Slides Ahead of Golden Week
33. Performance of PSA Focus List 2Q 2020 So Far

PSA Company Visits, Tours and Interviews

• Company Contact: Email Q&A with Cybozu (4776 JT)
• Participated in earnings call with: Shin-Etsu Chemical (4063 JT), Nitto Denko (6988 JT), JSR (4185 JT), Zeon Corp (4205 JT), Sekisui Chemical (4204 JT) Denso (6902 JT), Aisin Seiki (7259 JT), Nabtesco (6268 JT), Toyota Industries (6201 JT)

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