| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1014.0B | ¥1024.7B | -1.0% |
| Operating Income / Operating Profit | ¥-52.7B | ¥59.9B | -31.1% |
| Ordinary Income | ¥-79.7B | ¥48.9B | -46.3% |
| Net Income / Net Profit | ¥-86.5B | ¥36.6B | -336.2% |
| ROE | -1.4% | 0.6% | - |
For FY2026 Q1, Revenue was ¥1,014.0B (YoY -¥10.7B -1.0%), Operating loss was ¥52.7B (YoY -¥112.6B; prior-year Operating income ¥59.9B), Ordinary loss was ¥79.7B (YoY -¥128.6B; prior-year Ordinary income ¥48.9B), and Net loss attributable to owners of the parent was ¥84.7B (YoY -¥120.7B; prior-year Net income ¥30.5B). While Revenue declined only slightly, gross margin plunged from 18.6% to 8.3% (a 1,030bp drop), and SG&A ratio rose from 12.7% to 13.5% (an 80bp increase), resulting in an Operating margin swing of 1,100bp from +5.8% to -5.2%. Non-operating expenses, including interest expense of ¥8.1B, totaled ¥34.2B and significantly exceeded non-operating income of ¥7.3B, widening non-operating loss to -¥26.9B (prior-year -¥10.98B). Prolonged supply-demand adjustment in the single high-purity silicon business simultaneously worsened price/mix and utilization, and the capital-intensive business structure amplified margin pressure due to difficulty absorbing fixed costs.
【Revenue】 Revenue was ¥1,014.0B (YoY -1.0%), a slight decline. The company operates in a single high-purity silicon segment and does not disclose segmental breakdowns, but wafer demand adjustments for semiconductors and solar cells likely exerted downward pressure on both volume and price. Cost of goods sold increased to ¥929.4B (YoY +11.3%), and COGS ratio rose 1,030bp to 91.7% (prior-year 81.4%). As a result, Gross profit halved to ¥84.6B (YoY -55.5%), and Gross margin sharply fell to 8.3% (prior-year 18.6%). The main drivers of gross margin deterioration are estimated to be wafer price declines, adverse product mix, and worsening fixed cost absorption per unit due to lower utilization. Construction in progress decreased by ¥331.5B (-26.9%) from ¥1,234.3B to ¥902.8B, while tangible fixed assets increased by ¥84.2B (+1.3%) from ¥6,337.4B to ¥6,421.6B, indicating moving plant completions and increasing fixed cost burdens such as depreciation and maintenance; coupled with weak demand and sluggish utilization, unit costs rose.
【Profitability】 SG&A was ¥137.3B (YoY +5.5%), outpacing Revenue growth, and SG&A ratio rose 80bp to 13.5% (prior-year 12.7%). The sharp decline in Gross profit and relative increase in SG&A resulted in an Operating loss of ¥52.7B (prior-year Operating income ¥59.9B), a deterioration of ¥112.6B, and an Operating margin of -5.2% (prior-year +5.8%), a 1,100bp negative swing. Non-operating income totaled ¥7.3B (including interest income ¥3.5B, prior-year ¥4.5B, and foreign exchange gains ¥2.2B), while non-operating expenses including interest expense ¥8.1B (prior-year ¥6.3B) amounted to ¥34.2B, producing non-operating loss of -¥26.9B (prior-year -¥10.98B), a deterioration of ¥15.9B. The increase in interest expense reflects an increase in long-term borrowings from ¥3,122.0B to ¥3,301.1B (+¥179.1B, +5.7%), and if operating losses persist while interest-bearing debt costs remain fixed, interest coverage deterioration will accelerate. Ordinary loss was ¥79.7B (prior-year Ordinary income ¥48.9B), a deterioration of ¥128.6B. After deducting income taxes of ¥6.9B and accounting for non-controlling interests of -¥1.8B, Net loss attributable to owners of the parent was ¥84.7B (prior-year Net income ¥30.5B), and Net margin worsened 1,130bp to -8.3% (prior-year +3.0%). In conclusion, this is a revenue-down, profit-down scenario with slight Revenue decline and significant profit deterioration; rapid gross margin decline and increased fixed cost burden resulted in Operating, Ordinary, and Net losses.
【Profitability】Operating margin was -5.2% (prior-year +5.8%), a 1,100bp negative swing, and Net margin was -8.3% (prior-year +3.0%), a 1,130bp deterioration, mainly driven by the sharp decline in Gross margin (8.3%, prior-year 18.6%). ROE fell to -1.4% (prior-year +0.6%), consistent with DuPont decomposition as the product of Net margin -8.3% × Total asset turnover 0.089 (annualized 0.36 turns) × Financial leverage 1.78x. Deterioration in margins was the largest contributing factor. 【Cash Quality】Interest coverage based on Operating income is -6.49x (prior-year +9.53x), entering a warning zone and indicating reduced resilience to interest burden if operating losses continue. Operating Cash Flow (OCF) data are not disclosed, but Receivables Days (DSO) are 314 days (prior-year 321 days), Inventory Days (DIO) 1,003 days (prior-year 1,144 days), Payables Days (DPO) 148 days (prior-year 141 days), and CCC 1,169 days (prior-year 1,324 days), indicating prolonged operating working capital stagnation. This reflects the very long manufacturing cycle of high-purity silicon from raw material procurement to product shipment; during demand adjustments receivables and inventories tend to accumulate, increasing downside risk to OCF. 【Investment Efficiency】Total asset turnover is 0.089 turns/quarter (annualized 0.36 turns), low and reflecting a capital-intensive structure. Tangible fixed assets are high at ¥6,421.6B (56.2% of total assets), and fixed asset turnover is only 0.63 turns annualized. Decrease in construction in progress (-26.9%) indicates equipment completion progressing and higher depreciation burden, while lower utilization prevents fixed cost absorption. 【Financial Soundness】Equity Ratio is 56.0% (prior-year 57.5%), maintaining a healthy level; Current ratio is 335.7% (prior-year 321.1%), Quick ratio 316.3% (prior-year 302.1%), indicating high liquidity. Cash and deposits ¥794.8B plus short-term investment securities ¥305.0B total ¥1,099.8B, substantially exceeding short-term borrowings ¥435.5B, so short-term funding resilience is sufficient. Interest-bearing debt totaled ¥3,736.6B (short-term borrowings ¥435.5B + long-term borrowings ¥3,301.1B), Equity was ¥5,693.5B, and D/E ratio rose to 0.66x (prior-year 0.59x) though remaining moderate. Debt to Capital is 39.6% (prior-year 37.2%) slightly up, as increases in interest-bearing debt outpaced a slight decline in equity (prior-year ¥6,477.9B → current ¥6,404.4B, -1.1%).
OCF data are not disclosed, but indicators of working capital management allow inference of OCF quality. Inventory Days are extremely long at 1,003 days, and total inventory of ¥2,554.0B (raw materials ¥1,963.4B, work-in-process ¥321.4B, finished goods ¥269.1B) is broadly flat (prior-year ¥2,506.4B, +1.9%), but inventory is not being worked down while Revenue slightly declines, perpetuating working capital lock-up. DSO 314 days and DPO 148 days produce CCC of 1,169 days, creating structural pressure on cash outflows under operating losses. Bonus provisions increased significantly to ¥39.7B (prior-year ¥22.3B, +78.0%), a near-term cash outflow factor. Non-operating interest payments of ¥8.1B are ongoing cash outflows, and increases in long-term borrowings (+¥179.1B) have fixed interest burdens. Investing Cash Flow suggests completion-phase capital expenditure due to reduced construction in progress, but high levels of fixed assets imply continued maintenance capex needs. Financing Cash Flow is driven mainly by increases in long-term borrowings; dividend is planned at ¥10 per share, but paying dividends under Net loss will draw on cash and deposits. The liquidity buffer (Cash + short-term investments ¥1,099.8B) supports near-term dividend and interest payments, but if OCF does not return to positive, sustainability of liquidity warrants attention.
Earnings quality shows small divergence between Ordinary loss and Net loss (Ordinary loss -¥79.7B, Net loss -¥84.7B, difference -¥5.0B), indicating limited impact from extraordinary items. Income taxes of ¥6.9B were recorded despite pre-tax loss of -¥79.7B, implying utilization of deferred tax assets write-downs or tax adjustments. Of non-operating income ¥7.3B, interest income ¥3.5B is stable non-core income, and foreign exchange gains ¥2.2B appear to be temporary FX valuation gains. Detailed breakdown of non-operating expenses ¥34.2B is limited, but includes interest expense ¥8.1B and possibly FX losses and financial costs. Comprehensive income totaled -¥74.1B (owners of parent -¥70.9B, non-controlling interests -¥3.2B), an improvement relative to Net loss -¥84.7B, with Other Comprehensive Income net positive ¥12.5B (foreign currency translation adjustments ¥12.6B, deferred hedging gains ¥0.2B, actuarial adjustments related to retirement benefits -¥0.4B), where yen depreciation contributed valuation gains. From an accrual perspective, under operating losses and working capital stagnation with very slow receivables and inventory turnover, converting accounting profits to cash requires a long period. The planned dividend ¥10 will be paid under Net loss and thus sourced from retained earnings of ¥2,484.9B (prior-year ¥2,604.6B, -4.6%). There are no material one-off items; Ordinary loss directly reflects earnings quality, and non-operating FX gains and improvements in comprehensive income do not substitute for operating recovery.
Full Year / FY guidance forecasts Revenue ¥2,134.0B (prior ¥2,053.7B, YoY +3.9%), Operating loss ¥77.0B, Ordinary loss ¥144.0B, and Net loss attributable to owners of the parent ¥154.0B. As of Q1, progress rates are: Revenue 47.5% (¥1,014.0B/¥2,134.0B), Operating loss 68.5% (¥52.7B/¥77.0B), Ordinary loss 55.3% (¥79.7B/¥144.0B), Net loss 55.0% (¥84.7B/¥154.0B). Revenue progress significantly exceeds typical seasonality (Q1 ≈ ~25%), while loss progress shows first-half skew. This implies expectation of troughing of price and utilization in Q1 and gross margin recovery from improving supply-demand and rising utilization in H2. However, Operating loss progress at 68.5% remains high, and loss narrowing from Q2 onward is required to meet forecasts. Dividend guidance is ¥10 at year-end but is annotated as undecided at present and may be revised depending on performance. The guidance and dividend forecast were revised this quarter and likely are down from initial plans. Full-year Revenue increase of +3.9% is modestly positive, but plans still call for widening Operating, Ordinary, and Net losses, reflecting scenarios where normalization of gross margin and SG&A ratio is delayed. Payout ratio cannot be calculated under Net loss, but with retained earnings ¥2,484.9B and substantial liquidity, the company appears inclined to maintain minimum shareholder returns.
Dividend is planned at ¥10 at year-end in the full-year forecast but is noted as undecided at present. The prior-year also paid year-end dividend ¥10, suggesting a policy to maintain minimum dividends even under Net loss. For Q1 Net loss ¥84.7B, total dividends would be approximately ¥35B (outstanding shares 350M × ¥10), and payout ratio is not computable (Net loss), with dividends funded from retained earnings ¥2,484.9B. Retained earnings decreased ¥119.7B (-4.6%) from ¥2,604.6B to ¥2,484.9B, consistent with Net loss ¥84.7B and dividend payments. Cash and deposits ¥794.8B plus short-term investment securities ¥305.0B total ¥1,099.8B, indicating sufficient liquidity for dividend payments in the short term, but if OCF recovery is delayed, dividend sustainability becomes uncertain. No share buybacks were disclosed; Total Return Ratio consists solely of dividends. Dividend policy details are not disclosed, and balancing capex and interest-bearing debt management with shareholder returns is important in a capital-intensive business. Dividend guidance was revised this quarter, and there is a risk of further revision at year-end depending on performance.
Margin pressure from prolonged supply-demand adjustment: If supply-demand adjustment for high-purity silicon lasts longer than anticipated, wafer price declines, adverse product mix, and utilization declines could continue. Q1 Gross margin 8.3% (prior-year 18.6%, -1,030bp) amplified fixed cost absorption difficulties in this capital-intensive business and caused Operating loss ¥52.7B. With high tangible fixed assets ¥6,421.6B (56.2% of total assets), prolonged low utilization would sustain high per-unit depreciation and maintenance costs, risking downside vs. the full-year Operating loss plan ¥77.0B if H2 demand improvement is delayed.
Deterioration of interest coverage and reduced tolerance for interest burden: Under operating losses, Interest coverage is -6.49x (prior-year +9.53x) and in a warning zone, with interest expense ¥8.1B (prior-year ¥6.3B, +28.6%) further pressuring Ordinary results. Long-term borrowings ¥3,301.1B (prior-year ¥3,122.0B, +5.7%) are rising; in a rising interest rate environment interest payments could become a fixed burden and reduce financial flexibility. With interest-bearing debt ¥3,736.6B, persistent operating losses would raise refinancing and additional borrowing cost risks, affecting capacity to maintain dividends and capex.
Extremely prolonged working capital and OCF generation risk: CCC 1,169 days (prior-year 1,324 days) indicates chronic long cash conversion cycle, with Inventory Days 1,003 days and DSO 314 days demonstrating pronounced working capital lock-up. Inventory total ¥2,554.0B (prior-year ¥2,506.4B, +1.9%), mainly raw materials ¥1,963.4B, remains elevated; during demand adjustment finished goods digestion may not progress, and under operating losses working capital will absorb cash. Large increase in bonus provisions (+78.0%) is also a near-term cash outflow factor. If OCF turnaround is delayed, current liquidity buffer (Cash + short-term investments ¥1,099.8B) could be pressured in the medium term.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating margin | -5.2% | 6.8% (2.9%–9.0%) | -12.0pt |
| Net margin | -8.5% | 5.9% (3.3%–7.7%) | -14.5pt |
| The company’s profitability is well below the manufacturing median, and with Operating and Net margins in negative territory it ranks among the lowest in the sector. |
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue growth (YoY) | -1.0% | 13.2% (2.5%–28.5%) | -14.2pt |
| Revenue growth lags the sector median of +13.2%, reflecting the impact of the supply-demand adjustment. |
※Source: Company compilation
Bottoming of Gross margin and pace of H2 improvement are the key checkpoints: Q1 Gross margin 8.3% (prior-year 18.6%, -1,030bp) demonstrates fixed cost absorption difficulty in a capital-intensive business and was the main cause of Operating loss ¥52.7B. With Q1 progress of 68.5% against the full-year Operating loss plan ¥77.0B, H2 Gross margin recovery (price discipline recovery and utilization increase) is a prerequisite for plan execution. Quarterly trends in Gross margin and utilization and progress on orders and inventory digestion will be key indicators of the likelihood of H2 returning to profitability.
Interest coverage and normalization of OCF are the watershed for financial soundness: Interest coverage -6.49x and reduced resilience to interest burden under operating losses are notable, and interest expense ¥8.1B as a fixed burden further pressures Ordinary results. Prolonged working capital (CCC 1,169 days) is a headwind to OCF generation, and unless Operating profit and turnover improvements occur together, the liquidity buffer (Cash + short-term investments ¥1,099.8B) could be pressured medium-term. Quarterly trends in DIO, DSO, CCC and the sign change in OCF will be key to financial sustainability.
This report is an earnings analysis document automatically generated by AI using XBRL financial statement data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the company based on public financial data. Investment decisions are your responsibility; consult professionals as necessary before making investment decisions.