2025-06-11-Jefferies-东方乐园公司（4661）_首席执行官小型会议_7页_100kb

Oriental Land Co. CEO Small Meeting Summary

Core Content

Oriental Land Co. (OLC) held a CEO small meeting on June 11th, focusing on three main areas: pricing strategy, collaborations, and return on equity (ROE) and buyback initiatives. The meeting provided insights into OLC's strategic direction and market positioning.

Main Discussions

1. Pricing Strategy

• Seasonal Pricing: OLC is exploring various pricing options, with a particular emphasis on seasonal pricing, such as College Passports and evening passes during the summer season.
• Value-Added Offerings: The company is expanding its value-added services within the parks, including vacation packages, food & wine pairings, and the Bibbidi Bobbidi Boutique.
• Cruise Business: OLC aims to maintain a conservative pricing assumption but is targeting high operating margins of over 20% for the cruise business.
• Top Line Growth: The focus is on increasing revenue through enhanced services rather than solely relying on visitor numbers.

2. Collaborations

• Marvel IP Utilization: OLC is continuously leveraging Marvel IP to drive traffic and merchandise sales, with current features including Marvel characters in attractions and projection mapping.
• Artist Collaboration: The company is collaborating with Japanese artist Mrs. Green Apple for a special summer attraction, Bay max, highlighting its commitment to innovative and culturally relevant partnerships.

3. ROE and Buyback

• Buyback Commitment: OLC has committed to a ¥300bn buyback to absorb selling pressure from a large shareholder and improve ROE.
• Investment Emphasis: The company is highlighting the importance of strategic investments to add value and increase margins, supporting long-term growth and shareholder returns.

Key Financial Information

Investment Recommendation

• Hold Rating: Indicates that the expected total return over the next 12 months is between +15% and -10%.
• Valuation Methodology: Based on DCF analysis, the price target is equivalent to a FY3/26E P/E of 41.3x and EV/EBITDA of 22.6x.
• Risks: Include potential ASP growth below +4% CAGR, natural disasters, competition from other consumption categories, and declining consumer loyalty to the Disney brand.

Analyst Certification

• Shunsuke Kuriyama certifies that the views expressed in the report accurately reflect his personal views and that his compensation is not directly or indirectly related to the specific recommendations in the report.
• Non-US Analyst: Kuriyama is employed by Jefferies (Japan) Limited, a non-US affiliate, and is not registered as a research analyst with FINRA.

Disclosure and Legal Information

• Conflict of Interest: Jefferies may have conflicts of interest due to its business relationships with companies covered in the research.
• Regulatory Compliance: The report is subject to various regulatory requirements and is not intended as personalized investment advice.
• Distribution Restrictions: The report is intended for professional or institutional investors in certain jurisdictions and may not be suitable for retail investors.
• Legal Disclaimer: Jefferies does not guarantee the accuracy or completeness of the information provided and assumes no liability for any damages or losses resulting from its use.

Conclusion

The CEO small meeting outlined OLC's strategic focus on enhancing revenue through innovative pricing, value-added services, and collaborations, particularly with Marvel IP and Japanese artists. The company is also committed to improving ROE through buybacks and strategic investments. Despite these positive initiatives, there are risks related to market performance and external factors that could affect the company's financial outcomes. The report is a general overview and should be considered alongside other investment factors.