TO Books, Inc.
500A・Standard Market・Information & Communication
TO Books, Inc.
500A・Standard Market・Information & Communication
IP Creation & Development Business (Single Segment)
An IP-producing company that develops novels and comics as a starting point into anime, stage plays, merchandise, and more in an integrated manner
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥11,795 million | ¥9,426 million | ↑ |
| Operating Profit | ¥1,984 million | ¥1,149 million | ↑ |
| Ordinary Profit | ¥1,954 million | ¥1,145 million | ↑ |
| Net Income Attributable to Owners of Parent | ¥1,310 million | ¥775 million | ↑ |
| Operating Margin | 16.8% | 12.2% | ↑ |
| Equity Ratio | 69.6% | 69.1% | ↑ |
| Total Assets | ¥10,441 million | ¥6,160 million | ↑ |
| Net Assets | ¥7,273 million | ¥4,261 million | ↑ |
| Cash and Cash Equivalents at End of Period | ¥4,363 million | ¥1,264 million | ↑ |
| Earnings Per Share | ¥422.09 | ¥258.47 | ↑ |
| Net Assets Per Share | ¥2,067.77 | ¥1,419.78 | ↑ |
| Annual Dividend Per Share | ¥76.00 | ¥23.00 | ↑ |
| Payout Ratio | 18.0% | 8.9% | ↑ |
Business Details
The company employs an "IP-producing" business model, integrating in-house planning and development from the discovery of web novels, their conversion into books and comics, through to TV anime, films, stage plays, drama CDs, audiobooks, merchandise, and events. Its main customers are e-book distributors (Media Do Co., Ltd., LINE Digital Frontier Corporation, Kakao Piccoma Corp., and NTT Solmare Corporation), with the majority of sales generated through domestic e-book distribution. The company operates as a single segment, the IP Creation & Development Business.
Recent Overview
In FY2026 (ending March 2026), the company achieved substantial growth, with net sales up 25% and operating profit up 73%
In FY2026 (ending March 2026), the company achieved substantial growth in both revenue and profit, with net sales of ¥11,795 million (up 25.1% year on year) and operating profit of ¥1,984 million (up 72.7% year on year). The TV anime "Suizokusei no Mahoutsukai" (The Water Magician), which aired in the Summer 2025 season, ranked No. 1 on 12 major video streaming sites, driving sales of books and comics. Following the company's listing on the TSE Standard Market in February 2026, it raised ¥1,770 million in proceeds from share issuance, substantially increasing cash and cash equivalents to ¥4,363 million. In March 2026, the company launched a new imprint, "Celica." For FY2027 (ending March 2027), the company forecasts net sales of ¥12,500 million (up 6.0% year on year) and operating profit of ¥1,900 million (down 4.3% year on year), anticipating a slight decline in profit despite revenue growth.
Key Products
Growth Drivers
- Continued expansion of the e-publishing market (the e-publishing market for January-December 2025 grew 2.7% year on year to ¥581.5 billion) is providing a tailwind for the light novel and comics segments
- The TV anime "Suizokusei no Mahoutsukai" (The Water Magician) ranked No. 1 on 12 major video streaming sites, significantly driving sales of the original books and comics
- The TV anime "Honzuki no Gekokujou: Ryoshu no Youjo" (Ascendance of a Bookworm: The Lord's Adopted Daughter), starting in April 2026, is expected to continue boosting book sales
- Steady accumulation of published titles is diversifying and stabilizing the revenue base
- The new imprint "Celica," launched in March 2026, is expected to acquire new users and create new IP
- Funds raised through the February 2026 listing on the TSE Standard Market (total proceeds of ¥1,770 million) will strengthen the IP creation and development framework
- Expansion of revenue and increased recognition in the real-event domain, including a musical re-run (scheduled for August 2026)
Risks
- High dependence of business performance on the timing and success of specific anime titles, with profitability fluctuations from anime adaptations directly impacting profit (in FY2025 (ended April 2025), operating profit fell 26.8% due to the reversal effect of multiple anime adaptations in the prior period)
- Risk of sales concentration among four major customers (Media Do Co., Ltd., LINE Digital Frontier Corporation, Kakao Piccoma Corp., and NTT Solmare Corporation), which together account for approximately 59% of net sales
- The continuing shrinkage of the print book market requires ongoing revision of sales strategies to keep pace with the accelerating shift to e-books
- Risk of increased costs for intellectual property protection due to rapid advances in AI technology, the rise of piracy, and increasingly complex copyright management
- Securing and developing creative talent such as editors and producers may become a constraint on business expansion
- Increased anime production risk (such as production cost overruns and box-office underperformance) as the company expands its proactive investment in production committees
- For FY2027 (ending March 2027), the company forecasts operating profit of ¥1,900 million (down 4.3% year on year), indicating an emerging risk of declining profit despite revenue growth (attributed to an increase in selling, general and administrative expenses)