The Must Read PSA Weekly Research Round-up (week to 14 May)

REPORTS: Asahi Kasei (3407 JT) / Nissan Motor (7201 JT) / COMPANY RESULTS: Gaming: Capcom / SQE / Bandai Namco / Technology: NEC / Rohm / Tokyo Seimitsu / Autos / Auto Parts: Toyota Motor / Subaru / Suzuki / Mazda / Isuzu / Toyota Industries / Diamond Elec / COMPANY NEWS / INSIGHTS: Hitachi-supplied trains to the UK show hairline fractures / HCM meeting highlights three positives / How the technology of its RE Engine has transformed Capcom’s fortunes

The Weekly Comment by Pelham Smithers

Amid all the weird and not always wonderful results from Japanese blue chips, the enterprise software companies have been consistently providing results and forecasts above expectations. Is it time for a sector-wide reassessment?

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

1. Asahi Kasei (3407 JT) – The Post-Covid Outlook
2. Nissan Motor (7201 JT) FY20 Results and FY21 Outlook

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Capcom (9697 JT) 4Q OP +133% YoY
2. How the RE Engine Has Changed Capcom’s Fortunes
3. Square Enix (9684 JT) Forecasts 15% YoY Drop in FY21 OP
4. Nexon (3659 JT) FY21 1Q OP +4% YoY
5. Bandai Namco (7832 JT) Low-Balling FY21 Profit Outlook

Technology: Industrial Electronics and Electronic Components

6. NEC (6701 JT) – Should an Exception be Made?
7. Huge Spread for Rohm’s (6963 JT) FY21 Estimates
8. Hitachi (6501 JT): Trains Supplied to UK Show Hairline Fractures
9. Murata (6981 JT) / Taiyo Yuden (6976 JT) Weak Guidance

Technology: Semiconductor Production Equipment & Precision

10. Tokyo Seimitsu (7729 JT) Results; FY21 EV/OP 9x vs 74x at Lasertec (6920 JT)

Chemicals / Materials

11. Dexerials (4980 JT) Announcement Impresses Markets 11
12. Showa Denko (4004 JT) Revises up FY21 OP from ¥45bil to ¥68bil
13. JSR (4185 JT) Elastomer Business Sale and Impact on FY21 Earnings
14. Results For: Sumco / KH Neochem / TOK / Tosoh / Nissha / Asahi Kasei / Ube / Kaneka / Sumi Chem

Autos

15. Toyota Motor (7203 JT): Strong FY20 Q4 Results, Positive FY21 Outlook
16. Subaru (7270 JT) Forecasts Doubling in OP, but Undershoots Estimates
17. Suzuki (7269 JT) Produces Strong FY20 Q4 Results, but No Guidance
18. Mazda (7261 JT) Forecasts Boost in FY21 OP
19. Isuzu (7202 JT) Predicts Strong Recovery

Auto Parts / Machinery

20. Daikin (6367 JT) FY21 OP +13% YoY; No Hedge for Copper
21. Daifuku (6383 JT): We Repeat – Still a FY22 Story
22. Toyota Industries’ (6201 JT) Positive Conference Call
23. Diamond Electric Sinks on FY20 Guidance Beat

Internet / eCommerce

24. Quick Comments: DeNA / ZOZO / MonotaRO / IIJ / ZHD / Rakuten

Enterprise Software

25. NTT Data (9613 JT): FY20 Falls Short of Consensus, but Expects Solid FY21
26. TIS Inc (3626 JT) FY21 Forecast Looks Weak Compared with Larger Rivals
27. PKSHA (3993 JT) Goes on Another Shopping Spree
28. Cybozu Reports Steady FY21 Q1

Telecom

29. SoftBank Group (9984 JT) – Go Figure
30. NTT (9432 JT) Moving as a Defensive Tech Name in a Weak Market

Pharma

31. Quick Results Comments

PSA Company Visits, Tours and Interviews

• Visited: JSR (4185 JT)
• Conference Calls with: Email Q&A with NRI (4307 JT)
• Presentations at: Fujifilm Holdings (4901 JT), Asahi Kasei (3407 JT), Sumitomo Chemical (4005 JT), Showa Denko (4004 JT), Toray (3402 JT), Mitsui Chemicals (4183 JT), Nissha (7915 JT), Nissan Chemical (4021 JT), Sumco (3436 JT), Ube Industries (4208 JT), Dexerials (4980 JT), KH Neochem (4189 JT), Mitsubishi Chemical Holdings (4188 JT), Mitsubishi Gas Chemical (4182 JT), Kuraray (3405 JT), Kaneka (4118 JT), Nippon Sanso (4091 JT), Japan Display (6740 JT), Nippon Shokubai (4114 JT), Shin-Etsu Polymer (7970 JT), Central Glass (4044 JT), HCM (6305 JT), Daikin (6367 JT), Daifuku (6383 JT), NOK (7240 JT), IHI (7013 JT), Toyota Ind (6201 JT), Fujikura (5803 JT), Toyota Motor (7203 JT)

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