ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
Markets

Sony reclaims electronics crown after 15-year hiatus

Strength in gaming, music and film pushes market value ahead of Keyence

Sony expects to earn the bulk of its operating profit this fiscal year from gaming, music, film and financial segments.   © Reuters

TOKYO -- Sony became Japan's top electronics maker by market value on Monday, taking the crown for the first time in 15 years and three months thanks to a seeming lack of exposure to the U.S.-China trade frictions.

The company expects to earn the bulk of its operating profit this fiscal year from gaming, music, film and financial segments. Sony is "unlikely to be affected by a trade war compared with other electronics makers," said Ryosuke Katsura at SMBC Nikko Securities.

Sony shares climbed 4.44% to close at 5,692 yen Monday, for a market capitalization of 7.21 trillion yen ($65.2 billion). Sony edged past industrial device maker Keyence by 17.3 billion yen to take first place among electronics machinery companies listed on the Tokyo Stock Exchange's first section. Keyence inched up only 0.12% to finish at 59,230 yen.

Sony has made clear it will not pursue scale for its cameras, televisions and other consumer electronics. That separates the group from the export-heavy manufacturers expected to suffer from the escalating U.S.-China trade spat.

"I don't perceive [Sony] as an electronics hardware company," said Yasuo Imanaka of the Rakuten Securities Economic Research Institute.

Sony expects its gaming segment to account for 28% of operating profit for the year ending March 2019, with music and film seen contributing a combined 23%. 

Meanwhile, concerns abound for Keyence.

"Automation investments for factories had been going very well until last year, but uncertainties about future prospects have emerged," said an official at an asset management company.

The company's low dividend has also turned off investors.

Get unique insights on Asia, the most dynamic market in the world.

Offer ends September 30th

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

{{sentenceStarter}} {{numberReadArticles}} free article{{numberReadArticles-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media