Search for 100 Bagger! September 23, 2020 issue

1. Analyze notable stocks

7921 TAKARA & COMPANY, Tokyo Stock Exchange First Section Listed

Current market cap (billion yen) 2x market cap (billion yen)
309  618

Industry
Major disclosure company for listed companies

※ The listing year indicates the listing dates on the Tokyo Stock Exchange First Section, Second Section, Mothers, or JASDAQ

2. Key points

1. With acquisitions and expansion of existing businesses, the business scope has broadened, and this fiscal year's sales are expected to grow by 38.6%, accelerating the growth pace.

2. Some sales from the previous term that were unrecognized due to the pandemic are confirmed to be recognized in the first quarter, and theQ1 results announced on Thursday, October 1, are likely to surpass the same period last year.

3. On Monday, September 7, the company announced a public offering and capital increase (PO). Since the number of issued shares will increase by 17.5%, earnings per share will be diluted.

4. The payout ratio is high at 37.8%, and room for further dividend increases is limited. Since it is immediately after the public offering, there is little expectation for share buybacks in the near term, so the key is whether the funds raised through the public offering can accelerate revenue and profit growth.

5. The disclosures for the listed companies that we work with are in a duopoly market with 7893 ProneXus, yielding high earnings stability. If we incorporate the downward pressure from the capital increase, earnings accumulation is expected to resume a gradual upward trend.

For more details, please refer to the PDF file.