Investment perspectives in anticipation of Apr-Jun 2026 results announcements

Research evidence excerpt

Investment perspectives in anticipation of Apr-Jun 2026 results announcements

ich (1) e-commerce companies

will need to transform their business models, for example by shifting toward fee-based income;

and (2) advertisers will need to adapt their advertising and marketing activities to consumers'

new purchasing behavior, including with ad placements on AI platforms.

Internet: Responding to AI and AI agents, looking for synergies with subsidiaries

In the near term, we think it will be important for companies in the internet industry to adapt to

changes in consumers' purchasing behavior resulting from increased use of AI and AI agents.

We expect changes in purchasing behavior to result in lower barriers between services, and

think this could incentivize synergies. From this perspective, we recommend LY Corporation

[4689] (Buy). We also recommend Rakuten Group [4755] (Buy), where financial subsidiaries

are likely to benefit from rising interest rates.

Broadcasters: Working to achieve capital efficiency targets in view of rising asset

values

As we discussed in our 26 June 2026 report Japanbroadcastingsector, share prices and

asset value of strategic shareholdings have been rising recently (Figure3, Figure4, Figure5).

We expect attention to focus on measures taken by sector companies to achieve capital

efficiency targets, particularly at Fuji Media Holdings [4676] (Buy) and TBS Holdings [9401]

(Neutral), which have more room to maneuver in capital policy from the standpoint of the

Broadcast Act and other regulations. Over the longer term, we see the need for sales growth in

operations other than terrestrial broadcasting advertising, such as anime and live-action

dramas, but as the popularity of Japanese live-action dramas is growing globally, we have