The PSA Research Round-Up for Week to 30 January 2026

Weekly Comment Summary
Based on the stock market’s performance, you’d think that the Japanese economy is motoring. However, as the latest economic data shows, that’s far from the case.
The question is – does this matter?
Pelham Smithers discusses

PSA Weekly Contents at a Glance
Reports / Flash Notes Summaries
1. New Constituent of the 2026 Q1 PSA Focus List – ExaWizards (4259 JT)
2. Honda Motor's (7267 JT) Auto Business in Trouble
3. The Rise of GenAI Apps in Japan
4. Why the Semiconductor Industry is About to Get Much Bigger
Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Nintendo Sells 3.8mil Switch 2s in December, Sony Sells 3.4mil PS5s
2. Koei Tecmo FY25 Q3 OP +50% YoY
3. Capcom FY25 Q3 OP +45% YoY, Beats Consensus
4. Konami FY25 Q3 OP +2% YoY
5. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
6. Advantest FY25 Q3 OP +64% YoY
7. Canon FY25 Q4 OP Up for the First Time in Three Quarters and Ahead of Expectations
8. Keyence Q3 OPM Falls Below 50%
9. Nidec Presents Reform Plan, but No Financial Statements Yet
10. Hitachi Raises Full-Year Guidance Ahead of Consensus
11. NEC FY25 Q3 OP -18% YoY, but Boosts Guidance
12. Screen FY25 Q3 OP -27% YoY
13. Lasertec: FY26 Q2 OP -24% YoY
14. Socionext: FY25 Q3 OP -33% YoY
15. Other News & Moves That Caught Our Eye
Chemicals / Materials
16. Shin-Etsu Chemical: FY25 Q3 Slightly Below Consensus
17. Other News & Moves That Caught Our Eye
Autos / New Mobility
18. Huge Challenges Await Mitsubishi Motors’ New President
19. India-EU Tariff Deal Impact on Suzuki: Risks and Chances
20. Hino FY25 Q3: Poor Sales but Guidance up on Currency
21. Other News & Moves That Caught Our Eye
Capital Goods / Machinery / Auto Parts
22. Fanuc: FY25 Q3 OP Disappoints
23. Furukawa Electric 5th Day Record Highs
24. HCM Lifts FY25 OP Guidance by +4%
25. Komatsu: FY25 Q3 OP Beats Consensus by 7%
Internet / eCommerce
26. GA Technologies Reaches One-month Low
27. ZOZO’s FY25 Q3: Sales and Net Income Miss while OP Beats
28. Other News & Moves That Caught Our Eye
Enterprise Software / IT Services
29. NRI: FY25 Q3 Preview / Results
30. Obic Beats Consensus Estimates for FY25 Q3, Raises DPS
31. OBC Produces Steady FY25 Q1~Q3 Results, Raises DPS
32. TIS Inc: FY25 Q3 Preview
33. DTS Corp: FY25 Q3 Preview
34. Money Forward Narrows Net Loss Guidance for FY26
Small- / Mid-Cap Insights
35. Insource: Sluggish FY26 Q1 but Outlook Improving / Mtg Takeaway
36. M&A Capital Partners: Advances Received Hit Historical High
Macro / Market / Strategy / Misc.
37. Mainichi Poll Shows Election Not Straightforward for Takaichi
38. 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
Advantest May Boost Full-Year Forecast at 3Q Earnings: Preview – Bloomberg [27 Jan]
Pelham Smithers Associates (Pelham Smithers)
 The company’s third quarter capacity this fiscal year should be around 15% higher than in the first quarter revenue, assuming it was operating at 100% in 1Q
 There’s still “quite a bit of room” to meet the company’s target of $8.5b in sales of test equipment in 2025
 The company should produce third quarter results similar to those of the first and second quarters, “and potentially considerably better”
 There could be a “substantial upward revision” for the full year
Koei Tecmo Shares Slide as 3Q Game Revenue Misses Expectations – Bloomberg [27 Jan]
Pelham Smithers Associates (Pelham Smithers)
 Sales of Hyrule Warriors: Age of Imprisonment were negatively impacted by “limited installation base” of Nintendo’s Switch 2
 Ninja Gaiden 4 may have been “overshadowed” by Sony’s Ghost of Yotei
 Nintendo Switch 2’s Strength Threatened by Memory ‘Horror Show’
Pelham Smithers Associates (Pelham Smithers)
“The company appears to be looking at an absolute horror show on the cost of building a console, unless memory prices come down sharply,” said Pelham Smithers, a UK-based equity analyst who focuses on the gaming sector. Nintendo’s shares have already lost more than 30% from their August high, logging their worst monthly performance since 2008 in December.
Shin-Etsu Plunges on 3Q Miss, PVC Demand Worries: Street Wrap – Bloomberg [28 Jan]
Pelham Smithers Associates (Joel Scheiman)
 Every business performed below expectations in 3Q
 Expects little improvement in earnings for 4Q, partly due to seasonal factors
 “Wafer inventory factors are the largest concern”
 Company indicated around 15% of sales came from AI, but “this may be hard to verify”

PSA Company Visits, Tours and Interviews
Visited: Insource (6200 JT)
1-1 Call with: M&A Capital Partners (6080 JT)
Presentations at: Shin-Etsu Chemical (4063 JT), Hoya Corp (7741 JT), Sekisui Chemical (4204 JT), Sumitomo Pharma (4506 JT), Tokuyama Corp (4043 JT), Zeon Corp (4205 JT), ZOZO (3092 JT), Fanuc (6954 JT), Keyence (6861 JT), HCM (6305 JT), Komatsu (6301 JT)