The Must Read PSA Weekly Research Round-up (week to 12 Nov)

REPORTS: Daikin (6367 JT) / INDUSTRY INSIGHTS: A tale of two video game companies / MARKET & MACRO: Japan revises up, grudgingly / Japan’s PPI +8% YoY / COMPANY INSIGHTS, NEWS, PREVIEWS & RESULTS: Tokyo Electron 2Q FY21 OP +81% YoY / JSR hikes full-year guidance / SoftBank Group 2Q Net Loss ¥397bil / Isuzu reports FY21 Q2 results / Improved profit outlook at Nissan / Mazda keeps FY21 OP forecast unchanged despite weaker sales / Suzuki keeps its FY21 forecasts / Daifuku seeing supply chain issues / Trend Micro’s FY21 Q3 beats / GMO Financial Gate’s FY21 sales beats/ Giftee revised down FY on weak Q3

The Weekly Comment by Pelham Smithers

Pelham Smithers reiterates a PSA theme: we believe this to be a super-cycle for technology names in general and semiconductors in particular, so we think that the sector should have a good run from here. Valuations may eventually become an issue, but they are not at present.

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

1. Daikin (6367 JT): Expanding Global Share

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Results Reactions: SQE (9684 JT), Sega Sammy (6460 JT), Tencent (700 HK)

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

2. Tokyo Electron (8035 JT) 2Q FY21 OP +81% YoY
3. Toshiba (6502 JT) To Split into Three

Chemicals / Materials

4. JSR (4185 JT) Hikes Full-Year Guidance
5. Other Chemical / Materials News and Moves That Caught Our Eye


6. Isuzu (7202 JT) Reports FY21 Q2 Results
7. Improved Profitability Outlook for Nissan (7201 JT)
8. Mazda (7261 JT) Keeps OP Forecast Unchanged despite Weaker Sales
9. Suzuki Motor (7269 JT) Keeps FY21 Forecasts Unchanged

Auto Parts / Machinery

10. Daifuku (6383 JT) Seeing Supply Chain Issues
11. Other Auto Part / Machinery News and Moves That Caught Our Eye

Internet / eCommerce

12. Istyle’s (3660 JT) FY22 Q1 Widening Losses
13. Mixi (2121 JT) Cuts Both FY21 Sales and OP Guidance by ¥10bil
14. DeNA’s (2432 JT) FY21 Q2 Earnings Beat
15. Nexon’s (3659 JT) FY21 Q3 Beat but FY Guidance Miss
16. A Tale of Two Video Game Companies
17. Rakuten’s (4755 JT) FY21 Q3 Losses Shrink Thanks to One-off Gains
18. Trend Micro’s (4704 JT) FY21 Q3 Beats
19. GMO Financial Gate’s (4051 JT) FY21 Sales Beat
20. Giftee (4449 JT) Revises Down FY on Weak Q3

Enterprise Software

21. Mixed Messages from JMDC’s (4483 JT) FY21 H1
22. NTT Data (9613 JT) Strong Q2 Beat but Doesn’t Raise Full-Year Forecasts
23. Medley Inc (4480 JT) Misses Consensus Estimates for FY21 Q3


24. SoftBank Group (9984 JT) FY21 2Q Sees Net Loss ¥397bil / ¥1tril Buyback


25. Other News and Moves That Caught Our Eye

Market / Strategy / Macro

26. Japan Revises Up, Grudgingly
27. Japan PPI +8% YoY

PSA Company Visits, Tours and Interviews

Visited: Ferrotec (6890 JT)
Presentations / Earnings Calls at: Nissan Motor (7201 JT), JSR (4185 JT), Nissha (7915 JT), Nissan Chemical (4021 JT), Showa Denko (4004 JT), Sumitomo Bakelite (4203 JT), Mitsubishi Gas Chemical (4182 JT), Nippon Shokubai (4114 JT), Toray (3402 JT), Fujimi Inc. (5384 JT), Mitsui Mining & Smelting (5706 JT), Kaneka (4118 JT), Kureha (4023 JT), Kuraray (3405 JT), Rakuten (4755 JT), Daifuku (6383 JT), IHI (7013 JT)
Small meeting: Sumitomo Chemical (4005 JT)

PSA in the Press

Discussing gaming, Pelhams Smithers makes it into the Spanish press:

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