Stock Analysis

Exploring Japan's High Growth Tech Stocks September 2024

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As Japan's stock markets wrap up a volatile month with gains, the Nikkei 225 Index and the broader TOPIX Index have shown resilience despite earlier sell-offs driven by renewed U.S. growth fears and a rapid unwinding of the yen carry trade. In this dynamic environment, identifying high-growth tech stocks requires careful consideration of their innovation potential, market demand, and adaptability to economic shifts.

Top 10 High Growth Tech Companies In Japan

NameRevenue GrowthEarnings GrowthGrowth Rating
Hottolink51.80%61.94%★★★★★★
eWeLLLtd26.52%27.53%★★★★★★
f-code22.70%22.62%★★★★★☆
Medley24.97%30.50%★★★★★★
SHIFT20.25%32.08%★★★★★★
Kanamic NetworkLTD20.75%28.25%★★★★★★
GMO AD Partners69.79%97.87%★★★★★☆
Bengo4.comInc20.76%46.76%★★★★★★
ExaWizards22.69%62.99%★★★★★★
Money Forward20.68%68.12%★★★★★★

Click here to see the full list of 129 stocks from our Japanese High Growth Tech and AI Stocks screener.

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

Kakaku.com (TSE:2371)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kakaku.com, Inc., along with its subsidiaries, offers purchase support and restaurant review services in Japan, with a market cap of ¥494.41 billion.

Operations: Kakaku.com, Inc. generates revenue through its purchase support and restaurant review services in Japan. The company operates within a market cap of ¥494.41 billion, focusing on providing comprehensive consumer information and reviews to aid purchasing decisions.

Kakaku.com, a standout in Japan's tech landscape, has shown impressive earnings growth of 23.4% over the past year, outpacing the Interactive Media and Services industry average of 14.5%. Forecasts indicate revenue growth at 8.7% annually, surpassing the JP market's 4.3%, with earnings expected to rise by 8.9% per year. The company's recent board decision on treasury share disposal highlights strategic moves to enhance shareholder value amidst a highly volatile share price environment over the last three months.

TSE:2371 Revenue and Expenses Breakdown as at Sep 2024
TSE:2371 Revenue and Expenses Breakdown as at Sep 2024

Arent (TSE:5254)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Arent Inc. develops SaaS-based solutions for the construction industry in Japan and has a market cap of ¥38.47 billion.

Operations: Arent Inc. generates revenue primarily through its Company Product and Product Co-Development segments, contributing ¥24.30 billion and ¥2.97 billion respectively. The Co-Creation Product Sale segment adds an additional ¥232 million to the revenue stream.

Arent Inc., a notable player in Japan's tech sector, boasts an impressive earnings growth of 107.6% over the past year, significantly outpacing the IT industry's 10.1%. Forecasts suggest annual revenue growth at 18.4%, surpassing the JP market's 4.3%, with earnings expected to rise by 22.8% per year, indicating robust future prospects. The company's focus on R&D is evident from its substantial investment in innovation and development, ensuring it remains competitive and forward-thinking in a rapidly evolving industry landscape.

TSE:5254 Revenue and Expenses Breakdown as at Sep 2024
TSE:5254 Revenue and Expenses Breakdown as at Sep 2024

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is a global company that plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games with a market cap of ¥1.33 trillion.

Operations: Capcom generates revenue primarily from Digital Content (¥103.38 billion), Amusement Facilities (¥20.09 billion), and Amusement Equipment (¥10.34 billion). The company focuses on the development and distribution of various gaming formats both in Japan and internationally.

Capcom's forecasted annual revenue growth of 9.5% and earnings growth of 14.5% per year outpace the Japanese market averages, indicating a solid performance trajectory despite recent negative earnings growth of -23.3%. The company's substantial investment in R&D, reflected by ¥10 billion in expenses last year, underscores its commitment to innovation in the gaming industry. Recent Q1 2025 earnings calls highlighted strong performance driven by popular franchises like Resident Evil and Monster Hunter, contributing significantly to revenue streams.

TSE:9697 Earnings and Revenue Growth as at Sep 2024
TSE:9697 Earnings and Revenue Growth 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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