In today’s briefing:
- Kadokawa – 12m Unit Sales and the Prospect of Live Service
- Screen Holdings (7735 JP): Book-To-Bill 1.2x in 3Q
- Japan’s Governance: About the Articles on Record-High Total Dividends Paid
Kadokawa – 12m Unit Sales and the Prospect of Live Service
- As widely expected From Software’s Elden Ring title has proved a smash success selling 12m units within its first 17 days.
- That puts the game in rare territory and establishes the Kadokawa subsidiary as one of the premier global developers.
- There is also some potential for live services here which could add to the appeal for Sony.
Screen Holdings (7735 JP): Book-To-Bill 1.2x in 3Q
- The share price has bounced back from the Ukraine war sell-off. Attention should now shift to orders, sales and profits. 26% potential upside to our price target
- New SPE orders exceeded sales by 20% in the December quarter, taking the backlog to a new high and pointing to further sales and profit growth next fiscal year.
- Management’s FY Mar-22 guidance remains unchanged, with sales up 41% and operating profit up 2.2x. Upside potential of 26% to our price target.
Japan’s Governance: About the Articles on Record-High Total Dividends Paid
- The Nikkei published articles about the fact that the total dividends paid by companies for FY3/2022 is expected to reach a record high. I would like to discuss the topics.
- Market capitalization shows a different trend from the increase in total net profit, and the movement in market capitalization and dividend payout ratio has strengthened over the past 2 years.
- Examining separately for pre-COVID-19 pandemic and post-COVID-19 periods, dividend payout ratios are more inversely correlated with total net income and more positively correlated with market capitalization in the post-COVID-19 period.
Before it’s here, it’s on Smartkarma
