麦格理-日本-宏观经济-公司治理乐观主义-20170914-Macquarie-Japan macro-strategy Corporate governance optimism.pdfVIP

JAPAN Japan macro-strategy Strategy summary: Corporate governance optimism We believe Japanese equities are in a period when the global cycle is not driving positive Genuine corporate governance change in Japan would be a major event for earnings revisions. Instead, we believe we investors. Japan has a long road to travel to reach global standards. The good are in a stock-picking environment and based news is that Japan has begun the journey, and total pay-out ratios have risen to on historical experience, the best performers around 50%. The bad news is that progress is hard to identify in the corporate are associated with high ROEs—an average efficiency metrics of ROA and ROE. Investors are receiving a higher share of a of 16.2% across all of the tables in the linked still relatively small cake. This leaves Japan continuing to lag global peers. report. We showcase high ROE companies by theme: Aging Japan, Internationalisation, Our optimism reflects our belief that there is a labour market explanation for Founder/entrepreneurs large cash Japan’s relatively poor corporate returns, and a demographic reason that will balances overcome this. The reservoir of underemployed regular workers is beginning to abate, and will be gone within 10-years. We estimate that the reservoir is about 14% of regular workers, 9% of total employment. Our hope is that the excess- The Macquarie Marquee ideas: our labour-absorbing long tail of non-core subsidiaries will disappear as well : highest conviction analyst calls Stock Ticker Rec C/P T/P %