BMCs-Best Execs-r2:AMM grid in qxp 12/24/09 9:42 AM Page 50
AWARDS
WhileCapcom’sprofitsareimproving,itssharepricehasyetto.Its Tokyo-basedheadofequityresearch.“It’sanambitiousbutwell-runcom-
stocksclosedat¥1,346onDecember11,havingdroppedfrom¥1,952at pany.”
thebeginningoftheyear. Kirin’sacquisitionshaveraiseditsoverseasinternationalincometo
about27%anditistargeting30%by2015.
Thecompanyreportedanetprofitof¥41.71billionforthefirstnine
MEDIUM-CAPCORPORATEOFTHEYEAR monthsof2009,down56%year-on-year.Kirin’ssharepriceclosedat
YamadaDenki ¥1,399onDecember11,versus¥1,176atthebeginningoftheyear.
Whenarecessionsetsin,acommonsightistheclosureofhighstreet BESTEXECUTIVE
shops,despitetheeffortsoflandlordsandmunicipalitiestoofferincen- TadashiYanai,president,FastRetailing
tives.It’sanenvironmentinwhichYamadaDenkihasdoneverywell.
Ifyouneedanelectricalappliance,thechancesarethatYamadasells
it.Thecountry’slargestelectronicschainofferseverythingfromtelevi- “AcrudewayofmeasuringtheimportanceofaCEOistoconsidertheeffect
sionstocookingappliances,refrigeratorsandairconditioners. ontheircompany’sstockpriceiftheywererunoverbyabus.Inthecaseof
ThediversityofitsproductshasensuredthatYamadaDenkihasa TadashiYanai,thepriceofFastRetailingwouldcollapse,”notesoneequity
steadyaudienceofcustomers.Untilthisyearithadmostlyfocusedits strategistinTokyo.
effortsonthesuburbsofJapan’scities,butnolonger. YanaidoesnotsimplyruntheoperatingcompanythatcontrolsUniqlo,
Analystspraisetheretailcompanyfortakingadvantageofforeclo- Japan’slargestdiscountclothingstore,heembodiesit.
suresandtheincentivesofferedbyauthoritiestoopenstoresinpresti- Inacountryinwhichcorporateleadersprefersittingoutofthelimelight,
giouslocationssuchasShibuya. Yanaithrivesinit.Hehasnolackofconfidence,frequentlyextollinghis
Italsoopenedthedoorstoaflagship2,300squarefeetstorethat desiretoovertakeinternationalcompetitorssuchasGapandotherbrands.
openedinTokyo’sIkebukurodistrictonOctober31. Heisalsoaconsummatemarketer.Inonerecentexample,hethrew
“YamadaDenkiaccuratelygraspedthefallinoccupancyratesincity open400ofhisstorestoasaleonNovember21tomarkthe60thanniver-
centrepremisesandtheresultingchangesingovernmentordinancesto saryoftheoperatingcompany’sfoundingunderhisfather.Japanesepeople
promotetheseareas,”saysoneequitystrategistbasedinTokyo. queuedupbeforedawnoutsidetheflagshipstoreinTokyo’sGinzatotake
“Itchangeditsfocustocentreontheseurbansites,whichistheright advantage.
thingtobedoinggiventhetailwindsofsuchregulations.” Yanaiispraisedbyalmostanyanalystorstrategistyoucaretotalktofor
YamadaDenki’ssuccesshasinspiredothercompaniessuchasretail theskilledwayhehasbuilthiscompanyduringdifficulteconomictimes.
rivalShimamuratodothesame. Hiscompanyhasbeenquicktostartpricingwarsonitemssuchasjeans,
OverallYamada’sstrategyhasbeengoodforrevenues,althoughits evenasYanailamentssuchundercuttingtacticsasbeingself-destructive.
profitshave,alongwithmostretailcompanies,sufferedintheenviron- ThisstrategytendstoplayintothehandsofUniqlo,givenitsultra-cheap
ment.Thecompanyreportedthatitssalesclimbed1.9%to¥936.6bil- apparel.Thefirmisoneofthefewtohavereportedimprovingsalesfigures.
lion,althoughprofitsdropped20.2%to¥16.4billion. IntheyeartoAugust,netsalesrose28.8%year-on-yearto¥37.7billion,
Itssharepricewasridingat¥5,570onDecember11,downabout10% whileoperatingincomehit¥1.6billion.
from¥6,060atthebeginningoftheyearbutamarkedimprovementon YanainowwanttoincreasepenetrationintheChinesemarket–acoun-
its¥3,300lowinMarch. trythatalreadymanufacturesmosthisclothes–andtomakeUniqlothe
mostpopularbrandinAsia.Assuminghekeepslookingbothwaysashe
crossestheroad,Yanaicouldevenachieveit.
LARGE-CAPCORPORATEOFTHEYEAR
KirinHoldings
KOREA
Whatisacompanytodowhenitisaleadingbeerandbeveragesmakerin SMALL-CAPCORPORATEOFTHEYEAR
acountrymiredinrecession,withadecliningpopulationandthirstfor Megastudy
alcohol?Kirinhastheanswer:acquireinternationally.
Thefirm,whichthisyearoverhauledAsahitobecomeJapan’slargest
beer-maker,hasbeenbusybuyingtogrowitsinternationalrevenues.It Ineducation-obsessedSouthKorea,doingwellinschooliswidelyseenas
boughtNationalFoodsofAustraliainNovember2007fromSanMiguelof thefirststeptowardssecuringagoodjobandacomfortablefinancial
thePhilippines,andthenacquiredDairyFarmersinthecountryin2008. future.
ThisyearKirindidbusinesswithSanMiguelBrewery,raisingitsstake It’snowonderthatKoreanstudentsareamongthehardestworkedglob-
to48%thisyear.TheJapanesecompanythenwhollyboughtAustralia’s ally:inadditiontoformalschooling,manyparentsenroltheirchildrenin
LionNathanforUS$2.5billioninApril. privateafter-hoursschoolstocramforexams.
OverallithasspentaboutUS$10billiononacquisitions.Itsnextgoal Suchprivateschoolsareaseriouslylucrativebusinessandonecompany
willbetopersuadetheeponymousconglomerateownerofSanMiguel standsoutamongthem:Megastudy.
Brewerytoletittakeamajoritystakeinthebeverage. Megastudyoffersanalternativetotheubiquitouscramschoolsdotted
Butthecompany’sambitionsdon’tendoverseas.InJulyKirinbegan acrossthecountry.Insteadofbeingsequesteredinaclassroom,students
talkswithdomesticrivalSuntoryaboutapotentialmerger.Ifsuccessful, studyonline,followingtheinstructionofpopularteachers,someofwhom
theconsolidationwouldforceJapan’sothermajorbeerplayersAsahiand areconsideredcelebritiesinthecountry.
Sapporotoconsidertheirfutures. Sincebeingestablishedin2000,thecompanyhasbecomealeaderin
Onthelesspositiveside,KirinannouncedinNovemberitwouldshut onlineeducationandisconsideredbymanytobearunawaysuccess.
downitsTochigiriHokurikudomesticbreweries.However,analysts ItwasalsoAsiamoney’schoiceforbest-managedsmallcapinSouth
notedthatexpandingabroadandcost-cuttingdomesticallyistheright Korealastyear.
strategy. Thereareanumberofreasonswhyitisourchoiceagain.Itcontinuesto
“YouhavetoadmireKirinforbeingboldanddecidingtoactasapro- beamarketleaderinthisfast-growingindustry,commandingabout70%of
tagonistinconsolidationinthefoodandbeveragespace,”saysone revenueshareaccordingtooneestimate.
50 DEC2009/JAN2010 ASIAMONEY
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