Asics Corp. (7936)

Equity Research 20 August 2026 | 8:49PM JST

Asics Corp. (7936.T): CEO meeting: Reaffirms reasonable direction, disciplined approach toward business growth in next MTP; maintain Buy

We hosted a meeting with Asics Chairman and CEO Yasuhito Hirota and investors at Sho Kawano | 14:00 JST on August 20. With the company aiming to achieve FY12/26 sales of over Goldman Sachs Japan Co., Ltd. ¥1 tn (including on a currency-neutral basis), hitting its initial target three years Tomoko Imoto ahead of schedule, and looking to enter its next growth stage, the meeting | reaffirmed that management has built a business foundation capable of executing Goldman Sachs Japan Co., Ltd.

the right strategies for the medium to long term with a high level of discipline, Xiao Zhang | remaining unaffected by short-term fluctuations. As such, it left us with a positive Goldman Sachs Japan Co., Ltd. impression. Our key takeaways: (1) Under the new medium-term plan (scheduled for Chie Hu announcement on November 13), the company will pursue balanced growth in sales | Goldman Sachs Japan Co., Ltd. while maintaining an operating margin of 18-20%. In addition to capitalizing on growth opportunities centering on the US (such as extending sales channels to big-box retailers) and China (including expanding the store network to include inland areas), the company will undertake the supply chain reforms it noted six months ago to further drive efficiencies (in FY12/26, production will be driven by HQ-led demand forecasting, and in FY12/27, as annual production volume tops 100 mn pairs, positive effects are expected from volume discounts as well as a reduction in off-season factory downtime as planned production is increased). (2) For SPS, which carries both growth opportunities and risks, the plan is to maintain scarcity by always keeping supply below potential demand, without loosening the reins. (3) For P.RUN, management will focus on profitability and medium- to long-term brand value enhancement rather than engaging in price competition with rivals. See below for details.

Key takeaways Overview of strategies ahead of new medium-term plan announcement (scheduled for November 13): We reaffirmed the long-term strategy of expanding sales while maintaining an operating margin of 18-20% (FY12/26 guidance is 19%). Given strong demand at present, we believe the new medium-term plan will aim for double-digit % sales growth (+MSD% in P.RUN, sustained strong momentum in SPS/OT). We believe the operating margin could beat the company’s expectations as a result of increased leverage accompanying sales growth and the supply chain reforms mentioned six months ago (in FY12/26, the focus will be on HQ-led demand forecasting; in FY12/27, as annual production volume tops 100 mn pairs, benefits are expected from reduced off-season factory downtime as planned production is increased several times over, as well as volume discounts leading to a lower COGS ratio). At the same time, Asics is committed to undertaking IT system investments,

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Goldman Sachs Asics Corp. (7936.T)

including AI, to sow seeds for the next generation, store investments aimed at further enhancing brand value, and investments in nurturing OT as a luxury lifestyle brand. By region, we assume mainland China and the US offer the greatest potential for growth, followed by Southeast Asia. In mainland China, we expect key points of focus for the next medium-term plan to include expanding the store network, including in inland areas, expanding mega stores, promoting global products, and shifting to local production. In the US, we think the focus will be on entering a growth phase following several years…