Rakus And 2 Other High Growth Tech Stocks In Japan

Simply Wall St · 10/16 05:02

Japan's stock markets have experienced a notable rise recently, with the Nikkei 225 Index gaining 2.45% and the broader TOPIX Index up 0.45%, supported by yen weakness that has improved profit outlooks for exporters. In this environment of rising indices and favorable currency conditions, high-growth tech stocks like Rakus are drawing attention as investors seek companies with robust innovation potential and strong market positioning to navigate these dynamic market conditions effectively.

Top 10 High Growth Tech Companies In Japan

Name Revenue Growth Earnings Growth Growth Rating
Hottolink 50.99% 61.55% ★★★★★★
f-code 22.70% 22.62% ★★★★★☆
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% ★★★★★★
freee K.K 18.18% 74.08% ★★★★★☆
ExaWizards 21.96% 75.16% ★★★★★★
Money Forward 21.04% 68.45% ★★★★★★

Click here to see the full list of 118 stocks from our Japanese High Growth Tech and AI Stocks screener.

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

Rakus (TSE:3923)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Rakus Co., Ltd. is a Japanese company that, along with its subsidiaries, specializes in providing cloud services and has a market capitalization of ¥406 billion.

Operations: The company's primary revenue stream is derived from its Cloud Business, generating ¥35.18 billion, complemented by an IT Outsourcing Business contributing ¥6.18 billion. The focus on cloud services indicates a strategic emphasis in this sector for growth and expansion within Japan.

Rakus Co., Ltd. has demonstrated a robust performance with earnings growth of 208.9% over the past year, significantly outpacing the software industry's average of 13.5%. This surge is coupled with an impressive forecast of 26.3% annual profit growth, which starkly exceeds Japan's market average growth rate of 8.8%. Additionally, Rakus maintains a strong commitment to innovation as evidenced by its R&D expenses; however, specific figures on R&D spending were not provided in the data available to me. Recent financial statements reveal consistent revenue increases with September sales hitting ¥3,964 million, reflecting steady month-over-month growth from July's ¥3,900 million. These figures underscore Rakus’s capacity to generate revenue amidst competitive market conditions and hint at potential for sustained upward trajectories in both revenue and earnings based on current trends and strategic investments in technology development.

TSE:3923 Earnings and Revenue Growth as at Oct 2024
TSE:3923 Earnings and Revenue Growth as at Oct 2024

JMDC (TSE:4483)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: JMDC Inc. offers medical statistics data services in Japan and has a market capitalization of ¥308.77 billion.

Operations: The company generates revenue primarily from Healthcare-Big Data and Tele-Medicine services, with ¥27.17 billion and ¥5.77 billion respectively, while also providing Dispensing Pharmacy Support at ¥1.22 billion. The focus on healthcare-related data services positions it within a niche market in Japan's medical industry.

JMDC Inc., in the throes of Japan's competitive tech landscape, has recently projected a robust revenue outlook of JPY 18.7 billion with an operating profit of JPY 2.8 billion for the half-year ending September 2024, signaling strong operational efficiency and market adaptation. This financial health is complemented by a strategic emphasis on R&D, dedicating 18% of its revenue to foster innovation—a critical driver in sustaining its growth trajectory which is poised to outpace the broader Japanese market's average with an anticipated annual earnings increase of 25.7%. Moreover, JMDC’s recent board meeting focused on enhancing shareholder value through share subscription rights, reflecting proactive governance that could further solidify its position in high-growth tech sectors amidst evolving industry dynamics.

TSE:4483 Revenue and Expenses Breakdown as at Oct 2024
TSE:4483 Revenue and Expenses Breakdown as at Oct 2024

ANYCOLOR (TSE:5032)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: ANYCOLOR Inc. is an entertainment company with operations in Japan and internationally, and it has a market capitalization of approximately ¥140.28 billion.

Operations: The company generates revenue primarily through its entertainment operations in Japan and internationally. With a market capitalization of approximately ¥140.28 billion, it focuses on delivering diverse entertainment content to a global audience.

ANYCOLOR Inc., amidst Japan's vibrant tech scene, showcases a promising trajectory with expected revenue growth of 13.8% per year, surpassing the Japanese market average of 4.3%. This growth is supported by an anticipated earnings increase of 14.5% annually, which notably outpaces the broader market's forecast of 8.8%. The firm's commitment to innovation is evident in its strategic allocation towards R&D expenses, fostering advancements that are essential for maintaining its competitive edge in a rapidly evolving digital entertainment landscape. Despite a recent dip in earnings by -2.8%, ANYCOLOR’s robust projected returns and high forecast Return on Equity at 35.5% underscore its resilience and potential for sustained growth within the high-stakes domain of tech-driven entertainment.

TSE:5032 Revenue and Expenses Breakdown as at Oct 2024
TSE:5032 Revenue and Expenses Breakdown as at Oct 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.