Search for 100 bagger (100x stock)! April 19, 2021 issue

Note: The video is 35 minutes long.

100% Bagger (2x stock) Candidate

Avar Data 6918

Listed on JASDAQ

Stock Code Company Listing Year

6918 Avar Data 1991

Minimum Market Cap (billion yen) Current Market Cap (billion yen) 2x Market Cap (billion yen)

12.9 315 630

Business Type

Electronic control device manufacturer. With strong competitiveness in ultra-fast data communications, it possesses know-how, needs, and case-based expertise for programming programmable logic devices (FPGAs) that are rewritable. Closely connected with Tokyo Electron and Nikon.

Note: Listing year refers to the date of listing on the Tokyo Stock Exchange First Section, Second Section, Mothers, or JASDAQ.

Note: A 100x market cap is calculated from the minimum market cap.

1. Key Points

1. Avar Data, which began operation as a board maker for semiconductors in 1959, conducts semiconductor manufacturing through two pillars: contract product development and in-house development. About 35% of the company’s sales are to Tokyo Electron [8035], and there is a high likelihood of benefiting from Tokyo Electron’s business expansion.

2. Looking at Tokyo Electron’s business environment, projections suggest market growth this year approaching 20% year over year, indicating a strong possibility of benefiting from a favorable semiconductor market.

3. The company has a tendency to issue conservative earnings forecasts, and in the past five years has revised operating profit downward only once from forecasts. Last term’s results were upwardly revised on March 10, and the recent improvement in the semiconductor market is reflected in current earnings. Given the above, it is believed that this term could see more than 20% year-over-year earnings growth.