Sanwa Holdings Buyback and Dividend Policy Update

Sanwa Holdings reported FY3/26 operating profits of ¥79.1 bn, largely in line with expectations, and announced a ¥10 bn share buyback alongside a higher 10% DOE target. Goldman Sachs maintains a Buy rating but lowered the 12-month target price to ¥4,300 due to revised margin estimates for overseas segments.

Key Takeaways

• 1.Sanwa Holdings announced a share buyback of up to ¥10 bn and increased its dividend on equity (DOE) target to 10% from 8%.
• 2.FY3/26 operating profits of ¥79.1 bn were in line with GS estimates, while FY3/27 operating profit guidance of ¥81.0 bn is 3% below consensus.
• 3.Despite challenging market conditions in the Americas and Europe, the Japan business saw profit growth driven by cost pass-through.

Table of Contents

• Results highlights
• Investment rating and valuation
• Price Target Risks and Methodology - Sanwa Holdings
• Investment Thesis - Sanwa Holdings
• Disclosure Appendix
• Ratings, coverage universe and related definitions

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