PSA Japan Research Round-Up for the week to May 22

The Weekly Comment Summary
Rapper Travis Scott inventively performed a VR concert inside Fortnite last month. This Covid-induced VR revival seems great for Sony with PS5 coming up, explains Pelham Smithers. However, various issues need addressing in the face-off with competition from Microsoft in next-generation gaming. Meanwhile, PSVR offers Sony a particular advantage.

Reports / Flash Notes Summaries
1. Sony (6758 JT) – An Interesting Year Ahead
Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Panasonic (6752 JT) FY19 4Q OP -50% YoY
2. Foster Electric (6794 JT) Reports an Operating Loss of ¥0.65bil in FY19 Q4
3. Bandai Namco (7832 JT): FY19 4Q OP -53% YoY
4. Square Enix (9684 JT) Delays Kingdom Hearts App Release
5. Sony (6758 JT) is Buying Out the Sony Financials Minority Holders
6. Sony (6758 JT) Advances Video AI with New Chip
Technology: Industrial Electronics and Electronic Components
7. NEC (6701 JT) Impresses as an Anti-Covid Play
8. Washington-Beijing Huawei Spat Hits Suppliers
Technology: Semiconductor Production Equipment & Precision
9. Offline B2B / B2C Plays Hit Hard
Chemicals / Materials
10. Chemical / Basic Materials / Electronic Materials’ Earnings Announcements: Where We Stand
11. Fujifilm’s (4901 JT) Weak FY19 Q4 Was to be Expected
Autos
12. Subaru (7270 JT) FY19 Profits Surge on Easy Base of Comp, Solid US Results
13. Mitsubishi Motors (7211 JT) Loses Ground in Core Markets in Q4
14. Toyota Launches New Crossover in the US
15. Global Governments to Introduce More Support Measures for EVs
Auto Parts / Machinery
16. Daifuku (6383 JT) Renews Listing High for Four Straight Days
Telecom
17. SoftBank Group (9984 JT): Buybacks / Asset Sales Board / Jack Ma to Leave Board
18. Suggestions for What SoftBank Group (9984 JT) Might Do Next
Internet / eCommerce
19. Kakaku.com: Valuations are not Justified
20. Istyle (3660 JT): Further Upside is not Guaranteed
Enterprise Software
21. Freee (4478 JT) Cuts Its FY20 Sales Target
Pharma
22. Shionogi (4507 JT) Acquires Material Rights to GEN-003
Miscellaneous
23. SRE Holdings (2980 JT) FY19 4Q OP Beat Expectations
Market / Strategy
24. Topix Inches Towards 1500
25. The Schizophrenic World of Japanese Domestic Tech Names
26. Thematic / Sector Moves that Stood Out
27. HK Legislation Sends Tokyo Shares Lower; TPX Ebitda -26% YoY
Macro
28. Japan’s March Qtr GDP -0.9% QoQ vs Consensus of -1.1%
29. Interesting PMI Data

PSA Company Visits, Tours and Interviews
• Interviewed / Conference Call with: Toyota Industries (6201 JT), MinebeaMitsumi (6479 JT), Daifuku (6383 JT), Nabtesco (6268 JT), Z Holdings (4689 JT)
• Participated in earnings call with: Fujifilm Holdings (4901 JT), Sumitomo Bakelite (4203 JT), Iwatani Corp (8088 JT)
• Participated in strategy call with: Ube Industries (4208 JT), Sekisui Chemical (4204 JT), Taiyo Nippon Sanso (4091 JT), Komatsu (6301 JT), IHI (7013 JT), Toyoda Gosei (7282 JT), SMC (6273 JT), Mitsubishi Elec (6503 JT)

PSA In the Press
• Pelham Smithers discusses the competitive advantages of Sony’s VR technology in the Financial Times. /content/08f620d1-a433-41e6-af7c-a12335880076