As the Nikkei Average reaches a new all-time high, 9 stocks including Ajinomoto, TOTO and ORIX were highlighted as large-cap stocks with strong growth potential. Through commentary by star fund manager Fujino Hideto (藤野英人), the article reviews the outlook for Japanese equities and key points for investors to watch.
Looking ahead to an era in which the Nikkei Average reaches ¥100,000, Fujino Hideto (藤野英人) identified Ajinomoto, TOTO, ORIX, Sumitomo Corporation, ITOCHU Corporation, Premium Water Holdings and Isetan Mitsukoshi Holdings, among others, as large-cap stocks with growth potential. In discussing the principles of long-term holding and the basics of risk management, he described the background to growing interest in specific stocks.
Regarding Ajinomoto, the article pointed to its expansion from a general food company into semiconductor materials, describing changes in management's mindset and corporate culture as attractive to investors. Fujino said that investors should focus on long-term holdings of their own stocks, with an understanding of and attachment to the companies translating into returns.
General trading companies are viewed as promising candidates for a recovery in performance after funds flow into semiconductor stocks. Their ability to adapt to a “heavy economy” by making use of global networks based on local production for local consumption was cited as a key point. ORIX is said to have investment-banking-like functions rather than being merely a leasing and financial institution, and the view was expressed that its share price has potential upside in an era of a ¥100,000 Nikkei Average.
TOTO attracted attention for its ability to expand electrostatic chucks into components for semiconductor equipment. Like the other stocks, it was identified as having long-term growth potential. The article concluded by noting the potential of Premium Water Holdings, which owns a water source in Fujiyoshida, and Isetan Mitsukoshi Holdings.