| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1182.3B | ¥1090.3B | +8.4% |
| Operating Income / Operating Profit | ¥208.2B | ¥164.4B | +26.6% |
| Ordinary Income | ¥215.4B | ¥175.7B | +22.6% |
| Net Income / Net Profit | ¥372.9B | ¥98.7B | +277.7% |
| ROE | 20.7% | 7.3% | - |
For the fiscal year ending March 2026, the company reported Revenue ¥1182.3B (YoY +¥92.0B +8.4%), Operating Income ¥208.2B (YoY +¥43.7B +26.6%), Ordinary Income ¥215.4B (YoY +¥39.7B +22.6%), and Net Income ¥372.9B (YoY +¥274.2B +277.7%), achieving revenue and profit growth. At the operating level, higher profitability and gross margin improvement in the Electronic Materials Business (prior year 37.0% → current 40.2%) contributed, lifting the operating margin to 17.6% (prior year 15.1%). The large increase in Net Income was primarily driven by extraordinary gains of ¥381.5B, centered on gain on sale of fixed assets ¥341.6B and gain on sale of investment securities ¥38.3B, indicating a substantial boost from one-off factors. Financial soundness was significantly strengthened by a surge in cash and deposits to ¥620.1B (YoY +¥334.7B +117.2%) and a reduction in short-term borrowings.
[Revenue] Revenue reached ¥1182.3B (YoY +8.4%). By segment, the Electronic Materials Business led with ¥614.2B (YoY +17.9%), accounting for 52.0% of consolidated sales. By region: Japan ¥650.2B, Asia total ¥404.3B (Taiwan ¥175.6B, Korea ¥141.6B, Others ¥87.1B), North America ¥50.8B, Europe ¥72.6B, showing notable growth in Asia. The Medical Business was ¥139.3B (+2.3%) showing stable growth, and Other Businesses ¥221.3B (+13.0%) recorded double-digit growth. Conversely, Materials & Chemicals ¥117.3B (-2.0%), Insulation Materials ¥151.7B (-1.2%), and Composites ¥144.6B (-0.4%) saw declines, widening growth gaps within the portfolio. Cost of sales was ¥706.5B, securing a gross margin of 40.2% (up 3.2pt from 37.0%), likely aided by price revisions, mix improvement, and stabilized utilization.
[Profitability] Operating Income was ¥208.2B (YoY +26.6%), and operating margin improved materially to 17.6% (prior year 15.1%, +2.5pt). SG&A was ¥267.6B (YoY +11.8%), rising faster than sales growth (+8.4%), but gross margin improvement and high margins in Electronic Materials (31.6%) absorbed this. By segment, Operating Income: Electronic Materials ¥193.9B (margin 31.6%), Medical ¥24.3B (margin 17.4%) were primary drivers, while Insulation Materials ¥2.0B (margin 1.3%) and Composites -¥1.2B (margin -0.8%) remained low-margin. Ordinary Income ¥215.4B exceeded Operating Income, aided by non-operating income ¥18.5B (dividends received ¥6.9B, foreign exchange gains ¥4.0B, interest income ¥1.3B, etc.). Pre-tax income was ¥586.3B; extraordinary gains ¥381.5B (gain on sale of fixed assets ¥341.6B, gain on sale of investment securities ¥38.3B) significantly boosted earnings beyond ordinary levels. After income taxes ¥163.0B (effective tax rate 27.8%), Net Income was ¥372.9B. In conclusion, while the company achieved revenue and profit growth, the majority of Net Income stems from one-off extraordinary gains; the underlying performance should be assessed at the operating and ordinary income levels.
The Electronic Materials Business recorded Revenue ¥614.2B (YoY +17.9%) and Operating Income ¥193.9B (YoY +39.7%), accounting for approximately 93% of consolidated operating profit. A very high operating margin of 31.6% reflects shifts to higher-value products and improved operational efficiency. The Medical Business delivered Revenue ¥139.3B (+2.3%) and Operating Income ¥24.3B (+2.1%), functioning as a stable earnings source with a 17.4% margin. Other Businesses posted Revenue ¥221.3B (+13.0%) and Operating Income ¥4.9B (+19.3%), though profitability is limited with a 2.2% margin. Materials & Chemicals declined to Revenue ¥117.3B (-2.0%) and Operating Income ¥5.9B (-29.9%), with margin falling to 5.0%. Insulation Materials saw Revenue ¥151.7B (-1.2%) and Operating Income ¥2.0B (-70.9%), a steep profit decline and very low 1.3% margin. Composites reported Revenue ¥144.6B (-0.4%) and Operating loss ¥1.2B (reduced from prior year loss ¥8.9B), indicating a path to recovery. The portfolio shows extreme profit concentration in Electronic Materials; improving low-margin segments is key to lifting consolidated margins.
[Profitability] Operating margin 17.6% (up 2.5pt from 15.1%) reflects gross margin improvement to 40.2% (prior year 37.0%, +3.2pt) and high margins in Electronic Materials. ROE was 20.7%, a substantial rise from 10.4% prior year, but since most of Net Income ¥372.9B is due to extraordinary gains, the ROE on ordinary income is estimated around 15.8% (Ordinary Income ¥215.4B ÷ average shareholders’ equity during the period ¥1359B) as the underlying capability. [Cash Quality] Operating Cash Flow (OCF) ¥173.0B decreased -9.5% YoY, and OCF/NI ratio is 0.46x, low relative to Net Income ¥372.9B. Cash conversion (OCF/EBITDA) is 0.57x (EBITDA = Operating Income ¥208.2B + Depreciation ¥93.0B = ¥301.2B), a level warranting attention, driven by working capital build-up (inventory -¥78.9B, trade receivables -¥31.0B). [Investment Efficiency] Total asset turnover 0.42x (Revenue ¥1182.3B ÷ average total assets ¥2531B) is low; inventory days approx. 83 days (inventory ¥160.1B ÷ daily cost of sales ¥8.5B), receivable days approx. 93 days (accounts receivable ¥301.8B ÷ daily sales ¥3.2B) show lengthening trends. [Financial Soundness] Equity Ratio 63.7% (prior year 60.9%, +2.8pt), current ratio 332.7%, quick ratio 299.4% — all very strong. Interest-bearing debt ¥315.97B yields Debt/EBITDA 1.05x and interest coverage 37.7x (EBIT ¥208.2B ÷ interest expense ¥5.5B), indicating robust financial resilience. Cash and deposits ¥620.1B are roughly 14x short-term borrowings ¥43.9B, providing ample liquidity.
Operating Cash Flow was ¥173.0B, down -9.5% YoY. Starting from profit before income taxes ¥586.3B, non-cash expenses added back included depreciation ¥93.0B and impairment losses ¥3.2B, while extraordinary gains — gain on sale of fixed assets ¥341.6B and gain on sale of investment securities ¥38.3B — were removed, yielding an operating cash subtotal of ¥225.8B. On working capital, increases in inventory (-¥78.9B) and trade receivables (-¥31.0B) pressured cash, with an increase in trade payables +¥6.3B providing limited offset. After income tax payments -¥53.1B, OCF landed at ¥173.0B. Cash conversion of 0.57x against EBITDA ¥301.2B is a warning sign. Investing Cash Flow was a large positive ¥227.9B, driven by proceeds from sale of fixed assets ¥390.5B and sale of investment securities ¥47.9B, which outweighed purchases of tangible and intangible fixed assets -¥205.2B. Free Cash Flow was ¥400.8B on the surface but primarily reflects asset disposals; sustainable cash generation should be judged on OCF. Financing Cash Flow was -¥72.0B, mainly due to net decrease in short-term borrowings -¥56.4B, net increase in long-term borrowings +¥27.5B, and dividend payments -¥38.8B. Cash and cash equivalents rose from ¥283.9B at the beginning of the period to ¥618.4B at period-end, an increase of ¥334.5B, substantially strengthening liquidity.
Of Net Income ¥372.9B this period, extraordinary gains ¥381.5B were recorded, exceeding Ordinary Income ¥215.4B. Gain on sale of fixed assets ¥341.6B and gain on sale of investment securities ¥38.3B constitute the bulk of Net Income, indicating dependence on one-off items of about 82%. Non-operating income ¥18.5B consists of dividends received ¥6.9B, foreign exchange gains ¥4.0B, and interest income ¥1.3B, showing limited recurring non-operating income. Comprehensive income ¥485.5B exceeds Net Income ¥372.9B by ¥112.6B, attributable to other comprehensive income (foreign currency translation adjustments ¥11.4B, valuation difference on available-for-sale securities ¥41.2B, actuarial differences on retirement benefits ¥9.6B, etc.). The large divergence between OCF ¥173.0B and Net Income ¥372.9B (OCF/NI 0.46x) indicates slow conversion of profits into cash. Working capital expansion (inventory +¥78.9B, accounts receivable +¥31.0B) impedes cash conversion and is the primary concern in assessing earnings quality. Adjusting for extraordinary gains, underlying Net Income is estimated around ¥100B, implying future earnings should be evaluated on an ordinary income basis.
Full Year / FY guidance: Revenue ¥1370B (YoY +15.9%), Operating Income ¥260B (YoY +24.9%), Ordinary Income ¥260B (YoY +20.7%), Net Income ¥170B (YoY -54.4%). Progress against current results: Revenue 86.3%, Operating Income 80.1%, Ordinary Income 82.9%, Net Income 219.4% — Net Income substantially exceeded forecast due to extraordinary gains. The company’s guidance assumes continued high profitability in the Electronic Materials Business and stable growth in Medical; improvement in low-margin segments (Insulation, Composites, Materials & Chemicals) is key to achieving operating profit targets. Forecast EPS 466.97 yen vs. forecast dividend ¥60 implies a Payout Ratio of 12.8%, conservative. Forecast operating margin 19.0% (¥260B ÷ ¥1370B) exceeds this year’s 17.6%, likely assuming ongoing price revisions and SG&A restraint. However, the extraordinary gains of ¥381.5B this year are not expected to recur, so Net Income is projected to revert to ordinary-income-based levels.
Annual dividend was ¥127 (year-end dividend ¥99.5, interim ¥27.5), a large increase of ¥99.5 YoY, but this is largely commemorative and funded by extraordinary gains. The full-year forecast dividend ¥60 (Payout Ratio 12.8%) is conservative; future dividends should be assessed on ordinary-income basis. Total dividends amounted to ¥38.8B, representing 22.4% of Operating Cash Flow ¥173.0B and 9.7% of Free Cash Flow ¥400.8B, indicating room for payouts. However, Free Cash Flow is materially boosted by asset sales, so dividend sustainability should be judged on OCF. No share buyback was disclosed; shareholder returns are by dividend only. Given cash and deposits ¥620.1B and ample liquidity, dividend stability is assessed as high, but priority should be improving working capital efficiency and securing core investments.
Profit concentration risk in Electronic Materials Business: Approximately 93% of Operating Income comes from Electronic Materials, making consolidated performance highly sensitive to demand swings and price competition in that segment. Cyclical fluctuations in the semiconductor and electronics markets and customer concentration increase earnings volatility. Regional revenue dependence on Taiwan and Korea heightens exposure to geopolitical risk and potential supply-chain disruptions.
Cash pressure from deteriorating working capital efficiency: Inventory days 83, receivable days 93 with OCF/Net Income 0.46x and cash conversion 0.57x show slow monetization. Inventory increase -¥78.9B and receivable increase -¥31.0B constrained OCF, potentially limiting growth investment and dividend capacity. Inventory obsolescence or discounting risk is possible.
Risk of delayed structural improvement in low-margin businesses: Insulation (margin 1.3%), Composites (loss-making), and Materials & Chemicals (margin 5.0%) remain low-profit contributors, diluting consolidated margins. As long as Electronic Materials’ high margins offset these, portfolio stability is fragile. Market downturns or intensified competition that further weaken low-margin segments could make maintaining operating margin difficult.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 17.6% | 7.8% (4.6%–12.3%) | +9.9pt |
| Net Margin | 31.5% | 5.2% (2.3%–8.2%) | +26.3pt |
Operating margin exceeds the industry median by about 10pt, driven by high margins in Electronic Materials. Net margin is markedly elevated due to extraordinary gains, but on an ordinary-income basis the company is estimated to surpass industry averages to some extent.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 8.4% | 3.7% (-0.4%–9.3%) | +4.7pt |
Revenue growth outpaces the industry median by about 5pt, driven by double-digit growth in Electronic Materials and Other Businesses. The company ranks among higher-growth peers within the industry.
※ Source: Company compilation
Sustainability of high margins in Electronic Materials and order trends: With Electronic Materials delivering a 31.6% operating margin and representing 93% of operating profit, its pricing power, demand trends, and utilization will determine future earnings. Continued recovery in semiconductor/electronics markets and a shift to higher-value products would allow further margin improvement. Conversely, market reversals or customer concentration warrant caution.
Success of working capital efficiency improvements: Inventory days 83, receivable days 93, and cash conversion 0.57x reflect major challenges in converting earnings to cash. Effective working capital reduction (inventory cuts, faster receivable collection) would materially improve OCF, expanding scope for growth investment and shareholder returns. Continued working capital expansion would expose liquidity and capital-efficiency risks.
Restructuring and profitability improvement of low-margin segments: Insulation, Composites, and Materials & Chemicals operate at margins below 5% or in loss, diluting consolidated margins. Concrete measures (divestiture, sale, reorganization) or profitability improvement would help lift operating margins and stabilize earnings. Reducing over-reliance on Electronic Materials is important to diversify portfolio risk.
This report is an AI-generated financial analysis document created by analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; please consult a professional as needed before making investment decisions.