Japanese law played a big part in the slow adoption of Japanese e-sports.
However, the Japanese e-sports industry is now organized enough to issue professional licenses which help avoid problems with the law.
Taking a quick look at the development of e-sports in North America helps identify where the opportunities may lie in Japan’s delayed e-sports development.
Why would anybody want to watch other people play video games?
Probably for the same reason we are fascinated with NBA star Kevin Durant’s one-foot jumper or four-time Super Bowl MVP quarterback Tom Brady’s ability to buy time in the pocket: Watching people at the top of their game doing seemingly magical things is entertaining.
In e-sports, instead of watching one-foot jumpers, spectators watch double kills in shooter games. This is not a myth. Popular video game titles like Activision’s Call of Duty and Riot Games’ League of Legends have long-time professional players with large followings. Newzoo estimates the global e-sports market to grow to $905.6 million in 2018, a 38% year-on-year growth.
Newzoo expects the global e-sports industry to reach $1.4 billion by 2021.
Recently, the Japan e-sports Union (Jesu) issued professional licenses to video game players in Japan. This made the news, not only in the video gaming scene, but also on English-language mainstream news sites like Bloomberg. Seth Fischer of Hong Kong based Oasis Capital is already betting on Japanese e-sports.
Today, I would like to go over the nuts and bolts of Japanese e-sports so you can stay informed on some of the opportunities presented by the up and coming industry.
A snapshot of North American e-sports
In North America, we have companies like Major League Gaming (MLG), subsidiary of Activision (NASDAQ: ATVI), organizing video game related events. At an MLG event, professional video game players go head-to-head in front of a big audience with hopes to win a trophy (and cash prize!). Big companies sponsor teams, players, and/or events. The structure resembles the professional sports leagues in North America like the NBA, NFL, NHL, and MLB.
One key difference between major professional sports and video games, however, is that fans get to watch professional players practice nearly every day in real time over the internet. Websites like Twitch.tv (Amazon subsidiary), Youtube (Google), and MLG.tv (Activision) give professional gamers a platform to broadcast practice sessions to their fans. For professional video game team OpTic Gaming, content creation is just as important as winning tournaments.
What’s with Japan’s lack of competitive e-sports events?
While gamers have made careers out of MLG events in North America, Japanese law has made it difficult to organize paid tournaments. A Nikkei article points to Keihin Hyoji Hou, or Act against Unjustifiable Premiums and Misleading Representations for the lack of paid tournaments. Because tournament performance is dependent on participants purchasing video game hard/software, prize money can be seen as a tool to lure consumers. Hence, companies can either limit prize money to the upper limit of 100,000 yen ($940 USD) for Keihin Hyoji Hou, or go further and risk getting in trouble with authorities.
One way to avoid this problems is to create a professional league. With a professional league, the average consumer is viewing the event rather than participating for a prize. Three key Japanese e-sports organizations merged together to form JeSU. The new organization started issuing professional licenses to individuals and teams in February 2018.
Put another way, it isn’t that the Japanese government relaxed regulations. Rather, the Japanese e-sports industry got together and decided to form a professional league to avoid regulation.
Now Japan has JeSU-approved professional gamers
Earlier, I briefly mentioned how the e-sports industry in North America is shaped. It goes without saying that we should take a look at Japanese video game developers with strong IPs. But taking it a step further, if Japan were to follow the footsteps of e-sports in the west, you probably ought to take a closer look at what sort of companies are involved in MLG’s operations, then see what sort of similar Japanese companies would show up in Japanese e-sports.
Take Amazon’s Twitch and Google’s Youtube for example. Both are well known livestream broadcasting platforms among Japanese video gamers too, however, it isn’t the only platform available.
Niconico and OPENREC are also broadcasting platforms commonly used by video gamers in Japan. Niconico is a grandchild company of Kadokawa Dwango (TSE: 9468). OPENREC is operated by CyberZ, a child company of CyberAgent (TSE: 4751).
For an investor looking for larger e-sports exposure through non-video game software developers, Kadokawa Dwango would probably be a better place to look. This is simply due to CyberAgent being a relatively large company with many different services outside of e-sports. It is probably worth noting that the Vice President of JeSU is Hirokazu Hamamura, CEO of Gz Brain, a video game focused multimedia company 100% owned by Kadokawa.
The more obvious plays
To get a quick idea of the more obvious plays in Japanese e-sports, let’s take a look at game titles that JeSU has officially recognized for pro e-sports:
SRNCAV Rank
Exchange
Ticker
Company
Price
Dividend Yield
Buyback Yield
SR Yield
SR NCAV Yield
P/NCAV
TwoLiner
Link
1
TSE
7176
Simplex Financial Holdings Co Ltd
13,340
0.0
22.2
22.2
25.5%
0.87
2
TSE
8595
Jafco Group Co Ltd
2,331
2.4
23.8
26.3
16.0%
1.64
3
TSE
6346
Kikukawa Enterprise Inc
3,615
5.9
2.3
8.2
14.3%
0.57
Japan's largest lumber and woodworking machinery manufacturer. Mainly serves building material makers. Also manufactures polarizing film edge shapers for LCDs, printed circuit board cutting and finishing machines, and metal processing machines.
4
TSE
3641
Papyless Co Ltd
978
1.1
12.1
13.2
11.8%
1.12
5
TSE
3600
Fujix Ltd
1,450
4.8
0.0
4.8
11.4%
0.42
Japan's largest sewing thread manufacturer. Also involved in solar power generation. Strong influence of Fujii family (founders).
6
TSE
1905
TENOX Corp
871
2.9
3.6
6.5
10.5%
0.62
Construction company primarily focused on foundation work using proprietary patented methods. Also offers civil engineering consulting services. Expanded into SE Asia.
7
TSE
7628
Ohashi Technica Inc
1,455
4.2
3.3
7.5
10.1%
0.74
Independent automotive supplier with a mixture of internal manufacturing and partnered manufacturers. Sales force involved in development of products with customers. Also makes hinges for cell phones and game consoles.
8
TSE
7928
Asahi Kagaku Kogyo Co Ltd
660
5.5
3.4
8.9
9.6%
0.93
9
TSE
7937
Tsutsumi Jewelry Co Ltd
1,857
1.6
3.0
4.7
8.5%
0.55
Imports precious stones, manufactures jewelry, and operates jewelry stores. Primarily in the Tokyo & surrounding area. Tsutsumi family has controlling interest.
10
NGO
7950
Nihon Decoluxe Co Ltd
6,090
4.4
2.3
6.7
8.5%
0.78
12
TSE
6715
Nakayo Inc
1,054
3.8
0.0
3.8
7.8%
0.49
Manufactures and sells telecommunication equipment like business/IP phone systems, intercoms, wireless access points, etc.
13
TSE
1810
Matsui Construction Co Ltd
556
4.3
4.0
8.3
7.7%
1.08
14
TSE
1904
Taisei Oncho Co Ltd
1,934
4.1
3.3
7.5
7.5%
0.99
Primarily designs, constructs, and maintains HVAC and plumbing systems for everything from highrises and hospitals, to schools and hotels. Also has a foreign presence.
15
TSE
1793
Ohmoto Gumi Co Ltd
6,610
2.6
2.7
5.3
7.4%
0.72
Mid tier construction general contractor. Handles everything from commercial complexes, office buildings, and industrial facilities to roads, dams, and railroads.
16
TSE
6382
Trinity Industrial Corp
653
5.6
0.0
5.6
7.4%
0.76
17
TSE
7472
Toba Inc
2,841
3.7
2.9
6.6
7.1%
0.93
Trading company specializing in control machinery and FA equipment and tools, with Japanese and Asian manufacturers as key clients. Sales to semiconductor and LCD-related clients account for ~40% of total sales.
18
TSE
2122
Interspace Co Ltd
978
2.2
8.5
10.7
6.9%
1.56
Operates an online affiliate marketing platform. Revenues primarily generated by system installation and monthly usage fees collected from advertisers.
19
TSE
5921
Kawagishi Bridge Works Co Ltd
2,635
3.0
0.0
3.0
6.8%
0.44
Mainly engaged in structural steel fabrication and secondarily engaged in precast concrete. Owns several factories spanning central to western mainland Japan.
20
NGO
5979
Kaneso Co Ltd
3,860
3.9
0.0
3.9
6.8%
0.57
Construction hardware maker. Products include stainless steel grating, floor hatches, roof drains, manhole covers, parking blocks, quake-proof expansion joints, etc. Kobayashi family owns controlling interest.
22
TSE
9932
Sugimoto & Co Ltd
1,955
4.7
2.2
6.8
6.7%
1.02
23
TSE
7718
Star Micronics Co Ltd
1,631
3.7
3.8
7.5
6.6%
1.14
24
NGO
8145
Chubu Suisan Co Ltd
2,400
3.8
0.0
3.8
6.5%
0.58
Major seafood wholesaler with a particularly strong share in Nagoya market. Also produces fish feed and deals in frozen seafood.
25
NGO
3952
Chuoh Pack Industry Co Ltd
1,085
3.7
0.0
3.7
6.3%
0.58
Toyota group cardboard box manufacturer. Mainly caters to automotive and electronics makers. Also has joint factories in China and Malaysia.
26
TSE
6964
Sanko Co Ltd
449
2.9
0.0
2.9
6.3%
0.47
Manufactures and sells pressed products, metal moldings, mechatronic components, and plastic products to automotive and electronics manufacturers. Osaki Electric (TSE: 6644) and Denso (TSE: 6902) are major customers. Tamura family owns controlling stake.
27
TSE
3386
Cosmo Bio Co Ltd
1,001
3.8
3.3
7.2
6.2%
1.17
28
TSE
1930
Hokuriku Electrical Construction Co Ltd
669
5.0
0.0
5.0
6.1%
0.81
29
TSE
3597
Jichodo Co Ltd
6,480
4.6
0.0
4.6
6.0%
0.77
30
TSE
7949
Komatsu Wall Industry Co Ltd
1,836
4.7
0.0
4.7
5.7%
0.83
Komatsu Wall Industry is a partition manufacturer specializing in movable, fixed, and mobile partitions as well as toilet booths for offices, factories, and hotels. It commands a leading 25% market share for partitions in Japan.
31
TSE
1982
Hibiya Engineering Ltd
1,903
4.4
2.2
6.5
5.7%
1.15
32
TSE
4644
Imagineer Co Ltd
912
4.4
0.0
4.4
5.6%
0.79
33
TSE
9872
Kitakei Co Ltd
667
3.7
0.0
3.7
5.5%
0.68
34
TSE
6276
Siriusvision Co Ltd
285
3.4
0.0
3.4
5.4%
0.64
35
TSE
2107
Toyo Sugar Refining Co Ltd
865
4.0
0.0
4.0
5.3%
0.77
36
TSE
7313
TS Tech Co Ltd
1,541
3.7
2.8
6.5
5.2%
1.24
37
TSE
1799
Daiichi Kensetsu Corp
1,336
2.9
0.8
3.6
5.2%
0.70
38
TSE
5988
Piolax Inc
1,738
2.9
2.5
5.4
5.1%
1.06
39
TSE
5357
Yotai Refractories Co Ltd
1,471
2.0
5.1
7.1
5.1%
1.39
40
TSE
2408
KG Intelligence Co Ltd
350
2.9
0.0
2.9
4.9%
0.58
41
TSE
2461
Fan Communications Inc
412
5.1
3.6
8.7
4.9%
1.78
42
TSE
5951
Dainichi Co Ltd
649
3.4
0.0
3.4
4.8%
0.71
43
NGO
7488
Yagami Inc
1,911
5.2
0.0
5.2
4.8%
1.10
44
TSE
6417
Sankyo Co Ltd
5,090
2.6
3.1
5.7
4.7%
1.21
45
TSE
1879
Shinnihon Corp
761
2.5
0.0
2.5
4.6%
0.54
Construction and real estate company involved in land acquisition, construction, sales, and management of condominiums. Mid-tier condo supplier only behind Nomura Real Estate Development and other conglomerates in scale.
46
TSE
7544
Three F Co Ltd
289
3.4
0.0
3.4
4.6%
0.75
47
TSE
6651
Nitto Kogyo Corp
2,330
3.3
4.6
7.9
4.6%
1.73
48
TSE
6943
NKK Switches Co Ltd
5,250
2.3
0.0
2.3
4.5%
0.51
Manufacturer specializing in industrial switches. Also accepts custom orders.
49
TSE
5388
Kunimine Industries Co Ltd
826
3.7
0.0
3.7
4.3%
0.85
50
TSE
6763
Teikoku Tsushin Kogyo Co Ltd
1,407
3.6
0.7
4.3
4.3%
1.00
51
TSE
9755
OYO Corp
2,192
1.6
3.0
4.6
4.3%
1.08
Largest geological surveying and consulting firm in Japan. Also makes and sells equipment for geological survey, seismic observation, geophysical prospecting, and oil exploration.
52
TSE
5900
Daiken Co Ltd
703
2.3
0.0
2.3
4.2%
0.53
Mid-tier building material maker. Mainly metal products like external trims, hardware, metal fittings, etc. Strong Fujioka family influence, but no controlling stake.
53
TSE
4694
BML Inc
3,230
2.8
3.9
6.7
4.2%
1.58
54
TSE
6365
DMW Corp
3,090
3.6
0.0
3.6
4.2%
0.87
55
TSE
6485
Maezawa Kyuso Industries Co Ltd
919
2.5
1.0
3.5
4.1%
0.84
Water supply and housing equipment manufacturer with 40% share of the Japanese water supply equipment market. Major customers include plumbing contractors and home builders.
56
TSE
5304
SEC CARBON Ltd
6,850
2.9
0.0
2.9
4.1%
0.71
57
TSE
7671
AmidA Holdings Co Ltd
444
4.2
0.0
4.2
3.9%
1.07
58
TSE
8081
Kanaden Corp
1,111
3.1
0.5
3.6
3.9%
0.93
59
TSE
4172
Towa Hi System Co Ltd
1,455
6.9
0.0
6.9
3.8%
1.80
60
TSE
4627
Natoco Co Ltd
1,519
3.4
0.0
3.4
3.8%
0.88
61
TSE
9651
Japan Process Development Co Ltd
863
3.2
1.4
4.6
3.8%
1.24
Developer of control and embedded software. Core business includes driver support, automotive control, railroad maintenance support, IC card, thermal power plant control and monitoring systems.
62
TSE
6678
Techno Medica Co Ltd
1,746
3.0
1.1
4.1
3.7%
1.09
63
TSE
6257
Fujishoji Co Ltd
1,214
4.1
0.0
4.1
3.7%
1.11
64
TSE
6592
Mabuchi Motor Co Ltd
3,675
3.5
1.3
4.8
3.7%
1.30
65
TSE
4464
SOFT99 Corp
1,148
3.3
1.0
4.2
3.7%
1.15
66
TSE
6540
SEMBA Corp
706
2.8
0.0
2.8
3.6%
0.77
Services include planning, design, construction, and supervision of commercial spaces as well as market research and business consulting.
67
TSE
3352
Buffalo Co Ltd
1,117
3.6
0.0
3.6
3.6%
1.01
68
TSE
6247
Hisaka Works Ltd
826
3.6
0.0
3.6
3.5%
1.03
Industrial machinery manufacturer with largest domestic market share in plate heat exchangers and infusion sterilizers. Customers range from manufacturers of clothing, food, and household goods to pharmaceuticals and automobiles.
69
TSE
2795
Nippon Primex Inc
710
2.8
0.0
2.8
3.5%
0.81
Develops, manufactures, and sells small commercial printers. Applications include POS receipt printer, taxi receipt printers, ATM machines, etc. Founding Nakagawa familly owns controling interest.
70
TSE
6379
Raiznext Corp
1,287
4.3
0.0
4.3
3.5%
1.23
71
TSE
1768
Sonec Corp
932
3.2
0.5
3.7
3.5%
1.08
Mid-tier construction general contractor based out of Hyogo (western Japan, Kinki region). Almost all employees have a technical specialization.
72
TSE
7608
Sk Japan Co Ltd
548
1.5
2.7
4.1
3.4%
1.21
Plans, produces, and sells prize goods (mostly cartoon character figures) for arcades/amusement facilities. Also creates original products and wholesales snacks.
73
TSE
6248
Yokota Manufacturing Co Ltd
1,093
3.9
0.0
3.9
3.4%
1.16
Small batch, custom manufacturing of high end industrial water pumps and valves.
74
TSE
1965
Techno Ryowa Ltd
897
3.1
0.0
3.1
3.4%
0.92
75
TSE
4534
Mochida Pharmaceutical Co Ltd
3,350
2.8
2.0
4.8
3.4%
1.43
76
TSE
9622
Space Co Ltd
903
4.0
0.0
4.0
3.3%
1.21
77
TSE
9934
Inaba Denkisangyo Co Ltd
2,691
3.7
1.2
4.9
3.3%
1.49
78
TSE
9698
Creo Co Ltd
879
4.7
0.0
4.7
3.2%
1.45
79
TSE
4621
Rock Paint Co Ltd
691
2.5
0.0
2.5
3.2%
0.80
80
TSE
6164
Taiyo Koki Co Ltd
1,102
2.8
1.9
4.7
3.1%
1.49
81
TSE
6167
Fuji Die Co Ltd
568
3.9
0.0
3.9
3.1%
1.24
82
TSE
7908
Kimoto Co Ltd
224
2.3
0.0
2.3
3.1%
0.74
83
TSE
6156
A-One Seimitsu Inc
1,686
4.0
0.0
4.0
3.1%
1.29
Machine tool manufacturer specializing in lathe parts. Particular strength in spring collet chucks. Also makes cams for small automatic lathes, offers re-polishing for cutting tools, and makes custom cutting tools.
84
TSE
9986
Zaoh Co Ltd
1,773
3.5
0.0
3.5
3.1%
1.16
86
TSE
3653
Morpho Inc
891
0.0
4.3
4.3
3.0%
1.43
87
TSE
4365
Matsumoto Yushi-Seiyaku Co Ltd
12,500
2.4
0.0
2.4
3.0%
0.79
88
TSE
3682
Encourage Technologies Co Ltd
492
3.7
0.0
3.7
3.0%
1.23
Software package vendor specializing in system audit trail for internal control systems and related maintenance services. Clients include leading IT vendors, banks, insurers, manufacturers, and asset managers.
89
TSE
7899
Mics Chemical Co Ltd
317
2.5
0.0
2.5
3.0%
0.84
90
NGO
6295
Fuji Hensokuki Co Ltd
284
2.1
0.0
2.1
3.0%
0.71
91
TSE
7447
Nagaileben Co Ltd
1,879
3.3
2.0
5.3
2.9%
1.79
92
TSE
3770
Zappallas Inc
323
2.1
0.0
2.1
2.9%
0.75
93
TSE
5945
Tenryu Saw Mfg Co Ltd
3,120
2.6
0.0
2.6
2.8%
0.90
94
TSE
2449
PRAP Japan Inc
986
3.7
0.0
3.7
2.8%
1.30
Public relations company offering consulting, media training, PR events, PR material creation, etc services.
95
TSE
6482
Yushin Precision Equipment Co Ltd
669
3.3
0.0
3.3
2.8%
1.16
97
TSE
7999
MUTOH HOLDINGS Co Ltd
1,615
1.9
0.0
1.9
2.7%
0.69
98
TSE
4752
Showa System Engineering Corp
944
3.1
0.9
4.0
2.7%
1.49
99
TSE
5819
Canare Electric Co Ltd
1,383
2.0
0.0
2.0
2.7%
0.76
Develops, manufactures, and provides audio and video cables, connectors, patchbays, and fiber-optic products for the television broadcast industry and the professional A/V market.
100
TSE
6018
Hanshin Diesel Works Ltd
1,330
2.6
0.0
2.6
2.6%
0.99
101
TSE
6834
SEIKOH GIKEN Co Ltd
1,660
2.4
0.0
2.4
2.6%
0.93
102
TSE
1776
Sumiken Mitsui Road Co Ltd
851
3.3
0.0
3.3
2.6%
1.27
103
TSE
3892
Okayama Paper Industries Co Ltd
824
1.9
0.0
1.9
2.6%
0.76
104
TSE
3668
COLOPL Inc
659
3.0
0.0
3.0
2.6%
1.19
105
TSE
4624
Isamu Paint Co Ltd
2,642
1.9
0.0
1.9
2.5%
0.75
106
TSE
1788
Santo Co Ltd
2,689
2.2
0.0
2.2
2.5%
0.90
107
TSE
9632
Subaru Enterprise Co Ltd
9,160
3.7
0.0
3.7
2.5%
1.51
108
TSE
1835
Totetsu Kogyo Co Ltd
2,583
3.4
0.0
3.4
2.4%
1.41
109
TSE
2325
NJS Co Ltd
2,086
2.9
0.0
2.9
2.4%
1.19
Water system, sewage, and environmental consulting company. Part of Nippon Hume (TSE: 5262).
110
TSE
6134
Fuji Corp
2,067
3.4
0.0
3.4
2.4%
1.40
111
TSE
9441
Bell-Park Co Ltd
1,751
3.4
0.0
3.4
2.4%
1.40
112
TSE
7989
Tachikawa Corp
1,170
2.5
0.0
2.5
2.4%
1.03
113
TSE
1897
Kaneshita Construction Co Ltd
2,855
1.8
0.0
1.8
2.4%
0.74
114
TSE
7235
Tokyo Radiator Mfg Co Ltd
710
2.2
0.0
2.2
2.4%
0.91
115
TSE
3426
ATOM LIVIN TECH Co Ltd
1,281
2.6
0.0
2.6
2.4%
1.08
Designs, manufactures, and sells residential interior hardware under the "Atom" brand. Most manufacturing is outsourced. Customers include furniture makers, hardware stores, homebuilders, and household appliance makers.
116
TSE
4247
Poval Kogyo Co Ltd
1,063
3.1
0.0
3.1
2.4%
1.30
117
TSE
4333
Toho System Science Co Ltd
989
4.0
0.0
4.0
2.4%
1.71
Mainly software development for insurance, securities brokerage, and banks. Most sales come through partnered system integrators.
118
TSE
5541
Pacific Metals Co Ltd
1,961
2.0
0.0
2.0
2.3%
0.87
119
TSE
4238
Miraial Co Ltd
1,489
2.7
0.0
2.7
2.3%
1.17
120
TSE
6820
Icom Inc
2,527
2.0
0.0
2.0
2.3%
0.86
121
TSE
7961
Kanematsu Sustech Corp
1,585
3.2
0.0
3.2
2.3%
1.38
122
TSE
1723
Nihon Dengi Co Ltd
3,160
3.9
0.0
3.9
2.2%
1.77
123
TSE
5444
Yamato Kogyo Co Ltd
4,910
3.2
1.0
4.2
2.2%
1.96
124
TSE
6309
Tomoe Engineering Co Ltd
2,336
2.1
0.0
2.1
2.2%
0.98
125
TSE
2185
CMC Corp
1,197
2.3
0.6
2.9
2.1%
1.33
126
TSE
6788
Nihon Trim Co Ltd
2,766
2.2
1.6
3.8
2.1%
1.80
127
TSE
2487
CDG Co Ltd
1,030
2.5
0.0
2.5
2.1%
1.19
128
TSE
2806
Yutaka Foods Corp
2,014
2.0
0.0
2.0
2.1%
0.93
129
TSE
3948
Hikari Business Form Co Ltd
794
2.9
0.5
3.4
2.1%
1.62
130
TSE
3396
Felissimo Corp
986
1.5
0.0
1.5
2.0%
0.74
132
TSE
6246
Techno Smart Corp
1,306
1.9
0.9
2.7
2.0%
1.35
133
TSE
7902
Sonocom Co Ltd
834
1.2
0.0
1.2
2.0%
0.60
134
TSE
7804
B&P Co Ltd
1,115
2.0
0.0
2.0
2.0%
1.00
135
TSE
6238
Furyu Corp
1,071
3.5
0.0
3.5
1.9%
1.80
136
TSE
7970
Shin-Etsu Polymer Co Ltd
1,169
2.0
0.7
2.6
1.9%
1.37
138
TSE
7885
Takano Co Ltd
669
1.2
0.0
1.2
1.9%
0.64
139
TSE
1950
Nippon Densetsu Kogyo Co Ltd
1,555
2.4
0.0
2.4
1.9%
1.28
141
TSE
4761
SAKURA KCS Corp
812
1.5
0.0
1.5
1.8%
0.81
142
TSE
6459
Daiwa Industries Ltd
1,167
2.7
0.2
2.9
1.8%
1.59
143
TSE
7833
IFIS Japan Ltd
594
2.3
0.0
2.3
1.8%
1.28
Provides financial/investment info institutional investors, brokerage firms, and individual investors.
144
TSE
1662
Japan Petroleum Exploration Co Ltd
4,000
1.3
1.7
3.0
1.8%
1.72
145
TSE
4301
Amuse Inc
1,682
2.2
0.0
2.2
1.7%
1.25
146
TSE
6488
Yoshitake Inc
657
2.3
0.0
2.3
1.7%
1.32
147
TSE
3766
SYSTEMS DESIGN Co Ltd
775
1.7
0.0
1.7
1.7%
0.98
148
TSE
4728
TOSE Co Ltd
779
3.2
0.0
3.2
1.7%
1.88
150
TSE
4743
ITFOR Inc
829
2.8
0.4
3.2
1.7%
1.87
System vendor providing system integration and IT consulting services with specialization in finance, call centers, and e-commerce industries. ~70% market share in credit collection systems for personal loans.
151
TSE
3316
Tokyo Nissan Computer System Co Ltd
613
2.1
0.0
2.1
1.7%
1.27
152
TSE
7749
Medikit Co Ltd
2,547
2.0
0.2
2.1
1.7%
1.27
153
TSE
3302
Teikoku Sen-I Co Ltd
1,505
3.0
0.0
3.0
1.6%
1.81
154
TSE
2349
Nippon Information Development Co Ltd
1,765
1.3
1.8
3.1
1.6%
1.92
Overall IT solutions company. Offerings include: Embedded software, telecommunication systems, information systems, system development, and system operations.
155
TSE
4287
Just Planning Inc
312
2.4
0.0
2.4
1.6%
1.47
156
TSE
6249
Gamecard-Joyco Holdings Inc
2,126
1.6
0.0
1.6
1.6%
1.00
Market share leader (~43%) in pachinko payment systems. Shares held by major pachinko machine manufacturers.
158
TSE
2488
JTP Co Ltd
730
2.9
0.0
2.9
1.6%
1.83
159
TSE
2706
BROCCOLI Co Ltd
1,080
2.4
0.0
2.4
1.6%
1.52
160
TSE
1766
Token Corp
7,670
2.9
0.0
2.9
1.6%
1.83
161
TSE
3950
Pack Corp
2,472
2.2
0.0
2.2
1.6%
1.42
163
TSE
4551
Torii Pharmaceutical Co Ltd
2,951
1.6
0.0
1.6
1.5%
1.06
165
TSE
7986
NIHON ISK Co Ltd
1,282
2.4
0.2
2.6
1.5%
1.68
166
TSE
2385
Soiken Holdings Inc
279
1.8
0.0
1.8
1.5%
1.17
167
TSE
9739
NSW Inc
2,013
2.5
0.0
2.5
1.5%
1.63
168
TSE
6265
Convum Ltd
2,331
1.9
0.0
1.9
1.5%
1.31
169
TSE
6744
Nohmi Bosai Ltd
1,621
2.1
0.0
2.1
1.5%
1.46
170
TSE
6278
Union Tools Co
3,260
2.4
0.0
2.4
1.4%
1.65
171
TSE
6912
Kikusui Holdings Corp
1,026
1.9
0.0
1.9
1.4%
1.42
172
TSE
5461
Chubu Steel Plate Co Ltd
1,581
1.4
0.0
1.4
1.4%
1.02
Only specialized manufacturer of thick steel plates in Japan. Products are used for heavy industrial machinery (power shovels, fork lifts, etc), high rise buildings, etc. Also developed own specialized steel plates.
174
TSE
6432
Takeuchi Mfg Co Ltd
2,703
2.0
0.0
2.0
1.4%
1.45
175
TSE
4076
CNS Co Ltd
1,274
2.0
0.0
2.0
1.4%
1.51
176
SSE
1832
Hokkai Electrical Construction Co Inc
669
1.5
0.0
1.5
1.3%
1.11
177
TSE
5982
Maruzen Co Ltd
1,828
1.6
0.0
1.6
1.3%
1.24
179
TSE
6769
THine Electronics Inc
877
1.4
0.0
1.4
1.3%
1.09
182
TSE
8227
Shimamura Co Ltd
12,080
2.1
0.0
2.1
1.2%
1.69
185
TSE
6159
Micron Machinery Co Ltd
1,420
0.6
0.6
1.2
1.1%
1.03
186
TSE
3723
Nihon Falcom Corp
1,225
1.6
0.0
1.6
1.1%
1.46
Game developer with strength in roll playing games (RPG). "Ys" series is core product. Also produces and sells games licensed from foreign game developers.
187
TSE
2483
HONYAKU Center Inc
1,531
1.3
0.0
1.3
1.1%
1.17
Overall translation service. Mainly caters to patent, medical, industrial, and financial translation. M3 (TSE: 2413), which operates Japan's largest health care professional portal site, is major shareholder.
188
TSE
2819
Ebara Foods Industry Inc
3,000
1.3
0.5
1.8
1.1%
1.72
189
TSE
4491
Computer Management Co Ltd
1,555
1.6
0.0
1.6
1.0%
1.58
190
TSE
6730
Axell Corp
1,662
1.9
0.0
1.9
1.0%
1.85
Fabless maker of LSI chips, mainly geared for pachinko/pachislot machines. Core product is graphics LSI. Also offers similar products for medical devices and construction machinery.
191
TSE
4394
eXmotion Co Ltd
858
1.7
0.0
1.7
1.0%
1.72
192
TSE
3841
Jedat Inc
867
1.2
0.0
1.2
1.0%
1.16
194
TSE
2815
Ariake Japan Co Ltd
4,295
1.8
0.0
1.8
0.9%
1.90
195
TSE
4059
Magmag Inc
496
1.4
0.0
1.4
0.9%
1.47
197
TSE
4581
Taisho Pharmaceutical Holding Co Ltd
5,400
1.7
0.0
1.7
0.9%
1.83
198
TSE
4124
Osaka Yuka Industry Ltd
1,479
1.7
0.0
1.7
0.9%
1.90
199
TSE
6140
Asahi Diamond Industrial Co Ltd
709
1.6
0.0
1.6
0.9%
1.82
200
TSE
7501
Tiemco Ltd
868
0.6
0.0
0.6
0.8%
0.78
Retailer of fly fishing equipment and high end outdoor clothing. Imports/exports fishing equipment and outdoor gear, but also has private label brand. Strong influence of Sakai family (founders).
201
TSE
7050
Frontier International Inc
2,166
1.1
0.0
1.1
0.7%
1.54
202
SSE
3849
Nippon Techno Lab Inc
895
1.1
0.0
1.1
0.7%
1.55
204
TSE
7046
TDSE Inc
1,501
1.3
0.0
1.3
0.7%
1.93
205
TSE
5310
Toyo Tanso Co Ltd
3,825
1.3
0.0
1.3
0.7%
1.93
206
TSE
7634
Hoshi Iryo-Sanki Co Ltd
3,930
1.3
0.0
1.3
0.6%
1.99
208
TSE
6599
Ebrains Inc
2,401
0.7
0.0
0.7
0.6%
1.33
210
TSE
3986
bBreak Systems Co Ltd
1,418
0.8
0.0
0.8
0.5%
1.59
212
TSE
3622
Netyear Group Corp
473
0.7
0.0
0.7
0.5%
1.37
216
TSE
2669
Kanemi Co Ltd
2,815
0.5
0.0
0.5
0.3%
1.87
219
TSE
9242
Media Research Institute Inc
1,399
0.0
0.2
0.2
0.1%
1.91
220
TSE
2341
Arbeit-Times Co Ltd
122
0.0
0.0
0.0
0.0%
1.04
Free paper issuer & website operator focused on part-time and temporary job recruitment information. Based in Shizuoka prefecture, but also distributes in Tokyo and Nagoya metro.
221
TSE
6898
Tomita Electric Co Ltd
2,546
0.0
0.0
0.0
0.0%
1.09
Specialized manufacturer of soft ferrites, a magnetic electronic component commonly used in inductors, transformers, and microwaves. Nearly half of revenues generated overseas.
A couple big titles not included in JeSU’s list are Nintendo’s (TSE: 7974) Super Smash Bros and Cygames’ Shadowverse. CyberAgent has a majority stake in Cygames while DeNA (TSE: 2432) is part owner.Source: JeSU (Japanese)
The bottom line
Japan is now ready to make up for lost time in e-sports. This may trigger investors to start taking a closer look at Japanese video game companies, an already popular industry. Personally, I think investors are better served looking at companies less known for video game development that also benefit from the e-sports movement. Though recent performance has lagged, Kadokawa Dwango is a good example with core segments revolving around video game multimedia.
