The author is bullish on Sanrio, citing its transition to a high-margin IP licensing business with operating profits growing from ¥2.5B in 2022 to ¥27B in 2024. The investment thesis positions Sanrio as an AI beneficiary through high-margin licensing for generative models, with a base case of ¥20B in new royalty revenue and an average price target of ¥1,494. Despite a recent sell-off due to a special investigation into director compensation, the author views the current ~21x valuation as a "once in a lifetime" entry opportunity, while noting JPY currency risk.