Company Reports

We initiate coverage of Toho, Japan's leading film production, distribution, and exhibition company, which also owns an animation studio and a real estate business. Toho's domestic box office share exceeded 50% in 2025.

We are confident Toho will maintain its leadership and dominant share of Japan’s maturing film industry. With limited growth in domestic screening, Toho aims to expand beyond film distribution by investing in entertainment intellectual property, or IP, and monetizing it across physical, digital, and overseas channels. We view this strategy as sound, as IP ownership can build recurring revenue and support growth beyond Japan. Medium- to long-term growth will increasingly depend on IP & Anime, making the segment a key performance indicator.