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

INDUSTRY INSIGHTS: Chemical share moves mirror investors’ expectations / COMPANY INSIGHTS: TOYOTA reinforces its fuel cell commitment with new Mirai at Tokyo Motor Show / HITACHI, HONDA in sizable auto parts tie-up / FIAT CHRYSLER and PEUGEOT considering merger / AISIN SEIKI’S fund raising / CYBOZU’S Sep performance / PLUS RESULTS & PREVIEWS

The Weekly Comment by Pelham Smithers

Pelham compares and contrasts Japan’s KDDI and the UK’s Vodafone and opens the door onto KDDI’s astonishing potential.

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Sony (6758 JT) Delivers Another 10%+ OPM Quarter
2. Nintendo (7974 JT) Doubles 2Q OP
3. Capcom (9697 JT) Solid 2Q, Now What?

Technology: Industrial Electronics / SPE / Components / Precision

4. NEC (6701 JT) and Fujitsu (6702 JT) Both Beat Expectations
5. Hitachi (6501 JT) in Big Earnings Miss
6. Hitachi (6501 JT), Honda (7267 JT) in Sizable Auto Parts Tie-Up
7. Murata (6981 JT) Revises Up (But Was It Enough?)
8. Lasertec (6920 JT) FY19 1Q OP +47%, Well Below Consensus
9. Canon (7751 JT) 3Q FY19 OP Down 44% YoY, Cuts Forecasts
10. Ricoh Suffers Hit to Earnings, but Does Increase Revenues

Chemicals / Materials

11. Chemical Share Moves Mirror Investors’ Expectations
12. Hoya (7741 JT) and Dexerials (4980 JT) Post a Strong Q2
13. Sekisui Chemical (4204 JT) Shares Rise Despite Lower Guidance
14. Weak 1H Results at Zeon Corp (4205) 10
15. TDK (6762 JT) Leaves its FY19 Guidance Unchanged

Autos

16. Mazda (7261 JT): FY19 Q2 Results; FY19 Guidance Cut Due to FX
17. Toyota (7203 JT) Reinforces Its Fuel Cell Commitment with New Mirai at Tokyo Motor Show
18. Fiat Chrysler (FCAU US) and Peugeot (UG FP) Considering Merger

Auto Parts / Machinery

19. Fanuc (6954 JT) – Q2 Robotics Firm but FA Sales are Below 2009’s Post-Lehman Level
20. Komatsu (6301 JT) Lowers FY19 OP Guidance by 17%
21. Denso (6902 JT) Working on Cost Reduction
22. Aisin Seiki (7259 JT) Soars on Fund-Raising Hopes
23. Nabtesco (6268 JT) Robot Gears Lagging

Internet

24. CyberAgent’s (4751 JT) FY19 Results, Conservative FY20 Guidance
25. LINE (3938 JT): Decent FY19 Q3 Results but Valuations are High
26. ZOZO’s (30922 JT) FY19 Q2 Results Below the Lowest Street Estimates

Enterprise Software

27. NRI (4307 JT) Raises OP Forecast, to Retire 15.2% of Shares
28. Cybozu (4776 JT) September OP Falls on Bonuses
29. Obic’s (4684 JT) Q2 Produces Another Solid Set of Results
30. NTT Data (9613 JT) Q2 Preview: Focus on the US

Telecoms

31. KDD( (9433 JT) Returns to Double Digit OP Growth

PSA Company Visits, Tours and Interviews

• Visited: Toyota Industries (6201 JT)
• Attended results meetings at: Hitachi Chemical (4217 JT), JSR (4185 JT), Nitto Denko (6988 JT), Hoya Corp (7741 JT), Dexerials (4980 JT), Sekisui Chemical (4204 JT), Sumitomo Chemical (4005 JT), Zeon Corp (4205 JT), TDK (6762 JT), Shikoku Chemicals (4099 JT), Mitsubishi Chemical Holdings (4188 JT), Ube Industries (4208 JT), Advantest (6857 JT), Nihon M&A (2127 JT), Fanuc (6954 JT), Aisin (7259 JT), Denso (6902 JT), Toyota Ind (6201 JT), Komatsu (6301 JT), NGK Spark Plug (5334 JT)
• Interviewed / Conference Call with: Cybozu (4776 JT)
• Earnings call / webcast: CyberAgent (4751 JT), LINE (3938 JT), ZOZO (3092 JT), Z Holdings (4689 JT)

PSA In the Press

Combined Fiat Chrysler/Peugeot would be larger but leaner, say analysts

Autos analyst Julie Boote explains why she does not see the PSA / FCAU as a match made in heaven.

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