The PSA Weekly Research Round up for the week to 2 August 2024

Weekly Comment Summary
Even prior to this week’s market debacle, foreign investors had upped their selling of Japanese shares. Given what happened next, this is worrisome, notes Pelham Smithers.

PSA in the Press
Pelham Smithers weighs in on the discussion around AI apps in gaming. Video games: The SAG-AFTRA strike shows how A.I. is threatening the whole industry. (slate.com)

PSA Company Visits, Tours and Interviews
• Visited / Had Calls with: M&A Research Institutes (9552 JT), Insource (6200 JT), Hamee (3134 JT), Anicom (8715 JT)
• Presentations at: M&A Research Institutes (9552 JT), Sanrio (8136 JT), Zeon Corp (4205 JT), Nippon Sanso (4091 JT), TDK (6762 JT), Asahi Kasei (3407 JT), Sekisui Chemical (4204 JT), Hoya Corp (7741 JT), Mitsubishi Chemical Group (4188, JT), Tosoh (4042 JT), Sumitomo Chemical (4005 JT), Toyota Motor (7203 JT), Denso (6902 JT), Aisin (7259 JT), Toyota Ind (6201 JT), NGK Spark (5333 JT), HCM’s Mining Presentation (6305 JT), Toyoda Gosei (7282)

PSA Weekly Contents at a Glance
Reports / Flash Notes Summaries
1. Small- and Mid-Cap IT Services: Game of Snakes and Ladders
2. Toyota (7203 JT) Shares Sold off on Stronger Yen, Cautious Outlook

Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. Koei Tecmo FY24 Q1 OP -24% YoY
2. Capcom FY24 Q1 OP -46% YoY
3. Konami FY24 Q1 OP +47% YoY
Technology: Industrial Electronics / Components / Semis & SPE / Precision
4. Murata Mfg FY24 Q1 OP +33% YoY
5. NEC Corp FY24 Q1 OP in Black
6. TDK Posts Strong Q1 but Guidance is Unchanged
7. Hitachi FY24 Q1 OP +51% YoY but No Change to Full-Year Guidance
8. Hoya Corp Reports a Bifurcated Q1
9. Other News & Moves That Caught Our Eye
Chemicals / Materials
10. Zeon Revises up Only H1 Guidance
11. Asahi Kasei Hikes FY24 H1 Guidance
12. Sumitomo Chemical’s FY24 Q1 – a Better than Expected Start
13. Other News & Moves That Caught Our Eye
Autos / New Mobility
14. Weak June Auto Production Numbers in Japan
15. MMC Rises on Cooperation Talk with Nissan and Honda
16. Subaru Preview: Set to Release Solid FY24 Q1 Results on Forex Gains
17. Toyota Leaves FY24 CE Unchanged
18. Other News & Moves That Caught Our Eye
Auto Parts / Machinery / Capital Goods
19. Fanuc Guidance More Upbeat
20. Komatsu’s FY24 Q1 OP ~10% Above Consensus
21. Denso Good Recovery in N. America / Forward Costs
22. Excitement Over Aisin’s Tie-Up with BMW
Enterprise Software / IT Services
23. JMDC: FY24 Q1 Preview
24. TIS: FY24 Q1 Sales Beat Expectations, OP in Line
Pharma / Healthcare
25. Eisai’s Leqembi Gets The Thumbs-Down from CHMP
26. Daiichi Sankyo Reports Impressive FY24 1Q Results
27. Astellas FY24 Q1 OP +11% YoY
28. Omron’s FY24 1Q Misses Consensus Revenue
29. Other News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
30. Sanrio Q1 Preview / Results
31. M&A Research Institute’s Achieves 97.5% of Full Year OP Guidance by Q3-End, Yet No Change to Forecasts
32. Kyoritsu Maintenance Reports Strong June KPIs
33. Insource KPIs for July; Good Start to Q4
Miscellaneous / Market / Strategy / Macro
34. Japanese Stock Market or is it Time to Play Safe?
35. BoJ Rate Hike on 31 July Sends N225 Higher
36. Rate Hike Reality Bites on Yen Surge:
37. Sharpest Sell-off in the Topix Since 2016
38. Job Offers in Japan Continue to Fall
39. MonotaRO FY24 Q2 OP +20%
40. Other News & Moves That Caught Our Eye
List of Recently Published PSA Reports