The PSA Weekly Research Round up for the Week to 17 January 2025

Weekly Comment Summary
PSA’s machinery analyst William Nestuk discusses the prospects for Japan’s Automation companies.
He finds reasons to be cheerful when looking at likely demand trajectories, especially in the US

Reports / Flash Notes Summaries
1. Nidec (6594 JT): Earnings Stabilising on A More Balanced Product Portfolio
Having managed to get its ailing EV-business back into the black, Nidec is now expanding profits in all of its divisions. In CY2024 investors’ focus was very much on the AI theme, although Nidec’s earnings growth potential is based on a wider foundation than just AI. Analyst Julie Boote assesses the company’s near-term profit outlook evaluates new developments in FY25.

PSA Company Visits, Tours and Interviews
Visited: S-Pool (2471 JT), Koshidaka Holdings (2157 JT)
1-1 Call with: Curves Holdings (7085 JT)
Presentations at: S-Pool (2471 JT), Money Forward (3994 JT)

PSA in the Press
Pelham Smithers comments in a Bloomberg article entitled Nintendo Shares Drop as Switch 2 Release Date Disappoints Market. [17 Jan]
In a Bloomberg Street Wrap on Yaskawa’s FY24 (Feb yr-end) Q3 results, William Nestuk notes that the overall mood of the earnings meeting was “unconvincing” [14 Jan].

PSA Weekly Contents at a Glance
Reports / Flash Notes Summaries
1. Nidec (6594 JT): Earnings Stabilising on A More Balanced Product Portfolio
Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Video Games Round-Up
2. Nintendo Switch 2 Speculation: If Not Now, When?
3. Nexon’s Share Price: A Weak Start to the Year
4. CyberAgent: A Revisit
Technology: Industrial Electronics / Components / Semis & SPE / Precision
5. Other Tech-Related News & Moves That Caught Our Eye
Chemicals / Materials
6. PVC Restructuring: Toagosei and Kaneka
7. Mitsui and Mitsubishi Chemical to Discuss Phenol Cooperation
8. Other News & Moves That Caught Our Eye
Autos / New Mobility
9. Toyota Presents its India-built Urban Cruiser EV
10. Hino Reaches Final Settlement with US Authorities
11. Other News & Moves That Caught Our Eye
Auto Parts / Machinery / Capital Goods
12. Dec 2024 Machine Tool Orders the Highest Since Sep 2022
13. Positive Points on Yaskawa’s FY24 Q3
14. Robotic Stocks Rise
Internet / eCommerce
15. Demae-Can Reports Strong FY25 Q1
16. Recruit’s New Digital Payment Service for Salaries
Enterprise Software / IT Services
17. Money Forward: FY24 Full-Year Results Disappointing All Round
18. Shift FY25 Q1 OP Beats Consensus Estimates as Recruitment Costs Fall and GPM Improves
19. BayCurrent FY24 Q3 Sales and OP Meet Consensus Estimates
20. Sansan FY24 Q2 OP Beats Consensus Estimates, While Sales Are in Line
Small- / Mid-Cap Insights
21. Curves Produces Q1 OP Ahead of Plan
22. Treasure Factory Reports Q3 Results; Full-Year Target Seems Conservative
23. S-Pool’s FY24 Q4 In Line with Plan; Eyes FY25 OP Growth of +10% YoY
24. Inbound Tourist Numbers +27.6% in Dec
25. Koshidaka’s Q2 Outlook Disappoints
26. Other News & Moves That Caught Our Eye
Miscellaneous / Market / Strategy / Macro
27. Other News & Moves That Caught Our Eye
List of Recently Published PSA Notes & Reports
Important Disclosure Statement from Pelham Smithers Associates Limited