As of February 8, 2024 (PST), Goldman Sachs may have Maintained its Investment Decision in ANYCOLOR Inc. (which operates VTuber Group NIJISANJI / NIJISANJI EN (New), etc.).
ANYCOLOR (5032.T): Assuming minor earnings
impact from Vtuber contract terminationANYCOLOR’s share price has fallen for consecutive days after it announced on February 5 that it had terminated the contract of NIJISANJI EN streamer Selen Tatsuki.
According to ANYCOLOR’s press release, the streamer had repeatedly violated the contract, and the company had responded properly as the managing agency.
We see minimal impact on companywide earnings from terminating the contract of one VTuber, given that
- the NIJISANJI EN segment (English language VTuber business) accounted for only 19% of companywide sales in 204/24;
- the NIJISANJI segment (a segment for Japanese speaking VTubers), which is made up of domestic distributors, is the driving force behind companywide earnings; and
- top VTuber sales contributions are in the low to mid single digits (%) on a companywide basis.
We continue to expect the NIJISANJI segment (especially commerce and promotions) to drive companywide earnings.
We see sufficient catalysts for taking an upbeat view on the company, such as possible sales and profit growth (yoy) of around 30% in 304/24 results, which are due out after the market close on March 14, and the announcement of FY4/25 guidance at 4Q results (when we look for the company to forecast sales and profit growth driven by domestic business).
We are Buy-rated on ANYCOLOR.
Copyright 2024 The Goldman Sachs Group, Inc.
Credit: X (Twitter).
On January 10, Goldman Sachs announced a “Buy” investment decision on ANYCOLOR and set a target price of 4,700 yen.
(P2y.EN)
