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

REPORTS: Mercari (4385 JT) / Kioxia (6600 JT) / INDUSTRY INSIGHTS: Suga goes after spectrum usage fees / Chinese cities, automakers step up FCV development efforts / EU auto market: Electrification taking hold / MARKET / MACRO: / Yoshihide Suga wins LDP Presidency / COMPANY INSIGHTS: / Sony’s PS5 Event – Square Enix’s Final Fantasy XVI / NEC in insurance blockchain move / Plus additional COMPANY INSIGHTS

The Weekly Comment by Lindsay Whipp

Lindsay Whipp reviews Japan’s SaaS and IT service companies. Using sales/employee as a tool for comparison highlights interesting points to consider when choosing the best businesses in the sector.

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

1. Mercari (4385 JT) – Moving into the Black in FY22; Double-Digit OPM in FY23
2. Tokyo Gets a Memory Stock Again – the soon-to-be-listed Kioxia Holdings (6600 JT)

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Sony (6758 JT) in PS5 SoC Production Concerns and the PS5 Unveiling
2. Square Enix (9684 JT): Final Fantasy XVI and the PS5 Unveiling

Technology: Industrial Electronics and Electronic Components

3. NEC in Insurance Blockchain Move

Technology: Semiconductor Production Equipment & Precision

4. Fujifilm’s (4901 JT) Hopes for Hi-Tech Endoscopes

Chemicals / Materials

5. JSR (4185 JT) and JNC Corp Scale Back LCD Materials

Autos

6. Subaru (7270 JT) Facing Unintended Acceleration Lawsuit
7. Chinese Cities, Automakers Step up FCV Development Efforts
8. Bad News on All Fronts for Europe’s Auto Market – Except for Electrification

Telecom

9. Suga Goes After Spectrum Usage Fees
10. SoftBank Group (9984 JT) Confirms Going Private is Under Consideration
11. SoftBank Corp (9434 JT) Shares Rebound

Internet / eCommerce

12. GA Technologies’ (3491 JT) FY20 Q3 Results
13. Enigmo’s (3665 JT) FY20 Q2 Results
14. Demae-Can (2484 JT) No.1 Food Delivery Firm in Japan but More Competition is Coming

Enterprise Software

15. Listing of Cybozu (4776 JT) Investment Toyokumo Won’t Deliver Extraordinary Profit

Pharma

16. Daiichi Sankyo (4568 JT) Begins Patritumab Deruxtecan P2 Trials
17. Takeda (4502 JT) to Sell its TachoSil IP

Miscellaneous

18. Fraudsters Hit Customer Accounts at SBI Holdings (8473 JT)
19. Artificial Glass Eel Breeding Achieved!

Macro / Politics

20. Yoshihide Suga Wins LDP Presidency

PSA Company Visits, Tours and Interviews

• Visited: Shin-Etsu Chemical (4063 JT), Tokyo Ohka Kogyo (4186 JT)
• Interviewed / Conference Call with: MinebeaMitsumi (6479 JT), Daifuku (6383 JT), Toyota Ind (6201JT), JBEC (unlisted)
• Watched earnings webcast of Japan Display (6740 JT)
• Attended presentation by: Fujifilm Holdings (4901 JT)

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