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

PSA Today Jan 30: Weak Market / Apple Suppliers Sold Off / HCM Surges / Punchy FY18e at Canon / Capcom's FY18 CE, eSport / SBI Holdings Results and More ..... - Nikkei -1.43%

PSA Today Jan 30: Japan Market Comment by Pelham Smithers, Joel Scheiman, Thao Nguyen and William Nestuk
Nikkei ¥23,291.97 (-¥337.37 / -1.43%); Topix ¥1,858.13 (-¥22.32/ -1.19%); ¥/$108.61
Tags: Apple (AAPL US), Nissha (7915 JP), TDK (6762 JP), Nitto Denko (6998 JP), Shin-Etsu Chemical (4063 JP), Sumitomo Chemical (4005 JP), Sumitomo Chemical (4005 JP), Murata (6981 JP), NOK (7240 JP), Dexerials (4980 JP), Hitachi Construction Machinery (6305 JP), Canon (7751 JP), Capcom (9697 JP), SBI Holdings (8473 JP), SBI Ripple Asia, JSR (4185 JP), Rakuten (4755 JP), Asahi Fire & Marine Insurance, Nomura Holdings (8604 JP)
Main Points at a Glance
• Weak markets
• Apple suppliers sold off on concerns of iPhone production cutbacks
• HCM reports FY17 Q3 OP rise of 4.7x
• Canon delivers punchy FY18 forecasts
• High hopes for Capcom’s FY18 performance; Chance to showcase its eSports IP at Japan’s first eSport tournament
• SBI Holdings results and more – The floral decoration that goes on the icing that goes on the cake.
• Dexerials Achieves 99% of its FY17 OP Guidance
• Rakuten to buy Asahi Fire & Marine Insurance

Underlyings
Apple Inc

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.

Dexerials Corp.

Dexerials Corp is a Japan-based company mainly engaged in the manufacture and sale of optical materials, electronic materials and bonding materials. The Company operates in two business segments. The Optical Material Products segment is divided into three categories: optical films, optical resin materials and optical solutions. Main products are ultraviolet curable resins for optical discs, optical elastic resins and antireflection films. The Electronic Material Products segment is divided into four categories: bonding materials, anisotropic conductive films, surface mount fuses and microdevices.

Hitachi Construction Machinery Co. Ltd.

Hitachi Construction Machinery is a manufacture of construction machinery. Co.'s principal business segments are construction machinery and solution. Along with its subsidiaries and associated companies, Co. is engaged in the manufacture, sale, after-sale services and rental of construction machinery, such as mini excavators, medium excavators, large excavators, loading shovels, wheel loaders, demolition equipment, metal recycling equipment, forest machines, rigid dump trucks, compaction equipment, cranes, foundation machines, double-front work machine and mine management systems.

JSR Corp.

JSR is a manufacturing company. Co.'s principal business segments are Elastomer, Synthetic Resin, and Diversified. Co. is engaged in the manufacture and sale of synthetic rubber products, such as styrene butadiene rubber (SBR), and butadiene rubber (BR), thermoplastic elastomers; emulsion products such as SBR latex and others; the manufacture, processing and sale of acrylonitrile butadiene styrene (ABS) resin, acrylonitrile ethylene styrene resin and other synthetic resin products. Co. is also engaged in the manufacture and sale of materials for semiconductor manufacture, flat panel displays, optical instruments and functional chemicals, as well as the sale of manufacturing technology.

Murata Manufacturing Co. Ltd.

Murata Manufacturing is mainly engaged in the development, manufacture and sale of electronic components and modules in Japan, North America and certain other Asian and European countries. Co.'s products are sold mainly to electronics companies for use as components in telecommunication, computer, audio, video, automotive electronics and other electronic products. Co. is engaged in the development, manufacture and sale of electronic parts and related products, including components for capacitors and piezoelectric products, as well as modules products; the provision of welfare services, personnel services, education and training services, as well as the leasing and management of real estate.

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.

NOK Corporation

NOK is engaged in the manufacture and sale of seal products, industrial mechanical parts, rubber products, and others. Along with its subsidiaries and associated companies, Co. operates in four business segments: seal, electronic device product, roll, and others. Co.'s principal products include oil seals, O-rings, vibration controls, resin products, gaskets, chemical products, mechanical seals, flexible printed circuits, flexboards for digital cameras and cellular phones, flexible printed circuit-based panel keyboards, optoelectronics products, rubber rolls for office machines and equipment, special lubricants, and others.

Nomura Holdings Inc.

Nomura Holdings is a holding company and financial services groups in Japan and have worldwide operations. Co., through its subsidiaries, is engaged in the provision of a range of financial services including brokerage, trading, underwriting, M&A financial advisory services, merchant banking, and development and management of investment trusts and investment advisory services to clients such as individuals, corporations, financial institutions, governments and governmental agencies. Co. operates offices in countries and regions worldwide including Japan, the U.S., the U.K., Singapore and Hong Kong Special Administrative Region ("Hong Kong") through Co.'s subsidiaries.

Rakuten Inc.

Rakuten is mainly engaged in the Internet-related business. Along with its affiliates, Co. operates in two business segments. The Internet Services segment is engaged in the operation of electronic commerce sites, including an Internet shopping mall "Rakuten Ichiba," an online cash back site, a travel booking site, portal sites and digital contents sites; the sale of advertising on Co.'s sites; the provision of messaging and communication services; and the management of a professional baseball team "Tohoku Rakuten Golden Eagles." FinTech segment is engaged in the provision of Internet banking services and online securities trading services, and the credit card and life insurance businesses.

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.

Shin-Etsu Chemical Co Ltd

Shin-Etsu Chemical is mainly engaged in the manufacturing and sales of polyvinyl chloride and organic chemicals, silicon, functional chemicals, semiconductor silicon, electronic and functional materials, and others. Co.'s principal products include polyvinyl chloride, caustic soda products, methanol, chloromethane, silicon products, cellulose derivatives, silicon metal, poval (polyvinyl alcohol), synthetic pheromones, semiconductor silicon products, rare earth magnets, encapsulation materials, photoresists, photomask blanks, synthetic quartz products, epoxy molding compounds, pellicles, and resin processed products. Co. is also engaged in the export of plant equipment and others.

Sumitomo Chemical Co. Ltd.

Sumitomo Chemical is a chemical manufacturing company. Co.'s business is comprised of 5 sectors: Petrochemicals & Plastics Sector, Energy & Functional Materials Sector, IT-related Chemicals Sector, Health & Crop Sciences Sector, Pharmaceuticals Sector and Others. Co. is engaged in the manufacture and sale of inorganic and organic chemicals, synthetic fiber materials, metal acrylate, alumina and aluminum products, petrochemical, synthetic resin and rubber products, optical goods, color filters, materials for semiconductors, electronic materials, agrochemicals, fertilizers, agricultural materials, pesticide, dietary additives, pharmaceuticals and radioactive diagnostic products.

TDK Corporation

TDK is a manufacturer of recording media, ferrite products and recording device products, and a producer of inductor, ceramic capacitor, magnet, HDD head and other components. Co.'s principal business segments are passive components, sensor application products, magnetic application products, film application products and others. Co.'s principal products include ceramic capacitors, aluminum electrolytic capacitors, film capacitors, inductive devices, high-frequency components, piezoelectric materials and circuit protection components, sensors, HDD head suspension, recording devices, power supplies and magnets, and mechatronics.

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

Other Reports on these Companies
Other Reports from Pelham Smithers Associates Ltd

ResearchPool Subscriptions

Get the most out of your insights

Get in touch