SAKURA Internet And 2 High Growth Tech Stocks To Watch In Japan

Japan’s stock markets have seen significant gains recently, with the Nikkei 225 Index rising 5.6% and the broader TOPIX Index up 3.7%, buoyed by dovish commentary from the Bank of Japan and optimism surrounding China’s new stimulus measures. This favorable market sentiment provides a conducive backdrop for high-growth tech stocks like SAKURA Internet, which are positioned to capitalize on technological advancements and increased investor interest in innovation-driven sectors.

Top 10 High Growth Tech Companies In Japan

Name	Revenue Growth	Earnings Growth	Growth Rating
Hottolink	50.99%	61.55%	★★★★★★
Cyber Security Cloud	20.71%	25.73%	★★★★★☆
eWeLLLtd	26.52%	27.53%	★★★★★★
Medley	24.98%	30.36%	★★★★★★
Bengo4.comInc	20.76%	46.76%	★★★★★★
Kanamic NetworkLTD	20.75%	28.25%	★★★★★★
Mental Health TechnologiesLtd	27.88%	79.61%	★★★★★★
ExaWizards	21.96%	75.16%	★★★★★★
Money Forward	20.68%	68.12%	★★★★★★
freee K.K	18.18%	74.08%	★★★★★☆

Click here to see the full list of 124 stocks from our Japanese High Growth Tech and AI Stocks screener.

Let's explore several standout options from the results in the screener.

SAKURA Internet (TSE:3778)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SAKURA Internet Inc. offers cloud computing services in Japan and has a market cap of ¥179.11 billion.

Operations: SAKURA Internet Inc. generates revenue primarily from its Internet Infrastructure Business, which reported ¥22.66 billion in revenue. The company's cost structure and profitability trends are not detailed in the provided information.

SAKURA Internet, amidst a competitive tech landscape in Japan, is poised for substantial growth with projected revenue increases of 33.9% annually, significantly outpacing the Japanese market average of 4.3%. This robust expansion is complemented by an anticipated surge in earnings at an impressive rate of 55.6% per year. The company's commitment to innovation is evident from its R&D expenditures which are crucial for sustaining long-term growth and maintaining a competitive edge in high-tech sectors. Recent strategic moves include a dividend increase to JPY 4 per share and optimistic financial forecasts for fiscal year ending March 2025, expecting net sales to hit JPY 28 billion and operating profit at JPY 2 billion. These figures reflect not only SAKURA's solid market positioning but also its potential to leverage technological advancements for further expansion.

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

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

Money Forward (TSE:3994)

Simply Wall St Growth Rating: ★★★★★★

Overview: Money Forward, Inc. provides financial solutions for individuals, financial institutions, and corporations primarily in Japan and has a market cap of ¥325.95 billion.

Operations: The company's Platform Services Business segment generated ¥36.16 billion in revenue. Money Forward, Inc.'s primary focus is on delivering financial solutions to a diverse clientele, including individuals, financial institutions, and corporations within Japan.

Money Forward, navigating through Japan's tech sector, is poised to capitalize on significant growth opportunities with its strategic focus on fintech innovations. The company's revenue is expected to soar by 20.7% annually, surpassing the Japanese market average of 4.3%, driven by robust demand for digital financial services. This growth trajectory is further supported by an anticipated profit surge of 68.1% per year as it moves towards profitability within the next three years. Recent strategic decisions include forming a joint venture with Sumitomo Mitsui Card Company to enhance PFM services and transferring key fintech operations to its subsidiary, Money Forward Kessai, optimizing its business structure for scalability and efficiency. These initiatives underscore Money Forward’s commitment to leveraging partnerships and internal restructuring to sustain its upward momentum in a competitive landscape.

• Delve into the full analysis health report here for a deeper understanding of Money Forward.

• Understand Money Forward's track record by examining our Past report.

Ohara (TSE:5218)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ohara Inc. manufactures and sells glass materials for optical and electronics applications in Japan and internationally, with a market cap of ¥36.28 billion.

Operations: The company generates revenue primarily from its Optical Business and Electronics Business segments, contributing ¥13.84 billion and ¥13.67 billion respectively.

Ohara, navigating Japan's high-tech landscape, is set to harness robust growth with its earnings projected to expand by 36.2% annually. This outpaces the broader Japanese market forecast of 8.7% annual growth, underpinned by a strategic emphasis on innovative technologies in the optics sector. Despite a recent dip in profit margins to 4.3%, down from last year's 7.3%, Ohara's commitment to R&D, which significantly contributes to its revenue growth at a rate of 7.9% per year, showcases its potential for sustained advancements and market competitiveness in precision manufacturing for high-profile clients like TSMC.

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

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

Turning Ideas Into Actions

• Access the full spectrum of 124 Japanese High Growth Tech and AI Stocks by clicking on this link.
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Looking For Alternative Opportunities?

• 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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