Pelham Smithers Associates Ltd - The PSA Japan Weekly Research Round-Up for the Week Ending 29 October 2021

Report

Pelham Smithers Associates Ltd

Joel Scheiman ...

Julie Boote
Lindsay Whipp
Pelham Smithers
Thao Nguyen
William Nestuk

The PSA Japan Weekly Research Round-Up for the Week Ending 29 October 2021

The Weekly Comment Summary
Pelham Smithers shares his thoughts on Japan’s results season so far; there have been plenty of surprises.

PSA Company Visits, Tours and Interviews
• Conference Calls with: Email Q&A with Shift (3697 JT)
• Earnings Webcasts by: CyberAgent (4751 JT), ZOZO (3092 JT), Shin-Etsu Chemical (4063 JT), Nitto Denko (6988 JT), Sumitomo Chemical (4005 JT), Tokuyama (4043 JT), Hoya Corp (7741 JT), Sekisui Chemical (4204 JT), Zeon Corp (4205 JT)

Reports / Flash Notes Summaries
1. Nidec (6594 JT): Asian Lockdown Hurts Earnings, but e-Axle Sales Outlook Improves
2. TIS Inc (3626 JT) FY21 Q2 Preview
Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Koei Tecmo (3635 JT) 2Q OP +65% YoY; Readacross to Square Enix (9864 JT)
2. Panasonic (6752 JT) Still in Apple Battery Discussions
3. Sony (6758 JT) 2Q FY21 OP Up Marginally
4. GameWith Inc (6552 JT) Acquires DetonatioN’s eSports Team
Technology: Industrial Electronics / Components / Semis & SPE / Precision
5. Shinko Electric (6967 JT): FY21 2Q OP +361% YoY
6. Murata (6981 JT) 2Q OP +45% YoY
7. Canon Marketing (8060 JT) FY21 3Q OP -16% YoY
8. Canon (7751 JT) Revises Down FY21 OP
9. Nitto Denko (6988 JT): Good FY21, but What About FY22?
10. Hitachi 2Q FY21 OP ¥153bil +130% YoY
11. Nidec (6594 JT) Releases Decent Set of Q2 Results, Raises Forecast
12. Other Tech News & Moves That Caught Our Eye
13. Hoya (7741 JT) Weaker Despite Record FY21 Q2
Chemicals / Materials
14. Shin-Etsu Chemical (4063 JT) Postures for Sustained Growth
15. Sekisui Chemical’s (4204 JT) Aerospace Impairment Loss
16. Zeon (4205 JT) Down Sharply on a Weaker Q2
Autos
17. Hino (7205 JT) Raises FY21 Forecasts
Auto Parts / Machinery
18. Stanley Electric (6923 JT) / Koito (7276 MT) Shrug Off 32% Stanley’s H1 OP Downgrade
19. Fanuc (6954 JT) Misses FY21 Q2 OP Guidance by 16%
20. Fanuc’s Sell-Off Drags Down Daikin (6367 JT)
21. HCM (6305 JT) Q2 Neutral but Mining Recovery / Price Hikes Bode Well for FY22
22. Komatsu (6301 JT) Lifts Full-Year OP by a Surprising 25%
23. Ferrotec (6890 JT) Edges Up for 4th Straight Day Helped by LAM
24. Denso (6902 JT) Edges Up to Record High
25. Aisin (7259 JT) and Toyota Industries (6201 JT) Disappoint
26. Nabtesco (6268 JT) Q3 Disappoints on Robot Gear Profitability Levels
Internet / eCommerce
27. CyberAgent’s (4751 JT) FY21 Results
28. Trend Micro’s (4704 JT) FY21 CE NP Boosted by Extraordinary Income Gain
29. ZOZO’s (3092 JT) FY21 Q2 Results
30. Mercari’s (4385 JT) FY22 Q1 Results
Enterprise Software
31. NRI (4307 JT) Raises its FY21 Forecast, Dividend Following Another Strong Quarter
32. Cybozu (4776 JT) Revises FY21 OP Higher on Lesser Costs
33. TIS (3626 JT) FY21 Q2 Preview: Will It Follow NRI with an Upward Revision?
Pharma
34. Chugai Pharm’s (4519 JT) Phenomenal 3Q Sends Shares +11% WoW
Miscellaneous
35. Other Moves & News That Caught Our Eye
Market / Strategy / Macro
36. Kyodo Poll Hints at LDP-Led Coalition Government

29/10/2021 24 EN

Provider

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.

See profile

Analysts

Joel Scheiman

Julie Boote

Lindsay Whipp

Pelham Smithers

Thao Nguyen

William Nestuk

Other Reports from Pelham Smithers Associates Ltd

Lindsay Whipp

Lindsay Whipp

PSA Research & Consulting Services: BayCurrent (6532 JT) Update 2025

BayCurrent (6532 JT) is a pure-play Japanese IT and management consultancy company which is growing sales faster than the broader market, thanks to robust hiring, and a strategy of increasing the number of its core clients. Increasing hiring by around +20% YoY is limiting utilisation growth, but we expect gradual improvement from FY26. Spending on IT is a long-term investment in efficiency and a solution to labour shortages, both of which need addressing in Japan. This places IT Service sector companies like BayCurrent in demand.

2h / 35m 2h / 35m 1 EN

Pelham Smithers

Pelham Smithers

PSA Media & Entertainment: Square Enix (9684 JT) – Back in Play

An activist investor in Square Enix is causing the market take note of a business that is on the up, aided by improved game development efficiency and growing profitability of its non-video game businesses. While we are sceptical about the success of the activism, it does add a call option element to the stock which is arguably offering attractive valuations, explains Pelham Smithers.

2h / 51m 2h / 51m 1 EN

Hiroyuki Terada ... (+6)

Hiroyuki Terada
Joel Scheiman
Julie Boote
Nia Dokova
Pelham Smithers
Thao Nguyen

PSA Today 1 May: Gains as BoJ leaves rates unch, dollar, bonds up / Genki Hoya / ZOZO FY24, FY25 guidance miss / Healthcare round-up / Nxera interest / Insource April KPIs – Nikkei 225 +1.13% | ¥$144.48

PSA Today Japan Market Comment by Pelham Smithers, Julie Boote, Joel Scheiman, Thao Nguyen, Nia Dokova and Hiroyuki Terada Tags: Microsoft (MSFT US), Advantest (6857 JT), Socionext (6526 JT), Disco (6146 JT), Hitachi (6501 JT), Hoya (7741 JT), Murata (6981 JT), Alps Alpine (6770 JT), Mitsui OSK Lines (9104 JT), Toyota Motor (7203 JT), Daihatsu (unlisted), Hino Motors (7205 JT), Aisin Corp (7259 JT), Denso (6902 JT), Sony (6758 JT), Nintendo (7974 JT), ZOZO (3092 JT), Olympus (7733 JT), Medtronic (MDT US), Sysmex (6869 JT), Terumo (4543 JT), Medis Medical Imaging (pvt), Nxera Pharma (4565 JT)...

8h / 40m 8h / 40m 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

The PSA Japan Weekly Research Round-Up for the Week Ending 29 October 2021

PSA Research & Consulting Services: BayCurrent (6532 JT) Update 2025

PSA Media & Entertainment: Square Enix (9684 JT) – Back in Play

PSA Today 1 May: Gains as BoJ leaves rates unch, dollar, bonds up / Genki Hoya / ZOZO FY24, FY25 guidance miss / Healthcare round-up / Nxera interest / Insource April KPIs – Nikkei 225 +1.13% | ¥$144.48

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe