The Must Read PSA Weekly Research Round-up (week to 11 Oct)

REPORTS: Recruit Holdings (6098 JT): Unique company deserving a premium valuation / KH Neochem (4189 JT): Set to recover strongly from FY20 H2 / MACRO: Wage situation improvement / Growing disparity between current and expected view of Japan’s economy / September housing orders show little tax impact / STRATEGY: Reading through from Market’s Response to Yaskawa Numbers / Plus 18 INDUSTRY & COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

With typhoon Hagibis menacing Japan and disrupting the host’s international sporting competitions this weekend, Pelham Smithers contemplates Japan’s attitude towards climate change and highlights some relevant companies.

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

1. Recruit Holdings (6098 JT) – Unique Company Deserves Premium Valuation
2. KH Neochem (4189 JT): Set to Recover Strongly from FY20 H2

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Can Sony (6758 JT) Report Higher Earnings in FY19 After All?
2. Sony’s (6758 JT) PS5 and the Importance of the System Controller

Chemicals / Materials

3. Asahi Kasei (3407 JT): the Nobel Prize; and a LiB Separator Update
4. September Housing Orders Show Little Tax Impact


5. Automakers Want to Share Electrification Cost Burden
6. Automotive Consortium Joins Forces with ARM
7. Geely (175 HK) and Volvo Merge Engine Operations: The Start of an Industry-Wide Trend?
8. Nissan (7201 JT) Appoints New CEO

Auto Parts / Machinery

9. Yaskawa (6506 JT) FY19 H1 Preview for Oct 10’s After- Market Release
10. Fanuc (6954 JT) and Yaskawa (6506 JT): Cautious Articles in Electronic Media
11. Yaskawa (6506 JT) Results Shock Shrugged Off / Results Meeting Feedback


12. PayPay’s Flea Market App Reigns in the “Shopping” Download Charts
13. (2371 JT) Sold Off on Investigation News

Enterprise Software

14. PayPal (PYPL US) Pulls out of Facebook’s (FB) Libra Project
15. Sansan Inc (4443 JT) Appoints Asia Region CEO


16. SoftBank Corp (9434 JT) Aiming to Double Corporate Division OP by FY21
17. SoftBank Corp (9434 JT) & SBI Holdings (8473 JT) in Mobile Triangulation Tie-Up
18. Kitanotatsujin (2930 JT) Eyeing Strong 2Q on Deep Patch Sales


19. Wage Situation Improvement
20. Growing Disparity Between Current & Expected View on Japan Economy


21. Reading Through from Market’s Response to Yaskawa Numbers

PSA Company Visits, Tours and Interviews

• Interviewed / Conference Call with: KH Neochem (4189 JT)
• Attended results meeting for: Yaskawa Electric (6506 JT)

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