Stock Analysis

High Growth Tech Stocks To Watch In Japan September 2024

TSE:4417
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Japan's stock markets have seen a significant rise, with the Nikkei 225 Index gaining 3.1% and the broader TOPIX Index up 2.8%, driven by a weakened yen following the U.S. Federal Reserve’s recent rate cut and the Bank of Japan's decision to keep rates steady. In this favorable environment, identifying high-growth tech stocks becomes crucial as these companies often benefit from both domestic economic stability and global technological advancements.

Top 10 High Growth Tech Companies In Japan

NameRevenue GrowthEarnings GrowthGrowth Rating
Hottolink50.99%61.55%★★★★★★
Cyber Security Cloud20.71%25.73%★★★★★☆
eWeLLLtd26.52%27.53%★★★★★★
Material Group17.82%28.74%★★★★★☆
Medley24.98%30.36%★★★★★★
Bengo4.comInc20.76%46.76%★★★★★★
Kanamic NetworkLTD20.75%28.25%★★★★★★
f-code22.70%22.62%★★★★★☆
ExaWizards21.96%75.16%★★★★★★
Money Forward20.68%68.12%★★★★★★

Click here to see the full list of 123 stocks from our Japanese High Growth Tech and AI Stocks screener.

We'll examine a selection from our screener results.

Infomart (TSE:2492)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Infomart Corporation operates an online business-to-business (B2B) e-commerce trading platform for the food industry in Japan, with a market cap of ¥76.72 billion.

Operations: Infomart generates revenue primarily from its B2B-PFES and B2B-PF FOOD segments, contributing ¥5.52 billion and ¥8.79 billion respectively. The company focuses on facilitating e-commerce transactions within Japan's food industry through its specialized online platform.

Infomart, amidst a dynamic tech landscape in Japan, is distinguishing itself with a robust growth trajectory. With earnings surging by 36.7% over the past year—outpacing the Professional Services industry's growth of 7.1%—the company is on a solid upward curve. This performance is bolstered by an aggressive R&D investment strategy, which has seen R&D expenses climb to support innovations likely to drive future revenues. Looking forward, Infomart's revenue is expected to grow at an annual rate of 11.2%, significantly faster than the broader Japanese market's 4.3%. Moreover, its projected annual earnings growth of 39.1% starkly contrasts with the market average of 8.6%, underscoring its potential for sustained competitive advantage in high-tech sectors.

TSE:2492 Revenue and Expenses Breakdown as at Sep 2024
TSE:2492 Revenue and Expenses Breakdown as at Sep 2024

Global Security Experts (TSE:4417)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Global Security Experts Inc., with a market cap of ¥48.05 billion, operates as a cybersecurity education company in Japan.

Operations: The company generates revenue primarily through its cybersecurity education services. It focuses on providing training programs and educational resources to enhance cybersecurity skills in Japan.

Global Security Experts, recently added to the S&P Global BMI Index, demonstrates a compelling growth narrative within Japan's tech sector. The company's revenue is expected to expand by 16.8% annually, outpacing the broader Japanese market's 4.3% growth rate. This surge is underpinned by substantial R&D investments, which have strategically positioned the firm for future innovations and market leadership. Notably, its earnings have soared by 54.4% over the past year, significantly exceeding the IT industry's growth of 10.1%. Additionally, with an aggressive share repurchase strategy that saw the buyback of shares worth ¥281.32 million recently, Global Security Experts is actively managing its capital to foster shareholder value in a dynamic business environment.

TSE:4417 Revenue and Expenses Breakdown as at Sep 2024
TSE:4417 Revenue and Expenses Breakdown as at Sep 2024

Japan Business Systems (TSE:5036)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Japan Business Systems, Inc. specializes in cloud integration and related services with a market cap of ¥44.04 billion.

Operations: The company focuses on cloud integration services, deriving significant revenue from this segment. With a market cap of ¥44.04 billion, it operates primarily in the technology sector.

Japan Business Systems (JBS) is navigating the competitive landscape of Japan's tech sector with a strategic focus on R&D, which has seen a significant allocation of resources. In the last fiscal year, JBS dedicated 8.5% of its revenue to R&D efforts aimed at fostering innovation and securing a competitive edge in software solutions. This investment is pivotal as it supports JBS’s growth trajectory in a market where technological advancements are crucial. The company's earnings are expected to surge by 45.8% annually, reflecting robust underlying business dynamics despite less than three years of financial data available for analysis. Moreover, JBS’s approach includes adapting to market demands rapidly, which is evident from their recent shift towards more sustainable technologies and practices within their operational strategies—positioning them well for future industry shifts.

TSE:5036 Revenue and Expenses Breakdown as at Sep 2024
TSE:5036 Revenue and Expenses Breakdown 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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