Consumer Discretionary
Having weathered many challenges over the last 20 years, the remaining players in the pachinko / pachislot industry have entered a new phase of growth, according to Yuka Marosek, driven by the innovation of "smart" machines, which offer more interactivity and variety to the players. As the line between pachinko and video game machines becomes more blurred, Sankyo looks set to prosper. Its long history and large scale enables it to develop and market smart machines and collaborate with popular anime series / singers to create attractive and engaging games. The stock is up 70% over the last 12 months, but trades on a cash adjusted PE of 4.95x. The dividend yield is high at 3.6%.
Edition: 180
- 23 February, 2024