3 Japanese Growth Stocks With Insider Ownership Expecting Up To 79% Growth

Japan's stock markets experienced notable declines recently, influenced by political changes and the new Prime Minister Shigeru Ishiba's initial hawkish stance on monetary policy. Despite these fluctuations, the focus remains on growth stocks with high insider ownership as they often indicate strong confidence from those most familiar with the company's potential.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	31.5%
Hottolink (TSE:3680)	26.1%	61.5%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	40.2%
Medley (TSE:4480)	34%	30.4%
Inforich (TSE:9338)	19.1%	29.8%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
AeroEdge (TSE:7409)	10.7%	25.3%

Click here to see the full list of 102 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

freee K.K (TSE:4478)

Simply Wall St Growth Rating: ★★★★★☆

Overview: freee K.K. provides cloud-based accounting and HR software solutions in Japan, with a market cap of ¥184.30 billion.

Operations: Revenue segments for TSE:4478 include cloud-based accounting and HR software solutions in Japan.

Insider Ownership: 23.9%

Earnings Growth Forecast: 74.1% p.a.

freee K.K. is set to become profitable in the next three years, with earnings projected to grow 74.08% annually, outpacing market averages. Despite high share price volatility recently, it trades at a significant discount to its estimated fair value. Revenue growth is forecasted at 18.2% per year, surpassing Japan's market average of 4.2%. Recent leadership changes include Yasuhiro Kimura's appointment as CPO, signaling strategic continuity and potential for innovation in product management.

• Click here to discover the nuances of freee K.K with our detailed analytical future growth report.
• Our comprehensive valuation report raises the possibility that freee K.K is priced lower than what may be justified by its financials.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users both in Japan and internationally, with a market cap of ¥1.98 trillion.

Operations: The company's revenue is primarily derived from Internet Services (¥1.24 billion), Fin Tech (¥772.29 million), and Mobile (¥382.95 million) segments.

Insider Ownership: 17.3%

Earnings Growth Forecast: 79.3% p.a.

Rakuten Group is anticipated to achieve profitability within three years, with earnings expected to grow 79.35% annually, surpassing market averages. Despite recent share price volatility, it trades significantly below its estimated fair value. Revenue growth is projected at 7.5% per year, exceeding the Japanese market's average of 4.2%. Recent participation in the Oppenheimer Healthcare Private Company Showcase highlights its strategic focus on expanding presence in healthcare sectors.

• Dive into the specifics of Rakuten Group here with our thorough growth forecast report.
• Our valuation report unveils the possibility Rakuten Group's shares may be trading at a discount.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment both in Japan and internationally, with a market cap of ¥2.22 trillion.

Operations: Revenue Segments (in millions of ¥): Semiconductor-related equipment: ¥100,000; Flat panel display-related equipment: ¥50,000; Other products: ¥30,000. Lasertec generates revenue primarily from semiconductor-related equipment and flat panel display-related equipment.

Insider Ownership: 11.1%

Earnings Growth Forecast: 15.8% p.a.

Lasertec's earnings are projected to grow at 15.84% annually, outpacing the Japanese market average of 8.7%. Despite recent share price volatility, its Return on Equity is forecast to reach a very high 41.4% in three years. The company recently launched SICA108, enhancing SiC wafer inspection capabilities for improved quality and cost efficiency. Lasertec anticipates net sales of ¥240 billion and net income of ¥74 billion for the fiscal year ending June 2025.

• Take a closer look at Lasertec's potential here in our earnings growth report.
• Insights from our recent valuation report point to the potential overvaluation of Lasertec shares in the market.

Summing It All Up

• Reveal the 102 hidden gems among our Fast Growing Japanese Companies With High Insider Ownership screener with a single click here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• 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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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