The Must Read PSA Weekly Research Round-up (week to 29 Oct)

REPORTS: Nidec (6594 JT) / TIS (3626 JT) / MARKET / MACRO: Kyodo poll hints at LDP-led coalition government / COMPANY INSIGHTS & NEWS: Sony’s 2Q FY21 OP up marginally / GameWith acquires DetonatioN’s eSports team / Last man standing in discussions on Apple’s EV batteries? It’s Panasonic / Sekisui Chemical’s aerospace impairment loss / COMPANY PREVIEWS & RESULTS: Sony’s 2Q FY21 OP up marginally / Koei Tecmo 2Q OP +65% YoY; readacross to Square Enix / Shinko Electric 2Q OP +361% YoY / Nitto Denko: FY21 good, but what about FY22? / Canon revises down / Plus additional COMPANY PREVIEWS & RESULTS

The Weekly Comment by Pelham Smithers

Pelham Smithers shares his thoughts on Japan’s results season so far; there have been plenty of surprises.

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

1. Nidec (6594 JT): Asian Lockdown Hurts Earnings, but e-Axle Sales Outlook Improves
2. TIS Inc (3626 JT) FY21 Q2 Preview

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Koei Tecmo (3635 JT) 2Q OP +65% YoY; Readacross to Square Enix (9864 JT)
2. Panasonic (6752 JT) Still in Apple Battery Discussions
3. Sony (6758 JT) 2Q FY21 OP Up Marginally
4. GameWith Inc (6552 JT) Acquires DetonatioN’s eSports Team

Technology: Industrial Electronics / Components / Semis & SPE / Precision

5. Shinko Electric (6967 JT): FY21 2Q OP +361% YoY
6. Murata (6981 JT) 2Q OP +45% YoY
7. Canon Marketing (8060 JT) FY21 3Q OP -16% YoY
8. Canon (7751 JT) Revises Down FY21 OP
9. Nitto Denko (6988 JT): Good FY21, but What About FY22?
10. Hitachi 2Q FY21 OP ¥153bil +130% YoY
11. Nidec (6594 JT) Releases Decent Set of Q2 Results, Raises Forecast
12. Other Tech News & Moves That Caught Our Eye
13. Hoya (7741 JT) Weaker Despite Record FY21 Q2

Chemicals / Materials

14. Shin-Etsu Chemical (4063 JT) Postures for Sustained Growth
15. Sekisui Chemical’s (4204 JT) Aerospace Impairment Loss
16. Zeon (4205 JT) Down Sharply on a Weaker Q2


17. Hino (7205 JT) Raises FY21 Forecasts

Auto Parts / Machinery

18. Stanley Electric (6923 JT) / Koito (7276 MT) Shrug Off 32% Stanley’s H1 OP Downgrade
19. Fanuc (6954 JT) Misses FY21 Q2 OP Guidance by 16%
20. Fanuc’s Sell-Off Drags Down Daikin (6367 JT)
21. HCM (6305 JT) Q2 Neutral but Mining Recovery / Price Hikes Bode Well for FY22
22. Komatsu (6301 JT) Lifts Full-Year OP by a Surprising 25%
23. Ferrotec (6890 JT) Edges Up for 4th Straight Day Helped by LAM
24. Denso (6902 JT) Edges Up to Record High
25. Aisin (7259 JT) and Toyota Industries (6201 JT) Disappoint
26. Nabtesco (6268 JT) Q3 Disappoints on Robot Gear Profitability Levels

Internet / eCommerce

27. CyberAgent’s (4751 JT) FY21 Results
28. Trend Micro’s (4704 JT) FY21 CE NP Boosted by Extraordinary Income Gain
29. ZOZO’s (3092 JT) FY21 Q2 Results
30. Mercari’s (4385 JT) FY22 Q1 Results

Enterprise Software

31. NRI (4307 JT) Raises its FY21 Forecast, Dividend Following Another Strong Quarter
32. Cybozu (4776 JT) Revises FY21 OP Higher on Lesser Costs
33. TIS (3626 JT) FY21 Q2 Preview: Will It Follow NRI with an Upward Revision?


34. Chugai Pharm’s (4519 JT) Phenomenal 3Q Sends Shares +11% WoW


35. Other Moves & News That Caught Our Eye

Market / Strategy / Macro

36. Kyodo Poll Hints at LDP-Led Coalition Government

PSA Company Visits, Tours and Interviews

• Conference Calls with: Email Q&A with Shift (3697 JT)
• Earnings Webcasts by: CyberAgent (4751 JT), ZOZO (3092 JT), Shin-Etsu Chemical (4063 JT), Nitto Denko (6988 JT), Sumitomo Chemical (4005 JT), Tokuyama (4043 JT), Hoya Corp (7741 JT), Sekisui Chemical (4204 JT), Zeon Corp (4205 JT)

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