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

PSA Today Feb 21: Exporters, casino plays, eSports plays do well / TOY's rare earth breakthrough/Zeon's momentum/ SHI's Nikkei preview/CyberAgent: good progress - Nikkei +0.71%

Japan Market Comment by Pelham Smithers, Joel Scheiman, Julie Boote, William Nestuk and Thao Nguyen
Nikkei ¥21,970.81(+¥45.71/ +0.21%); Topix ¥1,761.61(-¥0.84 / -0.05%); ¥/$107.81
Tags: Universal (6425 JP), Japan Cash Machine (6418 JP), Capcom (9697 JP), Konami (9766 JP), Nintendo (7974 JP), Nissha (7915 JP), Hodogaya (4112 JP), V Technology (7717 JP), Toyota (7203 JP), Zeon Corp (4205 JP), Apple (AAPL US), Daifuku (6383 JP), Yaskawa (6506 JP), SHI (6302 JP), CyberAgent (4751 JP)
Main Points at a Glance  
• Exporters and casino related names, eSports plays do well  
• Toyota: rare earth breakthrough  
• Zeon to enter FY18 with good momentum  
• SHI shares depressed by Nikkei preview  
• CyberAgent is making good progress  

Underlyings
Apple Inc

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.

CyberAgent Inc.

CyberAgent is an information technology company. Media segment is engaged in the operation of internet TV station "AbemaTV," free live streaming programs without subscription "FRESH!," blog service "Ameba," matching services "Tapple" and music streaming service "AWA." Game segment offers a variety of games for smartphones such as "GRANBLUE FANTASY." Internet Advertisement segment is engaged in the provision of internet advertising agency services. Investment Development is engaged in the corporate venture capital business, as well as the establishment and operation of investment fund. Others segment is engaged in the operation of smartphone media.

Daifuku Co. Ltd.

DAIFUKU is engaged in the consulting, planning and engineering, designing, manufacturing, installation and after-sales service of logistic systems, material handling equipment and others. Co.'s major products include storage, transport, sorting and picking systems, clean room transport and storage systems, automobile production line systems, distributed monitoring, control systems, industrial computer, interface boards, LAN-related equipment, logistics system controllers, car-wash machines, transport and storage systems for medical equipment, machines for bowling alleys and automatic scoring systems, multilevel bicycle parking systems, and wheelchair lifts for care-provider vehicles.

Hodogaya Chemical Co. Ltd.

Hodogaya Chemical is engaged in the manufacture and sale of organic industrial chemicals. Co. operates in five business segments. The Functional Pigment segment manufactures and sells charge-controlling agents for toners, organic photo conductor materials, organic electroluminescence materials. The Functional Resin segment offers polytetramethylene-ether-glycol (PTG), urethane- and cement-based construction and civil engineering materials. The Basic Chemical segment provides hydrogen peroxide and others. The Agro-science segment is engaged in the manufacture and sale of agrichemical ingredients and agents. The Logistics segment is engaged in the transportation and storage of Co.'s products.

Japan Cash Machine Co. Ltd.

Japan Cash Machine is engaged in the manufacture and sale of money-handling machines. Co.'s principal products include bill validator units, bill recycling units, bill and coin recyclers, printer units, bill acceptors, change machines, coin and bill collection machines, bill counters, automatic currency exchange machines and original equipment manufacturing products for the casino/gaming, banking, retail and transportation markets. Co. also offers automatic token supply systems, POS systems, pachinko machines, bill dispensers and token management systems for pachinko parlors. Co. is also engaged in the operation of game arcades and the sale of air purification systems.

KONAMI HOLDINGS CORP

Konami Holdings is engaged in the development, publishing, marketing and distribution of video game software products globally for stationary consoles such as Sony PlayStation 2, PlayStation 3, Nintendo Wii, and Microsoft Xbox 360, and for portable consoles such as Sony PlayStation Portable, PlayStation Vita, Nintendo DS and Nintendo 3DS, as well as for use on personal computers. In addition, Co. plans, produces, operates and distributes entertainment content for mobile phone online games. Co. classifies its businesses into four segments: Digital Entertainment, Health & Fitness, Gaming & System, and Amusement.

Nintendo Co. Ltd.

Nintendo is mainly engaged in the development, manufacture, and sale of home-use game hardware/software and peripheral equipment as well as software under the name of "Nintendo DS," "Nintendo 3DS," "Game Boy," "Nintendo 64,"" Game Boy Advance," "Wii," "Nintendo GameCube," "Game Boy Color" and "e-Reader (trading card games)." Co.'s principal software trademarks include "Pokemon," "Super Mario Bros.," "The Legend of Zelda," "STARFOX64" and others. Co. also provides online games and repair services. In addition, Co. is involved in the manufacture and sale of Japanese playing cards called "Karuta," playing cards and board games, as well as the management of intellectual property rights.

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.

Sumitomo Heavy Industries Ltd.

Sumitomo Heavy Industries is engaged in the manufacture and sale of industrial machinery and machinery components. Machinery Components segment offers power transmissions and control equipment. Precision Machinery segment offers semiconductor manufacturing equipment. Construction Machinery segment offers hydraulic excavators and road machinery. Industrial Machinery segment offers medical systems, steel making machinery, steam turbines, material handling systems, logistics systems and parking systems. Ships segment offers oil tankers. Environmental Facilities & Plants segment offers plant systems, recycling facilities, clean room systems and water and sewage treatment systems.

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.

Universal Entertainment Corporation

Universal Entertainment and its affiliates are mainly engaged in the development, manufacture and sale of pachislot and pachinko machines, other game machines and peripheral equipments. The Pachislot and Pachinko segment is engaged in the development, manufacture, sale and rental of pachislot and pachinko machines; the development, manufacture and sale of peripheral equipment; and the procurement of units consisting of parts and materials. The Casino Report segment operates casino resorts. In addition, along with its affiliates, Co. is engaged in the media and broadcasting businesses, the investment management, and the operation and management of online Shogi (Japanese chess) games.

V-Technology Co. Ltd.

V Technology is a manufacturing company. Along with its subsidiaries, Co. is mainly engaged in the development, manufacture and sale of inspection system, manufacturing system, macro inspection system, measurement system, repair system and measuring system used to manufacture of flat panel display ("FPD") such as liquid crystal display ("LCD") and plasma display panel ("PDP"). Co. is also engaged in the development, design, manufacture and sale of liquid crystal substrate manufacturing devices. In addition, through its associated company, Co. is engaged in the manufacture and sale of manufacturing equipment for semiconductor and solar panel.

Yaskawa Electric Corporation

Yaskawa Electric and its affiliates are mainly engaged in the manufacture and sale of electric motors, industrial robots and industrial electrical control systems. Co.'s principal products include AC/DC servomotors, spindle motors for machine tools, programmable controllers, numerical controls, general-purpose/special-system inverters, industrial robots, clean robots, vacuum robots, transfer systems in clean/vacuum rooms, industrial electrical control systems for metal processing, cold rolling and paper making, water supply/sewage control systems, power receiving/distribution panels, circuit breakers, high-voltage switchgears, and energy-saving motor drivers.

Zeon Corporation

Zeon is the parent company of a group engaged in the manufacture and sale of chemical products. Along with its affiliates, Co. operates in three business segments: elastomer, specialty materials, and others. Co.'s principal products include synthetic rubbers; synthetic latices; chemicals, such as C5 petroleum resins and thermoplastic elastomers; specialty chemicals, such as synthetic aroma chemicals and industrial chemicals; information materials, such as elastromics materials and polymerized toners; specialty plastics, such as cyclo-olefin polymers; optical materials; medical products; RIM formulations; RIM products; paints; butadiene extraction technology; housing materials; and others.

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

Pelham Smithers

Thao Nguyen

William Nestuk

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