Fandom-as-a-Service

3661.T (new position): Japan's largest fan club operator (4M+ paying subscribers, 800+ artists) w/ 1% annual churn & <1% IP churn. Integrated fan clubs, e-ticketing & e-commerce drives ~20% EBIT growth (¥730M in 2020 → ¥5.2-5.4B FY26E). EMTG acquisition (2018) at 18x P/E using shares issued at 90x transformed business. Trades 8.5x EV/EBIT vs 19.6x historical avg despite stronger fundamentals today. Float-based model: FCF conversion 190%+ last 5yrs, making actual FCF multiple ~7x. Asset-light (60% cash/LTIs, <5% PP&E). CEO w/ deep industry relationships since 1984 owns 13%. Growth via e-ticketing expansion (resale +70% YoY H1 FY26), overseas, & M&A. Margins expanding as ticketing scales, e-commerce grows to 9.7% of rev (70%+ margins). Risks: concert scene disruption, data breach, key man, label in-sourcing. Down 40% in 6mo on AI fears despite strong results & raised guidance. Initiated 5% position.

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