Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Hiroyuki Terada ... (+8)
  • Hiroyuki Terada
  • Joel Scheiman
  • Julie Boote
  • Lindsay Whipp
  • Nia Dokova
  • Pelham Smithers
  • Thao Nguyen
  • William Nestuk

The PSA Weekly Research Round-Up for the Week to 21 February 2025

Weekly Comment Summary One problem emerging from Japan’s 35-year dormancy. Numbers are a lot bigger than when Japan went to sleep in 1990, and sacking people for “losing” ¥1.9tril (US$12.7bil) is not necessarily practical, let alone a good idea. Pelham Smithers discusses PSA in the Press PSA electronics materials analyst Joel Scheiman is cited in the following two Bloomberg articles on 17 Feb: Kioxia Shares Jump After Returning to 9-month Operating Profit Kioxia Shares Rally on Profit in Fi...

Hiroyuki Terada ... (+4)
  • Hiroyuki Terada
  • Joel Scheiman
  • Julie Boote
  • Pelham Smithers

PSA Today 21 Feb: Subdued ahead of long weekend / Macro: economy up, a...

PSA Today Japan Market Comment by Pelham Smithers, Julie Boote, Joel Scheiman and Hiroyuki Terada Tags: Alibaba (BABA US), Bilibili (BILI US), Subaru (7270 JT), Denso (6902 JT), Olympus (7733 JT), Nissan Motor (7201 JT), Suzuki Motor (7269 JT), Tesla (TSLA US), Capcom (9697 JT), Bandai Namco (7832 JT), Sony (6758 JT), Nintendo (7974 JT), DeNA (2432 JT), Chugai Pharmaceutical (4519 JT), Eli Lilly (LLY US), Shionogi (4507 JT), Terra Drone (278A JT), Blue Innovation (5597 JT), Microsoft (MSFT US),...

Julie Boote ... (+5)
  • Julie Boote
  • Lindsay Whipp
  • Pelham Smithers
  • Thao Nguyen
  • William Nestuk

PSA Today 20 Feb: Inflation, rates, yen focus / 4% inflation? / The La...

PSA Today Japan Market Comment by Pelham Smithers, Julie Boote, William Nestuk, Thao Nguyen and Lindsay Whipp Tags: Subaru (7270 JT), Nissan Motor (7201 JT), Komatsu (6301 JT), Panasonic (6752 JT), Nintendo (7974 JT), TDK (6762 JT), Nidec (6594 JT), Shiseido (4911 JT), ANA (9202 JT), Tepco (9501 JT), Microsoft (MSFT US), Renesas (6723 JT), Socionext (6526 JT), Tokyo Electron (8035 JT), Lasertec (6920 JT), ExaWizards (4259 JT), Datasection (3905 JT), AI Robotics (247A JT), Blue Innovation (5597...

Pelham Smithers
  • Pelham Smithers

PSA Electronic Equipment / Instruments: Keyence (6861 JT) – In-depth A...

Tags: Nidec (6594 JT), Makino Milling (6135 JT), Fanuc (6954 JT), Harmonic Drive (6324 JT), Honeywell (HON US), Apple (AAPL US), Alphabet (GOOGL US), Microsoft (MSFT US), Omron (6645 JT), Azbil (6845 JT), Yokogawa Electric (6841 JT), Hioki EE (6866 JT), Sysmex (6869 JT), Accenture (ACN US), Sewtec Automation (pvt), Ebay (EBAY US), GTRIC (pvt), Murata (6981 JT), Internet Initiative Japan (3774 JT), Recruit (6098 JT), Monotaro (3064 JT) Despite high valuations and a dull share price performance o...

Hiroyuki Terada
  • Hiroyuki Terada

PSA Healthcare Services: Amvis Holdings (7071 JT) – Good Risk / Reward

Given that the results of the Sunwels investigation have been released, we think Amvis is likely to beat its H1 OP guidance. Along with attractive valuations [FY25 PER of 10.1x and PEG of 0.4x], analyst Hiroyuki Terada thinks this provides an opportunity to accumulate the shares.

Julie Boote
  • Julie Boote

Trump Set to Pull out of Free Trade Agreement with Korea – Unfair fo...

President Trump threatens to raise pulling out of the Free Trade Agreement with Korea, KORUS, when he discusses the issue with his advisers next week. This follows complaints by Mr Trump earlier this year when he noted that American automakers struggle to sell cars in Korea, while Hyundai Motors and Kia Motors seem to be having an easy ride in the US.In our view, there is little to complain about, if you look at the trade data and sales developments in detail: Both countries now offer free entry...

Julie Boote
  • Julie Boote

PSA Autos: Time to Panic about China EV Sales Quota? – Automakers Ho...

The German newspaper the Frankfurter Allgemeine Zeitung (FAZ) reported on Tuesday August 29th that China’s regulators will soon release some final, softened rules regarding 2018 sales quotas for electric vehicles (EVs). The currently-known draft outlines that OEMs have to generate ‘green credits’ equivalent to 8% of their total auto sales in 2018 (10% in 2019, 12% in 2020). For instance, an automaker selling 1mil cars a year in China would need to generate 80,000 credits; credit points are highe...

Pelham Smithers
  • Pelham Smithers

PSA Global Strategy: Have We Passed Peak FANG?

The stock market loves a collective. Ever since the "Nifty 50" in the early '70s, groups of winners have been bandied together. In the 1990s, we had the "dot coms", stocks that were supposedly winners from Web 1.0. As that was going on, Japan had its own "Nifty 50" of blue chip export names. In the 2000s, we had the Four Horsemen, a group that has morphed, a decade later, into FANG. One of the first signs of difficulty with a collective is when the market can't decide on the components. With a l...

Joel Scheiman
  • Joel Scheiman

Fujifilm Holdings (4901) FY17 Q1 Results Meeting – Cameras Push Earn...

Key Points Fujifilm explained at its earnings meeting that the Imaging and Information Segments combined beat its guidance thanks to strong momentum for cameras but made no changes to its guidance. Documents (Fuji Xerox) again appeared to disappoint, although management noted that Q1 results were only slightly below internal targets. Management appears confident that conditions will improve by H2, boosted in part by its supply of more than ten new office product models this year to the newly...

Pelham Smithers
  • Pelham Smithers

PSA Today Aug 14th: Strong Yen/June GDP +1.0% QoQ, +4.0% Annualized/To...

Japan Market Comment by Pelham Smithers, William Nestuk and Thao Nguyen Nikkei ¥19,537.10 (-¥192.64 / -0.98%); Topix ¥1,599.06 (-¥18.19 / -1.12%); ¥/$109.56Tags: Daifuku (6383), Yaskawa (6506), Toshiba (6502), Western Digital (WDC US), SK Hynix (000660 KS), Hon Hai (2317 TT), Sony (6758), Recruit Holdings (6098), Trend Micro (4704), istyle (3660), Avex (7860), Ferrotec (6890)Strong yen sends market lower after holidayNew highs for Yaskawa and Daifuku – again June GDP up 1.0% QoQ, 4.0% annual...

Hiroyuki Terada ... (+8)
  • Hiroyuki Terada
  • Joel Scheiman
  • Julie Boote
  • Lindsay Whipp
  • Nia Dokova
  • Pelham Smithers
  • Thao Nguyen
  • William Nestuk

The PSA Weekly Research Round-Up for the Week to 21 February 2025

Weekly Comment Summary One problem emerging from Japan’s 35-year dormancy. Numbers are a lot bigger than when Japan went to sleep in 1990, and sacking people for “losing” ¥1.9tril (US$12.7bil) is not necessarily practical, let alone a good idea. Pelham Smithers discusses PSA in the Press PSA electronics materials analyst Joel Scheiman is cited in the following two Bloomberg articles on 17 Feb: Kioxia Shares Jump After Returning to 9-month Operating Profit Kioxia Shares Rally on Profit in Fi...

Hiroyuki Terada ... (+4)
  • Hiroyuki Terada
  • Joel Scheiman
  • Julie Boote
  • Pelham Smithers

PSA Today 21 Feb: Subdued ahead of long weekend / Macro: economy up, a...

PSA Today Japan Market Comment by Pelham Smithers, Julie Boote, Joel Scheiman and Hiroyuki Terada Tags: Alibaba (BABA US), Bilibili (BILI US), Subaru (7270 JT), Denso (6902 JT), Olympus (7733 JT), Nissan Motor (7201 JT), Suzuki Motor (7269 JT), Tesla (TSLA US), Capcom (9697 JT), Bandai Namco (7832 JT), Sony (6758 JT), Nintendo (7974 JT), DeNA (2432 JT), Chugai Pharmaceutical (4519 JT), Eli Lilly (LLY US), Shionogi (4507 JT), Terra Drone (278A JT), Blue Innovation (5597 JT), Microsoft (MSFT US),...

Julie Boote ... (+5)
  • Julie Boote
  • Lindsay Whipp
  • Pelham Smithers
  • Thao Nguyen
  • William Nestuk

PSA Today 20 Feb: Inflation, rates, yen focus / 4% inflation? / The La...

PSA Today Japan Market Comment by Pelham Smithers, Julie Boote, William Nestuk, Thao Nguyen and Lindsay Whipp Tags: Subaru (7270 JT), Nissan Motor (7201 JT), Komatsu (6301 JT), Panasonic (6752 JT), Nintendo (7974 JT), TDK (6762 JT), Nidec (6594 JT), Shiseido (4911 JT), ANA (9202 JT), Tepco (9501 JT), Microsoft (MSFT US), Renesas (6723 JT), Socionext (6526 JT), Tokyo Electron (8035 JT), Lasertec (6920 JT), ExaWizards (4259 JT), Datasection (3905 JT), AI Robotics (247A JT), Blue Innovation (5597...

Hiroyuki Terada ... (+5)
  • Hiroyuki Terada
  • Joel Scheiman
  • Julie Boote
  • Pelham Smithers
  • Thao Nguyen

PSA Today 19 Feb: Tariff worries still / Intel break-up? IC, SPE names...

PSA Today Japan Market Comment by Pelham Smithers, Julie Boote, Joel Scheiman, Thao Nguyen and Hiroyuki Terada Tags: Shiseido (4911 JT), Keisei Electric Railway (9009 JT), Rakuten (4755 JT), Kioxia (285A JT), Screen Holdings (7735 JT), Renesas (6723 JT), Intel (INTC US), TSMC (2330 TT), Broadcom (AVGO US), Nintendo (7974 JT), Niantic (pvt), Scopely (pvt), Capcom (9697 JT), Toyota Motor (7203 JT), LG Energy Solution (373220 KS), General Motors (GM US), Nissan Motor (7201 JT), Honda Motor (7267 J...

Julie Boote ... (+3)
  • Julie Boote
  • Pelham Smithers
  • Thao Nguyen

PSA Today 18 Feb: Rate hike expectations / Results are in, with foreca...

PSA Today Japan Market Comment by Pelham Smithers, Julie Boote and Thao Nguyen Tags: Trend Micro (4704 JT), Keikyu Corp (9006 JT), Keisei Electric Railway (9009 JT), Shiseido (4911 JT), TDK (6762 JT), Nexon (3659 JT), Nissan Motor (7201 JT), Sony (6758 JT), Tokyo Ohka Kogyo (4186 JT), Sanrio (8136 JT), Daifuku (6383 JT), Kioxia (285A JT), PKSHA (3993 JT), Appier (4180 JT), Kaonavi (4435 JT), GNI Group (2160 JT), Pulmatrix (PULM US), Nintendo (7974 JT), Honda Motor (7267 JT), Mitsubishi Motors (...

Pelham Smithers
  • Pelham Smithers

The PSA Must Read Weekly Research Round-Up (week to Aug 10)

Inside the PSA Japan Weekly Research Round-Up you have:The Weekly Comment by Pelham Smithers (available upon request):Ahead of August 14th’s expected GDP number, we discuss Japan’s inflation story. Reports / Flash Notes Published This Week: Headlines at a Glance (full reports available upon request):1. Japanese Politics – Abe’s Waning Popularity 2. Internet: Rakuten (4755) Q2 FY17 – A Decent Quarter but the Risk of Profit Volatility is High 3. Industrial Machinery: IHI (7013) – Still Engine-Driv...

Pelham Smithers
  • Pelham Smithers

PSA Today Aug 10th - Long week-end ahead/Toshiba files accounts/China'...

Japan Market Comment by Pelham Smithers, Joel Scheiman, Julie Boote, William Nestuk and Thao Nguyen Nikkei ¥19,729.74 (-¥8.97 / -0.05%); Topix ¥1,617.25 (-¥0.65 / -0.04%); ¥/$109.95Tags: Shiseido (4911), Mitsui Mining & Smelting (5706), Japan Display (6740), W-Scope (6619), Yaskawa (6506), Daifuku (6383), Toshiba (6502), Western Digital (WDC US), SK Hynix (000660 KS), Honda (7267), Toyota (7203), Nissan (7201), Mazda (7261), Aisin Seiki (7259), Denso (6902), Koito (7276), IHI (7013), DeNA (2432)...

Pelham Smithers
  • Pelham Smithers

PSA Today Aug 9: North Korea/Olympus disenchantment/SoftBank questions...

PSA Today Aug 9: Japan Market Comment by Pelham Smithers, Julie Boote, William Nestuk and Thao Nguyen  Nikkei ¥19,738.71 (-¥257.30 / -1.32%); Topix ¥1,617.90 (-¥17.42 / -1.07%); ¥/$109.98 Tags: Olympus (7733), SoftBank (9984), Sprint (S US), T-Mobile US (TMUS US), Charter Communications (CHTR US), Dish Network (DISH US), Gumi (3903), Square Enix (9684), Honda (7267), Suzuki (7269), Yamaha Motors (7272), Harley Davidson (HOG US), Daifuku (6383), Yaskawa (6506), Nabtesco (6268), SMC (6273), IHI (7...

Pelham Smithers
  • Pelham Smithers

Japanese Politics – Abe’s Waning Popularity

In October 2012, just as Shinzo Abe was stepping up to the plate as the new leader of the then opposition party, the LDP, a relatively unknown former cabinet minister, Fumio Kishida, took over as head of the Koga faction. While factions are a feature of any political party, they were hard-coded into the LDP by the multi-seat constituency system, whereby you could run up to five candidates per district, with a view to winning up to five seats. As a consequence, while seemingly aligned in the Diet...

Julie Boote
  • Julie Boote

US Auto Sales June – The Japanese Big 3 Outperform

Key Points   US auto sales fall 3% YoY in June, with light truck sales up 4.1% YoY and passenger car sales down 13.2% YoY SAAR 16.51 mil, lowest since Apr 2005 Lower replacement demand, lower fleet sales, higher interest rates and increasing competition from cheaper second-hand cars continued to weigh on the auto market Incentives by the Japanese are higher than the Detroit 3   Toyota (7201) sales +2.1%, Honda (7267) +0.8%, Nissan (7201) +2.0% vs the Detroit 3 (which are all down)   Sub...

Julie Boote
  • Julie Boote

Honda (7267) FY17 Outlook – Relative Position to Improve under Chall...

Key Points  Honda produced strong results in FY16; partly due to the reversal of Takata (7312)-related recall expenses, but also on high production cost savings and positive volume contributions.   Honda’s FY17 guidance was below market consensus, on the back of cautious currency assumptions, expectations for sharply rising raw material prices, and deteriorating sales conditions in the US.  Although we agree that the market environment is becoming more challenging for automakers in general,...

Pelham Smithers
  • Pelham Smithers

Strategy: As the Nikkei Threatens to Break Out – What Stocks to Focu...

So far in 2017, Japanese equities have been involved in something of a tug-of-war. The oscillation in the yen / dollar has impacted on market direction; yet with each oscillation, there has been a steady creep forward; Topix is currently up 3.5% year-to-date in yen terms, and 5.0% in dollar terms.   That the market is up despite: The dollar having started the year at 117.55 and is actually down slightly as of March 10th, to 115.39, and The fact that foreigners have sold US$5bil of Japanese...

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