Exploring High Growth Tech Stocks In Japan September 2024

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

Name	Revenue Growth	Earnings Growth	Growth Rating
Hottolink	50.99%	61.55%	★★★★★★
Cyber Security Cloud	20.71%	25.73%	★★★★★☆
eWeLLLtd	26.52%	27.53%	★★★★★★
Medley	24.98%	30.36%	★★★★★★
GMO AD Partners	69.79%	97.87%	★★★★★☆
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	20.68%	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.

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

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

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.

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

• Learn about Taiyo Yuden's historical performance.

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.

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

• Examine Capcom's past performance report to understand how it has performed in the past.

Next Steps

• Reveal the 124 hidden gems among our Japanese High Growth Tech and AI Stocks screener with a single click here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Contemplating Other Strategies?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com