Fast-Growing Japanese Tech Stocks To Watch In Your Portfolio

Japan's stock markets have experienced an upswing, with the Nikkei 225 Index rising by 2.45% and the broader TOPIX Index increasing by 0.45%, supported by a weaker yen that has bolstered the profit outlook for exporters. In this dynamic environment, identifying promising high-growth tech stocks involves evaluating companies that can leverage favorable currency conditions and market momentum to enhance their growth trajectories within Japan's evolving technological landscape.

Top 10 High Growth Tech Companies In Japan

Name	Revenue Growth	Earnings Growth	Growth Rating
Material Group	17.82%	28.74%	★★★★★☆
Hottolink	50.99%	61.55%	★★★★★★
f-code	22.70%	22.62%	★★★★★☆
eWeLLLtd	26.52%	27.53%	★★★★★★
Medley	24.98%	30.36%	★★★★★★
Bengo4.comInc	20.76%	46.76%	★★★★★★
Kanamic NetworkLTD	20.75%	28.25%	★★★★★★
Mental Health TechnologiesLtd	27.88%	79.61%	★★★★★★
ExaWizards	21.96%	75.16%	★★★★★★
Money Forward	21.04%	68.45%	★★★★★★

Click here to see the full list of 120 stocks from our Japanese High Growth Tech and AI Stocks screener.

We'll examine a selection from our screener results.

Trend Micro (TSE:4704)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Trend Micro Incorporated specializes in developing and selling security-related software for computers and related services on a global scale, with a market capitalization of ¥1.09 trillion.

Operations: The company's primary revenue streams include Japan, Europe, the Americas, and Asia Pacific, with Asia Pacific generating the highest revenue at ¥126.28 billion. The business focuses on providing security-related software and services internationally.

Trend Micro, a Japanese cybersecurity firm valued at $6.5 billion, is making significant strides in AI and cybersecurity innovation. Recently, they launched Trend Micro Check to combat AI threats and scams effectively. This tool underscores their commitment to leveraging technology for enhanced consumer protection, evident from their substantial R&D expenditure which makes up 15% of their total revenue. Despite a challenging year with earnings declining by 37.3%, the company's forward-looking initiatives are promising with an expected annual profit growth of 21.7%. Their participation in high-profile collaborations and conferences, like the GovWare Conference, further positions them as proactive leaders in securing AI implementations against evolving threats.

• Click to explore a detailed breakdown of our findings in Trend Micro's health report.

• Gain insights into Trend Micro's past trends and performance with our Past report.

Kadokawa (TSE:9468)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kadokawa Corporation is a Japanese entertainment company with a market capitalization of ¥459.73 billion, engaging in various sectors such as gaming, publishing, web services, animation/film production, and education technology.

Operations: Kadokawa Corporation generates significant revenue from its publication segment, contributing ¥143.28 billion, followed by animation/film and gaming segments with ¥46.36 billion and ¥28.63 billion respectively. The company's diverse portfolio across entertainment sectors highlights its strategic focus on leveraging multiple content platforms to drive growth.

Kadokawa, a multifaceted Japanese media company, has demonstrated robust growth with its earnings expanding by 23.8% over the past year, outpacing the industry average of 3.8%. This growth is underpinned by a significant R&D investment strategy, where R&D expenses are not just a line item but a clear indicator of their commitment to innovation—constituting 21.6% of total revenue. Looking ahead, Kadokawa's future appears promising with expected annual earnings growth pegged at an impressive 21.58%, suggesting potential for sustained upward trajectory in an increasingly digital and content-driven market landscape.

• Click here and access our complete health analysis report to understand the dynamics of Kadokawa.

• Understand Kadokawa's track record by examining our Past report.

Fuji Soft (TSE:9749)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Fuji Soft Incorporated is an IT company that provides a range of technology solutions both in Japan and internationally, with a market cap of ¥605.14 billion.

Operations: Fuji Soft generates revenue primarily from its SI Business, which accounts for ¥290.11 billion. The company also has a Facility Business contributing ¥3.42 billion to its revenue stream.

Amidst a transformative period in Japan's IT services sector, Fuji Soft has shown notable adaptability and growth potential. With recent earnings growth at 55.3%, surpassing the industry's 13.5%, the company is poised for further expansion, supported by an R&D investment that represents a substantial 21.7% of its revenue. This focus on innovation is critical as the industry shifts towards digitalization and cloud-based solutions. Moreover, recent acquisition interest from KKR highlights Fuji Soft's strategic value in a competitive market, with offers reflecting significant premiums over past share prices—underscoring confidence in its future trajectory and robust business model.

• Dive into the specifics of Fuji Soft here with our thorough health report.

• Review our historical performance report to gain insights into Fuji Soft's's past performance.

Key Takeaways

• Access the full spectrum of 120 Japanese High Growth Tech and AI Stocks by clicking on this link.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• 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.

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