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Starts Publishing (7849)

Communications

JapaneseIPO.com

The company has experienced a fivefold increase in book sales compared to 2016, with a consistent rise in sales outside the Covid-period. Operating profit was up 43% Y/Y in FY23, achieving an operating margin of 27.3% - the highest in the Japanese publishing industry. Additionally, the company boasts an ROE of 23% and is debt-free. In her latest report, Yuka Marosek explains why she believes the group's unique “one-source-multi-use-loop system” is set up to ensure a steady stream of likely-big-hit content. The stock trades on a 6.5x P/E multiple (FY25) and P/B of 1.82x.

Edition: 189

- 28 June, 2024