Strike Group Co., Ltd. <6196> has recently gained upward momentum, achieving a 50% retracement of its decline from the year-to-date high of \1,549 reached on February 27 to the year-to-date low of \1,262 recorded on March 30. Expectations are building for further price correction toward a full retracement.

The company operates an M&A advisory business. For the fiscal year ending September 2026, it is expected to significantly surpass its record-high earnings. In the first quarter (October-December 2025), the company got off to a strong start with sales of \4.842 billion (up 32.2% year-on-year) and operating profit of \1.249 billion (2.4 times the previous year). Top-line revenue grew substantially due to an increase in large-scale deals and higher transaction values, while optimization of advertising expenses contributed to significant profit growth.

In August last year, the company announced it would strengthen collaboration with its investee for Startups, Inc. <7089>. Strike Group has been promoting M&A as an exit strategy for startup companies. The Japan Growth Strategy Council, which has attracted attention for its "17 strategic fields," has established a "Startup Policy Promotion Subcommittee" as one of the subcommittees addressing cross-cutting issues. As Japan advances startup activation policies, a scenario in which M&A is increasingly utilized as an exit strategy is conceivable, and further growth momentum is expected against the backdrop of national policy. The dividend yield stands at a high level of over 4%. (Josui)

Source: MINKABU PRESS