Jun Q Results: Cost Cuts and Top-Line Growth Drive Profit Beat; Reiterates Kakaku.com Acquisition Proposal

研报英文原文证据摘录

Jun Q Results: Cost Cuts and Top-Line Growth Drive Profit Beat; Reiterates Kakaku.com Acquisition Proposal

Update

August 3, 2026 10:03 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MLY Corporation (4689) | Japan Tetsuro Tsusaka, CFA

Equity Analyst

Jun Q Results: Cost Cuts and Tetsuro.Tsusaka@morganstanleymufg.comLuyuan Yang, CFA +81 3 6836-8412

Luyuan.Yang@morganstanleymufg.com +81 3 6836-8423

Top-Line Growth Drive Profit Keiji Nishimura

Research Associate

Keiji.Nishimura@morganstanleymufg.com +81 3 6836-8424

Beat; Reiterates Kakaku.com

Acquisition Proposal

AlphaSignals Earnings Reaction

LY Corporation (4689.T, 4689 JT)

Unchanged Modest upside Modest revision higher Internet | Japan

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Overweight

Industry View In-Line

Source: Company data, Morgan Stanley Research Price target ¥500

Shr price, close (Aug 3, 2026) ¥447

Vs. forecasts: Profit exceeded our forecasts. Cost reductions in Media, solid sales Mkt cap, curr, basic (bn) ¥3,373.8

Avg daily trading value (bn) ¥8.2

growth in Commerce and high growth at PayPay all contributed to profit growing

ahead of our expectations. Adjusted EBITDA +23% YoY. Contribution to segment

profit growth: Strategic (PayPay) 47%, Media 33%, Commerce 13%.

Main surprises: Profit growth exceeded guidance, and management again expressed

its intention to acquire Kakaku.com.

Recommended action: The shares have continued to underperform TOPIX YTD, but

results reaffirmed management’s focus on profitability, and should support some

share price recovery in our view.

Media: Advertising sales flat due to mix. Total media advertising sales flat YoY:

Account advertising +13% YoY, search -7% YoY, display -3% YoY. Margin 41.8%

(+420bp YoY).