Our Services

We provide outsourced, customized Japanese equity research in English for institutional investors, with a focus on undiscovered small- and medium-cap Japanese companies.

The Potential of Smaller Japanese Companies

In recent years, overseas investors have ramped up their purchases of Japanese stocks. Most of the money has flowed into large-cap, big names. In fact, the major Wall Street research houses cover only about 20% of Japanese stocks. Smaller-cap shares with excellent growth prospects often receive little attention from overseas investors.

 

We believe these equities offer a superb opportunity to capitalize on the continuing recovery in the Japanese economy and its financial sector. The adoption of international accounting standards, greater corporate transparency, and a more rigorous regulatory regiment have created a healthy climate for smaller Japanese stocks. As investors seek out new vehicles to take advantage of the improved environment, these little-known equities are poised to post substantial gains.

Outsourced Japanese Equity Research

Nihon Equity Research can provide you with complete coverage of smaller Japanese stocks without the cost and commitment of hiring a full-time analyst. We can also supplement your existing research effort, thus expediting the research process for faster response time in quick-moving markets.

 

You will be working with investment professionals who are fully familiar with Japan's language, business, and culture. Our extensive contacts in Japan afford you the perspective of insiders who have intimate knowledge of the local business environment. And we are completely independent: our only mission is to help our clients achieve their investment goals. 

Our Investment Approach

We screen for potential names using fundamental analysis and traditional financial benchmarks. Among these candidates, we uncover unfamiliar stocks that are exceptionally well positioned to succeed in the Japanese business landscape.

 

Our approach has two main facets:

  • We spotlight firms with superior products or services in rapidly expanding niche markets. We look for well-managed, financially stable firms that can take advantage of strong demand in growing industries.
  • We focus on structural changes in the Japanese economic, legal, and social environment that can be exploited for superior returns. Revisions in the laws for business combinations, increased shareholder activism, reduced cross-holdings of shares, and decreased ownership by banks of Japanese equities all point to a dynamic re-evaluation of the prices of these stocks.

 

Based on our clients’ investment yardsticks and our selection criteria, we recommend names that are most likely to achieve our client's goals. 

 

How We Can Help You

Nihon Equity Research provides a variety of products and services to institutional investors in Japanese stocks, including:

  • Customized research on specific Japanese companies and sectors;
  • Analytical support for the research effort of in-house analysts;
  • Value-added data and analysis to enhance sell-side research;
  • Independent assessment of research obtained through outside channels;
  • Proprietary and non-proprietary databases, spreadsheets, and statistics.

 

Independent and Impartial

Nihon Equity Research is completely unbiased. We are a research-only firm and do not have any investment banking relationships with any company in our universe of smaller Japanese stocks. We currently do not hold a position in any Japanese equity, and we promptly disclose any ownership in stock we cover.