GENDA Inc.

GENDA rebounded. The company announced a business alliance with Sanrio to expand limited-edition prize offerings globally and to explore collaboration in the media mix field, which appears to be viewed positively by the market.

GENDA, which operates amusement facilities such as GiGO, announced on the 24th that it will form a business alliance with Sanrio. The two companies aim to improve their corporate value by expanding prize offerings that use Sanrio character IP at amusement facilities in Japan and overseas. In addition to operating GiGO in Japan, GENDA operates about 13,000 amusement facilities and mini-locations in North America through consolidated subsidiaries. Through this alliance, the companies will increase the frequency and scale of GENDA-exclusive prizes featuring Sanrio characters at these stores, and will also jointly pursue store decoration planning, promotions in North America, and new store openings. The two companies will also consider collaborating on media mix development of content. The impact on consolidated results for the fiscal year ending January 2027 is expected to be minor.

In the morning session of the Tokyo stock market on July 31, selling dominated among 99 game and entertainment-related stocks, with 44 rising, 47 falling, and 8 unchanged. Nippon Ichi Software was firm, supported by strong sales of a new title. Meanwhile, Konami Group and Celsys were lackluster after announcing earnings. Celsys reported its first-half results and upwardly revised full-year forecasts, but was pressured by profit-taking. Genda, which formed a partnership with SBI Holdings, extended its gains.

On July 8, multiple research firms maintained their top investment ratings. Nomura Securities kept its Buy rating on PERSOL Holdings and Nippon Steel, while lowering their target prices from 430 yen to 380 yen and from 740 yen to 720 yen, respectively. Goldman Sachs Securities maintained its Buy rating on Furukawa Electric, Fujikura, and SWCC, cutting their target prices from 7,600 yen to 7,200 yen, from 7,600 yen to 7,500 yen, and from 17,500 yen to 16,200 yen, respectively. Tokai Tokyo Research Center kept its Bullish rating on Kyokuto Kaihatsu Kogyo, Mitsui & Co., and GENDA, reducing their target prices from 4,200 yen to 3,250 yen, from 7,800 yen to 7,000 yen, and from 930 yen to 900 yen, respectively.