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ANYCOLOR: Oversold status prompts reassessment of growth prospects
ANYCOLOR Inc <5032> was sold down to a year-to-date low of 2,838 yen on March 30 following a downward profit revision, though the stock is widely seen as oversold.
The company operates the VTuber group "Nijisanji," leveraging a large and diverse roster of "livers" (live streamers). On March 11, Anycolor cut its operating profit forecast for the fiscal year ending April 2026 to 19.82-20.36 billion yen from 21.0-22.0 billion yen, up 21.8-25.1% year-on-year. The revision reflects inventory write-downs on products slated for disposal in the third quarter and expected valuation losses in the fourth quarter.
However, the company raised its revenue forecast to 54.73-55.63 billion yen from 52.0-54.0 billion yen, representing a 27.6-29.7% year-on-year increase. It cited strong demand from anniversary campaigns, seasonal promotions, and live event merchandise, particularly in the commerce segment. Sustained top-line growth remains achievable through fan base expansion and business domain growth via licensing and tie-ups.
Beyond top-line growth, ANYCOLOR maintains multiple revenue streams, high marginal profit rates, and robust cash generation, signaling continued earnings expansion. The current valuation appears to have excessively priced in inventory valuation losses, leaving significant room for reassessment.
*Translated by generative AI. Click here for the original article.
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