< The 2016 All-Japan Research Team
Takumi Sado
Daiwa Securities Group
First-Place Appearances: 3
Total Appearances: 8
Analyst Debut: 2009
Takumi Sado captures first place for a third year running. “He is precise, and I rely on his fundamental reports and periodic notes,” says one fund manager. The Daiwa Securities Group analyst, who maintains a coverage universe of 18 Japanese stocks, is forecasting that the nation’s electronics components companies will suffer a pullback in the next 12 months, with the industry’s combined year-over-year profits unlikely to advance if the dollar remains weak, at approximately ¥115, throughout the period. “Against this backdrop we will be watching for new growth drivers,” says Sado, 47. “At this juncture, we are focusing on the ‘Internet of Things’ and artificial intelligence. We believe promising markets include automated driving, robots and virtual reality.” His top pick on this theme is Kyoto-based Nidec Corp. The world’s largest maker of brushless direct-current motors is enjoying robust orders for its next-generation automobile engines, he advises, and also supplies systems for the materials-handling robots that U.S.-based online retailing giant Amazon.com uses at its logistics centers. “Nidec aims to establish a global standard for automated systems using intelligent motors — or motors with built-in computers — and sensors. Importantly, it has forged a powerful M&A strategy to push ahead with this idea,” explains the researcher. Moreover, he contends, low interest rates and depressed share prices in much of the world will help Nidec’s management, which already has a successful track record when it comes to corporate acquisitions, with its M&A strategy.