High Growth Tech Stocks In Japan To Watch October 2024

Japan's stock markets have shown positive momentum recently, with the Nikkei 225 Index gaining 2.45% and the broader TOPIX Index up 0.45%, buoyed by yen weakness which has enhanced the profit outlook for exporters. In this context of a favorable market environment, identifying high growth tech stocks involves looking for companies that demonstrate strong innovation capabilities, robust financial health, and the potential to capitalize on global technological trends while navigating local economic conditions effectively.

Top 10 High Growth Tech Companies In Japan

Name	Revenue Growth	Earnings Growth	Growth Rating
Material Group	20.45%	24.01%	★★★★★★
Hottolink	50.99%	61.55%	★★★★★★
eWeLLLtd	26.52%	27.53%	★★★★★★
Cyber Security Cloud	20.71%	25.73%	★★★★★☆
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	21.33%	71.29%	★★★★★★

Click here to see the full list of 119 stocks from our Japanese High Growth Tech and AI Stocks screener.

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

Kadokawa (TSE:9468)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kadokawa Corporation is a Japanese entertainment company with a market capitalization of ¥458.79 billion, engaging in various sectors including gaming, publishing, web services, animation/film production, and education technology.

Operations: Kadokawa Corporation generates revenue primarily from its publication segment, contributing ¥143.28 billion, followed by animation/film production at ¥46.36 billion and gaming at ¥28.63 billion. The company also derives income from web services and education technology sectors, with revenues of ¥20.44 billion and ¥13.83 billion respectively.

Amidst a dynamic landscape, Kadokawa stands out with its robust revenue growth forecast at 6.7% annually, surpassing Japan's market average of 4.3%. This growth is underpinned by an aggressive R&D investment strategy, evidenced by substantial expenditures that fuel innovation and competitiveness in high-growth tech sectors. Notably, the company's earnings trajectory is impressive, with a projected annual increase of 21.6%, significantly outpacing the broader Japanese market's expectation of 8.7%. These figures highlight Kadokawa’s strategic emphasis on leveraging advanced technologies to enhance its product offerings and market position.

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

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

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a global company involved in the planning, development, manufacturing, sale, and distribution of home video games, online games, mobile games, and arcade games with a market cap of ¥1.36 trillion.

Operations: The primary revenue stream for Capcom comes from its Digital Content segment, generating ¥103.38 billion. The Amusement Facilities and Amusement Equipment segments contribute ¥20.09 billion and ¥10.34 billion, respectively.

Capcom, navigating through a challenging tech landscape, has managed to set a promising trajectory with its revenue expected to climb by 9.6% annually, outstripping Japan's average growth rate of 4.3%. This performance is bolstered by Capcom's commitment to innovation as reflected in its R&D spending which not only enhances its product lineup but also solidifies its competitive edge in the gaming and digital content sectors. Moreover, the company's earnings are projected to ascend by 14.6% each year, showcasing robust financial health that could potentially reshape its market standing amidst industry volatility.

• Unlock comprehensive insights into our analysis of Capcom stock in this health report.

• Evaluate Capcom's historical performance by accessing our past performance report.

Fuji Soft (TSE:9749)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Fuji Soft Incorporated is an IT company with operations in Japan and internationally, and it has a market capitalization of ¥606.40 billion.

Operations: The company generates revenue primarily from its SI Business, which accounts for ¥290.11 billion, and also operates a Facility Business contributing ¥3.42 billion.

Fuji Soft, amid a transformative tech landscape in Japan, stands out with its robust R&D commitment, investing 21.7% of its revenue back into development, significantly higher than industry norms. This strategic focus is evident as the company's R&D expenses surged to ¥4.3 billion last year, underpinning innovations that could drive future growth in cloud and AI solutions. Recent acquisition interest from KKR highlights Fuji Soft's potential value uplift; a proposed buyout at ¥8,800 per share underscores investor confidence and anticipates enhanced capital efficiency through privatization strategies.

• Navigate through the intricacies of Fuji Soft with our comprehensive health report here.

• Explore historical data to track Fuji Soft's performance over time in our Past section.

Key Takeaways

• Access the full spectrum of 119 Japanese High Growth Tech and AI Stocks by clicking on this link.
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Looking For Alternative Opportunities?

• 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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