< The 2015 All-Japan Research Team
Eiichi Katayama
Bank of America
Merrill Lynch
First-Place Appearances: 4
Total Appearances: 12
Analyst Debut: 2004
For a second year in a row, and the fourth time since 2010, Eiichi Katayama attains the top spot on this roster. The Bank of America Merrill Lynch researcher is hailed by one investment manager for “understanding the sector’s positioning and fundamentals much better than other analysts.” Katayama, 48, is probing “whether the sector can transition from structural reforms to growth” during the year ahead. “In terms of growth the key question remains whether companies can keep up with advances in smartphones.” For instance, Sony Corp. — a diversified conglomerate that is among his long-standing favorites — is ready to switch to an expansion track, he believes, now that it has withdrawn from the personal-computer market and substantially reduced fixed costs in its television and smartphone businesses. The Tokyo-headquartered manufacturer is expected to tap into advancing smartphone functionality by offering semiconductors that are compatible with dual-camera handsets, thus boosting operating profit in its devices operations, and is likely to transition to a high-margin business model with the advent of networked gaming, the analyst advises. Another potentially important market for Japanese consumer electronics providers is automotive equipment, depending on “how much home electronics companies are able to tap into their expertise in the context of growth in automotive electronics,” he explains. In this vein Katayama is bullish over the medium term on Panasonic Corp., crediting a new management strategy that centers on auto electronics and housing. The Osaka-based company’s executive team is also focused on shareholder return, margin improvement backed by yen depreciation and expansion in Panasonic’s overseas appliances and ecosolutions operations. Finally, in the watches and white goods spaces, the researcher is monitoring “how much profit can be improved by leveraging the strengths of domestic production.” Tokyo’s Casio Computer Co., known for its popular G-Shock line of watches, is the standout here, he advises, as its timepieces segment is forecast to be the main driver of operating profit in fiscal 2016.