Small-Mid Cap Market Vista
2009 New Year Edition
Now More Than Ever, Time for a Calm Approach
Small-Mid Caps
Go SaitoAC
(81-3) 6736-8640
go.t.saito@jpmorgan.com
Hitoshi Hosoya
(81-3) 6736-8684
hitoshi.x.hosoya@jpmorgan.com
Mie Tamanoi
(81-3) 6736-8633
mie.x.tamanoi@jpmorgan.com
JPMorgan Securities Japan Co., Ltd.
See page 70 for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision.
S&P Japan Emerging Stock 100 Index
and TOPIX
Index
0
500
1000
1500
2000
2500
3000
9/00 3/02 9/03 3/05 9/06 3/08
S&P JES 100 Index TOPIX
Source: Datastream, S&P.
Note: S&P Japan Emerging Stock 100 Index indexed to
1,000 on September 14, 2000.
• The start of 2009 has brought no end to the U.S. financial crisis and the chain of
unfortunate events it has sparked. In the current environment, with little hope of
discerning just when the economy might bottom, we recommend focusing on
domestic-demand-oriented companies and companies that have a well-defined
niche market. With stock market indexes struggling, this may be a prime time
for uncovering hidden stocks with strong earnings and undervalued prices.
Source: PPS
2
Japan Equity Research
15 January 2009
Go Saito
(81-3) 6736-8640
go.t.saito@jpmorgan.com
Table of Contents
Market Letter.............................................................................3
J.P. Morgan Small-Cap Sector Coverage ...............................7
Horizon Stocks List ................................................................18
Market Data .............................................................................21
Our Views on Covering the Small Cap Sector .....................63
J.P. Morgan’s View on Fair Valuation ...................................65