High Growth Tech Stocks In Japan For October 2024

Amidst the backdrop of Japan's stock markets experiencing declines, with the Nikkei 225 Index and TOPIX Index both losing ground due to election uncertainties and a weakening yen, investors are keenly observing how these dynamics affect high-growth tech stocks in the region. In such a volatile environment, identifying promising tech stocks often hinges on their ability to innovate and adapt swiftly to changing market conditions while maintaining strong financial health.

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	18.20%	74.77%	★★★★★☆
ExaWizards	21.96%	75.16%	★★★★★★
Money Forward	21.21%	70.32%	★★★★★★

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

Here's a peek at a few of the choices from the screener.

KOA (TSE:6999)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: KOA Corporation is engaged in the development, manufacturing, and sale of electronic components both domestically in Japan and internationally, with a market cap of ¥39.64 billion.

Operations: KOA Corporation generates revenue primarily from the sale of electronic components across various regions, with Japan contributing ¥50.45 billion and Asia ¥31.81 billion. The company also has significant sales in Europe and the U.S.A., amounting to ¥12.10 billion and ¥11.11 billion, respectively.

Despite recent adjustments in corporate guidance, KOA remains a contender in Japan's tech sector, with an anticipated revenue growth of 8% annually, outpacing the market's 4.2%. This growth is underpinned by a robust forecast of earnings expansion at 49.8% per year, significantly higher than the broader Japanese market's 8.7%. However, challenges persist as evidenced by revised downward projections due to weakened demand across several markets and economic sectors. R&D investment remains pivotal for KOA, maintaining competitiveness and innovation in a tough economic landscape marked by rapid technological evolution and shifting consumer demands.

• Get an in-depth perspective on KOA's performance by reading our health report here.

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

Shochiku (TSE:9601)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shochiku Co., Ltd. operates in audio and video, theatre, real estate, and other sectors both in Japan and internationally, with a market cap of ¥144.50 billion.

Operations: Shochiku Co., Ltd. generates revenue from its diverse operations in the audio and video, theatre, and real estate sectors across Japan and internationally. The company's market cap stands at ¥144.50 billion.

Shochiku, navigating the competitive landscape of Japan's tech sector, is poised for notable growth with projected revenue increases of 5.5% annually, surpassing the Japanese market average of 4.2%. This upward trajectory is further amplified by an impressive forecasted earnings growth rate of 82.2% per year. Despite current unprofitability and financial strains indicated by debt not well covered by operating cash flow, Shochiku's commitment to innovation is evident in its strategic R&D investments, crucial for sustaining long-term competitiveness in a rapidly evolving industry environment.

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

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

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a company engaged in the planning, development, manufacturing, sale, and distribution of home video games, online games, mobile games, and arcade games both in Japan and globally; it has a market capitalization of ¥1.39 trillion.

Operations: Capcom generates revenue primarily from its Digital Content segment, which accounts for ¥103.38 billion, followed by Amusement Facilities and Amusement Equipment segments contributing ¥20.09 billion and ¥10.34 billion respectively. The company's focus on digital content highlights a significant portion of its business model, reflecting the growing importance of online and mobile gaming in its portfolio.

Capcom, a stalwart in Japan's tech arena, is navigating through a phase of strategic growth with its revenue expected to climb by 9.6% annually. This growth trajectory is complemented by an anticipated earnings increase of 14.5% per year, outpacing the broader Japanese market projection of 8.7%. Notably, Capcom's commitment to innovation is underscored by significant R&D expenditures which have consistently bolstered its competitive edge in gaming and digital content sectors. With recent preparations to unveil First-Half 2025 results soon, the firm remains a dynamic participant in high-tech developments within Japan.

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

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

Where To Now?

• Embark on your investment journey to our 119 Japanese High Growth Tech and AI Stocks selection here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• 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.

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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