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The 2014 All-Japan Research Team: Electronics/Components, No. 3: Shoji Sato

< The 2014 All-Japan Research Team
Shoji Sato
Morgan Stanley MUFG Securities Co.
First-place appearances: 0

Total appearances: 3

Analyst debut: 2012

Shoji Sato of Morgan Stanley MUFG Securities Co. maintains the No. 3 position he held last year. “He understands the fundamentals better than other analysts,” declares one admirer. The question for players in this sector, according to Sato, is where growth will come from next. For the past several years, Japan’s components makers have relied on the smartphone industry, but expansion in the high-end segment will be “more limited” going forward, he says. At the same time, however, as automobiles become more sophisticated, they will employ more electronic components, “which require high durability and quality,” Sato explains. “And the Japanese electronics component companies are more competitive in the automobile area than other Asian competitors.” Among his top recommendations is Chiba-based Mabuchi Motor Co., which has expanded its global market share to approximately 70 percent in such areas as vehicle door-mirror and door-lock motors. Another Sato favorite is NGK Spark Plug Co. The Aichi-based manufacturer, he notes, boasts some 36 percent of the worldwide sales of automobile spark plugs, an accessory that car owners regularly replace, as well as 39 percent of the market for oxygen sensors, whose demand is rising thanks to tightening environmental regulations.

See also Shoji Sato's profile in the 2013 All-Japan Research Team.

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