The Must Read PSA Weekly Research Round-up (week to 20 May)

REPORTS: Why semiconductor stocks need a reappraisal / Square Enix (9684 JT) / Mitsubishi Motors (7211 JT) / Nomura Research Institute (4307 JT) / Enechange (4169 JT) / Ukraine From an Eastern Europe Perspective / INDUSTRY INSIGHTS: Autos outlook for FY22; an overview / Global auto sales plunge at beginning of fiscal year / Japan, UK in fighter jet tie-up move / Q1 2022 camera shipments / Game console sales continue to struggle / COMPANY PREVIEWS & RESULTS: Consumer Electronics / Gaming results comments for: Square Enix (9684 JT), GungHo (3765 JT) / Disappointing results and outlook for Yamaha Motors (7272 JT) / Machinery results for Daifuku (6383 JT), Ferrotec (6890 JT) / Internet / eCommerce results for: NP Protections (7383 JT), Rakuten (4755 JT), Recruit (6098 JT) / ERP Software / IT Services Results for: Enechange (4169 JT), Cybozu (4477 JT), PKSHA(3393 JT) / Miscellaneous: Dentsu (4324 JT)

The Weekly Comment by Pelham Smithers

Topix had its worst quarterly earnings since peak Covid in Q2 2020. However, it was primarily down to one company – SoftBank Group. Pelham Smithers discusses this impact but also flags the seasonally unusual poor performance by pharma companies, the yen weakness, with a read across to company forecasts and their own FX assumptions, and rising commodity prices – problems don’t look like going away any time soon, particularly if the Bank of Japan continues with quantitative easing while other G7 central banks tighten.

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

1. Why Semiconductor Stocks Need a Reappraisal
2. Square Enix (9684 JT) Results and Outlook
3. Mitsubishi Motors (7211 JT): Recovery Phase Coming to an End
4. Japan’s Systems Integrators – A Brief Note on Why NRI is the Benchmark
5. Enechange (4169 JT) Results and Outlook
6. Ukraine – The Eastern Europe Perspective

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Square Enix (9684 JT) Rounds Off Strong Showing in FY21, but FY22 Outlook Uncertain
2. Game Console Sales Continue to Struggle
3. Other Consumer Elec / Gaming News & Moves That Caught Our Eye

Technology: Industrial Electronics / Components / Semis & SPE / Precision

4. Why Semiconductor Stocks Need a Reappraisal
5. Q1 2022 Camera Shipments Volumes -7% YoY but +16% in Value Terms
6. Renesas (6723 JT) to Restart Kofu Plant
7. Other Tech-Related News & Moves That Caught Our Eye

Chemicals / Materials

8. Toho Titanium (5727 JT) Presents Positive Outlook
9. Other Chemical / Material-Related News & Moves That Caught Our Eye


10. Large differences Among Automaker Guidance Numbers
11. Global Auto Sales Plunge at Beginning of Fiscal Year
12. Yamaha Motor (7272 JT) Reports Disappointing FY22 Q1 Results and Full-Year Forecast
13. Possibility of Nissan (7201 JT) to Merge with Renault (RNO FP)
14. Other Auto-Related News & Moves That Caught Our Eye

Auto Parts / Machinery / Heavies

15. Daifuku (6383 JT) Driven by Semis
16. Ferrotec (6890 JT) Surprises with Record FY22 CE OP / To Boost Supply to AMAT
17. SMC (6273 JT) Shares Recover as its Plans are Well-Received
18. Heavies Rise to New Highs
19. Denso (6902 JT) to Hold Conference Call on Semiconductors on 1 June

Internet / eCommerce

20. Net Protections (7383 JT) Rose as Investors Look Past FY22 Guidance
21. Recruit (6098 JT) Forecasts Revenue to Surpass ¥3tril in FY22
22. BASE Inc (4477 JT) Launches TikTok Shopping Ads App
23. Rakuten (4755 JT) Reaches a New One-Year Low
24. Other Internet / eCommerce News & Moves That Caught Our Eye

Enterprise Software / IT Services

25. Enechange (4169 JT) Slashes FY22 Target Amid Electricity Market Woes
26. Cybozu (4776 JT) Confirms FY22 Q2 Sales
27. PKSHA (3993 JT) Makes Good Headway with FY22 H1 Results


28. Dentsu (4324 JT) 1Q FY22 OP +41% YoY
29. Japan, UK in Fighter Jet Tie-up Move

Market / Strategy / Macro

30. Weak China Data
31. 1Q GDP Preview / Release

PSA Company Visits, Tours and Interviews

• Visited: TDK (6762 JT)
• Presentations at: Kaneka (4118 JT), Toho Titanium (5727 JT), Iwatani Corp (8088 JT), Nippon Sanso (4091 JT), Sumitomo Bakelite (4203 JT), Nippon Shokubai (4114 JT), Central Glass (4044 JT), Mitsubishi Gas Chemical (4182 JT)

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