The Must Read PSA Weekly Research Round-up (week to 07 Sep)

Reports Highlighted this week: Japan Market Strategy / Ichikoh (7244 JP) / US Auto Sales for August / BIG PICTURE: Pelham Smithers looks at steel stocks / BoJ’s stealth tapering / New Energy Vehicles (NEVs) quotas in China: Geely (175 HK) to cooperate with Toyota on hybrid technology / COMPANY INSIGHTS: Nidec (6594 JP) continues its extensive M&A program / LINE (3938 JP) launches its first cryptocurrency / Takeda (4502 JP) & Shire (SHP LN) deal looking likely / The sell-off in Start Today (3092 JP) presents an opportunity

The Weekly Comment by Pelham Smithers

In the past twelve months, Sony’s (6758 JP) licensing deal with Spotify (SPOT US) has significantly boosted income at Sony’s Music division, while the Swedish music portal’s IPO netted Sony around US$1bil. With Spotify expected to continue to grow paid subscriptions, and with Sony still believed to be in possession of some of the 10mil shares it owned pre-IPO, you would have thought Spotify’s continued success would be good news for Sony, particularly in its war with Google (GOOGL US) / YouTube. There’s a growing worry, though, that this is not in fact the case.

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

1. Japan Market Strategy
2. Ichikoh (7244 JP): Valeo On-Board
3. US Auto Sales August – SAAR Falls to One-Year Low

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Elctronic Components, Gaming

1. Nidec (6954 JP) in German Robotics M&A Move
2. Sysmex (6869 JP) Upbeat on Surgical Robot Launch Timing
3. Sony’s (6758 JP) Aniplex Doing Well on iOS
4. SPE-Plays Hit Hard, Apple-Related Names Also Sold Off on Downgrades

Chemicals / Materials

5. Sumco’s (3436 JP) Hokkaido Plant Forced to Halt
6. Japan Display’s (6740 JP) Apple (AAPL US) Reliance Up for Now
7. Shin-Etsu Chemical (4063 JP) Features Among Japanese Beneficiaries of US Shale
8. Shin-Etsu Chemical (4063 JP) Invests More for Organic Growth

Autos

9. US Auto Sales August – SAAR Falls to One-Year Low
10. Bad News for Toyota (7203 JP)?
11. Toyota (7203 JP) and Geely (175 HK) to Cooperate on Hybrids
12. Suzuki (7269 JP): Increasing Dependence on India Could Become an Issue
13. Bridgestone (5108 JP) Downturn Continues

Auto Parts / Machinery

14. Ichikoh’s (7244 JP) Meeting Positive Overall

Telecom

15. Wireless Fees and Rakuten (4755 JP)

Internet

16. Internet Growth Stocks Suffer
17. Start Today (3092 JP): Recent Sell-off Presents an Opportunity
18. LINE (3938 JP) Launches its First Cryptocurrency
19. Value Commerce (2491 JP) Attracting Attention

Pharma

20. Sumitomo Dainippon Pharma’s (4506 JP) Attention-Deficit Setback
21. Markets Betting Takeda (4502 JP) / Shire Deal will Go Ahead
22. Otsuka Pharmaceutical (4578 JP) Notches Up an Impressive Rally

Macro / Miscellaneous

23. Headline Wage Number Slows, But So Do Other Series Too
24. Is the BoJ “Stealth Tapering”?
25. Are Steel Stocks a Buy?

PSA Company Visits, Tours and Interviews

• Visited: Japan Display (6740 JP), Teijin (3401 JP), Sekisui Chemical (4204 JP), Akebono Brake (7238 JP)
• Attended meeting at: Olympus (7733 JP), Ichikoh (7244 JP)
• Phone interview with Sumco (3436 JP)

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