Stock Analysis

Exploring Appier Group And Two Other High Growth Tech Stocks In Japan

TSE:4443
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Japan’s stock markets have recently faced significant declines, with the Nikkei 225 Index down 5.8% and the broader TOPIX Index registering a 4.2% loss, driven by a U.S.-led sell-off in semiconductor stocks and yen strength impacting export-oriented companies. Despite this downturn, high-growth tech stocks like Appier Group continue to capture investor interest due to their potential for innovation and market disruption. In such volatile conditions, identifying promising tech stocks involves looking for companies with strong fundamentals, robust revenue growth, and innovative solutions that address emerging market needs.

Top 10 High Growth Tech Companies In Japan

NameRevenue GrowthEarnings GrowthGrowth Rating
Hottolink50.99%61.55%★★★★★★
Cyber Security Cloud20.71%25.73%★★★★★☆
eWeLLLtd26.52%27.53%★★★★★★
Material Group17.82%28.74%★★★★★☆
Medley24.98%30.36%★★★★★★
GMO AD Partners69.79%97.87%★★★★★☆
Kanamic NetworkLTD20.75%28.25%★★★★★★
Bengo4.comInc20.76%46.76%★★★★★★
ExaWizards22.69%62.99%★★★★★★
Money Forward20.68%68.12%★★★★★★

Click here to see the full list of 125 stocks from our Japanese High Growth Tech and AI Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Appier Group (TSE:4180)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Appier Group, Inc. is a software-as-a-service company that offers AI platforms to help enterprises make data-driven decisions both in Japan and internationally, with a market cap of ¥173.06 billion.

Operations: Appier Group, Inc. generates revenue primarily from its AI SaaS business, which amounted to ¥14.70 billion. The company focuses on providing AI-driven platforms to enterprises for data-driven decision-making across various markets.

Appier Group's recent partnership with Huy Thanh Jewelry highlights its innovative AI capabilities, driving a sixfold boost in ROI for the jewelry brand. The company repurchased up to 1 million shares, enhancing shareholder value and capital efficiency. Appier forecasts revenue of ¥34.50 billion and net income of ¥1.90 billion for 2024, reflecting strong growth prospects with earnings expected to grow by 38.6% annually. With R&D expenses contributing significantly to its advancements, Appier remains a dynamic player in Japan's tech landscape.

TSE:4180 Revenue and Expenses Breakdown as at Sep 2024
TSE:4180 Revenue and Expenses Breakdown as at Sep 2024

Sansan (TSE:4443)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Sansan, Inc. focuses on planning, developing, and selling cloud-based solutions in Japan with a market cap of ¥294.88 billion.

Operations: Sansan, Inc. engages in the planning, development, and selling of cloud-based solutions in Japan. The company generates revenue primarily through its cloud-based business card management service and other SaaS offerings.

Sansan's earnings are forecasted to grow 35.6% annually, significantly outpacing the JP market's 8.5% growth rate. Despite a one-off loss of ¥369 million impacting recent financial results, the company demonstrates robust potential with revenue projected to increase by 16.2% per year, faster than the market average of 4.2%. The firm has also repurchased 141,700 shares for ¥299.95 million recently, reflecting a commitment to enhancing shareholder value and capital efficiency. Investment in R&D remains a cornerstone for Sansan’s innovation strategy; last year alone saw substantial allocations driving advancements in their software solutions segment. This focus on research and development underpins their competitive edge in Japan’s tech landscape, fostering continuous improvement and adaptation within an evolving industry environment where SaaS models are increasingly prevalent among software firms ensuring recurring revenue from subscriptions.

TSE:4443 Revenue and Expenses Breakdown as at Sep 2024
TSE:4443 Revenue and Expenses Breakdown as at Sep 2024

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a company that plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ¥1.34 trillion.

Operations: Capcom generates revenue primarily from its Digital Content segment, which accounts for ¥103.38 billion, followed by Amusement Facilities at ¥20.09 billion and Amusement Equipment at ¥10.34 billion. The company operates across various gaming platforms, including home video games, online games, mobile games, and arcade games both domestically and internationally.

Capcom's revenue is projected to grow at 9.5% annually, outpacing the broader Japanese market's 4.2% growth rate. Despite a 23.3% earnings contraction last year, future earnings are expected to increase by 14.5% per year, indicating strong recovery potential. The company has invested significantly in R&D, with ¥12 billion allocated last fiscal year, driving innovation in its gaming segment which remains a key revenue driver alongside high-profile franchises like Resident Evil and Monster Hunter.

TSE:9697 Revenue and Expenses Breakdown as at Sep 2024
TSE:9697 Revenue and Expenses Breakdown as at Sep 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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