W TOKYO Inc. <9159> remained in bid-only mode with no trades executed, stuck at its daily limit-up of \400 for the second consecutive day following the previous session. After market close last Friday, the company announced a capital and business alliance with SBI Holdings, Inc. <8473>, which rapidly sparked investor interest. However, with a market capitalization of around \6 billion, W TOKYO is an ultra-small-cap stock with a low free-float ratio, and the overwhelming supply shortage means there is no sign of the stock opening during trading hours today.

The alliance aims to leverage the promotional power of Tokyo Girls Collection (TGC) combined with SBI's strengths in media-related businesses to create synergies in intellectual property (IP) value creation. SBI plans to acquire 60,000 shares, equivalent to 2.18% of the issued shares, from certain existing shareholders. While W TOKYO's earnings forecast for the fiscal year ending June 2026 projects significant profit growth, its price-to-earnings ratio of around 18x does not suggest particular undervaluation. However, market observers note that "considering the potential business expansion effects going forward, it is not particularly meaningful to judge the stock based on its current PER. Rather, attention is focused on the potential for upward revision of its sub-\10 billion market cap. Even if the share price were to double, bringing market capitalization below \20 billion, it would not be surprising at all," according to a strategist at a mid-tier securities firm.

(Note) The "◇" symbol at the end of the title indicates that this article contains multiple stock issues.

Source: MINKABU PRESS