Report
Joel Scheiman ...
  • Julie Boote
  • William Nestuk

PSA Today Feb 2: Nikkei knocked back by semis, Apple supply chain concerns / Sony's phenomenal Q3 / Honda's excellent Q3 / Konica Minolta disappoints again/ Denso and Aisin Seiki - Nikkei -0.90%

PSA Today Feb 2: Japan Market Comment by Julie Boote, Joel Scheiman and William Nestuk
Nikkei ¥23,274.53 (-¥211.58/ -0.90%); Topix ¥1,864.20 (-¥6.24 / -0.33%); ¥/$109.75
Tags: Sony (6758 JP), Apple (AAPL US), Honda (7267 JP), Konica Minolta (4902 JP), Fujifilm (4901 JP), Xerox Corp (XRX US), Denso (6902 JP), Aisin Seiki (7259 JP), Toyota (7203) JP, Continental (CON GR), Bosch GE
Main Points
• Nikkei knocked back by semiconductor, Apple supply chain concerns
• Sony’s embarrassment of riches
• Honda Reports Excellent Q3 Results
• Konica Minolta quarterly announcement disappoints, again
• Denso and Aisin: Narrowing the Spread

Underlyings
Advantest Corp.

Advantest and its consolidated subsidiaries manufacture and sell semiconductor and component test system products and mechatronics-related products such as test handlers and device interfaces. Co. also engages in research and development activities and provides maintenance and support services associated with these products. Co.'s principal business segments are semiconductor and component test system; mechatronics system; and services, support and others. Product lines include test systems for memory semiconductors and non-memory semiconductors; test handlers, mechatronic-applied products, and for handling semiconductor devices.

Aisin Seiki Co Ltd

Aisin Seiki is engaged in the manufacture and sale of automobile parts and housing-related equipment. Co.'s principal products are engine parts, including water pumps, pistons and intake manifolds; automatic transmissions, and manual transmissions; brake and chassis parts, such as brake master cylinders, disk brakes and antilock brake systems; door locks and power backdoor systems, car navigation systems, parking support systems and intelligent parking support systems; housing-related equipment, such as shower toilets, beds, automatic wheel chairs and gas heater pump air-conditionings; and fiber laser. Co. is also engaged in the civil construction and petroleum sales businesses.

Alps Alpine Co. Ltd.

Alps Electric is engaged in the manufacture and sale of electronic components and automotive audio equipment. Electronic Components segment offers detector switches, slide switches, power switches, tactile switches, magnetic sensors, humidity sensors, pressure sensors, connectors, encoders, potentiometers, multi control devices, communication modules, actuators and other electronic components for automobiles, smartphones, home appliances and other consumer electronics. Automotive Infotainment segment offers head units, navigation systems and rear view cameras. Logistics segment provides transportation, warehousing and forwarding services specializing in electronic components.

Apple Inc

DENSO CORPORATION

Denso and its affiliates are mainly engaged in the manufacture and sale of automobile electronic, electrical parts, and other components. Co.'s principal business segments are powertrain control systems, electronic systems, thermal systems, information and safety systems, small motors, industrial systems and consumer products. Co.'s principal products include starters, alternators, engine management systems, components for gasoline, diesel and electric hybrid vehicles, engine ECUs, hybrid ICs, air conditioners, radiators, remote keyless entry controllers, car navigation systems, car-mounted ETC devices, motors, bar code handy scanners and industrial robots.

FUJIFILM Holdings Corp

FUJIFILM Holdings is a holding company engaged in the manufacture and sale of imaging information products. Co.'s principal businesses are divided into three segments: imagining solution, information solution and document solution. Co.'s principal products and services are color films, digital cameras "FinePix," photofinishing equipment, color paper, as well as chemicals and services for photofinishing; equipment and materials for medical systems and life sciences, equipment and materials for graphic arts, flat panel display materials, recording media and optical devices; office copy machines/MFPs, printers, as well as production systems and services.

Honda Motor Co. Ltd.

Honda Motor is the parent company of a group mainly develop, manufacture and distribute motorcycles, automobiles, power products, and also provide financing for the sale of those products. Principal manufacturing facilities are located in Japan, the United States of America, Canada, Mexico, the United Kingdom, Turkey, China, India, Indonesia, Malaysia, Thailand, Vietnam, Argentina, and Brazil. Co.'s principal business segments are motorcycles, automobiles, financial services, and power products & other business. Co.'s principal automobile products include passenger cars such as "Legend," "Accord," "Inspire," "Civic," "Insight," "City," "Acura RL," "Acura TL," "Acura TSX," and "Acura CSX".

Kobe Steel Ltd.

Kobe Steel is a steel manufacturer as well as a supplier of aluminum and copper products. Co.'s products include steel plates, seamless steel pipes, titanium, titanium alloys, cast and forged steel products, specialty steels, welding materials, metal rolling products, copper rolling products, aluminum alloys, magnesium alloys, chemical machinery, nuclear related machinery, civil engineering, oil pressure shovels, mini shovels, cranes, electric shovels, electronic-related equipment, information and communication systems, semiconductor related products and special alloy materials. In addition, Co. is engaged in the real estate business.

Konica Minolta Inc.

Konica Minolta and its affiliates are mainly engaged in the manufacture and sale of information technologies related equipment, optical and sensing devices, and healthcare equipment. Co.'s principal products are multi-functional peripherals ("MFPs"), laser printers, filing devices, facsimile machines, and equipment for production printing systems and graphic arts, as well as related solution services; digital X-ray diagnostic image systems, digital mammography, and diagnostic ultrasound systems; and lens units, pickup lenses for optical disks, TAC films for LCD polarizer, and high-precision photo plates. In addition, Co. is engaged in the operation of planetariums.

Kyocera Corporation

Kyocera is engaged in fine ceramic components, electronics devices, equipment, services and networks. As of Mar 31 2018, Co. has 230 subsidiaries and 4 affiliates outside Japan and 23 subsidiaries and 7 affiliates in Japan. Co.'s customers include individuals, corporations, governments and governmental agencies. Co. categorizes its operations into seven reporting segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group, and Others.

Ricoh Company Ltd.

Ricoh is engaged in the development, manufacture, sale and service of office equipment and printing equipment. Office Printing segment offers multifunctional printers, copiers, laser printers, digital duplicators, wide format printers, facsimile, scanners and related parts and supplies. Office Service segment offers PCs, servers, network equipment, projectors and unified communication systems for video/web conferencing. Commercial Printing segment offers cut sheet printers, continuous feed printers, related parts and supplies. Industrial Printing segment offers inkjet heads, imaging systems and industrial printers. Thermal Media segment offers thermal paper and thermal transfer ribbons.

SCREEN Holdings Co. Ltd

Screen Holdings is a holding company. Co., through its subsidiaries and associated companies, is engaged in the manufacture and sale of semiconductor manufacturing equipment, printing-related equipment, printed-circuit board-related equipment and flat panel displays ("FPDs") manufacturing equipment. Co.'s principal products include single wafer cleaner, wet station, scrubber and laser annealer, full-color variable printing system, thermal plate recorder, direct imaging system, automatic optical inspection system, automatic final visual inspection system, coater/developer, LIA plasma CVD/sputter equipment, coater/dryer, coater/developer for LTPS 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.

SUMCO Corporation

SUMCO is a manufacturing company that is mainly engaged in the high-purity silicon business. Along with its subsidiaries, Co. is involved in the manufacture and sale of various silicon wafers for semiconductors, including polished wafers, epitaxial wafers and special wafers; the production and sale of wafers; and the provision of technical and sales marketing support services in overseas markets, including the U.S., the U.K., Indonesia, Singapore, Taiwan and South Korea. In addition, Co., through its subsidiaries, is engaged in the finance and personnel services in the U.S.

Tokyo Electron Ltd.

Tokyo Electron is a supplier of semiconductor production equipment ("SPE") and flat panel display ("FPD") selling through global network that spans Japan, the U.S., Europe and Asia. Co.'s principal products are coater/developers, plasma etch systems, thermal processing systems, single wafer deposition systems, cleaning systems (auto wet station, single wafer cleaning system, pre-clean system and scrubber system), wafer prober, FPD coater/developers and FPD plasma etch/ash systems. In addition, Co., through its subsidiaries, is engaged in the provision of transportation services, insurance services, as well as the support services for Co.'s photovoltaic cell ("PV") production equipment.

Toyota Motor Corp.

Toyota Motor is an automobile manufacturer. Co. is primarily engaged in the design, manufacture, and sale of sedans, minivans, compact cars, sport-utility vehicles, trucks and related parts and accessories throughout the world. Co. provides financing, vehicle and equipment leasing and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Co. Co.'s principal business segments are automotive operations, financial services operations and other operations. Co. sells its vehicles in approximately 190 countries and regions, and markets for its automobiles in Japan, North America, Europe and Asia.

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

Julie Boote

William Nestuk

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