Spotlight On 3 High Growth Tech Stocks In Japan

As Japan's stock markets show signs of recovery, with the Nikkei 225 Index gaining 0.7% and the broader TOPIX Index up 1.0%, investors are keenly observing high-growth sectors such as technology for potential opportunities. In this context, identifying stocks with strong fundamentals and innovative capabilities becomes crucial, especially in a market environment that has recently been influenced by monetary policy adjustments and inflationary trends.

Top 10 High Growth Tech Companies In Japan

Name	Revenue Growth	Earnings Growth	Growth Rating
Hottolink	50.99%	61.55%	★★★★★★
eWeLLLtd	26.52%	27.53%	★★★★★★
Medley	24.98%	30.36%	★★★★★★
f-code	22.70%	22.62%	★★★★★☆
Kanamic NetworkLTD	20.75%	28.25%	★★★★★★
GMO AD Partners	69.79%	97.87%	★★★★★☆
Material Group	17.82%	28.74%	★★★★★☆
Bengo4.comInc	20.76%	46.76%	★★★★★★
ExaWizards	22.69%	62.99%	★★★★★★
Money Forward	20.68%	68.12%	★★★★★★

Click here to see the full list of 126 stocks from our Japanese High Growth Tech and AI Stocks screener.

We'll examine a selection from our screener results.

JMDC (TSE:4483)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: JMDC Inc. offers medical statistics data services in Japan and has a market cap of ¥305.40 billion.

Operations: JMDC Inc. generates revenue primarily from Healthcare-Big Data (¥27.17 billion), Tele-Medicine (¥5.77 billion), and Dispensing Pharmacy Support (¥1.22 billion) services in Japan. The company focuses on leveraging medical statistics data to provide these specialized services across the healthcare sector.

JMDC's revenue is forecast to grow at 17.5% annually, outpacing the Japanese market's 4.2%. Despite a recent profit margin drop to 9.7% from 19.3%, earnings are expected to rise significantly by 25.3% per year, indicating robust future prospects in the healthcare services sector. The company has also projected consolidated revenue of ¥18,700 million for the six months ending September 30, 2024, with an operating profit of ¥2,800 million and basic earnings per share of ¥28.31. In terms of R&D expenses, JMDC has consistently invested in innovation; their R&D expenditure accounted for a significant portion last year and is expected to drive future growth in AI-driven healthcare solutions. This strategic focus on research supports their ambitious earnings growth projections and positions them well within Japan’s high-growth tech landscape despite recent negative earnings growth (-40.6%) over the past year compared to the industry average (11.9%).

• Click here to discover the nuances of JMDC with our detailed analytical health report.

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

Trend Micro (TSE:4704)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally, with a market cap of ¥1.15 trillion.

Operations: Trend Micro generates revenue primarily from the sale of security-related software and services, with significant contributions from Japan (¥84.17 billion), Asia Pacific (¥126.28 billion), Americas (¥70.46 billion), and Europe (¥63.59 billion). The company focuses on providing cybersecurity solutions across various regions globally, leveraging its expertise to protect computers and related systems.

Trend Micro’s earnings are projected to grow 21.9% annually, significantly outpacing the Japanese market's 8.6%. Despite a recent dip in profit margins from 11.2% to 6.4%, the company remains focused on innovation, with R&D expenses accounting for ¥39 billion last year, driving advancements in AI and cybersecurity solutions such as deepfake detection technology. The company has repurchased approximately 4% of its shares for ¥40 billion this year, reflecting strong confidence in its future prospects amidst ongoing M&A discussions and strategic partnerships like GMI Cloud integration.

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

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

Capcom (TSE:9697)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Capcom Co., Ltd. is engaged in the planning, development, manufacturing, sales, and distribution of home video games, online games, mobile games, and arcade games both in Japan and internationally with a market cap of ¥1.33 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 in both domestic and international markets, focusing on various gaming platforms including home video games, online games, mobile games, and arcade games.

Capcom's earnings are projected to grow 14.45% annually, outpacing the Japanese market's 8.6%. Despite a recent dip in earnings growth (-23.3%), the company continues to invest heavily in innovation, with R&D expenses accounting for ¥20 billion last year, driving advancements in gaming technology and AI-driven features. The company's revenue is expected to grow at 9.5% per year, faster than the JP market average of 4.2%, reflecting strong future prospects amidst volatile share prices over the past three months.

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

• Explore historical data to track Capcom's performance over time in our Past section.

Make It Happen

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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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