PSA Weekly Research Round up to 10 Nov 2023

Weekly Market Comment by Lindsay Whipp
What Have We Learned From the System Integrator’s Earnings Season?
Earnings season is over for Japan’s system integrators [SI] and network infrastructure [NI] companies’ FY23 (Mar yr-end) Q2. So, what are the main takeaways from their results and where does it leave these companies in relation to their valuations?

PSA Company Visits, Tours and Interviews
Visited: Park24 (4666 JT), Insource (6200 JT), Koshidaka (2157 JT), UBE Corp (4208 JT)
Conference Calls with: IIJ (3774 JT)
Presentations at: Fujifilm Holdings (4901 JT), Sumitomo Bakelite (4203 JT), JSR (4185 JT), Teijin (3401 JT), UBE Corp (4208 JT), Koei Chemical (4367 JT), Asahi Kasei (3407 JT), Shin-Etsu Polymer (7970 JT), Toray (3402 JT), Sumco (3436 JT), Mitsui Chemicals (4183 JT), Kuraray (3405 JT), Nippon Shokubai (4114 JT), Resonac (4004 JT), Nissha (7915 JT), Kaneka (4118 JT), Kureha (4023 JT), Toho Titanium (5727 JT), Mitsubishi Gas Chemical (4182 JT), Fujimi (5384 JT), Nissan Chemical (4021 JT), Daikin (6367 JT), KHI (7012 JT), Daifuku (6383 JT), Fujikura (5803 JT), MHI (7011 JT), IHI (7013 JT)

PSA Weekly Contents at a Glance
Reports / Flash Notes Summaries
1. Murata (6981 JT) – MLCC Outlook Improving
2. Nidec (6594 JT) EV Business Update – A Change in Direction

Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Nintendo FY23 Q2 -20% YoY, Revises Up FY23 OP
2. Sony (6758 JT) Preview / Results
3. Losses in Europe Mess Up What Was a Strong Q2 for Sega Sammy (6460 JT)
4. Nexon (3659 JT) Q3 OP +47% YoY
5. Other Consumer Elec / Gaming News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
6. Canon’s (7751 JT) New Litho Tools Priced “One Digit Less” vs ASML’s
7. Other Tech-Related News & Moves That Caught Our Eye
Chemicals / Materials
8. Asahi Kasei’s (3407 JT) FY23 Q2 and Full-Year Guidance Well Received
9. Results for Kuraray (3405 JT), Nippon Shokubai (4114 JT), Nisha (7915 JT) & Resonac (4004 JT)
10. Nissan Chemical (4021 JT) Trims FY23 Guidance
11. Other Chemical / Material-Related News & Moves That Caught Our Eye
Autos
12. Mazda (7261 JT) Raises FY23 Targets on Currency
13. Suzuki (7269 JT) Predicts All-time Record OP for FY23
14. Honda’s (7267 JT) FY23 OP Upgrade Falls Short of Consensus Estimates
15. Nissan (7201 JT) FY23 Q2 Results and Guidance Beats Consensus Estimates
16. Isuzu (7202 JT) Beats FY23 Q2 Consensus Estimates
17. Other Auto-Related News & Moves That Caught Our Eye
Auto Parts / Machinery
18. MHI (7011 JT): Strong Q2 OP but Timid Defence Earnings Guidance
19. Daikin’s (6367 JT) Q2 OP In-Line but FY23 Guidance Unchanged
20. KHI (7012 JT) FY23 Q2 Results Disappoint
21. Fujikura (5803 JT) Strong Q2 But Weak Guidance on Carrier Demand
22. Daifuku (6368 JT): Looking for a Better FY24 Despite Q2 Miss?
Internet / eCommerce
23. BASE Inc’s (4477 JT) FY23 Q3 Beats; FY23 Guidance Revised Up
24. Recruit’s (6098 JT) FY23 Q2 OP Falls Short
25. No Change to Cover’s (5253 JT) FY23 Guidance
26. Other Internet / eCommerce News & Moves That Caught Our Eye
Enterprise Software / IT Services
27. ExaWizards (4259 JT) Wins First Blue-Chip Client for Low-Code AI Product
28. IIJ (3774 JT) Squeezes Out Additional Share-Price Rise Despite Q2 Miss
29. NTT Data (9613 JT) Falls Following FY23 Q2 OP Miss
30. Money Forward (3994 JT) CEO Boosts Stake in Company
31. Other ERP Software / IT Services News & Moves That Caught Our Eye
Telecom
32. Telecom News & Moves That Caught Our Eye
Pharma 27
33. Pharma News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
34. Feedback from Calls with Park24 (4666 JT) and Insource (6200 JT)
35. Conservative Forecasts at Karaoke Operator Koshidaka (2157 JT)
Miscellaneous / Market / Strategy / Macro
36. Japan’s Interest Rate Dilemma Underscored by Market Moves
37. Upcoming GDP Number Could be Crucial in BoJ Interest Rate Decision
38. Other News & Moves That Caught Our Eye
List of PSA Published Reports Since July 2023