SANRIO COMPANY (8136.T)

Sanrio, the company behind Hello Kitty, is undergoing a successful turnaround driven by a strategic shift from product sales to IP licensing, particularly in digital media. Since the appointment of a new CEO in 2020, operating profit has rebounded from a 2021 loss to an expected 27 billion JPY in 2024. The company's growth is fueled by its expansion into international markets, especially China, and its focus on high-margin royalty revenues from its portfolio of over 400 characters. While the stock trades at a high P/E ratio, the author suggests it is at a discount to its intrinsic value, given the strong growth prospects and successful new strategy.