Search for 100 Bagas! October 12, 2020 issue

1. 100 Baggers Candidate Stocks

MIN-CAB THE INFONOID

Stock Code Stock Name Listing Year
4436 MINCABS THE INFONOID 2019

Minimum Market Cap (billion yen) Current Market Cap (billion yen) 100x Market Cap (billion yen)
91.4 392 9,140

Business Model
Operates financial information media “Minkabu” and “Kabutan,”
Provides and develops information-related solutions for financial institutions

* Due to data retrieval constraints, the market cap is calculated by dividing the current stock price by past prices, so the minimum market cap does not account for capital increases and such.

* Listing year indicates the listing date on the Tokyo Stock Exchange First/Second Section, Mothers, or JASDAQ.

* 100x market cap is calculated from the minimum market cap.

2. Key Points
1. In an industry where digitization has been slow, this is a newly emerged financial information media and solution provider. Since the COVID-19 shock, the number of users starting stock investments has surged, accelerating growth in performance.

2. The source of the company’s growth is via M&A. In 2014, it acquired “Kabutan”; in 2019, it acquired Prop Tech Plus, which provides REIT-related services; in 2020, it brought in “Robot Tōshin,” a tool for automatic creation of information for fund management companies. This has expanded the group’s business diversification.

3. On September 29, 2020, the company signed a business alliance with QUICK Co., Ltd., a news and information distribution company affiliated with the Nikkei. This deepened its involvement in information services for institutional investors and provided momentum to expand the AI-based information analytics the company excels at.

4. Among Saas stocks on the Mothers market, the company has three pillars that support stock price: profitability, dividends, and shareholder benefits. Compared to IPOs listed in 2020, the company’s stock performance is not considered particularly strong.

5. On the other hand, earnings are expected to grow in the second half due to a planned substantial increase in sales in the solutions business, so progress up to the second quarter may be low. Delays in projects or unexpected cost increases could lead to sales plan shortfalls.

6. The company’s growth picture is thought to resemble 3966 Uzabe Base (Uzabase). The structure of acquisitions, business-domain expansion, and recurring revenue is very similar to the company. Uzabase’s market cap surpasses 140 billion yen, and if sales grow to about three times the current level (around 12 billion yen), a market cap three times the current level (about 1.2 trillion yen) could be anticipated.

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