This company meets a definition of a likely 10-bagger

This acquisitive Japanese company is turning heads with a projected 12 billion JPY in sales and 2 billion JPY in operating profit for 2025. Just three years ago, it posted 6.8 billion JPY in sales and 0.5 billion JPY in profit. Fueled by seven acquisitions and a bold M&A strategy, the young CEO is chasing 10-bagger status. Is this the next big stock to soar? Let’s dive in.

Explosive Growth Through M&A

319A NGTG targets small- to medium-sized manufacturers with strong tech and cash flow, snapping them up with cheap loans from Japan’s low-interest-rate banks.

Unit: million JPY, except EPS and dividend per share

From 6.8 billion JPY in sales in 2022 to a forecasted 12 billion JPY in 2025, NGTG’s growth is staggering, nearly doubling in three years via seven acquisitions. Operating profit jumped from 0.5 billion JPY to 2 billion JPY, boasting a healthy 16.7% margin.

At 8660 yen/share, its market cap is 76.6 billion yen (as of October 10, 2025). Though the stock seems expensive given that it is trading 85x the net income from 2024 (0.9 billion yen), NGTG is projecting 2.4 billion yen in adjusted EBITDA for the year ending December 2025. Notably, NGTG's policy is to revise the guidance upward each time a new acquisition was made, instead of pricing in future deals in its guidance.

Why NGTG Outshines PE Rivals

Unlike private equity firms with short-term exits, NGTG’s “permanent capital” model holds acquisitions indefinitely. This resonates with Japanese SMB founders who prioritize tech preservation and employee welfare over quick payouts. By appealing to these values, NGTG outbids PE rivals, securing deals that align with long-term stability and growth, giving it a unique edge in Japan’s M&A landscape.

NGTG likens itself to Danaher in its acquisition approach: proactive coordination aimed at value-up while respecting group company independence

A 10-Bagger Contender

NGTG checks key boxes for a 10-bagger:

• high revenue growth (76% in three years),

• >10% profit margin

• founder-led management

• a low market cap & tight public float ripe for explosive gains.

  
  

  CEO Eiichi Arai, a former investment pro, holds 65% of shares, meaning every 1% move in the stock price changes 500 million JPY in his net worth. So he is not just shareholder-friendly; he is very much shareholder-minded.

Sexy Angles: Nuclear Fusion and Bold TOBs

In 2025, generative AI took the lead, creating a major bull market along with related data center and nuclear fusion stocks. There is a well-known fusion experimental reactor called Commonwealth Fusion Systems (CFS), a US company funded by Microsoft founder Bill Gates and others. Toshima Manufacturing Co., Ltd. is believed to be supplying parts to CFS.

Toshima produces "sputtering targets," a material used to create the powerful magnetic field that triggers fusion reactions. The magnetic field is generated by superconducting coils. Without the special material developed by Toshima, made by sintering multiple metal powders, the superconducting coils would not function properly and a magnetic field would not be generated within the reactor. NGTG’s acquisition of Toshima in 2019 positions it as an unexpected beneficiary of the AI revolution.

Post-IPO, Arai vowed to pursue bigger M&As, including public tenders of listed firms. With a tight public float, any buzz could spike NGTG’s stock, mirroring M&A giants like GENDA.

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Disclaimer: This blog is for informational and entertainment purposes only and does not constitute investment, financial, or legal advice. Consult a licensed professional before making investment decisions.