2015 All-Japan Research Team: Retailing, No. 3: Takahiro Kazahaya

Takahiro Kazahaya

Deutsche Securities

First-place appearances: 2

Total appearances: 6

Team debut: 2010

Deutsche Securities researcherTakahiro Kazahaya, 39, earns the No. 3 position for a second straight year. He sees several positive drivers for Japan’s retailers over the coming year. Headwinds from the April 2014 sales tax increase should abate even as domestic companies will increasingly support rising wages, he believes, which will facilitate a more realistic recovery in spending. As a result, demand should improve, says Kazahaya, even if supply is held in check. “Companies are cautious on store openings and are focusing on efficiency,” he notes. They also have been paying attention to profitability and investor relations. Managers at several domestic retailers whose returns on equity are low while their balance sheets are loaded with cash “are following the recent trend by announcing ROE targets and more aggressive shareholder returns,” the anayst explains. He projects that recurring profits for his sector will expand by 10 percent in the year that began this month, a slight improvement over the companies’ performance in fiscal 2014. Kazahaya publishes research on 23 retailers in Japan.