Stock Analysis

High Growth Tech Stocks In Japan To Watch October 2024

TSE:4478
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Japan’s stock markets have recently seen significant gains, with the Nikkei 225 Index rising by 5.6% and the TOPIX Index up by 3.7%, buoyed by optimism surrounding China's stimulus measures and a dovish stance from the Bank of Japan. In this environment, identifying high-growth tech stocks involves looking for companies that can capitalize on favorable market conditions, such as increased demand from China and supportive monetary policies at home.

Top 10 High Growth Tech Companies In Japan

NameRevenue GrowthEarnings GrowthGrowth Rating
Hottolink50.99%61.55%★★★★★★
Cyber Security Cloud20.71%25.73%★★★★★☆
eWeLLLtd26.52%27.53%★★★★★★
Medley24.98%30.36%★★★★★★
f-code22.70%22.62%★★★★★☆
Kanamic NetworkLTD20.75%28.25%★★★★★★
Bengo4.comInc20.76%46.76%★★★★★★
Mental Health TechnologiesLtd27.88%79.61%★★★★★★
ExaWizards21.96%75.16%★★★★★★
Money Forward20.68%68.12%★★★★★★

Click here to see the full list of 121 stocks from our Japanese High Growth Tech and AI Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

freee K.K (TSE:4478)

Simply Wall St Growth Rating: ★★★★★☆

Overview: freee K.K. provides cloud-based accounting and HR software solutions in Japan, with a market capitalization of ¥160.71 billion.

Operations: The company generates revenue primarily through its cloud-based software solutions, focusing on accounting and HR services in Japan. It operates with a market capitalization of ¥160.71 billion.

Freee K.K., amidst a dynamic shift in executive leadership, underscores its commitment to innovation and market expansion. With the appointment of Yasuhiro Kimura as the new CPO, effective October 2024, the company is poised to enhance its ERP systems significantly. This strategic move aligns with Freee’s anticipated revenue growth of 18.2% per year, outpacing Japan's average market growth rate of 4.2%. Moreover, Freee’s focus on R&D has been robust; however, specific financial figures for these expenses were not disclosed in the provided data. The company's forward-looking approach is also evident in its proposal to amend corporate bylaws to support business expansion, showcasing a proactive stance in adapting to evolving market demands.

TSE:4478 Earnings and Revenue Growth as at Oct 2024
TSE:4478 Earnings and Revenue Growth as at Oct 2024

Medley (TSE:4480)

Simply Wall St Growth Rating: ★★★★★★

Overview: Medley, Inc. operates platforms for recruitment and medical businesses in Japan and the United States with a market cap of ¥126.37 billion.

Operations: Medley, Inc. generates revenue primarily through its Human Resource Platform Business, contributing ¥17.87 billion, and its Medical Platform Business, which adds ¥6.09 billion. The company focuses on leveraging technology to streamline recruitment and medical services across Japan and the United States.

Medley's strategic acquisition of Offshore Inc. aims to bolster its market position, reflecting a proactive approach in expanding its operational scope and enhancing shareholder value. This move coincides with Medley's impressive financial trajectory, where earnings have surged by 39.2% over the past year, outpacing the Healthcare Services industry growth of 11.9%. Moreover, Medley is not just growing; it's innovating—R&D spending has been pivotal, with a significant portion of revenue reinvested into development, aligning with forecasts predicting revenue and earnings growth at 25% and 30.4% per year respectively. This investment in innovation is critical as it supports sustained long-term growth in a competitive sector.

TSE:4480 Revenue and Expenses Breakdown as at Oct 2024
TSE:4480 Revenue and Expenses Breakdown as at Oct 2024

OMRON (TSE:6645)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OMRON Corporation operates globally in industrial automation, device and module solutions, social systems, and healthcare sectors with a market capitalization of ¥1.29 trillion.

Operations: OMRON Corporation generates revenue primarily from its Industrial Automation Business (IAB), contributing ¥373.70 billion, followed by the Social Systems, Solutions and Service Business (SSB) at ¥156.85 billion, the Healthcare Business (HCB) at ¥150.40 billion, and the Devices & Module Solutions Business (DMB) at ¥143.69 billion. The company focuses on diverse sectors including automation and healthcare to drive its financial performance globally.

OMRON's strategic focus on innovation is evident in its R&D spending, which is crucial for maintaining competitiveness in the rapidly evolving tech landscape of Japan. With a significant 5.6% revenue growth forecast annually, the company outpaces the broader Japanese market's 4.2% growth rate, highlighting its robust position in electronic advancements. Furthermore, OMRON's earnings are projected to surge by an impressive 46.1% annually, reflecting strong operational efficiency and market demand for its products. Recent events like the Q1 2025 earnings call underscored these points, reinforcing investor confidence despite current unprofitability issues and a modest dividend payout of ¥52 on September 27th, indicating a balanced approach to capital allocation and shareholder returns.

TSE:6645 Revenue and Expenses Breakdown as at Oct 2024
TSE:6645 Revenue and Expenses Breakdown as at Oct 2024

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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.

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