Find 100 Baggers (100x Stocks)! September 13, 2021 issue【NexTone 7094】
【This Week's Video is Here】
Note: This is a 27-minute video.
1. 100 Baggers (100x stock) Candidates
NexTone 7094
Tokyo Stock Exchange Mothers Listed
Stock Code Company Listing Year
7094 NexTone 2020
Minimum Market Cap (billion yen) Current Market Cap (billion yen) 100x Market Cap (billion yen)
50.6 321 5,060
Business Model
Engaged in music content rights management. Recently planning to enter the performance rights business. Targets a monopolistic market where Jusco (JASRAC) and the company together hold 100% market share.
※ Listing year indicates the listing dates 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) NexTone, as a main business, concentrates on music copyright management and operates in a near-competitive market with high entry barriers, targeting a market where only JASRAC and the company operate. The market size for copyright management is about 120 billion yen, and as the company's share grows due to improved convenience, sales and profits are expected to rise.
2) The company's characteristics and strengths include: ① being the sole surviving private company and a unique challenger, ② having a promoter function to promote usage, so through active promotions, the revenue per track increases, making operations more efficient than JASRAC and expanding the number of managed works.
3) For future growth strategy, the company is entering the performance rights market, starting overseas collections, and launching a new business to directly support artist activities, showing an intention not to limit itself to domestic copyright management. The music business has faced challenges during the COVID-19 pandemic, but since the company's business is stock-type, expanding into new areas is likely to push up sales.
