The PSA Weekly Research Round up for the week to 9 August 2024

Weekly Comment Summary
At one point this week, the 5-day historic volatility of the Japanese stock market hit 158%, while even the 50-day volatility is up at 44% – not far behind that of Bitcoin at 48%.
As one commentator on LinkedIn pointed out “the damage to share prices has largely been repaired… but the damage to Tokyo’s reputation hasn’t”. All this, though, does beg the question “why is the market so volatile?”
Pelham Smithers discusses.

PSA Company Visits, Tours and Interviews
• Visited and had One-on-One Calls with: Sanrio (8136 JT), Moriya (6226 JT), Japan Elevator Service (6544 JT), Kyoritsu Maintenance (9616 JT), Amvis (7071 JT)
• Conference Calls with: Anicom (8715 JT)
• Presentations at: UBE Corp (4208 JT), Sumitomo Bakelite (4203 JT), Koei Chemical (4367 JT), Mitsui Chemicals (4183 JT), Teijin (3401 JT), Nissha (7915 JT), Toray (3402 JT), Fujifilm Holdings (4901 JT), Sumco (3436 JT), Mitsubishi Gas Chemical (4182 JT), Dexerials (4980 JT), Resonac (4004 JT), Kaneka (4118 JT), Kuraray (3405 JT), Nissan Chemical (4021 JT), Iwatani Corp (8088 JT), Open Up Group (2154 JT), Fujikura (5803 JT), Daifuku (6383 JT), Nabtesco (6268 JT), Kubota (6326 JT), Daikin (6367 JT), KHI (7012 JT), MHI (7011 JT)

PSA in the Press
In this Bloomberg review of Japan’s recent market slump, Pelham Smithers suggests a more bottom-up approach to investment, rather than top-down.
/news/articles/2024-08-07/japan-morphs-into-the-center-of-worry-for-global-investors

PSA Weekly Contents at a Glance
Reports / Flash Notes Summaries
1. Stock Market Q&A
2. Japan Market Strategy: Why Earnings are Set to Matter More

Company / Sector / Thematic Comments
Technology: Consumer Electronics, Gaming
1. US Video Game Sales in June -5% YoY
2. Global Console Slump in June
3. Sony (6758 JT) FY24 Q1 OP +10% YoY, Revises Up
4. Bandai Namco FY24 Q1 OP +57%, Raises FY24 H1 Forecast
5. Nexon FY24 Q2 OP +64% YoY
6. Other News & Moves That Caught Our Eye
Technology: Industrial Electronics / Components / Semis & SPE / Precision
7. Lasertec FY24 Q4 OP -33% YoY Beats Expectations
8. Other News & Moves That Caught Our Eye
Chemicals / Materials
9. UBE’s Cement Target Looks Low
10. Varied Results from Nissha, Mitsui Chemicals, Tokyo Ohka Kogyo
11. Sumitomo Chemical Cuts Exposure to Petro Rabigh
12. Resonac Revises Up FY24 Guidance
13. Kaneka Reports Strong Q1, No Change to FY24 Guidance
14. Nissan Chemical’s FY24 Q1 Exceeds Internal Targets
Autos / New Mobility
15. Toyota Explains FY24 Q1 NA Profit Fall & Accounting Adjustments
16. Subaru’s FY24 Q1 Misses Estimates
17. Suzuki’s FY24 Q1 Beats Consensus Estimates, No Guidance Upgrade
18. Honda FY24 Q1 Above Consensus, Keeps Guidance Unchanged
19. Mazda Posts FY24 Q1 Earnings below Consensus Estimates
20. Isuzu FY24 Q1 Beats Estimates, Full-Year Guidance Remains Unchanged
21. Other News & Moves That Caught Our Eye
Auto Parts / Machinery / Capital Goods
22. KHI Q1 Disappoints in Power Sports
23. MHI Q1 Strong Positive Surprise
24. Daikin Disappoints
25. Fujikura Surprises with a Blow-Out Q1
26. Kubota Strong Q2 Offsets Weak Guidance
27. Daifuku Pulls Back after Opening Limit Up
Internet / eCommerce
28. BASE Inc Raises Forecast Again
Enterprise Software / IT Services
29. JMDC Q1 OP Falls Short, Opts for Greater Earnings Clarity for Investors
30. Enechange Founder & CEO Steps Down Following Role in Accounting Scandal
31. NTT Data FY24 Q1 OP Well Wide of Consensus, Sales Came in Ahead
32. IIJ FY24 CE Range to Single Forecast Ahead of Consensus Estimates
33. Appier: FY24 Q2 Preview
Pharma / Healthcare
34. Takeda Lays Off 1,000 US Staff
35. Sysmex Beats Consensus, Reporting Best FY Q1 Yet
36. Olympus 1Q FY24 Net Sales Ahead of Consensus, While OP is a Tad Short
37. Fujifilm Hikes Guidance Despite One-Time Costs
38. Terumo FY24 Q1 OP +51% YoY
39. PeptiDream’s FY24 1H Comes in Ahead of Expectations
40. Other News & Moves That Caught Our Eye
Small- / Mid-Cap Insights
41. Moriya Transportation E&M FY24 Q1 Comes in Ahead of Plan 33
42. Amvis Holdings FY24 Q3 Impressive
43. Japan Elevator Service Sees Strong Q1 but Outlook Looks Conservative
44. Kyoritsu Maintenance Reports a Solid Q1 but Q2 So Far Below Plan
45. Open Up Group’s FY24 Beats Guidance
Miscellaneous / Market / Strategy / Macro
46. Massive Market Sell-off on 5 Aug
47. Japan Pay Rises +4.5% in June on Strong Bonuses
48. Other News & Moves That Caught Our Eye
List of Recently Published PSA Reports