High Growth Tech Stocks In Japan To Watch This August 2024

Japan’s stock markets have rebounded strongly, with the Nikkei 225 Index gaining 8.7% and the broader TOPIX Index up 7.9%, driven by better-than-expected U.S. economic data and a weaker yen benefiting exporters. As Japan's economy shows signs of robust growth, identifying high-growth tech stocks becomes crucial for investors looking to capitalize on this momentum. A good stock in this environment typically demonstrates strong fundamentals, innovative technology solutions, and the ability to leverage favorable market conditions for sustained growth.

Top 10 High Growth Tech Companies In Japan

Name	Revenue Growth	Earnings Growth	Growth Rating
Hottolink	51.80%	61.94%	★★★★★★
Cyber Security Cloud	20.71%	25.73%	★★★★★☆
eWeLLLtd	25.55%	25.92%	★★★★★★
Material Group	17.82%	28.74%	★★★★★☆
SHIFT	21.23%	32.76%	★★★★★★
Medley	24.97%	30.50%	★★★★★★
f-code	22.70%	22.62%	★★★★★☆
Bengo4.comInc	20.76%	46.76%	★★★★★★
ExaWizards	22.69%	62.99%	★★★★★★
Money Forward	20.48%	66.85%	★★★★★★

Click here to see the full list of 130 stocks from our Japanese High Growth Tech and AI Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

SHIFT (TSE:3697)

Simply Wall St Growth Rating: ★★★★★★

Overview: SHIFT Inc. provides software quality assurance and testing solutions in Japan with a market cap of ¥196.93 billion.

Operations: SHIFT Inc. focuses on software quality assurance and testing solutions in Japan. The company generates revenue primarily from providing these specialized services to various industries, ensuring the reliability and performance of software applications.

SHIFT Inc. is positioned for substantial growth, with earnings forecasted to surge by 32.8% annually, outpacing the broader Japanese market's 8.5%. The company's revenue is also projected to grow at an impressive rate of 21.2% per year, significantly higher than the market average of 4.3%. Notably, SHIFT has consistently invested in innovation with R&D expenses accounting for a notable portion of their budget, ensuring they stay ahead in the competitive tech landscape.

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

• Gain insights into SHIFT's historical performance by reviewing our past performance report.

Dexerials (TSE:4980)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Dexerials Corporation manufactures and sells electronic components, bonding materials, optics materials, and other products in Japan with a market cap of ¥369.18 billion.

Operations: Dexerials Corporation generates revenue primarily through its Optical Materials and Components segment, which contributed ¥48.07 billion, and its Electronic Materials and Components segment, which added ¥51.43 billion. The company focuses on manufacturing and selling specialized electronic components and materials within Japan.

Dexerials Corporation, a notable player in Japan's tech landscape, has forecasted revenue growth of 5.7% annually, outpacing the broader market's 4.3%. The company's earnings are projected to grow at an impressive rate of 8.7% per year, surpassing the Japanese market average of 8.5%. Dexerials' R&D expenses have been substantial, ensuring continuous innovation; last year's R&D expenditure was ¥1.2 billion ($10 million), reflecting their commitment to staying competitive in the tech sector. In recent developments, Dexerials reported a significant earnings growth of 26.7% over the past year compared to the electronics industry's average increase of 7.3%. Despite some volatility in share prices over recent months and shareholder dilution last year, their robust Return on Equity forecasted at 23.5% for three years ahead underscores strong future profitability prospects. As software firms increasingly shift towards SaaS models for recurring revenue streams, Dexerials' strategic investments could position them well within this evolving industry landscape.

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

• Review our historical performance report to gain insights into Dexerials''s past performance.

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 ¥460.87 billion.

Operations: The company generates revenue primarily from its Electronic Components Business, which reported ¥331.17 billion in sales.

Taiyo Yuden's earnings growth of 15.5% over the past year significantly outpaced the electronic industry's average increase of 7.3%. With revenue expected to grow at 6.8% per year, it surpasses the broader Japanese market's forecasted growth of 4.3%. Notably, their R&D expenditure last year was ¥1 billion ($7 million), reflecting a strong commitment to innovation and competitiveness in tech sectors. The company's strategic focus on high-quality earnings and robust client relationships positions it well for future profitability despite recent volatility in share prices.

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

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

Make It Happen

• Gain an insight into the universe of 130 Japanese High Growth Tech and AI Stocks by clicking here.
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Ready To Venture Into Other Investment Styles?

• 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.

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