I had a meeting with alt CFO.

alt was listed on TSE Mothers on 10/11/24.

Market Cap:¥20 Bn

P/S:       3.6x (E FY12/24 ¥5,545 MM)

2.8x (E FY12/25 ¥7,000 MM)

Guided sales growth: 35% y/y in FY12/24, 26% y/y in FY12/25

The company is not yet operating profits positive.

Simply as a reference, AI startup Sakana AI (Nvidia-backed) was valued at $1.5 billion at the recent series A round.

The business focus:

For about a decade, alt has focused on developing personal AI (PAI) similar to personal agents in the U.S., but more tailored to individual thoughts and habits—essentially a digital self-copy. This vision aims to free humans from labor-intensive tasks, allowing them to focus on creativity. To achieve this, they’ve developed technologies in areas like brain-inspired AI, speech recognition, and voice synthesis. The company’s progress has led to monetizable products, and they remain dedicated to perfecting digital human replication.

At this point, 85%-90% of sales is from AIGigiroku which transcribes and translate the meetings simultaneously.  It also generates summaries of the meetings based on your desired level of condensation.

The key for this stock to gain higher a valuation is to show investors that they get sales level from the current ¥4-5 Bn to ¥10 Bn in the next couple of years.

My questions focused on 1) Competitive landscape 2) OP breakeven forecast, 3) Valuation and 4) Talent acquisition outlook