High Growth Tech Stocks in Japan for October 2024

Japan's stock markets have recently experienced a downturn, with the Nikkei 225 Index and the TOPIX Index both seeing declines amidst easing domestic inflation and speculation about future interest rate adjustments by the Bank of Japan. In this context, high growth tech stocks in Japan can be particularly appealing to investors seeking opportunities that align with current market dynamics, as these companies often demonstrate resilience through innovation and adaptability in fluctuating economic environments.

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%	★★★★★★
Medley	24.98%	30.36%	★★★★★★
Bengo4.comInc	20.76%	46.76%	★★★★★★
Kanamic NetworkLTD	20.75%	28.25%	★★★★★★
Mental Health TechnologiesLtd	27.88%	79.61%	★★★★★★
freee K.K	18.18%	74.08%	★★★★★☆
ExaWizards	21.96%	75.16%	★★★★★★
Money Forward	21.22%	71.29%	★★★★★★

Click here to see the full list of 118 stocks from our Japanese High Growth Tech and AI Stocks screener.

Let's review some notable picks from our screened stocks.

SAKURA Internet (TSE:3778)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SAKURA Internet Inc. offers cloud computing services in Japan and has a market capitalization of ¥163.52 billion.

Operations: The Internet Infrastructure Business is a key revenue driver for SAKURA Internet, generating ¥22.66 billion. The company focuses on providing cloud computing services within Japan.

SAKURA Internet has demonstrated a robust growth trajectory, with revenue expected to climb by 33.9% annually, outpacing the Japanese market's average of 4.2%. This performance is bolstered by an even more impressive forecast for earnings growth at 55.6% per year, significantly higher than the market expectation of 8.8%. These figures are reflective of SAKURA's aggressive investment in R&D, which not only fuels innovation but also positions the company well ahead of industry norms in terms of developing future-ready technologies and solutions. Recent corporate guidance supports this momentum, projecting a substantial increase in net sales to JPY 28 billion for the fiscal year ending March 2025, alongside an operating profit expectation of JPY 2 billion. This financial outlook is complemented by a planned dividend increase, enhancing shareholder returns and underscoring confidence in sustained profitability and growth.

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

• Review our historical performance report to gain insights into SAKURA Internet's's past performance.

Sansan (TSE:4443)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Sansan, Inc. specializes in the planning, development, and sale of cloud-based solutions in Japan with a market capitalization of approximately ¥287.08 billion.

Operations: Sansan, Inc. generates revenue primarily through its Sansan/Bill One Business, contributing ¥31.79 billion, and the Eight Business segment, which adds ¥3.80 billion. The company's focus on cloud-based solutions positions it as a significant player in Japan's technology sector.

Sansan, a Japanese tech firm, is navigating the competitive landscape with a strategic focus on R&D investment. In the fiscal year ending March 2025, Sansan's R&D expenses accounted for a significant portion of its revenue, aligning with industry trends where innovation drives growth. This commitment to research has propelled its earnings growth by an impressive 163.2% over the past year, surpassing the software industry's average of 15.5%. Looking ahead, Sansan is expected to continue this trajectory with projected annual earnings growth of 39.3%, substantially outpacing the broader Japanese market forecast of 8.8%. Additionally, recent share repurchase activities underscore confidence in their financial strategy and future prospects; from July to August 2024 alone, Sansan repurchased shares worth ¥299.95 million.

• Take a closer look at Sansan's potential here in our health report.

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

Shochiku (TSE:9601)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shochiku Co., Ltd. operates in audio and video production, theatre, real estate, and other sectors both in Japan and internationally, with a market cap of ¥137.12 billion.

Operations: Shochiku Co., Ltd. generates revenue from its audio and video production, theatre operations, and real estate sectors across Japan and international markets. The company is valued at approximately ¥137.12 billion, reflecting its diverse business model.

Shochiku, traditionally anchored in entertainment, is pivoting towards high-tech relevance with a robust R&D focus. Its R&D investment significantly bolsters its strategic positioning, as evidenced by an anticipated earnings growth of 82.2% annually. This growth trajectory is complemented by a revenue increase forecast at 5.5% yearly, outpacing the Japanese market's average of 4.2%. Recent initiatives include the Q2 earnings announcement slated for October 11, 2024, reflecting Shochiku's proactive approach in aligning with tech-driven market demands and potentially reshaping its future in Japan's competitive landscape.

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

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

Taking Advantage

• Discover the full array of 118 Japanese High Growth Tech and AI Stocks right here.
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Seeking Other Investments?

• 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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