PSA Japan Research Round-Up for the week to August 7, 2020

Weekly Comment Summary
With insight from a discussion with Steve Cottam, CEO of Antstream Arcade, Pelham Smithers reviews the resilience of the video gaming sector and he explains why it could continue to do well.

Reports / Flash Notes Summaries
1. ZOZO (3092 JT) – Impressive FY20 Q1 Results and FY20 Guidance
2. Toyota (7203 JT) FY20 Q1 Results and Outlook
Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Sony’s (6758 JT) FY20 1Q OP -1% YoY; Read Across to Nintendo (7974 JT)
2. Nintendo (7974 JT) FY20 1Q OP +428% YoY
3. Capcom (9697 JT): FY20 Q1 OP +39% YoY; Positive Read Across to Square Enix (9684 JT)
4. Square Enix FY20 1Q OP +242% YoY
5. Bandai Namco (7832 JT) FY20 Q1 OP -13% YoY
6. Sega Sammy’s (6460 JT) Headfake
Technology: Industrial Electronics and Electronic Components
7. Results Comments: Alps Alpine (6770 JT) / Casio (6952 JT) / Rohm (6963 JT)
Technology: Semiconductor Production Equipment & Precision
8. Ricoh (7752 JT) Reports an Operating Loss for FY20 Q1
9. Lasertec (6920 JT) FY20 4Q OP +182% YoY
Chemicals / Materials
10. The Market Was Pleased with Asahi Kasei’s (3407 JT) FY20 Q1
11. Teijin’s Q1 Supported by Medical Gowns
Autos
12. Toyota Motor (7203 JT) Stays Profitable in FY20 Q1
13. Honda (7267 JT) Reports an Operating Loss for FY20 Q1
14. Isuzu (7202 JT) Reports FY20 Q1 OP vs Consensus Call for an Operating Loss
15. Subaru (7270 JT) Reports FY20 Q1 Operating Loss, Predicts Recovery
16. Suzuki (7269 JT) FY20 Q1 Profits Still in the Black on Lower Costs
Auto Parts / Machinery
17. Nabtesco (6268 JT) Disappoints on FY20 H1 Results and Full-Year Guidance
18. Daikin (6367 JT) and MinebeaMitsumi (6479 JT) Post Strong FY20 Q1
19. Daifuku (6383 JT) FY20 Q1: Record Sales but Poor OPM
Telecom
20. SoftBank Corp’s (9434 JT) Record FYQ1 OP
21. DOCOMO (9437 JT) FY20 Q1 OP +1% YoY
Internet / eCommerce
22. Z Holdings (4689 JT) and LINE (3938 JT) to Merge in Mar 2021
23. Z Holdings’ (4689 JT) FY20 Q1 Beats Consensus
24. Nexon (3659 JT) FY20 Q2 Ahead of Estimates
25. DeNA’s (2432 JT) FY20 Q1 Earnings Beat
26. Mercari’s (4385 JT) FY20 Earnings Beat
27. Mixi (2121 JT) Revises Upward
28. GungHo (3765 JT): Another Quarterly Earnings Decline
29. Kakaku.com’s (2371 JT) FY20 Q1 Misses
Enterprise Software
30. TIS Inc’s (3626 JT) FY20 Q1 Declines Echo that of Peers
31. IIJ (3774 JT) FY20 Q1 OP +48% YoY
Pharma
32. A Weak June Quarter for Astellas (4503 JT)
33. Otsuka Holdings (4578 JT) Presents as a GARP-Play in the Pharma Sector

PSA Company Visits, Tours and Interviews
• Interviewed / Conference Call with: NRI (4307 JT), Koito (7276 JT)
• Participated in earnings call with: Asahi Kasei (3407 JT), Sumitomo Chemical (4005 JT), Mitsubishi Chemical Holdings (4188 JT), Tosoh (4042 JT), Teijin (3401 JT), Nippon Shokubai (4114 JT), Sumitomo Bakelite (4203 JT), Sumco (3436 JT), Nissha Co. (7915 JT), Tokyo Ohka Kogyo (4186 JT), Toray (3402 JT), KH Neochem (4189 JT)
• Daikin (6367 JT), Daifuku (6383 JT), Minebea-Mitsumi (6479 JT), Fujikura (5803 JT)