Find 100-baga (100x stock)! March 8, 2021 issue
This Week's video is here
Note: The video is 35 minutes long.
1. 100% Bagger (2x stock) Candidate
CTS 4345
Listed on the Tokyo Stock Exchange First Section
Stock code / Company / Listing year
4345 CTS 2002
Minimum market capitalization (billion yen) Current market cap (billion yen) 2x market cap
6 369 738
Business type
A specialized ICT company for construction. Provides FileForce for cloud storage of construction data, and a mobile fixed IP phone service that can be installed the next day. As a construction/ civil engineering ICT company, sales have been expanding for 11 consecutive years.
Note: Listing year refers to the date of listing on the Tokyo Stock Exchange First Section, Second Section, Mothers, or JASDAQ.
Note: The 100x market capitalization is calculated from the minimum market capitalization.
2. Key Points
1. Engaged in rental and sale of IT infrastructure specialized for construction equipment, with 11 consecutive years of revenue growth. The core business targets the construction industry, which had lagged in digitization, and has consistently improved performance each period. Shifting from rental of surveying and house equipment to rental of ICT equipment, a business with high profitability and high revenue visibility is being developed.
2. In May 2020, the company announced a mid-term management plan, aiming to expand the target from local general contractors to nationwide general contractors, accelerating nationwide deployment. The construction industry faces significant workforce shortages due to aging demographics, making it necessary to advance labor-saving and manpower-saving through ICT.
3. President Yokoshima has increased the stock price by 61x since listing, achieving steady improvement in performance and increasing shareholder value. With over 20 years as an owner-CEO at the helm and currently 60 years old, it is presumed that growth can be sustained for the next 10 years.
