Search for 100 Baggers (100x stock)! July 5, 2021 issue
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1. 100% Bagger (Double Stock) Candidate
Beruna 9997
Listed on TSE First Section
Stock code Company name Listing year
9997 Beruna 1994
Minimum Market Cap (billion yen) Current Market Cap (billion yen) 2x Market Cap (billion yen)
72 956 1,912
Business
A major online retailer handling apparel, wine, sake, and nursing supplies. The apparel segment targets women in their 50s and 60s. In recent years, the company has expanded its business scope, pursuing diversification into specialty e-commerce, database services, and hotel operations. It is beginning to establish itself as a general trading company leveraging databases.
Note: The listing year indicates the listing date on the Tokyo Stock Exchange (First Section, Second Section, Mothers, or JASDAQ).
Note: A 100x market capitalization is calculated from the minimum market cap.
1. Points
1. Beruna [9997], which operates a comprehensive business utilizing a database, has rapidly expanded its earnings during the COVID-19 period, achieving record highs in sales, operating profit, and net profit in the previous fiscal year. Changes in living styles during the pandemic persist, and this fiscal year is also expected to reach a new all-time high.
2. Conversely, the stock price has fallen by more than 30% from the peak of 1,351 yen reached in mid-March after the COVID-19 shock, making its price action seem unlikely for a company expected to achieve record profits this year. Market participants may assume that the company’s growth rate will slow after the pandemic, but the company reportedly has multiple sectors contributing to earnings even in a post-COVID environment, and our research suggests that growth will continue.
3. On May 21, the company released its previous fiscal year's earnings briefing and the next medium-term management plan (the fifth medium-term plan for the period from March 2023 to March 2025). This fiscal year is the final year of the fourth medium-term plan, and the company stated that it aims to “overperform this year and lay the groundwork for the fifth plan,” indicating strong ambition to achieve the plan. Based on monthly sales trends up to May, performance has been above the previous year’s pace, suggesting a strong likelihood of achieving the targets.
