Report
Joel Scheiman ...
  • Pelham Smithers
  • Thao Nguyen

PSA Today Feb 15: Wall Street up, Japan up/Sony in the media/Capcom, eSports/SDP, Nitto Denko, Lonasen/Casino guidelines/TOK disappoints/Nissha Bounces/Showa Denko, electrodes/mixi's poor Q3/Recruit's good 9mt

PSA Today Feb 15: Japan Market Comment by Pelham Smithers, Joel Scheiman and Thao Nguyen
Nikkei ¥21,464.98 (+¥310.81/ +1.47%); Topix ¥1,719.27 (+¥16.55/ +0.97%); ¥/$106.56
Tags: Remixpoint (3825 JP), SBI Holdings (8473 JP), mixi (2121 JP), Kirin (2503 JP), Sony (6758 JP), Facebook (FB US), Apple (AAPL US), Netflix (NFLX US), Capcom (9697 JP), Bandai Namco (7832 JP), Sumitomo Dainippon Pharma (4506 JP), Nitto Denko (6988 JP), Tokyo Ohka Kogyo (4186 JP), Nissha (7915 JP), Showa Denko (SDK, 4004 JP), SGL Carbon SE (SGL GR), Recruit (6098 JP), Yuko Yuko Corporation 

Main Points at a Glance 

• Japanese shares follow US tech names higher
• CNBC reckons Sony stock overlooked in the media
• Capcom officially enters Japanese eSport business
• Sumitomo Dainippon Pharma, Nitto Denko good Phase III results for transdermal Lonasen
• Casino guidelines: limitations appearing
• Tokyo Ohka Kogyo disappoints in several areas
• Nissha’s explanation gets a positive reception
• Showa Denko: profits suddenly reliant upon electrode markets
• mixi continues to lose its wonder
• Recruit’s good first nine months 

Underlyings
Apple Inc

BANDAI NAMCO Holdings Inc.

Bandai Namco Holdings is a holding company engaged in the planning and execution of medium- and long-term business strategies for the Group. Co. operates in three business segments: toy and hobby, network entertainment, and visual and music production. Co.'s principal products include toys, candy toys, products for vending machines, cards, plastic model kits, apparel, sundries, stationery, home-use video game software, commercial-use video game machines, and prizes for amusement arcade machines, video products, video software and on-demand video distribution. Co. is also involved in the operation of amusement facilities, as well as the transportation and the real estate management services.

Capcom Co. Ltd.

Capcom is engaged in the development, manufacture and sales of video games, online games, mobile games and arcade games, as well as the operation of amusement arcades. Co.'s business segments are digital contents, amusement facility and amusement equipment. Co. is engaged in the planning, development, manufacture and sales of home video games, online games and mobile games including "Rockman," "Monster Hunter World" and "Dragons Dogma"; the operation of "Plaza Capcom" amusement facilities in Japan; and the development, production and distribution of arcade games for amusement facilities. Co. is also engaged in the licensing business of game characters and the real estate leasing business.

Facebook Inc. Class A

Facebook is building and engaging products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices. The company's products include: Facebook, which enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, which is a place where people can express themselves through photos, videos, and private messaging, and explore their interests in businesses, creators and communities; Messenger and WhatsApp, which are messaging applications; and Oculus, which connects people through its Oculus virtual reality products.

Kirin Holdings Company Limited

Kirin Holdings is a holding company. Co., through its affiliates, is mainly engaged in the manufacture and sale of alcoholic beverages, soft drinks and foods. Co.'s products include low-alcohol (less than 10%) beverages of beer, happoshu (low-malt beer), new genre, chu-hai (cocktail of shochu with tonic water) drinks and non-alcohol of beer "Kirin FREE," as well as spirits, wine and other liquors; tea drinks in PET bottles, canned coffee, health drinks to provide amino acids, as well as lemon and other fruit drinks; and milk, dairy products, seasonings, freeze-dried soup and other functional foods. Co. is also involved in the manufacture and sale of pharmaceutical products.

Mixi Inc.

Mixi is an information technology company with two business segments. Entertainment Segment is engaged in the development and distribution of Smartphone-native games. Media Platform Segment is engaged in the operation of SNSs under the site name "mixi" and recruitment site called "Find Job!" The site offers various services, such as Blog services, Internet discussion boards as well as the distribution of domestic and overseas news. In this Segment, Co. is also engaged in the Internet research business, the photo book service called "nohana" and the wedding support business.

Netflix Inc.

Netflix is engaged in subscription streaming entertainment service including TV series, documentaries and feature films across a variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, without commercials. Additionally, several members in the United States subscribe to the company's DVD-by-mail service. The company improves its streaming content with a focus on a programming mix of content. The company's members can download a selection of titles for offline viewing. The company operates its business as a global operating segment.

Nissha Co.Ltd.

Nissha is engaged in the production of general printed matter in the fields of art and commercial printing as well as surface decoration of products technology. Co. manufactures IMD and IML, metallized paper, and heat transfer foils used for simultaneous molding and printing of plastic products and decorations for mobile phones, notebook PCs, automotive interiors and home appliances; and manufactures functional devices such as film based Touch Sensors "Fine Touch" used in tablet devices, smartphones, game consoles, industrial equipment and automotive. Co. also manufactures and sells its own brand products to medical institutions and provides marketing and sales promotion materials.

Nitto Denko Corp.

Nitto Denko and its subsidiaries are mainly engaged in the manufacture and sale of industrial materials, electronic materials and functional materials. Co.'s principal products include junction materials, surface protective materials, sealing materials, packing materials, and machinery; liquid crystal display ("LCD")-related materials, semiconductor-related materials, printed circuits materials and electronic processing materials; and medical-related materials, macro-molecular separation membranes used in seawater desalination and engineering plastic materials.

Recruit Holdings Co. Ltd.

Recruit Holdings is a holding company. Through its affiliates, Co. operates in four business segments: marketing media, HR media, staffing, and other. Marketing Media segment is engaged in the provision of information on housing, bridal, post-secondary education for high school students, automobiles, lodging accommodation, restaurants, and beauty salons. HR Media segment is engaged in the provision of services that offer employment information to job seekers both in Japan and overseas. Staffing segment is engaged in the provision of staffing services in Japan and overseas. Other segment is engaged in the planning, operation, outsourcing, and other of digital content services.

Remixpoint Inc.

Remixpoint is mainly engaged in the development and provision of application software for digital image. Solution Support segment is engaged in consignment activities for the development of image- and video-related applications. Product License segment is involved in the development of applications and software development kits (SDKs), as well as the sale of product licenses. Its products include ImageReporter for government offices, security companies, public facilities, transportation facilities and others, as well as Remixpoint Interactive Archive Service (RIAS) for advertising, publication and marketing divisions, and others. Service segment provides image- and video-related services.

SBI Holdings Inc.

SBI Holdings is a holding company engaged in the control and management of its group through share ownership. Through its subsidiaries, Co. is engaged in the provision of securities, banking, insurance, housing loan, financial media, real estate financial, forex margin trading businesses, and overseas financial services; the operation and management of investment partnership, the investment in domestic and international venture companies, and the provision of investment advisory services. Co. is also engaged in the 5-aminolaevulinic acid-related business, as well as the research, development, and sale of drugs, cosmetics and health foods.

SGL Carbon SE

SGL Group is a holding company. Through its subsidiaries, Co. is a global manufacturer of carbon and graphite products. Co. has the following reportable Business Areas: Performance Products (PP), Area Graphite Materials & Systems (GMS), and Carbon Fibers & Composites (CFC). The product portfolio of PP includes carbon and graphite electrodes, cathodes and furnace linings. GMS supplies products to various different industries, including coarse and fine-grain graphite and expanded natural graphite that used primarily in the chemical, automotive, semiconductor, LED, lithium ion battery and solar industries. CFC offerings range from raw materials to carbon fibers through finished components.

Showa Denko K.K.

Showa Denko is a chemical producer. Along with its affiliates Co. is mainly engaged in the manufacture and sale of petrochemicals, chemicals, electronics, inorganic materials and aluminum. Co.'s principal products include olefin, such as ethylene and propylene, as well as polyethylene and plastic products; industrial gases, including oxygen, nitrogen, argon and hydrogen gas; hard discs, compound semiconductors, rare earth magnetic alloys, and materials for lithium-ion battery; ceramics, such as alumina, abrasives and refractories; and carbons, such as graphite electrodes; ingots, sheets, extruded products, foils, beverage cans, building products and others.

Sony Corporation

Sony is engaged in the development, design, production, manufacture, offer and sale of various kinds of electronic equipment, instruments and devices for consumer, professional and industrial markets such as network services, game hardware and software, televisions, audio and video recorders and players, still and video cameras, mobile phones, and semiconductors. Co. is engaged in the development, production, manufacture, and distribution of recorded music and the management and licensing of the words and music of songs as well as the production and distribution of animation titles. Co. is also engaged in the production, acquisition and distribution of motion pictures and television.

Sumitomo Dainippon Pharma Co. Ltd.

Sumitomo Dainippon Pharma is engaged in the manufacture, sale/purchase, and import/export of pharmaceuticals, food additives, veterinary products, diagnostic agents and research materials. Pharmaceutical segment manufactures and sells medical and general pharmaceuticals including hypertension and angina drugs, digestive tract function prokinetic agents, peripheral circulation stimulant, and carbapenem antibiotics. Other business segment manufactures, purchases and sale of veterinary medicines, food additives, industrial chemicals, extracts, diagnostic drugs and materials for research and inspection; purchases and sells feed and feed additives.

Tokyo Ohka Kogyo Co. Ltd.

Tokyo Ohka Kogyo is mainly engaged in the manufacture and sale of materials for electronics. Along with its subsidiaries and associated companies, Co. operates in two business segments: material and equipment. Material segment is engaged in the manufacture and sale of electronics functional materials and high purity chemicals. Equipment segment is engaged in the manufacture, sale and maintenance of process equipment for liquid crystal display ("LCD") panels and semiconductor manufacturing equipment. As of Dec 31 2017, Co. maintains five plants in Fukushima, Shizuoka, Kumamoto, Tochigi and Saitama, Japan, as well as its logistics center in Kanagawa, Japan.

Provider
Pelham Smithers Associates Ltd
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. 

Analysts
Joel Scheiman

Pelham Smithers

Thao Nguyen

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