Ariel Global Fund on Bandai Namco Holdings, Inc.
Thesis
Ariel believes Bandai Namco's intellectual-property-led earnings recovery is still in its early stages. Strong toys, collectibles and trading card sales, especially the Gundam Card Game, are driving international growth. More stable sales from existing games, a fuller release slate and live entertainment are supporting expectations for the second half. The diversified IP model offers opportunities to earn recurring revenue across games, merchandise, collectibles and experiences that valuation does not fully capture.
“the company's earnings potential is not yet fully reflected in its valuation.”
Key risks
- Recovery in repeat game sales could weaken
- New content releases may fail to maintain momentum
- Re-rating may run ahead of the underlying earnings recovery