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

INDUSTRY INSIGHTS: Japan mobile phone game sales remain very strong / Shanghai freight rates rising / MACRO: Solid economic data for China / COMPANY INSIGHTS: Bloomberg previews Sony Q2 / NEC, Roche in local 5G move / Hino to build electric CVs with BYD / Fire shuts Asahi Kasei’s LSI plant / NOK: Breakeven in H2 FY20? / Looking at Fanuc / Plus additional COMPANY INSIGHTS

The Weekly Comment by Pelham Smithers

This week’s weekly comment focuses on DX in the public sector, and money.
On Oct 27, Pelham Smithers will be holding a webinar on market strategy and ideas in the face of Digital Transformation (DX). Details available from your account executive.

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Bloomberg Previews Sony’s (6758 JT) FY20 2Q Earnings
2. Square Enix (9684 JT) Delays Release of Outriders
3. Japan Mobile Phone Game Sales Remain Very Strong

Technology: Industrial Electronics and Electronic Components

4. NEC (6701 JT), Ricoh (7752 JT) in Local 5G Move
5. Readthrough from Rohm’s (6963 JT) Upward Revision
6. Hitachi (6501 JT) Moves into Leaders Quadrant for Industrial IoT
7. Koa Corp (6999 JT) Shares Reflects Better FY20 1H OP

Technology: Semiconductor Production Equipment & Precision

8. Intel (INTC US) Sells its Storage Memory Business to SK Hynix (000660 KS)

Chemicals / Materials

9. Ube Industries (4208 JT) Lowers Guidance
10. Nippon Shokubai (4114 JT) and Sanyo Chemical (4471 JT) Call Off Merger
11. Fire Shuts Asahi Kasei’s (3407 JT) LSI Plant
12. Eye on Carbon Fibre at Toray (3402 JT)

Autos

13. Toyota (7203 JT) Upbeat on US Production and Sales / Ranks No.1 in Nikkei ESG Survey
14. Hino (7205 JT) to Build Electric CVs with BYD

Auto Parts / Machinery

15. Daikin (6367 JT) Rises on Fujitsu General (6755 JT) Guidance Upgrade
16. NOK (7240 JT) Revises Up Guidance: Breakeven in H2 FY20?
17. Looking at Fanuc (6954 JT)

Internet / eCommerce

18. BASE Inc (4477 JT) to Open Second Physical Store
19. CyberAgent’s (4751 JT) FY20 Earnings Preview

Enterprise Software

20. TIS Inc (3626 JT) Q2 Preview: Are Clients Restarting Projects?
21. NRI (4307 JT) FY20 Q2 Preview: Likely to Lead the Way for Systems Integrators, Again

Pharma

22. SeaGen (SGEN US) Sues Daiichi Sankyo (4568 JT) Over ADC Technology
23. Chugai Pharm (4519 JT) 3Q FY20 OP +32% YoY
24. GNI Group (2160 JT) Suffers Delays in Phase 3 Testing in China

Miscellaneous

25. Rising Tides in Shanghai Freight Index
26. Moves and News that Caught Our Eye

Market / Strategy

27. The Curse of Journalism Haunts Mothers

Macro

28. Solid Chinese Economic Data for Sep 2020

PSA Company Visits, Tours and Interviews

• Interviewed: Toyota Industries (6201 JT) and Koito Manufacturing (7276 JT).

PSA in the Press

• The PSA team is quoted in the Financial Times on a discussion about the Mothers market spurring a new generation of investors:
https://www.ft.com/content/c0a87c86-9b8b-47b6-891d-4eedb5d3a7c8
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