In December 2020, Medirom Healthcare Technologies Inc. became the first Japanese company in 21 years to list on the Nasdaq, setting the stage for a wave of Japanese enterprises aiming to make their mark on the global market. That listing set the stage for a growing trend of Japanese companies expanding their reach, listing their shares, and establishing corporate brands in the United States.
Nasdaq showcased this trend on June 20 with its Japan IR Event, which featured four trailblazing Japanese firms, each showcasing their unique innovations, financial performance, and strategic visions. Here are the highlights about these four Nasdaq-listed Japanese stocks.
Medirom Healthcare Technologies
Medirom Healthcare Technologies Inc (NASDAQ:MRM) leads the charge with its diversified service offerings, including over 300 relaxation salons across Japan and a cutting-edge B2B digital healthcare platform. Situated in high-traffic areas, these salons prioritize long-term wellbeing through a variety of therapeutic services.
Medirom salons take a comprehensive approach, providing therapeutic services to improve muscle tone, range of motion for joints, and the health of ligaments, tendons, and tissues.
Medirom also offers a B2B Digital Preventative Healthcare Platform featuring the Mother bracelet — a chargeless smart tracker that monitors essential data such as heart rate, surface body temperature, sleep, step count, and calories burned. The Mother bracelet also connects to the Remony remote health monitoring system, which operates 24/7. This system enables automated data synchronization, aiding in the early identification of health issues and accidents.
Medirom's total income climbed to $52.7 million in 2022, driven by the sale of 10,000 Mother bracelets to nursing homes.
SYLA Technologies
Prop-tech company SYLA Technologies Co Ltd ADR (NASDAQ:SYT) stands out with its real estate crowdfunding platform Syforme and award-winning energy-efficient developments.
Syforme has received the Excellent Business Award for ZEH-M Oriented Certification and Integration of Energy-Saving Solutions. This remains the foundation of SYLA's income stream, with a compound annual growth rate (CAGR) of 22% expected from 2024 to 2026.
SYLA Technologies also operates the Rimwari-kun Real Estate Crowdfunding site, Japan's leading membership real-estate-crowdfunding site with over 279,000 users at the end of 2023. This platform provides private investors listings of available condominiums with high asset values in central Tokyo and a "hassle-free" artificial-intelligence-based solution that includes condominium management apps.
Finally, SYLA Tech offers a solar power company that promises clean energy to meet global concerns. This is a complete building-and-maintenance solution for solar power plants.
Lead Real Estate
Lead Real Estate Co Ltd ADR (NASDAQ:LRE) focuses on premium real-estate planning and development in Tokyo, Kanagawa, and Sapporo, Hokkaido. The company’s primary goal is to understand its clients' demands in designing safe and comfortable luxury homes, condominiums, and single-family residences.
Lead Real Estate specializes in commercial real estate planning, development, and investment and rental and hotel operations. Currently, the company is working on a global scale, developing luxury single-family homes in the United States and condominiums and sectional offices in the Philippines. Lead Real Estate prioritizes digital transformation (DX), providing multilingual AI development and translation services throughout the world to improve client satisfaction.
Additionally, the company provides brokerage services via an interactive media platform powered by AI translation and a chatbot that supports over 100 languages. This technology platform provides global access to investment-condominium complexes.
Lead Real Estate also provides asset management and owns and operates 30+ condominiums and six hotels, which have a 90% occupancy rate and an average nightly fee of $270. Lead Real Estate's income has been growing steadily, rising from $64 million in 2020 and reaching $129 million in 2023.
Earlyworks
Earlyworks Co Ltd ADR (NASDAQ:ELWS) is making strides in the emerging fields of DX, non-fungible tokens (NFTs), and the Metaverse, all areas that are shaping the future. The company utilizes blockchain technology to transform innovative concepts into reality, aiming to lead the way forward.
Earlyworks has developed its own blockchain platform, the Grid Ledger System, boasting a processing speed of less than 0.2 seconds. This platform features configurable and user-friendly AI functionalities, offering ultra-fast blockchain solutions tailored for both Web2 and Web3 products and services.
Investing in Japanese stocks
The pioneering Japanese companies that have listed on the Nasdaq are not only redefining their respective industries but are also forging a new path for Japanese businesses on the global stage. They represent the profound potential of Japanese innovation and entrepreneurship.
In fact, Japanese tech stocks have received a lift from U.S. tech behemoths like NVIDIA (NASDAQ:NVDA), sending the Nikkei to its highest closing level since April. The Nikkei is up 18% year to date, although it’s unclear just how much of the current momentum in Japan's stock market will reflect on the U.S.-listed Japanese shares.
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Investors are always advised to do their own due diligence before investing in any stock or theme.
**Perry Kornblu contributed to this article.