The Must Read PSA Weekly Research Round-up (week to 31 May)

REPORTS: Fiat Chrysler Renault Merger – Consequences for Nissan / Hitachi (6501 JT) as Third-Sector Sony (6758 JT) /
Harmonic Drive Systems’ (6324 JT) Resilience / MACRO: Does AIAI data suggest weak Q2 GDP, downward revision for Q1? / High RoEs continue to dominate Japan stock market performance / Plus 21 INDUSTRY & COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

Pelham Smithers comments on the relationship between the Japanese stock market level and Abe’s strategy options to prolong and cement his time at the helm of government

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

1. Fiat Chrysler (FCAU US) Renault (RNO FP) Merger: Consequences for Nissan (7201 JT)
2. Hitachi (6501 JT) as Third-Sector Sony (6758 JT)
3. Harmonic Drive Systems’ (6324 JT) Resilience

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics / Gaming

1. Sony (6758 JT) Closing in on Zee Entertainment (Z IN)
2. Sony Reveals Release Date for Death Stranding, Delays Last of Us 2
3. Are Handsets a Zero-Sum Game?
4. Square Enix (9684 JT) Has a Hit with its Mobile Game Romancing Saga
5. Nintendo (7974 JT) Launches Labo Toy-Con VR Goggles

Technology: Electronic Components and Precision

6. Hitachi (6501 JT) as the Third-Sector Sony (6758 JT)
7. Rohm (6963 JT) Underlines Japan’s Q1 Inventory Problem
8. Is the Worst Over for the MLCC Plays?
9. Punchy Targets at Tokyo Electron (8035 JT)

Chemicals / Materials

10. TDK’s (6762 JT) Huawei Exposure
11. Nippon Shokubai (4114 JT) and Sanyo Chemical (4471 JT) Consider Combining
12. Mitsui Chemicals (4183 JT) to Manufacture EUV Pellicles with ASML (ASML NA)

Autos

13. Automakers Will be Hurt by US Import Tariffs Imposed on Mexico
14. China EV Sales Growth Decelerates in April – The End of the Sales Boom?
15. Fiat Chrysler Proposes Merger with Renault
16. Toyota (7203 JT) Plans to Invest in Didi Chuxing to Set up New Mobility Service

Internet / eCommerce

17. Kitanotatsujin’s (2930 JT) Hyalo Deep Patch sees Strong Demand

Enterprise Software

18. Pure-Play AI Companies Enjoy Rally
19. April Performance at Cybozu (4776 JT)

Telecom

20. Telecom companies jostling on pricing

Pharmaceuticals

21. Astellas (4503 JT): Can Xospata Offset Patent Cliff Issues?

Macro / Market

22. Does AIAI Data Suggest Weak Q2 GDP, Downward Revision for Q1?
23. High RoE Continues to Lead to Stock Market Performance

PSA Company Visits, Tours and Interviews

• Visited: Koito (7276 JT), IHI (7013 JT)
• Attended earnings meetings / participated in earnings calls at: PayPal (PYPL US) webcast of Moffett Nathanson’s Inaugural Payments, Processors and IT Services Summit.
• Attended strategy / mid-term plan announcement meetings at:
• Interviewed / Conference Call with: Denso (6902 JT), Harmonic Drive Systems (6324 JT), Nabtesco (6268 JT)

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