The Must Read PSA Weekly Research Round-up (week to 24 October)
Reports / Flash Notes Summaries
1. PSA Macro: Restating the “Goldilocks” Case for Japanese Stock Market Optimism
Pelham Smithers notes that although there are reasons for thinking that the Chinese economy is producing “real” growth of around +5% for CY25, there are several structural problems that need to be considered and the implications for Japan.
2. Curves (7085 JT) – Acceleration of New Store Openings
Low valuations, steady double-digit OP growth and rising memberships are reasons to consider Curves, writes analyst Hiroyuki Terada. The firm has provided details of its new Pint-Up facility format and has plans to boost new store openings.
3. GA Technologies (3491 JT) – Unique Company at Attractive Valuations
GA Technologies is the only listed Proptech – property technology – company in Japan. Analyst Thao Nguyen explains why this PSA Focus List constituent is worth considering.
Industry Insights
Video games round-up: Part 1&2
US video game data [Sep]
Two stocks go limit-up on rare earth incentives
Memory prices continue to soar
Macro / Market / Misc.
China data shows country desperate to export way out of problems
Restating the “Goldilocks” case for Japanese stock market optimism
Company Insights: News / Previews & Results
iPhone 17 outsells iPhone 16 by 14% in first 10 days
The importance of the Sony / Tencent lawsuit
Nidec: No interim dividend payment, full-year earnings guidance withdrawn
Mining to support Komatsu, HCM Q2
Fujikura nearing our target price
Sumitomo Chemical sells some of its shares of Petro Rabigh
Shin-Etsu Polymer and Shin-Etsu Chemical maintain FY25 guidance
Kurashiru FY25 Q2 preview
ExaWizards overtakes SRE Holdings in market cap
ZOZO FY25 Q2 preview
NRI: FY25 Q2 preview
Amvis shares on a roller- coaster this week
The Weekly Comment by Pelham Smithers
Pelham Smithers discusses the latest economic figure releases and considers their likely impact on the BoJ’s rate-setting decisions between now and the rest of this calendar year.
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Video Games Round-Up
2. US Video Game Data for September
3. Video Games Round-Up Part 2
4. iPhone 17 Outsells iPhone 16 by 14% in First 10 Days
5. The Importance of the Sony / Tencent Lawsuit
6. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
7. Memory Prices Continue to Soar
8. Nidec: No Interim Dividend Payment, Full-Year FY25 Guidance Withdrawn
9. Other News & Moves That Caught Our Eye
Chemicals / Materials
10. Two Stocks Surge Limit-Up on Rare Earth Incentives
11. Sumitomo Chemical Sells Shares of Petro Rabigh
12. Shin-Etsu Polymer and Shin-Etsu Chemical Maintain Full Year Guidance
13. Other News & Moves That Caught Our Eye
Autos / New Mobility
14. Auto News & Moves That Caught Our Eye
Capital Goods / Machinery / Auto Parts
15. Mining to Support Komatsu, HCM Q2
16. Shipbuilders Rise on Capex Plans
17. Fujikura Nearing Our Target Price
18. Other News & Moves That Caught Our Eye
Internet / eCommerce
19. Kurashiru FY25 Q2 Preview
20. ZOZO FY25 Q2 Preview
21. Other News & Moves That Caught Our Eye
Enterprise Software / IT Services
22. ExaWizards Overtakes SRE Holdings in Market Cap
23. Other News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
24. Roller Coaster Ride in Amvis Shares Continues
Macro / Market / Strategy / Misc.
25. China Data Shows Country Desperate to Export Way Out of Problems
26. Other News & Moves That Caught Our Eye
PSA in the Press
Julie Boote features in the following Bloomberg articles:
Nidec Drops as Pulled Guidance Deepens Accounting Crisis – 23 October
Excerpt: “While it is as yet unclear by how much the accounting issues will affect overall earnings, investors are likely to assume a wait and see position until there is full disclosure,” said Julie Boote, an automotive analyst at London-based research firm Pelham Smithers Associates Ltd. “We expect markets to react negatively, and in particular to withdrawal of the previously indicated dividend payment.”
Nidec Shares Plunge After Outlook, Buyback Cancelled: Street Wrap – 23 October
Excerpt: Pelham Smithers Associates (Julie Boote)
Withdrawal of the previously indicated dividend payment will drive negative market reaction
Investors are likely to assume a wait and see position until there is full disclosure.
PSA Company Visits, Tours and Interviews
Visited: Amvis Holdings (7071 JT), TKP (3479 JT)
1-1 Call with: Koshidaka Holdings (2157 JT), Hitomile (7686 JT)
Conference Calls with: Shin-Etsu Chemical (4063 JT)
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