The 2014 All-Japan Research Team: Energy & Utilities, No. 2: Reiji Ogino
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The 2014 All-Japan Research Team: Energy & Utilities, No. 2: Reiji Ogino

< The 2014 All-Japan Research Team Reiji Ogino & team Mitsubishi UFJ Morgan Stanley Securities Co. First-place appearances: 0

Total appearances: 7

Team debut: 2008 Reiji Ogino of Mitsubishi UFJ Morgan Stanley Securities Co. leaps from runner-up to No. 2, recording his best showing since he debuted in 2008. Investors deem his analyses of electricity providers particularly helpful. Japanese utilities stocks jumped 25.4 percent during the 12 months through mid-March, eclipsing the broad market by 13.7 percentage points. Ogino is bullish and says that the major driver of the rise has been “the market factoring in the increased possibility of nuclear power plants resuming operations in the near future.” He believes chances are good that the restart will occur this year, “which is likely to help electricity firms improve earnings over the longer term,” the analyst explains. Among his current favorites is Electric Power Development Co., or J-Power, which he upgraded from neutral to outperform in early February. “One catalyst I see is a 24.2 percent year-over-year increase in recurring profits, to ¥53.4 billion [$522.2 million],” predicts Ogino, “on the back of profit growth at the overseas power business.” J-Power’s shares had jumped from ¥2,974 to ¥3,050 by mid-March, and he sees them climbing as high as ¥3,700. Another preferred name is Osaka-based regional provider Kansai Electric Power Co. The analyst highlighted his bullish stance in mid-February, when the stock was trading at ¥1,115, citing the potential relaunch of thermal power stations. By mid-March the share price had dipped to ¥1,081, some ways off his target of ¥1,115 for them.

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