Report
Joel Scheiman ...
  • Julie Boote
  • Pelham Smithers

PSA Today Feb 8: US worries abate, Nikkei up/eSports, Capcom, Bandai Namco/Nikon comment/SoftBank eyes Swiss Re/Isuzu's prospects after a rising Q3/Subaru's US dependence/ SMM and cobalt - Nikkei +1.13%

PSA Today Jan 8: Japan Market Comment by Pelham Smithers, Julie Boote and Joel Scheiman
Nikkei ¥21,890.86 (+¥245.49 / +1.13%); Topix ¥1,765.69 (+¥15.78 / +0.90%); ¥/$109.69
Tags: Sony (6758 JP), Tomy (7867 JP), iStyle (3660 JP), Kitanotatsujin (2930 JP), SMC (6273 JP), Bandai Namco (7832 JP), Nintendo (7974 JP), Capcom (9697 JP), Nikon (7731 JP), Canon (7751 JP), Sony (6758 JP), SoftBank (9984 JP), Swiss Re (SREN SW), Ping An Insurance (2318 HK), Berkshire Hathaway (BRK/A US), Isuzu (7202 JP), Hino (7205 JP) Volvo AB (VOLVB SS), UD Trucks, Subaru (7270 JP), Sumitomo Metal Mining (5713 JP), Tesla (NASDAQ: TSLA)
Main Points at a Glance
• Market up as US worries abate
• Evolution drops Marvel vs Capcom
• Nikon revises up
• SoftBank in talks with Swiss Re
• Isuzu: FY17 Q3 earnings rise on currency, non-Vehicle Operations
• Subaru: FY17 Q3 earnings hurt by US operations
• Sumitomo Metal Mining benefits from cobalt 

Underlyings
Berkshire Hathaway Inc. CL B BDR

Canon Inc.

Canon and its subsidiaries are engaged in the manufacture and sale of office multifunction devices, plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment. Co. sells its products principally under the Canon brand name and through sales subsidiaries. Each of these subsidiaries is responsible for marketing and distribution to retail dealers in an assigned territory. As of Dec. 31, 2017, Co.'s manufacturing is conducted primarily at 30 plants in Japan and 18 plants overseas. Co. operates its business in four segments: Office Business Unit, Imaging System Business Unit, Medical System Business Unit, and Industry and Others Business Unit.

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.

Hino Motors Ltd.

Hino Motors is a manufacturer of large, medium-duty, and light-duty trucks, buses and passenger vehicles. Co. is engaged in the design, development, manufacture and sale as well as the provision of services of diesel trucks, buses, special-purpose vehicles, industrial and marine diesel engines and spare parts. Co.'s truck models include light-duty truck "HINO Dutro," light-duty/medium-duty truck "HINO Ranger" and heavy-duty truck "HINO Profia." Co's bus models include "Hino Rainbow"and "Hino Liesse." Co. also manufactures passenger vehicles, commissioned from Toyota Motor Corp., including the sport-utility vehicles and commercial vehicles.

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.

Isuzu Motors Limited

Isuzu Motors is engaged in the manufacture and sale of automobiles. Co. manufactures heavy/medium/light-duty trucks, buses, passenger vehicle engines and industrial-use diesel engines. Co.'s principal products include commercial vehicles including light, medium and heavy-duty trucks and buses; passenger cars including sport utility vehicles and pickup trucks under the name of "Isuzu D-MAX," "Isuzu mu-X" and "Panther;" diesel engines for construction machinery, freezer units and generators; diesel engines for passenger vehicles; and marine engines for commercial boats. In addition, Co.'s subsidiary provides commercial vehicle leasing and maintenance services.

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.

Nikon Corp.

Nikon and its affiliates are mainly engaged in the manufacture and sale of precision and imaging products. Co.'s principal products include IC steppers, LCD steppers, digital SLR cameras, compact digital cameras, interchangeable camera lenses, microscopes, measuring instruments and inspection equipment, as well as retinal imaging products. Co. is also engaged in development of observation devices, including an IR1 infrared camera and an ultraviolet imager; the manufacture of solid-state lasers that emit a deep ultraviolet laser light with a 193-nanometer wavelength; the development and production of optical glass materials and ophthalmic lenses.

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.

Ping An Insurance (Group) Company of China Ltd. Class H

SoftBank Group Corp.

SoftBank Group is a holding company. Domestic Telecommunications business provides mobile communication services, mobile devices, broadband services to retail customers, and telecom services to corporate customers in Japan. Sprint business provides mobile communication services and fixed-line telecommunication services in the U.S. Yahoo Japan business operates Internet-based advertising and e-commerce business. Distribution business distributes mobile devices overseas, and sells software and mobile device accessories in Japan. ARM business designs microprocessor intellectual property and related technology. SoftBank Vision Fund & Delta Fund business is engaged in the investment activities.

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.

SUBARU CORP

SUBARU and its affiliates are mainly engaged in the manufacture and sale of automobiles and aerospace-related equipment. The Automobiles segment is engaged in the manufacture, sale and repair of passenger cars and their components under the name of "SUBARU." The Aerospace segment is engaged in the manufacture, sale and repair of commercial and defense aircrafts, helicopters, unmanned aerial vehicles and their components. In addition, Co. is engaged in the manufacture, sale and repair of generators, engine-equipped machinery, agricultural machinery, construction machinery and their components; the leasing of real estate; and the manufacture and sale of temporary houses.

Sumitomo Metal Mining Co. Ltd.

Sumitomo Metal Mining is mainly engaged in the development of resources as well as the manufacture and sale of nonferrous metals and electronic materials. Along with its subsidiaries and associated companies, Co. operates in three principal business segments: mineral resources, smelting & refining and materials. Co.'s principal products include non-ferrous metals resources including gold and silver ore, copper concentrates, base metals such as copper, nickel and precious metals and IC packaging materials, electronics materials and optical communication materials; metal powders, circuit board materials and magnet materials. In addition, Co. is engaged in the engineering business and other.

Swiss Re AG

Swiss Re is engaged in wholesale reinsurance, insurance and risk transfer solutions. Co.'s clients include insurance companies, corporations, the public sector and policyholders. Co.'s business units include: Property & Casualty Reinsurance, which includes the business lines property and casualty (including motor); Life & Health Reinsurance, which includes the life and health line of business; Corporate Solutions, which serves mid-sized and large corporations, with product offerings ranging from property and casualty insurance to customised solutions; and Admin Re®, which provides risk and capital management solutions.

Tomy Company Ltd.

TOMY and its affiliates are mainly engaged in the toy business. Co. is engaged in the design, development, manufacture and sale of toys, general merchandise, card games and baby care products, as well as the provision of toy development technology and sheared services in Japan, Americas, Europe, Oceania and Asia. In addition, Co. is also engaged in the design, manufacture and sale of toy peripheral products, as well as the leasing of real estate. Co. provides its principal product under the brand name "TOMICA," "Plarail," "Licca-chan," and "Koeda-chan."

Volvo AB Class B

Volvo is a manufacturer of trucks, buses, construction equipment and marine and industrial engines. Co.'s activities are organized into six areas: Group Trucks, which sells and markets trucks under Eicher, Mack, Renault Trucks, UD Trucks and Volvo brands; Construction Equipment, which includes equipment for construction and related industries; Buses, which includes buses and bus chassis for city, intercity and coach traffic; Volvo Penta, which manufactures engines and drive systems for boats and commercial craft; Governmental Sales, which manufactures special-purpose vehicles; and Volvo Financial Services, providing customer financing and leasing, dealer financing and fee based products.

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

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