Asics Corp. （7936.T）：Earnings Review，In line with recent guidance raise； July sales strong， order outlook robust， share buyback announced； Buy （on CL）

Investment Rating - The report maintains a "Buy" rating for Asics Corp. with a 12-month price target of ¥3,100, indicating an upside potential of 33.4% from the current price of ¥2,324 [1][7][8]. Core Insights - Asics Corp. has shown strong performance in its earnings, with operating profits for the first half of FY12/24 reaching ¥59.0 billion, a 76% year-over-year increase, aligning with revised guidance [1][4]. - The company is focusing on maintaining production volume below order volume to create a sense of scarcity in the market, which is seen as a strategy to avoid brand erosion and maintain gross margins [5][9]. - The report highlights structural improvements in the company, particularly in performance running shoes, which are driving sales growth across other product categories [8][9]. Summary by Sections Earnings Performance - The operating profit margin improved to 15.0%, up 6.7 percentage points year-over-year, driven by gross margin improvements and effective SG&A cost control [1][4]. - July sales were up 19% year-over-year in yen terms, outperforming the company's revised sales outlook for the second half [1][4]. Financial Projections - The report forecasts FY12/26 operating profits of ¥128 billion, with an operating profit margin of 16.6%, reflecting significant growth potential [6][7]. - Expected annual sales growth of over 7% year-over-year from FY12/25 onward, supported by strong performance in running products and a shift to higher value-added products [6][9]. Valuation and Market Position - Asics is considered undervalued at an EV/NOPAT of 18.3x for FY25E compared to the average of 25.6x for global sports brands, indicating potential for share price appreciation [7][9]. - The report emphasizes the company's efforts to regain support from top athletes and improve market share in performance running shoes, which is expected to enhance overall sales [8][9].