Stock Analysis

Appier Group And These 2 High Growth Tech Stocks In Japan

TSE:4180
Source: Shutterstock

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 stronger-than-anticipated domestic GDP growth in the second quarter of the year. This positive market sentiment provides an opportune backdrop to explore high-growth tech stocks in Japan, including Appier Group and two other notable companies, which are well-positioned to benefit from these favorable conditions. Investors often look for stocks with strong growth potential, robust financial health, and innovative business models—qualities that are particularly relevant in today's dynamic market environment where technology continues to drive substantial gains.

Top 10 High Growth Tech Companies In Japan

NameRevenue GrowthEarnings GrowthGrowth Rating
Hottolink51.80%61.94%★★★★★★
Cyber Security Cloud20.71%25.73%★★★★★☆
eWeLLLtd25.55%25.92%★★★★★★
Material Group17.82%28.74%★★★★★☆
SHIFT21.23%32.76%★★★★★★
Medley24.97%30.50%★★★★★★
f-code22.70%22.62%★★★★★☆
Bengo4.comInc20.76%46.76%★★★★★★
ExaWizards22.69%62.99%★★★★★★
Money Forward20.48%66.85%★★★★★★

Click here to see the full list of 131 stocks from our Japanese High Growth Tech and AI Stocks screener.

Let's review some notable picks from our screened stocks.

Appier Group (TSE:4180)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Appier Group, Inc. is a software-as-a-service company that offers AI platforms to help enterprises make data-driven decisions both in Japan and internationally, with a market cap of ¥146.80 billion.

Operations: Appier Group, Inc. generates revenue primarily through its AI SaaS business, which reported ¥30.22 billion in revenue. The company focuses on providing artificial intelligence platforms to enterprises for data-driven decision-making across Japan and internationally.

Appier Group, a key player in Japan's tech landscape, anticipates revenue growth of 18.8% annually while projecting earnings to surge by 38.6% per year, outpacing the broader market's 8.5%. The company has committed ¥1 billion to repurchase up to 1 million shares by year-end, aiming to enhance capital efficiency and shareholder returns. Notably, Appier's R&D expenses reflect their dedication to innovation; they spent ¥3 billion on R&D last year alone, emphasizing their commitment to advancing AI capabilities and software solutions.

TSE:4180 Revenue and Expenses Breakdown as at Aug 2024
TSE:4180 Revenue and Expenses Breakdown as at Aug 2024

freee K.K (TSE:4478)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: freee K.K. engages in the provision of cloud-based accounting and HR software solutions in Japan, with a market cap of ¥145.25 billion.

Operations: freee K.K. generates revenue primarily through its platform business, which reported ¥25.43 billion in revenue. The company focuses on delivering cloud-based accounting and HR software solutions tailored for the Japanese market.

freee K.K. projects net sales of ¥33.06 billion for the fiscal year ending June 2025, reflecting an anticipated revenue growth rate of 18.4% annually, outpacing Japan's market average of 4.3%. Despite its current unprofitability, earnings are forecast to grow by a robust 73.27% per year over the next three years. The company's R&D expenses underscore its commitment to innovation; last year alone, they spent significant resources enhancing their software solutions and AI capabilities, positioning themselves strongly in the SaaS model transition.

TSE:4478 Revenue and Expenses Breakdown as at Aug 2024
TSE:4478 Revenue and Expenses Breakdown as at Aug 2024

OMRON (TSE:6645)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OMRON Corporation operates in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide with a market cap of ¥1.04 trillion.

Operations: OMRON Corporation generates revenue from four main segments: Industrial Automation (¥373.70 billion), Healthcare (¥150.40 billion), Devices & Module Solutions (¥143.69 billion), and Social Systems, Solutions, and Services (¥156.85 billion). The company's diverse business model spans automation technology, healthcare devices, electronic components, and social infrastructure solutions.

OMRON's partnership with Digimarc Corporation aims to revolutionize industrial automation through innovative digital watermarks combined with machine vision technology, enhancing efficiency and compliance. The company's R&D expenditure of ¥48.7 billion underscores its commitment to technological advancements, contributing significantly to its projected annual earnings growth of 48.73%. With revenue growth forecasted at 5.2% per year, OMRON is poised to outpace Japan's market average of 4.3%, driven by its focus on automation and AI integration in manufacturing processes.

TSE:6645 Earnings and Revenue Growth as at Aug 2024
TSE:6645 Earnings and Revenue Growth as at Aug 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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