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Gungho Online Entertainment
(3765)
Gungho Online Entertainment (3765) vs. iShares MSCI Japan ETF (EWJ)
Gungho Online Entertainment Business Overview & Revenue Model
Gungho Online Entertainment Financial Statement Overview
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.53B | 93.24B | 103.60B | 125.31B | 105.50B | 104.63B |
| Gross Profit | 48.85B | 42.33B | 53.41B | 56.97B | 58.42B | 61.06B |
| EBITDA | 12.67B | 6.07B | 20.81B | 30.96B | 29.94B | 37.64B |
| Net Income | 5.81B | 1.41B | 11.17B | 16.43B | 19.02B | 22.88B |
Balance Sheet | ||||||
| Total Assets | 168.58B | 169.47B | 175.46B | 168.04B | 152.21B | 134.93B |
| Cash, Cash Equivalents and Short-Term Investments | 136.83B | 136.25B | 104.62B | 140.03B | 127.21B | 116.46B |
| Total Debt | 1.35B | 1.35B | 759.00M | 722.00M | 489.00M | 508.00M |
| Total Liabilities | 20.22B | 18.14B | 21.93B | 18.55B | 19.38B | 16.26B |
| Stockholders Equity | 122.46B | 123.02B | 128.77B | 128.76B | 118.38B | 108.40B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -456.00M | 16.89B | 19.90B | 18.23B | 22.98B |
| Operating Cash Flow | 0.00 | 149.00M | 17.13B | 20.51B | 18.66B | 23.65B |
| Investing Cash Flow | 0.00 | -28.68B | -47.59B | -14.61B | -2.79B | -5.41B |
| Financing Cash Flow | 0.00 | -8.83B | -12.22B | -7.03B | -9.27B | -12.39B |
Gungho Online Entertainment Technical Analysis
Gungho Online Entertainment Peers Comparison
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥293.83B | 11.73 | 17.98% | 2.52% | 34.16% | ― | |
69 Neutral | ¥176.26B | 10.15 | 9.54% | 4.61% | 1.14% | 77.07% | |
61 Neutral | ¥139.19B | 99.65 | 3.38% | 2.38% | -3.12% | -63.07% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | ¥70.92B | 46.19 | 4.14% | 2.09% | -2.61% | 116.80% | |
46 Neutral | ¥17.96B | 5.89 | ― | ― | -37.68% | ― | |
45 Neutral | ¥26.12B | -4.24 | ― | ― | -14.71% | -38.87% |
Gungho Online Entertainment Corporate Events
GungHo Online Entertainment has approved partial revisions to its directors’ remuneration system, following recommendations from its Nomination and Remuneration Committee led by an independent outside director. The company aims to better align executive pay with business performance, corporate value growth, and shareholder interests, while keeping outside directors on a basic-remuneration-only structure.
Under the new framework, executive directors will receive basic remuneration, performance-linked monetary compensation, and a newly introduced performance-linked restricted stock-based remuneration. The existing stock option plan will be abolished and replaced by stock-based pay tied to stock-price growth achievement, subject to shareholder approval at the March 30, 2026 general meeting.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment’s board of directors has formally opposed all shareholder proposals submitted by Strategic Capital and LIM Japan Event Master Fund ahead of its annual general meeting. The company stated that it will continue to provide shareholder returns at what it deems an appropriate scale, based on its operating environment and its broader goal of enhancing corporate value.
The board emphasized that it has been strengthening corporate governance, including appointing an additional independent outside director this year, as part of its ongoing reforms. It concluded that none of the submitted shareholder proposals would contribute to improving the company’s corporate value, signaling a firm stance against activist demands and a preference for its existing capital allocation and governance policies.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment’s board has unanimously decided to oppose all shareholder proposals submitted by activist investors Strategic Capital-linked entities and LIM Japan Event Master Fund ahead of its 29th annual general meeting on March 30, 2026. The company argues that the proposals do not enhance corporate value and specifically rejects a plan to repurchase all shares held by two major shareholders, calling it inconsistent with Japan’s Companies Act and practically ineffective since the targeted shareholders have stated they will not sell.
Management also disputes the activists’ claim that these large shareholders vote out of line with other investors, citing prior meeting results where a majority of shareholders, excluding the targeted holders, still backed the board’s position. The response underscores GungHo’s intent to defend its current governance structure and shareholder base against what it characterizes as self-serving attempts by activists to exclude dissenting long-term shareholders through mechanisms not envisioned by corporate law.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment, Inc. has nominated certified public accountant and tax accountant Hiroyuki Uchida, and attorney and patent attorney Emiko Maki, as new outside director candidates to be formally elected at the March 30, 2026 shareholders’ meeting. Both candidates meet Tokyo Stock Exchange independence requirements and bring expertise in corporate management, global business, and intellectual property and legal affairs.
The company expects their appointments to support sustainable growth and higher corporate value, and, if shareholders approve the slate of directors, independent outside directors will comprise half of the board, reinforcing oversight and supervisory functions. At the same meeting, Director Norikazu Oba and Outside Director Keiji Miyakawa will retire upon expiration of their terms, marking a notable refresh of the board’s composition and governance profile.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment’s board has approved a new share buyback and cancellation program aimed at enhancing shareholder value and improving capital efficiency. The company plans to respond flexibly to shifts in its business environment through this capital policy initiative.
The company will repurchase up to 2.1 million common shares, or 3.86% of its outstanding stock excluding treasury shares, for a maximum of ¥5 billion on the Tokyo Stock Exchange between February 16 and June 23, 2026. It will also cancel 16 million shares, representing 23.13% of shares issued and outstanding before cancellation, on June 30, 2026, significantly reducing the share count and potentially boosting per-share metrics for investors.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment has overhauled its shareholder return policy to pursue more proactive profit distribution, introducing a 4% Dividend on Equity (DOE) target while lifting its consolidated dividend payout ratio benchmark from 30% or more to 50% or higher. Share buybacks will remain a flexible tool for enhancing capital efficiency, to be implemented on an ongoing basis at the Board’s discretion.
In line with the new policy, effective from the fiscal year ended December 31, 2025, the company has set its previously undecided year-end dividend for the December 2025 period at ¥90 per share, up from a total annual dividend of ¥60 in the prior year. The year-end dividend is scheduled to be formally resolved at a Board meeting on March 30, 2026, signaling a stronger commitment to shareholder returns that could support the stock’s appeal to income-focused investors.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment reported a sharp year-on-year decline in earnings for the fiscal year ended December 31, 2025, as net sales fell 10.0% to ¥93.2 billion and profit attributable to owners of parent plunged 87.4% to ¥1.4 billion. The drop was driven by weaker sales from flagship title Puzzle & Dragons, which held fewer collaboration events with popular external characters than in the previous year.
Ragnarok-related titles showed more resilience, with strong anniversary-driven engagement in Japan and a year-on-year net sales increase at subsidiary Gravity Co., Ltd., supported by launches such as Ragnarok M: Classic and Ragnarok: Twilight. However, higher selling, general and administrative expenses, particularly personnel costs after the full acquisition of Alim Co., Ltd., further pressured margins and significantly reduced operating and ordinary profits compared with the prior year.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment reported a sharp deterioration in results for the fiscal year ended December 31, 2025, with net sales falling 10% to ¥93.2 billion and operating income plunging 71.1%. Ordinary income dropped 66.1% and profit attributable to owners of the parent fell 87.4%, pushing return on equity down to 1.1% and compressing profitability across key metrics.
Total assets and net assets declined slightly, while cash and cash equivalents at year-end more than halved to ¥31.0 billion amid sizable investing and financing outflows. Despite weaker earnings, the company plans to raise its year-end dividend from ¥60 to a forecast ¥90 per share, significantly lifting the dividend payout ratio and reinforcing its shareholder return stance even as it withholds full-year 2026 earnings guidance due to volatility in its content business.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment has introduced a new directors’ remuneration system designed to better reflect the business environment the company faces and to align management incentives with long-term corporate value creation. The framework establishes key performance indicators (KPIs) tied to enhancing corporate value and transitions executive pay toward a structure more closely linked with shareholder interests, supporting the company’s newly announced management structure and strengthening its corporate governance with a clear focus on maximizing corporate value.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2641.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment’s Nomination and Remuneration Committee, dominated by independent outside directors, has recommended significant revisions to the remuneration system for executive directors, aiming to better link pay with business performance and long-term corporate value. The proposed changes include a substantial review of basic monetary remuneration levels in line with a newly announced management structure and industry benchmarks, a shift in the key performance indicator for performance-linked cash bonuses from consolidated operating profit to profit attributable to owners of the parent, and setting a maximum annual performance-linked cash pool of ¥400 million, with tighter downside when performance is weak and higher potential payouts when results are strong. In addition, the committee has advised abolishing the current stock option-based remuneration and introducing a performance-linked stock-based plan that grants restricted shares based on performance and shareholder value growth over a defined evaluation period, in order to heighten management’s focus on share price and alignment with shareholder interests, while outside and part-time directors will continue to receive only basic remuneration. These revisions will be deliberated by the Board and key elements will be put to a shareholder vote at the March 2026 ordinary general meeting.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2641.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment has announced a management reshuffle effective February 1, 2026, under which long-time president and CEO Kazuki Morishita will step down from his representative role to become chairman of the board and chief development officer, allowing him to focus more fully on directing and overseeing game development to further enhance corporate value. Current CFO and head of the Finance Accounting Division, Kazuya Sakai, will be promoted to representative director, president, and CEO, leveraging his experience in creating new revenue streams, establishing a global brand, and leading shareholder dialogue, while Kazumasa Takayama, currently executive officer and IRO, will succeed Sakai as CFO, collectively signaling a shift toward a structure that separates creative leadership from corporate and financial management to support sustainable growth.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2641.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.
GungHo Online Entertainment has announced progress in addressing misconduct by a former executive-level employee who misappropriated company funds through fictitious business orders. The company has taken steps to prevent future incidents by decentralizing authority, enhancing compliance training, improving internal controls, and strengthening internal audits. These measures aim to restore stakeholder trust and ensure robust operational integrity.
The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2641.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.