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

PSA Today Feb 16: Domestic Demand Names Lead Market Higher / NEC's Translation Machine / Cyberdyne's Q3, New Products / Mitsui Chemical's Hurdles/ Daikin Firm / Start Today's Initiatives - Nikkei +1.19%

PSA Today Feb 16: Japan Market Comment by Pelham Smithers, Joel Scheiman, William Nestuk and Thao Nguyen
Nikkei ¥21,720.25 (+¥255.27/ +1.19%); Topix ¥1,737.37(+¥18.10 / +1.05%); ¥/$105.80
Tags: iStyle (3660 JP), Kitanotatsujin (2930 JP), Shiseido (4911 JP), Capcom (9697 JP), NEC (6701 JP), Cyberdyne (7779 JP), Daiwa House (1925 JP), Mitsui Chemical (4183 JP) Bayer (BAYN GR), Daikin (6367 JP), Start Today (ST, 3092 JP)
Main Points at a Glance
• Japanese shares higher, led by domestic demand names
• NEC’s translation terminal seeing strong orders following trial
• Cyberdyne: mixed 3Q performance, but new products worth noting
• Mitsui Chemicals: the hurdles keep getting higher
• Daikin Firm on Q3 Reassessment
• Start Today launches “Personal Styling Subscription Service”  

Underlyings
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.

CYBERDYNE Inc.

Cyberdyne Inc. CYBERDYNE, INC. is a Japanese robotics and technology company. The Company's Robot Suit hybrid assistive limb (HAL) products comprise medical robots, which are used for the improvement of physical function of patients in the medical and health care fields; personal care robots, which are used as life support and health training equipment for independent movement support in the nursing care and welfare fields, and work support robots. HAL Therapy is the medical service with Robot Suit HAL to provide medical treatments for functional improvement of patients with cerebral, nervous and muscle disorders including spinal cord injury and cerebral embolism. HAL FIT is a scientific fitness training, in which the wearer in Robot Suit HAL performs leg exercise, standing-up, sitting-down and gait training, in accordance with his or her will. ROBO CARE is a service that provides the motivating and comfortable training courses, for instance Robot Fitness HAL FIT 1 as a main training course.

DAIKIN INDUSTRIES LTD.

Daikin Industries is engaged in the manufacture and sale of air conditioning and refrigerating equipment. The Air Conditioning and Refrigeration Equipment segment offers housing equipment including split type air conditioners, air purifiers and air to water heat pump systems; commercial equipment including packaged air conditioners, multi-split type air conditioners, water cooled chillers, medium/low temperature refrigeration equipment, air handling units, rooftop systems and air filters; and marine air conditioning equipment. The Chemicals segment offers fluorocarbon gases, fluoroplastics, fluoroelastomers, fluoro coating agents, semiconductor-etching products and fluorinated oils.

Daiwa House Industry Co. Ltd.

Daiwa House Industry is a home builder. Along with its subsidiaries, Co. operates in seven business segments. Co. is engaged in the construction and sale of housings, the contract work of building reconstruction, the agency of real estate trading and the construction support. Co. develops, constructs and manages leasing houses and provides agency services; develops, sells and manages condominium buildings; develops, constructs, manages and operates commercial facilities; develops and constructs logistic, health care facilities, as well as constructs, manages and operates temporary buildings; manages and operates resort hotels, golf courses, fitness clubs and health care facilities.

Istyle Inc.

istyle Inc. is engaged in the operation of cosmetics portal Website under the name @cosme. The Company operates in four segments. The On Platform segment includes marketing business in Japan and overseas, service for premium members. The Beauty Service segment includes the operation of cosmetics e-commerce (EC) sites in Japan and the operation of the cosmetics specialty store. The Global segment includes services developed outside Japan. The Others segment includes the temporary staffing business, which dispatches beauty salon staff, and the investment development business, which invests in companies with a wide range of growth stages, including companies that have not been established.

Kitanotatsujin

Kitanotatsujin Corporation is a Japan-based company mainly engaged in the e-commerce business. The Company is mainly engaged in the sale of health foods and beauty-related products through Internet, and the operation of related businesses, such as the order receipt and shipment business, the production of mail order Websites, the plan and production of sales promotion tools, as well as the development of systems. The Company provides its products through mail order Websites http://www.kaitekikobo.jp/ and http://www.kaitekikobo.jp/sp/ operated by the Company.

Mitsui Chemicals Inc.

Mitsui Chemical is the parent company of a group engaged in the manufacture and sale of petrochemicals, basic chemicals, urethane, functional polymeric materials, functional chemicals and engineered materials. Co.'s principal products include optical lens materials, medical materials, catalysts, chemical products, agricultural products such as agricultural insecticide, fungicide, soil fumigation disinfectant, ant-repellent and disease prevention agents for use in living environments, as well as petrochemical raw materials, phenols, synthetic fiber raw materials, PET resin, industrial chemicals, polyethylene and polypropylene.

NEC Corp.

NEC is the parent company of a group engaged in the manufacture and sale of computers, software, communications equipment, and electric devices. Co. operates in four business segments: public, enterprise, telecom carrier, and system platform. Co. supplies integration, maintenance and support, and outsourcing services and system equipment for government, public and enterprises; network infrastructure to telecom carriers; hardware such as servers and mainframes, software, enterprise networks solutions. In addition, Co. also provides smart energy such as electrodes and energy storage systems, as well as smartphones, mobile phones, "BIGLOBE" Internet services and lighting equipment.

Shiseido Company Limited

Shiseido is mainly engaged in the manufacture and sale of cosmetics, toiletries, beauty products, health foods, beauty foods and pharmaceuticals. Along with its affiliates, Co. operates in seven business segments: Japan, China, Asia Pacific, Americas, EMEA, travel retail, and professional. Co. markets a wide range of skin care products, hair care products, body care products, perfumes, toiletries, health foods, pharmaceuticals, medical cosmetics, analyzers and other products through cosmetics specialty stores, drugstores, department stores, airport duty free stores and online. Co.'s principal brand names include "SHISEIDO," "cle de peau BEAUTE," "ELIXIR," "MAQuillAGE," "NARS" and "IPSA."

ZOZO Inc.

Start Today is mainly engaged in the electronic commerce ("EC") business. Along with its subsidiaries, Co. operates in three principal businesses: ZOZOTOWN, B to B, and FURIMA. The ZOZOTOWN business operates brand's online shop on ZOZOTOWN by handling their inventory on a consignment based contract. Co. also purchases fashion items from brands and resell them on each brand's online shop on ZOZOTOWN. Additionally, Co. purchases/resales used fashion products from/to its users. The B to B business supports the brands to operate their individual online stores. The FURIMA business offers users a smartphone application called "ZOZO FURIMA" to sell and purchase personal fashion items.

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

William Nestuk

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