As part of our IR consulting services, we publish sponsored research reports on Japanese listed companies to enhance communications with global institutional investors.
We are pleased to announce the publication of our latest report on Asahi Broadcasting Group Holdings (TSE: 9405) for its financial results for the fiscal year ending March 31, 2026.
Analyst Comment
In March 2026, Asahi Broadcasting Group Holdings announced its medium-term management plan (2026–2028). According to the plan, the company intends to make targeted growth investments in its key focus areas, the Content Segment (live action) and the Animation Segment, in accordance with its capital allocation strategy. It appears to be a very solid plan in terms of both scale and direction. With this plan, the company expects its profitability to improve, with consolidated net income of ¥96 billion and consolidated operating profit of ¥4.5 billion for the fiscal year ending March 31, 2029, and consolidated net sales of ¥100 billion and consolidated operating profit of ¥6 billion for the fiscal year ending March 31, 2032.
Although specific ROE targets have not been disclosed, the company is shifting toward a capital-efficiency-focused strategy by strengthening shareholder returns. This includes raising the dividend payout ratio target (from 30% to 40%) and purchasing treasury stock with an eye on the total return ratio.
While this highly anticipated plan has been unveiled, the stock price remains in the ¥800–¥900 range, awaiting the next catalyst. This is likely because the company’s earnings forecast for the fiscal year ending March 31, 2027 projects a decline in both net sales and profit, likely as a reaction to the strong performance of the previous fiscal year. It is also expected to take some time for the results of the aforementioned investments to materialize. However, given that the PBR stands at 0.4 times, this could be a good entry-point opportunity for investors who are confident in the company’s IP development capabilities and are interested in the prospect as a long-term investment.
Learn more from the report.