Stock Analysis

High Growth Tech Stocks In Japan To Watch This October 2024

TSE:4478
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Japan's stock markets have experienced notable gains recently, 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 context of positive market sentiment, identifying high-growth tech stocks involves looking for companies that demonstrate strong innovation capabilities, robust growth potential in emerging technologies, and resilience to macroeconomic fluctuations.

Top 10 High Growth Tech Companies In Japan

NameRevenue GrowthEarnings GrowthGrowth Rating
Hottolink50.99%61.55%★★★★★★
eWeLLLtd26.52%27.53%★★★★★★
Medley24.98%30.36%★★★★★★
f-code22.70%22.62%★★★★★☆
Kanamic NetworkLTD20.75%28.25%★★★★★★
GMO AD Partners69.79%97.87%★★★★★☆
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.

Let's uncover some gems from our specialized 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 specializes in cloud-based solutions for accounting and HR, primarily generating revenue through subscription fees for its software services. Its business model focuses on offering scalable digital tools to streamline financial and human resource processes for businesses in Japan.

Amidst a dynamic shift in leadership, freee K.K. is poised to harness its innovative edge under the new CPO Yasuhiro Kimura, who brings robust experience from his tenure at the Fintech Association of Japan. The company's recent proposal to amend its bylaws reflects an adaptive strategy aimed at broadening business horizons, crucial for sustaining its competitive stance in Japan's tech landscape. Financially, freee K.K. anticipates a significant revenue surge with projected net sales reaching ¥33.06 billion by June 2025, coupled with an expected annual profit growth outstripping the market average significantly at 74.1%. This fiscal optimism is underpinned by a strategic focus on enhanced ERP systems and corporate restructuring that may well redefine their market footprint amidst fierce competition and technological evolution.

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: The company generates revenue primarily from its Human Resource Platform Business, contributing ¥17.87 billion, and its Medical Platform Business, with ¥6.09 billion in revenue. New Services add an additional ¥573 million to the overall revenue stream.

Medley, Inc. is strategically expanding its subsidiary Jobley, leveraging the growing demand for healthcare professionals across the U.S., a move that could significantly widen its market footprint. With Jobley's service now extending to 39 states, Medley's revenue is projected to grow by 25% annually, outpacing the Japanese market average of 4.2%. This expansion aligns with their recent board decision to acquire Offshore Inc., underscoring their aggressive growth strategy and focus on enhancing service capabilities in high-demand sectors. Moreover, Medley's earnings have surged by 39.2% over the past year, eclipsing its industry's growth rate of 11.9%, with future earnings expected to rise by an impressive 30.4% annually.

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's primary revenue streams are derived from its Industrial Automation Business (¥373.70 billion) and Social Systems, Solutions and Service Business (¥156.85 billion). The Healthcare Business contributes ¥150.40 billion, while the Devices & Module Solutions Business adds ¥143.69 billion to the company's overall revenue mix.

Amidst a modest revenue growth forecast of 5.6% per year, OMRON stands out with an anticipated earnings surge of 46.1% annually, signaling robust profit potential in the near term. This growth is underpinned by significant R&D investments, which have consistently exceeded industry norms to fuel innovation and efficiency in their automation technologies—a sector critical as industries worldwide accelerate towards digitization. Recent strategic moves include the Q1 2025 Earnings Call highlighting forward-looking initiatives and a consistent dividend payout, marked by a recent ¥52.0 per share distribution, reflecting confidence in ongoing financial health and shareholder value creation.

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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