Report
Joel Scheiman ...
  • Julie Boote
  • Pelham Smithers
EUR 228.00 For Business Accounts Only

PSA Today Mar 1: Sell-off continues / Sony: windfall from Spotify IPO; PS Vue update / Batteries: Bosch's climbdown, blow to GS Yuasa; high demand / TDK and fast-charging LiBs - Nikkei-1.56%

Japan Market Comment by Pelham Smithers, Julie Boote and Joel Scheiman
Nikkei ¥21,724.47 (-¥343.77 / -1.56%); Topix ¥1,740.20 (-¥28.04 / -1.59%); ¥/$106.84
Tags: Takeuchi Mfg (6432 JP), Daifuku (6383 JP), Daikin (6367 JP), Start Today (3092 JP), iStyle (3660 JP), Spotify (pvt.), Sony (6758), Apple (AAPL US), Google (GOOGL US), ABC, CBS (CBS US), Fox (FOX US), NBC, Bosch, GS Yuasa (6674 JP), Mitsubishi Corp. (8058 JP), SEEO, Mitsubishi Motors (7211 JP), Nissan (7201 JP), Panasonic (6752 JP), Toyota (7203 JP), Mahindra & Mahindra Limited (M&M, NSE), LG Chemical (051910 KS), Asahi Kasei (3407 JP), Tesla (TSLA US), Chirp Microsystems, TDK (6762 )

Main Points at a Glance
• Sell-off continues
• Spotify to IPO, Sony in line for windfall
• Update on PS Vue
• Bosch gives up on battery cells; Battery JV with GS Yuasa and Mitsubishi Corp will be dissolved…
• … but battery demand is looking good elsewhere;
• TDK ups its development of fast-charging LiBs
Underlyings
Alphabet Inc. Class A

Alphabet is a holding company. Through its subsidiaries, the company is engaged in a collection of businesses, which its primary business is Google. The company reports all non-Google businesses collectively as Other Bets. Google's main products and platforms are Android, Chrome, Gmail, Google Drive, Google Maps, Google Play, Search, and YouTube. The company also provides advertisers with tools that help them attribute and measure their advertising campaigns. In addition, Other Bets includes Access, Calico, CapitalG, GV, Verily, Waymo, and X, among others. Other Bets primarily engages in the sales of internet and TV services through Access as well as licensing and research and development services through Verily.

Apple Inc

Asahi Kasei Corporation

Asahi Kasei is a holding company. Co., through its affiliates, operates in three principal business segments. Material segment manufactures and sells petrochemicals, synthetic rubber, performance materials, household products (plastic wrap and storage bags), cleaning agents, elastic polyurethane filament, and battery separators. Homes segment is engaged in the development, construction and sale of unit houses and apartment buildings; and the provision of construction materials. Health Care segment manufactures and sells pharmaceuticals, diagnostic reagents, and critical care devices. In addition, Co. is engaged in the electricity supply, engineering, and employment agency businesses.

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.

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.

GS Yuasa Corporation

GS Yuasa is a holding company mainly engaged in the battery business. Co., through its subsidiaries and associated companies, is involved in the manufacture and sale of batteries, power-supply devices, illuminators and other electric equipment. Co.'s principal products include automotive and motorcycle battery, industrial battery, power supply system, lithium-ion battery, lighting equipment; ultraviolet system, special battery such as thermal battery and high energy density primary lithium battery, nickel-metal hydride battery, lithium-ion battery charger, power tools, oxygen sensor, gas generator, battery analyzer, membrane system, and others.

LG Chem Ltd.

LG Chem is engaged in the business of chemicals and polymers, industrial materials and information and electronic materials. Co. provides polyvinyl chloride products, plasticizers, polyethylene compounds, acrylic acids, engineering plastics, elastomers and conductive resins. Co. also manufactures lithium-ion batteries, printed circuit materials, toner, photosensitive materials, and organic light-emitting diode (OLED) materials.

Mahindra & Mahindra Ltd.

Mahindra & Mahindra is a holding company. Through its subsidiaries, Co. is engaged in manufacturing, distributing and selling of tractors and multi utility vehicles, light commercial vehicles and three wheelers. In addition, Co. is also engaged in provision of information technology and telecommunications services and other services related to financing, leasing, hire purchase of automobiles and tractors. Co. has four significant segments: Automotive, Farm Equipment, IT Services and Financial services.

Mitsubishi Corporation

Mitsubishi is a trading company. Co. is engaged in the manufacture and market a wide range of products, including energy, metals, machinery, chemicals and living essentials through Co.'s domestic and overseas network. Co. is involved in diverse businesses by actively investing in areas, such as natural resources development and infrastructure; and the finance businesses. Co. is engaged in diversified businesses, such as creating new business models in the fields of new energy and the environment. Co.'s principal business segments are global environmental & infrastructure, industrial finance logistics & development, energy, metals, machinery, chemicals, living essentials, and others.

Mitsubishi Motors Corporation

Mitsubishi Motors and its affiliates are mainly engaged in the manufacture and sale of motor vehicles including passenger cars as well as component parts. Co. is engaged in the development, design, manufacture, assembly, sale and purchase, import and other transactions relating to automobiles, component parts and replacement parts, agricultural machinery and industrial engines; the sale and purchase of used automobiles; the sale of measuring equipment; and acting as insurance agents in accordance with laws relating to property damage insurance and to automobile damage indemnity insurance. In addition, Co. is involved in the provision of automobile leasing and sales finance services.

Nissan Motor Co. Ltd.

Nissan Motor, along with its subsidiaries and associated companies, is engaged in the manufacture and sale of vehicles, marine products and related parts; and the provision of finance services throughout world. Co.'s principal businesses are automobile and sales financing. Automobile segment manufactures electric vehicles, sedans, sport coupes, compact cars, mini vans, SUVs, pick-up trucks, and station wagons. Co.'s principal brand names include "Leaf," "Infiniti," "Murano," "Altima," "Maxima," "Sentra," "Quest," "Cedric," "Days Roox," "e-NV200," "Note e-Power," "Caravan," "Wingroad," "GT-R," "Farilady Z, among others. Sales Financing segment provides sales financing services..

Panasonic Corporation

Panasonic offers a range of products, systems and components for consumer, business and industrial use based on electronics and precision technology, expanding to building materials and equipment, and housing business. Co. divides its businesses into five segments: Appliances, Eco Solutions, Connected Solutions, Automotive & Industrial Systems and Other. Co.'s principal products include home appliances such as refrigerators, room air conditioners, washing machines and vacuum cleaners; lighting fixtures and electric lamps, video and audio equipment, electrical components, batteries, semiconductors and optical devices.

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.

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.

Tesla Inc

Tesla designs, develops, manufactures, sells and leases electric vehicles and energy generation and storage systems, and provides services related to its products. The company operates as two reportable segments: automotive, which includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits; and energy generation and storage, which includes the design, manufacture, installation, sales, and leasing of solar energy generation and energy storage products, services related to such products, and sales of solar energy system incentives.

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.

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

Julie Boote

Pelham Smithers

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