Stock Analysis

Exploring High Growth Tech Stocks In Japan September 2024

TSE:6976
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Japan’s stock markets have shown significant growth recently, with the Nikkei 225 Index gaining 3.1% and the TOPIX Index up by 2.8%, driven in part by a weaker yen following the U.S. Federal Reserve's substantial rate cut. As we explore high-growth tech stocks in Japan this September, it's essential to consider companies that can leverage favorable economic conditions and demonstrate robust innovation and market adaptability.

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%★★★★★★
Medley24.98%30.36%★★★★★★
GMO AD Partners69.79%97.87%★★★★★☆
Bengo4.comInc20.76%46.76%★★★★★★
Kanamic NetworkLTD20.75%28.25%★★★★★★
Mental Health TechnologiesLtd27.88%79.61%★★★★★★
ExaWizards21.96%75.16%★★★★★★
Money Forward20.68%68.12%★★★★★★

Click here to see the full list of 124 stocks from our Japanese High Growth Tech and AI Stocks screener.

Let's uncover some gems from our specialized screener.

OMRON (TSE:6645)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OMRON Corporation operates globally in industrial automation, device and module solutions, social systems, and healthcare sectors with a market cap of ¥1.28 trillion.

Operations: OMRON Corporation generates revenue from four main segments: Industrial Automation Business (¥373.70 billion), Healthcare Business (¥150.40 billion), Social Systems, Solutions and Service Business (¥156.85 billion), and Devices & Module Solutions Business (¥143.69 billion).

OMRON, amidst Japan's competitive tech landscape, is navigating through its unprofitable phase with strategic foresight. The company's revenue growth at 5.6% annually outpaces the national market average of 4.2%, demonstrating resilience and adaptability in a challenging environment. Notably, its R&D expenditure aligns with this growth trajectory, emphasizing innovation as a core component of its strategy to reverse current unprofitability and project profitability within three years. Furthermore, OMRON’s recent earnings call highlighted a robust plan to enhance shareholder value through dividends, marked by a significant ¥52 cash dividend announcement. This approach not only reflects their commitment to returning value but also underscores the potential for future financial stability backed by calculated expansions in high-stakes markets like electronic components and automation solutions.

TSE:6645 Revenue and Expenses Breakdown as at Sep 2024
TSE:6645 Revenue and Expenses Breakdown as at Sep 2024

Taiyo Yuden (TSE:6976)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Taiyo Yuden Co., Ltd. develops, manufactures, and sells electronic components in Japan, China, Hong Kong, and internationally with a market cap of ¥387.09 billion.

Operations: Taiyo Yuden generates revenue primarily from its Electronic Components Business, which reported ¥331.17 billion in sales. The company operates across Japan, China, Hong Kong, and other international markets.

Taiyo Yuden demonstrates a robust position in Japan's tech sector with its earnings forecast to surge by 26.2% annually, outpacing the broader Japanese market's growth of 8.6%. This performance is underscored by a revenue increase of 6.9% per year, significantly ahead of the market average of 4.2%. The company's commitment to innovation is evident from its substantial R&D investments, aligning with these growth figures and positioning it well for future advancements in electronic components and technology solutions. Despite challenges like share price volatility over the past three months, Taiyo Yuden's strategic focus on high-quality earnings and shareholder returns—evidenced by a recent ¥45 cash dividend—signals strong potential for sustained growth and stability within this dynamic industry landscape.

TSE:6976 Revenue and Expenses Breakdown as at Sep 2024
TSE:6976 Revenue and Expenses Breakdown as at Sep 2024

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally with a market cap of ¥1.43 trillion.

Operations: Capcom generates revenue primarily through its Digital Content segment, which contributes ¥103.38 billion, followed by Amusement Facilities at ¥20.09 billion and Amusement Equipment at ¥10.34 billion. The company's gross profit margin is notable at 44%.

Capcom, a stalwart in the gaming industry, is navigating through a dynamic market landscape with its earnings projected to increase by 14.5% annually, outstripping Japan's average growth rate of 8.6%. This growth trajectory is bolstered by their strategic R&D investments which have consistently been above industry norms, reflecting a commitment to innovation and quality in game development. Recent financial events underscore this momentum; notably, Capcom declared a ¥18 cash dividend on July 9th and will unveil its Q1 2025 results soon, anticipated to reveal further insights into their revenue streams which have been growing at 9.6% per year—more than double the national rate of 4.2%. These figures suggest that despite past volatility in share prices and an underwhelming comparison with broader industry growth rates last year, Capcom's focused investment in cutting-edge technology and content could set them up for sustained success in the evolving tech landscape.

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

Next Steps

  • Reveal the 124 hidden gems among our Japanese High Growth Tech and AI Stocks screener with a single click here.
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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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