The Must Read PSA Weekly Research Round-up (week 19th to 26th September)
Reports / Flash Notes Summaries
1. Marvelous (7844 JT) – How Marvellous is Marvelous?
Pelham Smithers looks at microcap video game developer Marvelous, which has had a very successful summer, with two games selling more than 500,000 copies. The firm is now looking to build on that success by revitalizing its online game operations and improving the profitability of its A&V business, while continuing to grow its arcade business.
2. Visional (4194 JT) – Well Positioned for Growth
IT Services and ERP Software analyst Lindsay Whipp thinks Visional is well positioned for growth as Japanese companies increasingly look to mid-career professionals for recruiting, while people continue to be reluctant to change jobs.
3. Fujikura (5803 JT) – AI Expansion Undaunted
We see AI data centre expansion continuing throughout the late 2020s, driven by hyperscalers and emerging smaller players such as Oracle (ORCL US). Analyst William Nestuk remains very positive on Fujikura (5801 JT), with our OP forecasts, while no longer topping the Street, currently 11~14% above consensus.
4. Mazda Motor (7261 JT) – Bleak FY25 Outlook, Longer-term Challenges
Mazda’s earnings are set to take a massive hit from US import tariffs, even after the implementation of mitigating factors. Given that the stock is now trading at a higher level than before the tariff announcement, it seems that the market has not factored in the impact of the new trade situation which will weigh on profitability. Analyst Julie Boote is reviewing Mazda’s sales and profit outlook for FY25 and assesses its positioning in an increasingly challenging global market environment.
Industry Insights
NAND maker pulls pricing following SanDisk hike
Government cyber-attack mitigation issues
August inbound tourism recovers from July
Robot gear makers rise
Video games round-up
Japanese automakers losing market share in Europe
Macro / Market / Misc.
Options open for BoJ
CPI data for August shows stubborn inflation
Service sector inflation and Tokyo CPI slowing down
Company Insights: News / Previews & Results
Switch 2 at 100 days – is there a visible critical backlash?
Sony news: PS6 launch rumour update / estimates 20.6% asset distribution for financial services spin-out / poor box office receipts for A Big Bold Beautiful Journey; Demon Slayer saves the day / new State of Play showcases Wolverine game
Might TGS2025 spark an upswing in Koei Tecmo’s stock price?
NEC is systems contractor for Japan-Singapore undersea cable system development
Hitachi to acquire German Agentic AI firm Synvert
Multiple incentives for Tokyo Ohka Kogyo
FPC makers up on iPhone 17
Toyota launches next-generation e-Palette BEV / prepares grand opening of Woven City
Nissan’s cost-cutting measures / presents new Sentra 2026
Timee sell-off bottoming out
GA Technologies posted first gain in six days
LY Corp hits fresh 1-mth high
BayCurrent all-time high
Appier launches eight Agentic AI bots across product portfolio
Oracle Japan shares fall after FY25 Q1 OP falls
Park24 Q3 FY25 below plan
Anicom brisk August KPIs
Treasure Factory Q2 preview
SBI Shinsei, Partior & DeCurret in tokenized deposit move
The Weekly Comment by Pelham Smithers
The Switch 2, Hello Kitty and Demon Slayer have underlined Japan’s global pop culture influence.
Is 2025 the peak, or is there more to come? Pelham Smithers investigates.
Company / Sector / Thematic Comments at a Glance
Technology: Consumer Electronics, Gaming
1. Video Games Round-up
2. Sony PS6 Launch Rumour Update
3. Sony Eyes 20.6% Asset Distribution for Financial Services Spin-Out
4. Underwhelming Reviews of A Big Bold Beautiful Journey Justified, while Demon Slayer Saves the Day
5. Sony New State of Play Showcases Wolverine Game
6. Switch 2 at 100 Days – Is there a Visible Critical Backlash?
7. Might TGS2025 Spark an Upswing in Koei Tecmo’s Shares?
8. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
9. NAND Maker Pulls Pricing Following SanDisk Hike – Digitimes
10. Shares of FPC Makers Up on iPhone 17
11. Hitachi to Acquire German Agentic AI Firm Synvert
12. NEC System Contractor for Japan-Singapore Undersea Cable System
13. Other News & Moves That Caught Our Eye
Chemicals / Materials
14. Multiple Incentives for Tokyo Ohka Kogyo
15. Other News & Moves That Caught Our Eye
Autos / New Mobility
16. Japanese Automakers Lose Market Share in Europe
17. Toyota Launches Next-Generation e-Palette BEV
18. Toyota Prepares Grand Opening of Woven City
19. Nissan Reveals Cost-Cutting Measures / Presents New Sentra 2026
20. Other News & Moves That Caught Our Eye
Capital Goods / Machinery / Auto Parts
21. Robot Gear Makers Rise
22. Other News & Moves That Caught Our Eye
Internet / eCommerce
23. Timee’s Sell-off Comes to a Halt
24. LY Corp Hits a New One-Month High
25. GA Technologies’ Shares Post First Gain in Six Days
26. Other News & Moves That Caught Our Eye
Enterprise Software / IT Services
27. Cyberattack Mitigation Standards of Key Public-Sector IT Systems Fall Short
28. BayCurrent Climbs to New High
29. Appier Launches Eight Agentic AI Bots Across its Product Portfolio
30. Oracle Japan Shares Fall After FY25 Q1 OP Falls
Small- / Mid-Cap Insights
31. Park24 – Q3 FY25 Below Plan
32. August Inbound Tourism Numbers Recover from July
33. Anicom – Brisk August KPIs
34. Treasure Factory Q2 Preview
Macro / Market / Strategy / Misc.
35. SBI Shinsei, Partior and DeCurret in Tokenized Deposit Move
36. Options Open for the BoJ
37. CPI Data for August Shows Stubborn Inflation
38. Service Sector Inflation Slows
39. Other News & Moves That Caught Our Eye
PSA in the Press
PSA’s analysts feature in the following Bloomberg articles:
Toyota Opens Woven City as Doubts Swirl Over Cost, Purpose [25 Sep]
Excerpt: It could take five years before Toyota’s new technologies have a meaningful impact on its business, according to Julie Boote, an automotive analyst at London-based research firm Pelham Smithers Associates Ltd. In some ways, Woven City represents a crossroads for Toyota. Many of the projects covered at Woven City are interesting, but not likely to prove relevant in the longer-term,” Boote said. But, she added, the importance of Woven by Toyota itself “cannot be overstated, given that the future of the auto industry lies in automotive intelligence.”
AI Infrastructure Boom Lifts Japan Materials Firms: Taking Stock [18 Sep]
Excerpt: “Oracle’s latest guidance suggests AI data center-related capex will continue to climb for the time being, which is a huge positive for Japan’s cable makers,” Pelham Smithers analyst William Nestuk wrote in a note. Nestuk said rising data center demand should support his top picks, including cable maker Fujikura Ltd. and wire producer Sumitomo Electric Industries Ltd. Bloomberg Intelligence forecasts infrastructure equipment sales could increase 60% to $73billion by 2028, implying a compound annual growth rate of 12%.
PSA Company Visits, Tours and Interviews
Visited: Kyoritsu Maintenance (9616 JT), Fujita Kanko (9722 JT), Park24 (4666 JT)
1-1 Call with: Koshidaka Holdings (2157 JT), Anicom Holdings (8715 JT), Intermestic (262A JT) Zoff Store (Hakata, Kagoshima, Miyazaki), GA Technologies (3491 JT)
Presentations at: M&A Research Institute (9552 JT), Park24 (4666 JT), Sumitomo Chemical (4005 JT), Tokuyama Corp (4043 JT)
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