Sony Earnings: Commits to Profit Growth Under New Midterm Plan; Fair Value Up by 10%

Sony Group guides operating income of JPY 1.28 trillion for fiscal 2024 (ending March 2025), up 5.5% year on year, or 9% growth excluding the financial segment, which is sensitive to market fluctuations. While the guidance is largely in line with our expectations, we believe that 1) solid growth in the game and network services segment, which had been a concern due to the lack of major first-party title launches scheduled for this year; and 2) improving profitability in the imaging and sensing solutions segment, which had been suffering from deteriorating yields and rising fixed costs, will alleviate the market’s concerns.