< The 2015 All-Japan Research Team
Junji Sakurada
Mizuho Securities Group
First-Place Appearances: 2
Total Appearances: 4
Analyst Debut: 2012
On the strength of his independence, energy and responsiveness, Mizuho Securities Group’s Junji Sakurada repeats in first place. “He’s always on the road, curious to know everything he can learn about what companies and managements are doing, and he thinks for himself,” attests one fund manager. Yet “he always manages to reply to our inquiries immediately.” Among the 32-year-old analyst’s favorite companies is Fanuc Corp., a global manufacturer of industrial robots and automation equipment that is headquartered in Yamanashi. Sales drivers for the medium to long terms, he advises, include the outsize demand for factory gear coming from emerging economies. Over a shorter horizon, Fanuc is enjoying increasing use of its industrial products in the autos and smartphone industries. In addition, notes Sakurada, the management team is prioritizing its investor relations efforts and, like many Japanese companies, adopting reforms in corporate governance and adding independent directors — all of which should lead to improved shareholder returns. He urged investors to buy the stock in February, at ¥23,285, and five weeks later it had climbed to ¥26,540, for a gain of 14 percent that beat the domestic sector by 7.5 percentage points. When he recommended Fanuc, the researcher also gave the nod to Osaka-based Kubota Corp., which manufactures such heavy machinery as agricultural and construction equipment, engines and tractors. He anticipates that demand will rise in Asian countries that have been slower to adopt agricultural automation than advanced economies. Kubota, moreover, already has firm footholds in China and Thailand. At the same time, in North American markets, he says, “Kubota’s aggressive product development gives it the ability to overwhelm rival companies through the timely introduction of new products.” Finally, Sakurada foresees a revival in the U.S. housing market bolstering sales of equipment and tools. The shares closed at ¥1,964.50 in late March, up from ¥1,907 in February, and he believes that a price of ¥2,200 is justified.