The PSA Weekly Research Round-Up for the Week to 14 Feb

Weekly Comment Summary
Japan’s producer price index grew +4.2% YoY in January, its highest rate of growth since June 2023, increasing concerns over the outlook for consumer prices. However, there are signs that food and energy price increases may be coming under control. Pelham Smithers explains.

PSA in the Press
 PSA Autos / Mobility analyst Julie Boote discusses the management issues that likely led to turmoil at Nissan in this Reuters article How Nissan and Honda's $60 billion merger talks collapsed | Reuters, and in this Bloomberg article Honda and Nissan Results Will Highlight Flaws as Merger Deal Set to Fail – Bloomberg
 Pelham Smithers features in the following article: Sony Surges on Gaming Hopes After Forecast Boost: Street Wrap –Bloomberg [14 Feb]

PSA Company Visits, Tours and Interviews
 Visited: Open Up Group (2154 JT)), M&A Capital Partners (6080 JT), Anicom Holdings (8715 JT), Japan Elevator Service Holdings (6544 JT)
 1-1 Call with: Moriya Transportation Engine & Mfg (6226 JT), CUC (9158 JT)
 Presentations at: Sunwels (9229 JT), Intermestic (262A JT), Sanrio (8136 JT), Fujita Kanko (9722 JT), Kuraray (3405 JT), Toray (3402 JT), Dexerials (4980 JT), Tokyo Ohka Kogyo (4186 JT), Iwatani Corp (8088 JT), Mitsubishi Gas Chemical (4182 JT), Resonac Holdings (4004 JT), Kioxia Holdings (285A JT), Kaneka (4118 JT), Fujikura (5803 JT), Furukawa (5801 JT), SMC (6273 JT), GS Yuasa (6674 JT), Appier (4180 JT), Honda Motor (7267), Nissan Motor (7201 JT)
 Small meeting: Sumitomo Chemical (4005 JT).

PSA Weekly Contents at a Glance
Reports / Flash Notes Summaries
1. Nissan Without Honda: What Happens Next
Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Dow Jones Newswire Preview: Will Sony See a YoY Fall in Profits?
2. Sony FY24 Q3 OP +2% YoY, Raises Forecasts (a Bit)
Technology: Industrial Electronics / Components / Semis & SPE / Precision
3. Kioxia Sees FY24 Q3 OP of ¥123bil vs a Loss a Year Ago; Guiding for a YoY Decline in FYQ4 OP
4. Other News & Moves That Caught Our Eye
Chemicals / Materials
5. Kureha, Central Glass See LiB Market Pressure
6. A Volatile Day for Chemical Stocks
7. Kaneka Revises Up on Improved Q3
8. Other News & Moves That Caught Our Eye
Autos / New Mobility
9. Isuzu’s FY24 Q3 Below Estimates
10. Honda / Nissan Formally End Merger Talks; Honda’s FY24 Q3 Reflects Deteriorating Auto Business
11. Nissan’s FY24 Q3 Underwhelms, Lowers Full-Year Guidance
12. Bridgestone FY24 Q4 Preview
13. Other News & Moves That Caught Our Eye
Auto Parts / Machinery / Capital Goods
14. Fujikura FY24 Q3 +99% YoY; 45% Over Consensus
15. Furukawa Falls as AI Earnings Lag
16. KHI Rises on Defence & Powersports
17. SMC FY24 Q3 OP -14% YoY Disappoints
18. Daifuku Produces Record FY24 OP and FY25 OP Guidance
Internet / eCommerce
19. Recruit’s New Guidance Disappoints
20. GMO Payment Gateway’s FY25 Q1 Earnings Beat
21. Cover’s Strong Q3 Leads to Upward Revision to Full-year FY24 Guidance
22. Istyle Hits 52-Week High on Good Q2 and FY25 Guidance Upward Revision
23. Trend Micro Limit Up on Takeover Bid Speculation
24. BASE Inc’s FY24 Results and FY25 Guidance Miss
25. Rakuten Achieves First OP in Five Years
Enterprise Software / IT Services
26. Appier’s FY24 Results Close to Consensus Estimates, But Company Expects to Miss FY25 OPM Goal
27. PKSHA Blasts Through FY25 Q1 OP Consensus Estimates
28. IIJ FY24 Q3 Misses OP Expectations but Beats on Sales
29. ExaWizards’ FY24 Q3 Results Leaves Hard Work for Q4
30. DTS Corp Reports Solid FY24 Q3 Results
Pharma / Healthcare
31. Omron Revises Up Full-Year OP, but Still Shy of Consensus
32. Sysmex Q3 Mixed, Maintains Below Consensus FY24 Guidance
33. PeptiDream FY24 Beats Guidance; FY25 Forecasts Ahead of Consensus
34. GNI Group Q4 Loss as Cullgen Merger Delayed to 2025
35. Nxera Pharma Misses Full-Year FY24 Estimates
Small- / Mid-Cap Insights
36. Moriya Transport Q3 OP +54.2% YoY, No Change to FY24 Guidance
37. Japan Elevator Service Q3 OP +24.2% YoY, No Change to FY24 Guidance
38. Expected Weak Q3 sees Kakuyasu Maintain its Full-Year OP Guidance
39. Intermestic FY24 Ahead of Guidance; FY25 Outlook Seems Conservative
40. Hello Kitty 50th Anniversary Boosts Sanrio’s FY24 Q3 OP
Miscellaneous / Market / Strategy / Macro
41. What Now for Japanese Stocks as Results Season Winds Down?
42. Shimano Q4 OP +25% YoY, but FY24 Guidance is Disappointing
43. Other News & Moves That Caught Our Eye

List of Recently Published PSA Notes & Reports

Important Disclosure Statement from Pelham Smithers Associates Limited