When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
Despite the yen steadily weakening against both the dollar and euro over past three years, Japan’s exports haven’t really taken off. However, the latest trade data suggests that this is finally happening. Pelham Smithers discusses the importance of Japan’s belated export boom.
At the beginning of every year we publish our PSA Perspective, a report intended as a long shelf-life look at the year ahead. This year Pelham Smithers discusses Japan's economy, the outlook for the stock market, and some stand-out themes and developments for the year. These include the digital yen and the demise of live action entertainment in Japan. We also update our noted PSA Focus List of stocks. Table of Contents Overview 3 Background: 4 Japan’s Economic Outlook 5 Ja...
The Japanese stock market is in an interesting phase where the Bank of Japan is supporting the bond market rather than the stock market. While this phase lasts, the dollar should remain above ¥120/$ and perhaps strengthen further against the yen. This report looks at what this phase might mean for the Japanese stock market as a whole, and for stock selection. The PSA Focus List has also been updated.
TDK (JP), a company active in the Electrical Components & Equipment industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analys...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Pelham Smithers presents his strategy for Q3 2021 and the changes to PSA's stock Focus List Table of Contents Overview 3 Background 4 Valuations & Value 5 The Case for “Muddle Through” 6 Consumer Spending 7 The Labour Market 7 The Currency and the Carry Trade 8 The BoJ and Policy 9 Japan’s Stuttering Economy 10 Stock Performance and Earnings Expectations 12 Catalysts: Digital Transformation, Semiconductors, Price Hikes ...
TDK shares have yet to perform this year, yet the earnings outlook is encouraging and valuations are unimposing. The progressing entry into medium-size LiBs looks positive, as are expanding sales of sensors for handsets. Even HDD magnetic heads appear poised to enter an expansion phase.
TDK’s exposure to autos, smartphones and industrial equipment points toward a tough FY20. With the 32% decline YTD, the shares have already discounted the deteriorating outlook. Analyst Joel Scheiman thinks the decline could set the stage for a convincing recovery once the bottom is reached.
TOKYO--(BUSINESS WIRE)-- TDK Corporation (TOKYO : 6762) annonce avoir récemment rejoint la Responsible Business Alliance (basée en Virginie, aux États-Unis ; ci-après désignée « RBA »), plus grande coalition sectorielle au monde engagée en faveur de la responsabilité sociale des entreprises au sein des chaînes logistiques mondiales. En tant que membre affilié de la RBA, TDK soutient pleinement la vision et la mission de la RBA, et améliore de manière continue ses propres opérations conformément au code de conduite de la RBA. En outre, TDK aidera et encouragera ses fournisseurs de premier rang ...
TOKYO--(BUSINESS WIRE)-- TDK Corporation (TOKYO:6762) announces that it has recently joined the Responsible Business Alliance (headquartered in Virginia, U.S.A.; hereinafter “RBA”), the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains. As an Affiliate Member of the RBA, TDK fully supports the vision and mission of the RBA and continuously improve its own operations in accordance with the RBA Code of Conduct. TDK will also support and encourage its first-tier suppliers to do the same. RBA Vision and mission Vision: A global electronics ...
TDK shares have struggled since the US began to pressure Huawei a year ago. Its shares began to recover after Q1 earnings exceeded expectations. Prospects should improve as it capitalizes on strong LiB demand and depending on how quickly it can begin to make a profit on sensors. A large cash payment from Qualcomm raises the prospect of higher rewards to shareholders
TDK’s new operating income guidance of JPY 120 billion is 11% above the previous year’s number and in line with our expectation. We forecast that profits in the first half will be weaker than usual, as ongoing inventory adjustment, owing to the economic slowdown, will drag down its profitability. However, we believe that 1) robust demand of passive components for auto; 2) increasing market share for the polymer rechargeable battery; and 3) new adoption of its sensors for autos and handsets, ...
TDK’s new operating income guidance of JPY 120 billion is 11% above the previous year’s number and in line with our expectation. We forecast that profits in the first half will be weaker than usual, as ongoing inventory adjustment, owing to the economic slowdown, will drag down its profitability. However, we believe that 1) robust demand of passive components for auto; 2) increasing market share for the polymer rechargeable battery; and 3) new adoption of its sensors for autos and handsets, ...
TDK’s new operating income guidance of JPY 120 billion is 11% above the previous year’s number and in line with our expectation. We forecast that profits in the first half will be weaker than usual, as ongoing inventory adjustment, owing to the economic slowdown, will drag down its profitability. However, we believe that 1) robust demand of passive components for auto; 2) increasing market share for the polymer rechargeable battery; and 3) new adoption of its sensors for autos and handsets, ...
TDK shares have begun to recover after a sharp correction at the end of 2018. Attaining profitability in Sensors is taking longer than expected, but analyst Joel Scheiman expects rapid improvement there to be a positive swing factor for earnings. A surge in cash flow in FY19 from a final payment from Qualcomm could lead to larger rewards to shareholders.
TDK’s December quarter operating income of JPY 32.7 billion is lower than our forecast of JPY 38.7 billion, but we think weak numbers are already embedded to the share price, as economic indicators and peers’ results have already been suggesting deceleration in China. From this point of view, we consider that TDK’s numbers were rather encouraging, as operating margin of the passive components segment improved to 13.8% from 12.4% of the previous year, despite the weakness of smartphone ship...
TDK’s December quarter operating income of JPY 32.7 billion is lower than our forecast of JPY 38.7 billion, but we think weak numbers are already embedded to the share price, as economic indicators and peers’ results have already been suggesting deceleration in China. From this point of view, we consider that TDK’s numbers were rather encouraging, as operating margin of the passive components segment improved to 13.8% from 12.4% of the previous year, despite the weakness of smartphone ship...
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