The PSA Japan Weekly Research Round-Up for the week ending 7 October 2022

Weekly Market Comment Summary
Pelham Smithers looks ahead to Japan’s forthcoming September earnings season.

PSA Company Visits, Tours, and Interviews
Conference Calls with: Yaskawa Electric (6506 JT)
Presentations at: Tosoh (4042 JT), Z holdings (4689 JT)

PSA in the Press
Low valuations and strong balance sheets are a good starting place for investors, but many Japanese companies, despite having these characteristics, have seen their share price performance struggle in recent quarters. Pelham Smithers’ thoughts feature in this Financial Times article: /content/6073ee6a-ff96-41bf-82a5-b14dc81a3823?accessToken=zwAAAYOeXlXzkc9gc-5q_5ZBv9OCpbFNyBo4Iw.MEQCIF3H3KvzidW8E6lHVcJEGk0ucSjZvtjkXyisDTyPFPKCAiAYWIcG0KeO8CH1IW2CQFxispUotY0csdlq66pH2HqNzw&sharetype=gift&token=8374801a-aee7-43d2-9c85-1cf899a00f41

PSA Weekly Contents at a Glance
Reports / Flash Notes Summaries
1. Japan Market Strategy for Q4 CY22: The End of Underperformance?
2. NTT Data (9613 JT): The Weight of Global Ambition
Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Game Console Sales +2% YoY
2. Global Mobile Game Sales Down 16% YoY
3. Sony (6758 JT) Eyes Production of 2mil PSVR2 Headsets Ahead of Launch
4. Might Sony / Kadokawa Deal Lead to Elden Ring Movie / TV Offering?
5. Other Consumer Elec / Gaming News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
6. If SOX is a “Buy”, What Does that Mean for Japanese IC / SPE Names?
7. Disco (6146 JT) Parent FY22 2Q Sales -2% YoY
8. Hitachi’s (6501 JT) Reorganization Continues Apace
9. Canon (7751 JT) to Invest ¥50bil in New Chip Equipment Plant
10. AMD, Samsung Electronics Warn of Problematic September Quarter
11. Rohm (6963 JT) Raises 1H FY22 Guidance
12. Other Tech-Related News & Moves That Caught Our Eye
Chemicals / Materials
13. Shin-Etsu Chemical’s (4063 JT) New Cardboard Coating
14. Sumi Chem’s (4005 JT) Cut in FY22 H1 OP Doesn’t Reflect Sumi Pharma’s (4506 JT) ¥54.5bil Impairment Loss
15. SK Siltron to Boost Wafer Capacity
Autos
16. Auto Stocks Open the Week with a Strong Bounce
17. First Japan Auto Sales Rebound since June 2021
18. Global Plug-in Vehicle Sales +60% YoY
19. Deteriorating Outlook for the US Auto Financing Business
20. Toyota (7203 JT) and Subaru (7270 JT) Record Rise in US Auto Sales
21. Suzuki (7269 JT) Records Strong Sales Growth in India
Auto Parts / Machinery
22. Yaskawa Electric (6506 JT) FY22 Q2 Preview / Results:
Internet / eCommerce
23. Feedback on Z Holdings’ (4689 JT) PayPay Analyst Meeting
24. Competition for Mercari (4385 JT) in the US
25. Mizuho (8411 JT) Confirms Taking a 19.99% Stake in Rakuten’s (4755 JT) Rakuten Securities
26. Other Internet / eCommerce News & Moves That Caught Our Eye
Enterprise Software / IT Services
27. Shift Inc (3697 JT) FY22 Q4, FY23 Outlook Preview
Pharma
28. Eisai (4523 JT): New Information on Lecanemab’s Effectiveness
Miscellaneous
29. Other News & Moves That Caught Our Eye
Market / Strategy / Macro
30. Tankan Shows Japanese Economy Muddling Along