Lazard: Follow the earnings growth breadcrumbs

LiveWire11-11

Note: This interview was recorded on Thursday 24 October 2024. We are often told that earnings drives share prices. And yet, despite earnings for the MSCI Japan Index compounding at about 7% per annum...

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And yet, despite earnings for the MSCI Japan Index compounding at about 7% per annum...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/lazard-follow-the-earnings-growth-breadcrumbs\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Lazard: Follow the earnings growth breadcrumbs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLazard: Follow the earnings growth breadcrumbs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-11 04:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/lazard-follow-the-earnings-growth-breadcrumbs><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Note: This interview was recorded on Thursday 24 October 2024.\nWe are often told that earnings drives share prices. And yet, despite earnings for the MSCI Japan Index compounding at about 7% per annum...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/lazard-follow-the-earnings-growth-breadcrumbs\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LAZ","symbol_name":"Lazard Class A","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/lazard-follow-the-earnings-growth-breadcrumbs","article_id":"2482016296","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/lazard-follow-the-earnings-growth-breadcrumbs","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2482016296","pubTimestamp":1731268808,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"Note: This interview was recorded on Thursday 24 October 2024.We are often told that earnings drives share prices. And yet, despite earnings for the MSCI Japan Index compounding at about 7% per annum over the last 10 years, it's struggled to outperform the US market .Now, however, the fortunes of Japanese equities investors could change - with the death of deflation and more supportive corporate governance starting to take place.Lazard Asset Management's June-Yon Kim believes the outlook for earnings growth is likely to be even better than the last decade, and argues that the opportunity in Japanese listed companies is extremely exciting.\"Nearly 50% of the revenues for a lot of the larger companies in Japan come from outside of Japan, and this is why the trajectory of earnings is so attractive for these companies,\" he says.In this episode of The Pitch, Kim outlines why investors should follow the earnings growth breadcrumbs in Japan, two sectors that he believes should experience outsi","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"LAZ":"Lazard Class A"},"translate_title":"拉扎德：跟随盈利增长面包屑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LAZ":1},"content_text":"Note: This interview was recorded on Thursday 24 October 2024.\nWe are often told that earnings drives share prices. And yet, despite earnings for the MSCI Japan Index compounding at about 7% per annum over the last 10 years, it's struggled to outperform the US market (despite earnings growth being slightly lower in this region).\nNow, however, the fortunes of Japanese equities investors could change - with the death of deflation and more supportive corporate governance starting to take place. \nLazard Asset Management's June-Yon Kim believes the outlook for earnings growth is likely to be even better than the last decade, and argues that the opportunity in Japanese listed companies is extremely exciting. \n\"Nearly 50% of the revenues for a lot of the larger companies in Japan come from outside of Japan, and this is why the trajectory of earnings is so attractive for these companies,\" he says.\n\"Furthermore, a lot of companies are over-capitalised, so what you're going to see is a reduction in share count, and that would also push up that EPS growth number.\" \nIn this episode of The Pitch, Kim outlines why investors should follow the earnings growth breadcrumbs in Japan, two sectors that he believes should experience outsized earnings growth from here, and two stocks to help investors on their way. \n\n\n\n\n\n\n\n\n\nLivewire's Ally Selby and Lazard's June-Yon Kim\nEdited Transcript \n\n\nAlly Selby: Hello and welcome to the Pitch brought to you by Livewire Markets. I'm Ally Selby, and today we're going to be talking about the resurgence that we're seeing in Japanese equities right now and what that could mean for investors like you. To do that, we're joined by June-Yon Kim from Lazard Asset Management. Thanks so much for joining us today June. Really excited to feature you on the show.Japanese stocks have been basically overlooked by investors for the last 30 years. Talk us through the history of the Japanese stock market, where we are now and why this moment is important today.\n\nJune-Yon Kim: I think you have to rewind all the way back to the 1980s. A lot of people will forget the fact that Japan was actually the largest market in the world during the bubble of the 1980s. People talk about the Magnificent Seven, but at the end of 1989, 10 of the largest companies in the world in terms of market capitalisation were actually Japanese. \nBecause of that, Japan was a very overvalued market during that financial bubble, and it took literally decades for that to normalise. Because of that valuation headwind, Japan has struggled as an equity market for 20 years or so after the bubble. \nMore recently, over the last decade, with the advent of Abenomics and also as valuations have become much more normalised, we've actually seen pretty good equity performance. Unfortunately, relative to the US, it hasn't been outstanding and that's why I still believe today it is being ignored.\n\nWhat kind of earnings growth expectations can investors expect from Japanese equities?\n\nOver the last 10 years, earnings for the MSCI Japan [Index] have compounded at about 7% per annum, which is slightly higher than the US or Europe, surprisingly. I think going forward, we could expect a similar level, if not even a little bit better, because the fact is, one of the important things when thinking about Japan is that when you invest in Japan, you're not buying the country. You're buying these listed companies.\nThe outlook for these listed companies is extremely exciting, if you're bullish on the world, nearly 50% of the revenues for a lot of the larger companies in Japan come from outside of Japan, and this is why the trajectory of earnings is so attractive for these companies. Furthermore, a lot of companies are over-capitalised, so what you're going to see is a reduction in share count, and that would also push up that EPS growth number that I just mentioned.\n\nWhat are some of the characteristics that you look for when identifying those companies that have above-average earnings growth expectations?\nFirst and foremost, we're fundamental investors. We're looking for how they're positioned within their industry and sector. What's their competitive advantage? What's their competitive moat? How are they positioned vis-a-vis their competitors? And really, [we are] trying to understand the fundamental outlook for the company more so than anything else. The quality of management, the underlying outlook for the end markets, anything that a typical fundamental investor would look for, but we're looking for expectations where, relative to consensus expectations, they haven't been fully discounted more so than anything else. \nWhere are you seeing oversized earnings growth today in Japan?\n\nThere are two areas with potentially better-than-expected earnings growth. One would be financials, particularly the banks. The banks would be significant beneficiaries of a normalisation in interest rate policy. How that would work is with the increased policy rate that will translate into increased lending spreads for the Japanese banks. \nThe second area where we could see potential better-than-expected earnings growth would be the material sector. One example of this would be a company called Shin-Etsu Chemical (TYO: 4063). Shin-Etsu has two main lines of business. One would be their PVC or materials business, which would benefit from an improvement in US housing demand. The other part of their business is they are the largest manufacturer of semiconductor wafers. As we see a recovery in the semiconductor manufacturing area, Shin-Etsu would benefit from increased demand for wafers overall.\nIs there a bank that you're really liking that you want to point to within the financial sector?\n\n\nWe're overweight Mitsubishi UFJ Financial Group (TYO: 8306). They're Japan's largest bank. They have a very good underlying domestic business which would benefit from that potential improvement in policy rates or increase in policy rates, and at the same time through their minority ownership of Morgan Stanley, they benefit from that wealth management growth that Morgan Stanley has seen in the United States and elsewhere in the world.\n\n\n\nManaged Fund\nLazard Japanese Strategic Equity Fund\nGlobal Shares\n\n\nView\n\n\n\n\n\n\n\n \n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482016296"}