Toho will report a 10 billion yen special profit by selling listed stocks in September 2026. The move aligns with its policy to reduce cross-shareholdings and lower its net asset ratio.
Toho formally decided at a board meeting to sell part of its listed securities, expecting to recognize approximately 10 billion yen as a special gain. This action follows the "Policy on Reduction of Cross-Shareholdings" announced on July 15, 2026, and is positioned as part of its medium-to-long-term capital strategy rather than simple asset restructuring.
The sale is scheduled for September 2026, with the gain recognized in the third quarter of the fiscal year ending February 2027. While Toho is currently assessing the impact on earnings forecasts, individual numerical impacts may contribute to short-term profit expansion. The reduction of policy shareholdings marks a first step in strengthening capital efficiency.
Toho has set clear targets for reducing its policy shareholdings. By the end of the fiscal year ending February 2027, it aims to lower its consolidated net asset ratio to below 20% through gradual sales. Its medium-term goal is to reduce the book value of these stocks by over 50 billion yen compared to the end of February 2026, bringing the net asset ratio down to under 10% by the end of February 2030.
Funds from the sales will primarily support future growth investments and shareholder returns. This strategy is expected to enhance ROE and increase payout ratios. Compared to industry peers, its strict suppression of shareholding ratios is notably rigorous. The shift in capital use makes the path toward maximizing shareholder value increasingly clear.
Analyst take
The investment efficiency improvement is steady. Toho once held large stakes as a funding source, but recent shifts toward production cost cuts and digital transformation have driven this review. While the 10 billion yen gain boosts profits for the fiscal year ending February 2027, the crucial element is the target to drop the net asset ratio below 10% by 2030. This level is exceptionally low compared to industry averages, signaling a management intent to concentrate resources on content and technology. Investors should watch for long-term ROE gains and potential dividend increases alongside the short-term profit bump.
