As the Rugby World Cup starts in Tokyo tonight, here’s a look at Japanese companies in the media, transportation and consumer sectors that analysts expect to cash in.
Some 500 000 tickets have been sold overseas for the sporting event that runs through November 2, according to research by Bloomberg Intelligence. That may help Japan’s foreign visitor numbers bounce back from a rare monthly decline in August on the back of recent trade friction with South Korea, BI said.
Mitsubishi UFJ Morgan Stanley analyst Kouki Ozawa highlights potential gains for Japan Airport Terminal, which manages facilities at Tokyo’s Haneda Airport. Its stock has climbed 19% since August 6. With matches scheduled across 12 Japanese prefectures, shares of transportation companies such as East Japan Railway may also see a positive impact, according to Masayuki Otani, chief market strategist at Securities Japan.
SMBC Nikko has flagged benefits for accommodations-related names such as Kyoritsu Maintenance and Japan Hotel REIT Investment. Tourism is also usually seen as a key factor for retailers, such as Uniqlo parent Fast Retailing and Pan Pacific International Holdings, which operates the popular discount chain Don Quijote.
The impact of all these rugby fans on Japan’s beer supply-demand balance has been in focus of late as well. Kirin and Asahi Group are both up more than 9% from their summer lows, while pub-chain operator Hub has jumped 28% in a little more than a month.
Of course, the scale of the Rugby World Cup’s impact on the beverage companies’ earnings will only be clear after the event, Securities Japan’s Otani said, cautioning that the gains may already be priced in for the beer makers.
Among other related sectors, security companies stocks have seen recent gains. Secom, an official sponsor and service provider for the World Cup, and Sohgo Security Services have each jumped 18% from recent troughs.
Advertising firm Dentsu, which has seen a similar-sized rebound, may wind up one of the biggest winners, according to Amir Anvarzadeh, senior strategist at Asymmetric Advisors.
“Dentsu’s advertising billings will see a big improvement from the Rugby World Cup,” he said in a phone interview. The shares could rise to around 5 000 yen in the next few months, an advance of about 25% from the current level, as investors also eye benefits from the upcoming Tokyo Olympics, Anvarzadeh said.
The 2019 Rugby World Cup’s first match will see host Japan take on Russia. Kick-off is at 12:45 p.m SA time.
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