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9449: Share Buybacks And Higher Margins Will Drive Stronger Shareholder Returns

Digital Transformation Will Fuel Asia Fintech And Cybersecurity Expansion

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9449
AnalystHighTarget
Not Invested
Published 13 Jul 2025

Update shared on 13 Dec 2025

Fair value Increased 11%
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AnalystHighTarget's Fair Value
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1Y
40.7%
7D
-1.5%

Analysts have raised their fair value estimate for GMO Internet Group from ¥4,500 to ¥5,000, citing a modest uplift in expected profit margins and a slightly higher justified future earnings multiple, despite largely unchanged growth assumptions and discount rate.

What's in the News

  • The Board of Directors authorized a new share buyback plan on November 25, 2025, signaling ongoing commitment to shareholder returns (Key Developments).
  • The company announced a share repurchase program of up to 4,200,000 shares, or 4.14% of issued share capital, for ¥10,000 million, with all repurchased shares to be retired by February 12, 2026 (Key Developments).
  • A board meeting was held on November 25, 2025, to consider acquiring common shares of Prime Strategy Co., Ltd. and entering a capital and business alliance with the company (Key Developments).
  • A dividend of ¥9.50 per share was declared for the end of the third quarter of fiscal 2025, with payout starting December 18, 2025 (Key Developments).
  • A board meeting on September 19, 2025, was scheduled to consider transferring all shares of consolidated subsidiary GMO Z.com Forex HK Limited to Remi Holding Group Limited (Key Developments).

Valuation Changes

  • Fair Value Estimate was raised slightly from ¥4,500 to ¥5,000, reflecting a modestly higher assessment of intrinsic equity value.
  • The Discount Rate increased marginally from 11.02% to 11.10%, indicating a slightly higher required return on equity risk.
  • Revenue Growth edged down fractionally from 9.61% to 9.59%, implying virtually unchanged top line expansion assumptions.
  • The Net Profit Margin rose moderately from 8.40% to 8.85%, signaling improved expectations for operating efficiency and profitability.
  • Future P/E increased from 18.06x to 18.99x, indicating a slightly higher justified valuation multiple on expected earnings.

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