The PSA Research Round-Up for the Week to 29 August 2025

Weekly Comment Summary
Is it Time for the Japanese Chip Sector to Start Making Noise?
With the Nikkei 225 breaking through 40,000 and setting new highs, one sector that has been surprisingly quiet is Japan’s chip sector.
Given the high weighting of tech in the Nikkei 225, this is the dog that hasn’t barked… so far. Pelham Smithers comments.

Weekly Comment Summary
Reports / Flash Notes Summaries
1. Sony (6758 JT) – Upping its Game
2. Intermestic (262A JT) – Success with Sales of Sunglasses Broadens Zoff's Customer Base
3. Sanrio (8136 JT): Q2 Earnings Should Be Next Catalyst
Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Capcom Reveals Strong TGS Line-up / Others’ TSG Line-ups
2. Nintendo in Switch 2 Development Kit Backlash
3. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
4. Nvidia Does Well Away from DC – Readthrough for Japanese Stocks
5. Other News & Moves That Caught Our Eye
Chemicals / Materials
6. UBE Corp Receives First Order For its Smaller-Size Gigacasting Machine
7. Taking the Wind out of Environmental Programs
8. Other News & Moves That Caught Our Eye
Autos / New Mobility
9. Weak Auto Production in July
10. European Auto Market Becomes More Challenging for Japanese
11. Dongfeng Motor Delists, Spins off EV Unit; What of Nissan and Honda’s JV Future?
12. MMC Lowers FY25 Guidance
13. Other News & Moves That Caught Our Eye
Capital Goods / Machinery / Auto Parts
14. Fujikura & SEI New Listing Highs
15. Another Inspection Scandal for KHI
Enterprise Software / IT Services
16. PKSHA to Make Circulation a Consolidated Subsidiary Post Tender Offer
17. Money Forward Launches AI Contract Review Solution
18. Other News & Moves That Caught Our Eye
Pharma / Healthcare
19. Pharma News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
20. Insource: Several Catalyst to Come
Macro / Market / Strategy / Misc.
21. Back to School for Japanese Equities
22. Tokyo CPI Slows in Line with Expectations
23. Other News & Moves That Caught Our Eye

List of Recently Published PSA Notes & Reports
Important Disclosure Statement from Pelham Smithers Associates Limited

PSA in the Press
Pelham Smithers features this week in the Nikkei Keizai newspaper:
o 'The coexistence of a strong yen and rising stock prices: Surprising similarities with the "Koizumi market" seen by overseas investors’ /article/DGXZQOUB253N60V20C25A8000000/
Excerpt: Pelham Smithers has been researching Japanese stocks since 1987 and is co-founder of the independent British research firm that bears his name. He specializes in analyzing how Japanese companies are positioned globally from both micro and macro perspectives, providing investment ideas.
Key hypothesis: 2023 will be a repeat of 2003. Starting in spring 2024, this phrase is used at the beginning of slides used in discussions with investors. The gist of the argument is that the rise in Japanese stock prices from 2023 onward will follow a similar trajectory to that of the period from 2003 to 2005. "There wasn't much interest in it at first, but now there is a lot of interest."

PSA Company Visits, Tours and Interviews
 Visited: Asahi Kasei (3407 JT), Hitomile (7686 JT)
 1-1 Call with: Intermestic (262A JT/ Zoff Yurakucho Branch, Umeda Branch, Osaka Branch)
 Presentations at: Adeka (4401 JT), Mitsubishi Motors (7211 JT)
 Small Meeting at: Sumitomo Chemical (4005 JT)