27/3 Q1 results: Profits much higher than expected on strong back catalog sales

研报英文原文证据摘录

27/3 Q1 results: Profits much higher than expected on strong back catalog sales

Global Markets Research

28 July 2026Capcom

9697.T 9697 JP / EQUITY: JAPAN GAMES & AMUSEMENT

Rating27/3 Q1 results: Profits much higher than

Remains Buyexpected on strong back catalog sales

Target price

Back catalog sales remain high thanks in part to new title launches and Increased from 3,600 JPY 4,200

pricing initiatives

Closing price JPY 3,529We reiterate Buy rating, strong sales of back catalog titles, prospects for boost from 28 July 2026

movie

In 27/3 Q1 (Apr–Jun), operating profits came in at ¥41.1bn, exceeding our ¥27.6bn Implied upside +19.0%

forecast and the 24 July QUICK consensus forecast of ¥28.8bn. This was mainly due to

much-higher-than-expected sales volumes of back catalog titles, particularly for the

ResidentEvil series. At the results briefing, management said that the brand value of this

IP has grown owing to various initiatives, and we think management sees increased Relative performance chart

medium-term prospects for growth in sales of this IP and for initiatives with other IPs to

yield similar benefits. We raise our 27/3 and medium-term operating profit forecasts in

view of performance to date, but raise our full-year forecasts only slightly compared to the

extent to which Q1 results better than expected, given the possibility of deferred earnings

and valuation losses being booked in Q4. Given that we raised our profit forecasts and the

benchmark has moved to a higher level, we raise our target price to ¥4,200. We look for

further growth in sales of back catalog titles due to the release of the StreetFighter movie

in October.

Key points in results

(1) Sales volumes: Q1 sales volumes of 23.81mn copies were much higher than our

forecast of 17.70mn.