Investment Rating - The industry investment rating is "Outperform the Market" [2][11]. Core Insights - Sanrio has raised its performance targets, with Q1 FY26 revenue reaching 43.1 billion JPY, a year-on-year increase of 49.1%. Operating profit was 20.2 billion JPY, up 88%, and net profit attributable to shareholders was 14.2 billion JPY, an increase of 37.8% [4]. - The company has adjusted its full-year revenue target from 162.2 billion JPY (up 12% YoY) to 168.8 billion JPY (up 16.5%), and its operating profit target from 60 billion JPY (up 16%) to 67.3 billion JPY (up 30%) [4]. - The global IP economy continues to show high prosperity, with significant growth in sales and licensing businesses driven by increased tourist numbers and high-value collaborations in Japan [4]. Summary by Sections Financial Performance - Q1 FY26 results: Revenue of 43.1 billion JPY (+49.1% YoY), Operating profit of 20.2 billion JPY (+88%), Net profit of 14.2 billion JPY (+37.8%) [4]. - Japan's revenue reached 24.4 billion JPY (+38.1%), with operating profit at 12.1 billion JPY (+57.9%) [4]. - Asia's revenue was 10 billion JPY (+84.8%), with operating profit at 5.7 billion JPY (+132.8%) [4]. - North America generated revenue of 5.7 billion JPY (+23.1%), with operating profit at 2.7 billion JPY (+133.4%) [4]. Strategic Outlook - Sanrio aims for a long-term market value of 5 trillion JPY (approximately 240 billion CNY) in ten years, which is more than three times its current market value of about 1.6 trillion JPY [4]. - The growth strategy focuses on licensing as the core business, alongside new ventures in digital content development [4]. Investment Recommendations - The report suggests monitoring companies such as Blokus, Morning Glory, Guobo Co., and Chuangyuan Co. for their potential in the IP economy and related sectors [4].