Growth Companies With High Insider Ownership On Japanese Exchanges October 2024

Japan's stock markets recently experienced volatility due to political developments, with a new prime minister taking office and impacting investor sentiment. Despite initial losses, the Nikkei 225 and TOPIX indices managed to recover some ground as the new leadership signaled economic policy continuity. In this context, growth companies with high insider ownership can present intriguing opportunities for investors, as such ownership often aligns management interests with shareholder value creation amidst fluctuating market conditions.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	31.5%
Hottolink (TSE:3680)	26.1%	61.5%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	38.5%
Medley (TSE:4480)	34%	30.4%
Inforich (TSE:9338)	19.1%	29.5%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
AeroEdge (TSE:7409)	10.7%	25.3%

Click here to see the full list of 101 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Kasumigaseki CapitalLtd (TSE:3498)

Simply Wall St Growth Rating: ★★★★★★

Overview: Kasumigaseki Capital Co., Ltd. operates in real estate consulting businesses in Japan and has a market cap of ¥183.49 billion.

Operations: Kasumigaseki Capital Co., Ltd.'s revenue segments include real estate consulting services in Japan.

Insider Ownership: 34.7%

Kasumigaseki Capital Ltd. is poised for significant growth, with revenue expected to rise by 26.3% annually, outpacing the Japanese market average. Earnings are projected to grow at a robust 38.5% per year, reflecting strong performance potential despite recent share price volatility and past shareholder dilution. The company's expansion into luxury hospitality with the opening of seven x seven Ishigaki highlights its strategic growth initiatives in high-value sectors, although debt coverage remains a concern due to low operating cash flow.

• Click to explore a detailed breakdown of our findings in Kasumigaseki CapitalLtd's earnings growth report.
• The valuation report we've compiled suggests that Kasumigaseki CapitalLtd's current price could be inflated.

PARK24 (TSE:4666)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: PARK24 Co., Ltd. operates and manages parking facilities both in Japan and internationally, with a market cap of ¥309.88 billion.

Operations: The company's revenue is primarily derived from its Mobility Business, which contributes ¥107.36 million, the Parking Lot Business in Japan at ¥178.06 million, and the Parking Lot Business Overseas generating ¥79.23 million.

Insider Ownership: 10.5%

PARK24 is positioned for growth with earnings forecasted to increase by 16.35% annually, surpassing the Japanese market average. The company trades at a significant discount to its estimated fair value, although it carries a high debt level. Recent strategic alliances include a pilot rideshare service in collaboration with Uber Japan, leveraging its Times CAR sharing service, which could enhance revenue streams if commercialized successfully amidst Japan's evolving transport regulations.

• Click here and access our complete growth analysis report to understand the dynamics of PARK24.
• According our valuation report, there's an indication that PARK24's share price might be on the cheaper side.

GENDA (TSE:9166)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: GENDA Inc., with a market cap of ¥202.70 billion, operates amusement arcades primarily under the GiGO brand in Japan through its subsidiaries.

Operations: The company generates revenue primarily from its amusement arcade operations in Japan under the GiGO brand.

Insider Ownership: 19.3%

GENDA Inc. is experiencing a revenue growth forecast of 13.4% annually, outpacing the Japanese market average of 4.2%, with earnings expected to grow significantly at 20.89% per year. However, recent shareholder dilution and a volatile share price pose challenges. Despite no substantial insider buying or selling in the past three months, GENDA's follow-on equity offering could impact ownership dynamics and financial stability as it prepares for its Q2 2025 earnings release on September 9, 2024.

• Take a closer look at GENDA's potential here in our earnings growth report.
• Upon reviewing our latest valuation report, GENDA's share price might be too optimistic.

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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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