Translate the HTML to English, keep the HTML format, do not use markdown code blocks or add line breaks, and decode any entities before translating: Search for 100 Bagger (100x stock)! May 17, 2021 issue

【This week's video is here】
https://youtu.be/SdZVWPUEUgE

※ The video is 31 minutes long.

1. 100% Bagger (2x stock) Candidate
HPC Systems 6597
Mothers-listed

Stock code 　Stock 　Year listed
6597 　HPC Systems 　2019

Minimum market cap (billion yen) Current market cap (billion yen) 2x market cap (billion yen)
50.4　 128 　256

Business model
Sells high-performance computers for scientific computing (HPC). Assembles at its own factory and possesses extensive knowledge and know-how on HPC. Recently started providing a science cloud service using the supercomputer "Fugaku."

※ The listing year shows the listing date on the Tokyo Stock Exchange First Section, Second Section, Mothers, or JASDAQ.
※ 100x market cap is calculated from the minimum market cap.

1. Points
1. The HPC business (scientific computing) and the CTO business (industrial computers) are the core, and as AI development and data analysis grow in importance across fields in the 2020s, demand for HPC from the company is increasing. HPC sales require knowledge of computational science, machine learning, and AI analytics, creating a certain entry barrier. The company positions itself as a niche top player, distinct from general SI (systems integrators).

2. The global HPC market is expected to reach about $49.4 billion (約5.5 trillion yen) by 2025, with an average annual growth rate of 5.5% from $37.8 billion (約4.2 trillion yen) in 2020. The Japanese market is said to account for about 10% of the world market, and is expected to reach an annual market size of ¥500 billion in four years. With IoT, 5G, and AI advances, usage will grow not only in research institutions but also among private companies, suggesting a favorable market environment.

3. On May 13, 2021 (Thu), the results were announced. The outlook includes a 25.3% upward revision to the current-period earnings, reaching a record high. Both HPC and CTO businesses continue to grow, and as the impact of the pandemic on manufacturing and various research institutions eases, there is a high likelihood that growth will continue in the current and following periods.