The Weekly Comment by Pelham Smithers
The latest Jibun Bank PMI has both services and manufacturing outlook scoring above 50. The last time that happened was April 2019. Why isn’t the stock market feeling the optimism, asks Pelham Smithers.
Reports / Flash Notes Published This Week: Headlines at a Glance
1. Shin-Etsu Chemical (4063 JT): On Track to Exceed FY21 Guidance
2. GA Technologies (3491 JT) – Our Positive Stance Remains
3. Nomura Research Institute (4307 JT) FY21 Q2 Preview – High Expectations
Japanese Business is Confident, so Why is the Stock Market so Skittish?
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Nintendo (7974 JT) Ups the Ante with Switch Online / Broker Downgrade
2. Sony (6758 JT) a Mobile Gaming Unit Sold for US$1bil / Cease-and-Desist Letter to Dbrand / Adele, BTS
3. Might Video Game Stocks’ Earnings Surprise on the Upside?
Technology: Industrial Electronics / Components / Semis & SPE / Precision
4. Tech-related Moves & News That Caught Our Eye
5. Disco (6146 JT): FY21 2Q Smashes Published Consensus
6. Micron (MU US) to Build a Fab in Japan
7. Can MLCCs Suffer While Semis Do Well?
Chemicals / Materials
8. Nippon Paint’s (4612 JT) 5th Acquisition in Five Years
9. Ube Industries’ (4208 JT) Disappointing Revision
10. Toyota’s (7203 JT) Production / Nippon Steel’s (5401 JT) Lawsuit vs Toyota Makes Global Headlines
11. Toyota Plans to Build Battery Factory in the US
12. Production Cuts at Subaru (7270 JT); Nissan (7201 JT) Also Trims Plans
13. China Auto Sales Drop Sharply in September
Auto Parts / Machinery
14. Takeuchi (6432 JT) Likely to Beat FY21 Guidance Though Short of Record OP
15. Ferrotec (6890 JT) Shares Overreact to LAM Guidance Disappointment
Internet / eCommerce
16. Survey Results on Intention to Use PayPay
17. Launch of “Rakuten Point Interest”
18. Kakaku.com’s (2371 JT) FY21 H1 and Full Year Revision Down
19. Money Forward (399 JT) Tumbles Following Earnings
20. Cybozu Wins Contract with Hiroshima City Government
21. NRI (4307 JT) FY21 Q2 Preview: Expecting Another Strong Quarter
22. Medley Inc (4448 JT) and NTT Docomo to Acquire OTC Pharmacy
23. Other News & Moves That Caught Our Eye
PSA in the Press
Pelham Smithers’ pictorial timeline of the rise of gaming revenue is featured in the following article: https://www.campaignlive.co.uk/article/media-buyers-sold-in-game-advertising-hugely-underestimate-size-market/1730199
PSA Company Visits, Tours and Interviews
• Visited: Ferrotec (6890 JT), Denso (6902 JT), Toyota Industries (6201 JT), Diamond Electric (6699 JT), Ube Industries (4208 JT), Dexerials (4980 JT)
• Conference Calls with: CyberAgent (4751 JT), HCM (6305 JT)
• Presentations at: Sumitomo Chemical (4005) small meeting
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