Look for 100 Bagger (100x stock)! May 24, 2021

【This week's video is here】
https://youtu.be/8fhJqjmKwm0

※ This is a 34-minute video.

1. Recent status of previously introduced stocks

SRE Holdings 2980
Listed on the Tokyo Stock Exchange First Section

Stock code Company Listing year
2980 SRE HD 2019

At the time of listing / Market cap (billion yen) Current / Market cap (billion yen) 100x market cap
720 795 20,700

Business description
Main business is providing AI that analyzes real estate brokerage and transaction data. They are expanding from conventional real estate operations utilizing IT and AI into AI consulting targeting finance, IT, and the travel industry, and the business model is shifting from real estate tech to an AI provider.

※ Listing year indicates the listing dates on the Tokyo Stock Exchange First Section / Second Section / Mothers / JASDAQ
※ 100x market cap is calculated from the minimum market cap.

【Points】
1. On Friday, May 14, 2021, the earnings results for the year ending March 2021 were announced. Net sales rose by 91% year-on-year to 7.33 billion yen, and operating income rose 42% to 1.05 billion yen, ending at roughly the same level as the forecast revised in January. In the previous term, profits grew after upfront investments for future growth, and in the current term, as those investments begin to bear fruit, further growth is expected.

2. The forecast for this term is sales of 11.8 billion yen, up 61% year-on-year, and operating income of 1.35 billion yen, up 28%. Although the growth rate of operating income is expected to slow from the previous term, the driver is “increasing investments to achieve sustained growth in ARR (annual recurring revenue) in the mid to long term,” aiming for ideal SaaS growth. In the earnings briefing, President Nishiyama stated, “we understand how much sales increase we get for a given level of spending,” outlining a plan to pursue further recurring revenue through accurate investments.