PSA Japan Research Round-Up for the Week to Nov 30, 2018

The Weekly Comment
Panasonic (6752 JT) stock is prone to sell-offs. Pelham Smithers ponders the latest one and weighs what we know and what needs to happen.
Reports / Flash Notes Summaries
1. Apple Production
2. Fanuc (6954 JT) – FY18 Outlook
3. Upside Potential for Subaru (7270 JT): North America Key to Recovery
Company / Sector / Thematic Comments
Technology: Consumer Electronics / Gaming / Precision
1. GameSpot (GME US) Hints at Weak Holiday Season
2. Nintendo (7974 JT): Switch Not Such a Dud (Part 2)
3. Sony (6758 JT) to Keep Mobile for Another Three Years?
4. Olympus (7733 JT) Still Under the Microscope
Chemicals / Materials
5. Hitachi Chemical (4217 JT): Waiting Now for a Downward Revision
6. Fujifilm (4901 JT) and Xerox (XRX US) Might Be Talking to One Another
7. Sumitomo Dainippon Pharma (4506 JT) Steps Back from the Cliff
8. Pain to Cancel Polysilicon Contracts, But Limited Share Price Reaction
9. Showa Denko (4004 JT) Looks for New Growth Opportunities
10. Sumco’s (3436 JT) Future May be Rosier Than Its Shares Imply
Autos
11. Nissan (7201 JT) and MMC (7211 JT): Shares Continue to Recover Following Ghosn Shock
12. Thoughts on Nissan (7201 JT)
13. Implications of General Motors’ (GM US) Restructuring Positive for Toyota (7203 JT) and Honda (7267 JT)
14. Automakers Under Pressure on Rumours Over Import Tariffs
Auto Parts / Machinery
15. Daikin (6367 JT) Makes Acquisition to Enter High OPM Refrigerated Showcases
Internet /eCommerce
16. LINE (3938 JT): Accounting Software for SMEs / Partners with WeChat / Banking
17. CyberAgent (4751 JT), ZOZO (3092 JT) and Mercari (4385 JT) Bouncing
18. Fast Retailing (9983 JT) Measures Up Against ZOZO (3092 JT)
19. Recruitment Stocks Surge on Optimism about Japan’s Foreign Worker Bill
Enterprise Software
20. TIS Inc (3626 JT) Moves into Virtual Power Plants
21. NTT Data (9613 JT) Dips its Little Toe into the Indian Electronic Payments Market
22. AI Station Patrol Robots Head for the Olympics
23. Automating Retail: NEC (6701 JT) and Seven & i (3382 JT) Test the Waters
Strategy
24. Return to Goldilocks
25. Market Rebound Continues into Week, Month Close

PSA Company Visits, Tours and Interviews
• Interviewed / Conference Call with Daikin (6367 JT), Ichikoh (7244 JT), Daifuku (6383 JT), Akebono Brake (7238 JT), Hoshizaki (6465 JT)
• Visited Sumco (3436 JT), Showa Denko (4004 JT), Mitsui Chemicals (4183 JT)
PSA in the Press
Last week, PSA’s autos analyst Julie Boote was interviewed by the Wall Street Journal, Bloomberg TV and Sky News with Ian King, regarding the arrest of Carlos Ghosn and implications for the alliance. This week she was also interviewed by S&P Global Market Intelligence: /web/client?auth=inherit#news/article?id=48463252&cdid=A-48463252-12078
Weekly Market Comment by Pelham Smithers
Can Panasonic Prove the Market Wrong?
The past twelve months have been pretty ghastly for Panasonic (6752 JT) stock. Having hit a high ¥1,772 on Nov 1, 2017, its shares slid to ¥1,102 earlier this month before rebounding 5% in the recent market rally and have ended this week at ¥1,164.5. Such a sell-off is not unheard of for Panasonic. Not only was there a similar sell-off in 2015~16, but you can go back to 1982 and find a similar sell-off then. Indeed, we’ve counted 17 times when Panasonic’s shares have closed a month below ¥1,500, having started the month above that.