| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥3494.8B | ¥3430.7B | +1.9% |
| 営業利益 | ¥370.2B | ¥299.7B | +23.5% |
| 経常利益 | ¥382.0B | ¥295.9B | +29.1% |
| 純利益 | ¥127.9B | ¥316.8B | -59.6% |
| ROE | 4.3% | 11.6% | - |
For the fiscal year ended March 2026, revenue was ¥3,494.8B (YoY +¥64.0B +1.9%), Operating Income was ¥370.2B (YoY +¥70.5B +23.5%), Ordinary Income was ¥382.0B (YoY +¥86.1B +29.1%), and Net Income was ¥127.9B (YoY -¥188.9B -59.6%). At the operating level, expansion in Electronic Advanced Materials revenue and an improvement in gross margin to 35.8% (from 31.5% last year, +4.3pt) produced an operating margin of 10.6%, up from 8.7% (+1.9pt). Ordinary Income also grew, supported by equity-method investment gains of ¥16.1B, but Net Income declined YoY due to a high effective tax rate of 38.2% and special losses of ¥60.5B (including impairment losses of ¥14.3B) exceeding special gains of ¥43.1B.
[Revenue] Revenue amounted to ¥3,494.8B (YoY +1.9%), a slight increase. By segment, Electronic Advanced Materials was ¥916.8B (+5.3%)—up due to a recovery in semiconductor-related demand; Life Sciences was ¥493.9B (+17.7%)—double-digit growth driven by expansion of in vitro diagnostics and medical devices; Cement was ¥668.8B (+3.4%)—higher due to price pass-through progress; Environmental Business was ¥61.3B (+17.5%)—growth from expanded resource recycling. Conversely, Chemicals was ¥1,062.3B (-7.6%)—down on softer market conditions, and Others was ¥417.1B (+2.3%), roughly flat. By region, Japan was ¥2,575.9B (73.7% of total), Asia ¥681.4B (19.5%), and Other ¥237.5B (6.8%), indicating a domestic-heavy revenue base.
[Profitability] Operating Income was ¥370.2B (YoY +23.5%), a substantial increase. Gross profit was ¥1,249.5B (gross margin 35.8%), up ¥168.1B from ¥1,081.4B (31.5%) last year, with gross margin improving by +4.3pt. The main drivers were product mix improvement and pricing in Electronic Advanced Materials and price pass-through in Cement. Selling, General & Administrative expenses (SG&A) were ¥879.3B (SG&A ratio 25.2%), up ¥97.5B (+12.5%) from ¥781.8B last year—an increase exceeding revenue growth of +1.9%—but the expanded gross profit absorbed this. Non-operating income/expense contributed a net +¥11.9B, comprising dividend income ¥6.5B, interest income ¥3.6B, and equity-method investment income ¥16.1B, against interest expense ¥14.2B, keeping the burden limited; Ordinary Income reached ¥382.0B (+29.1%). Extraordinary items netted -¥17.4B: special gains ¥43.1B (including gain on sale of investment securities ¥18.8B and gain on sales of fixed assets ¥8.0B) were outweighed by special losses ¥60.5B (including impairment losses ¥14.3B). Profit before tax was ¥364.6B (+16.4%), but high tax expense total ¥139.2B (effective tax rate 38.2%) led to Net Income attributable to owners of the parent of ¥127.9B (-59.6%). In summary, the company achieved revenue and operating income growth, but Net Income declined due to tax burden and one-off losses.
Chemicals: Revenue ¥1,062.3B (-7.6%), Operating Income ¥97.0B (-10.4%), margin 9.1%—decline due to softer market conditions for caustic soda and others.
Cement: Revenue ¥668.8B (+3.4%), Operating Income ¥95.4B (+27.9%), margin 14.3%—growth and margin improvement (+2.8pt from 11.5%) driven by price pass-through.
Electronic Advanced Materials: Revenue ¥916.8B (+5.3%), Operating Income ¥156.8B (+63.6%), margin 17.1%—large profit increase from semiconductor demand recovery and improved mix toward high value-added products; margin improved +6.1pt from 11.0%, making it the largest profit contributor company-wide.
Life Sciences: Revenue ¥493.9B (+17.7%), Operating Income ¥78.3B (+0.2%), margin 15.9%—revenue grew but profit only marginally increased; margin down -2.7pt from 18.6% last year.
Environmental Business: Revenue ¥61.3B (+17.5%), Operating Income ¥6.5B (+1,159.6%), margin 10.7%—returned to operating profitability from a low base.
Others: Revenue ¥417.1B (+2.3%), Operating Income ¥20.3B (-6.2%), margin 4.9%.
[Profitability] Operating margin was 10.6%, up +1.9pt from 8.7% last year, driven by expansion of gross margin to 35.8% (up +4.3pt from 31.5%). ROE was 4.3%; DuPont decomposition is Net Profit Margin 3.7% × Total Asset Turnover 0.627 × Financial Leverage 1.87. With EBIT of ¥370.2B and Total Assets of ¥5,574.3B, ROA (EBIT/Total Assets) was 6.6%. [Cash Quality] Operating Cash Flow (OCF) was ¥509.9B, 3.98x Net Income (¥127.9B), indicating high quality; accrual ratio was -5.2%, favorable. From OCF subtotal ¥565.0B, excluding depreciation ¥209.5B, adjusted profit level was ¥355.5B, and OCF exceeded this after non-cash adjustments. [Investment Efficiency] Total Asset Turnover was 0.627x, down from 0.721x last year, impacted by asset increases from M&A. Capital expenditures were ¥291.1B against depreciation of ¥209.5B, with a CapEx/Depreciation ratio of 1.39x, indicating a growth investment phase. Work-in-process ¥229.3B and construction in progress ¥300.4B total ¥529.7B, showing depth of the investment pipeline. [Balance Sheet Soundness] Equity Ratio was 53.4%, down from 57.5% last year, but current ratio 174.6% and quick ratio 152.9% indicate solid liquidity. Interest-bearing debt (short-term borrowings ¥58.8B + CP ¥180.0B + bonds maturing within 1 year ¥100.0B + bonds ¥250.0B + long-term borrowings ¥924.5B) totaled ¥1,513.3B. EBITDA (Operating Income ¥370.2B + Depreciation ¥209.5B) was ¥579.7B, yielding Debt/EBITDA of 2.61x. Interest coverage was comfortable at Operating Income ¥370.2B ÷ Interest Expense ¥14.2B = 26.1x.
OCF was ¥509.9B (YoY -2.6%)—almost flat from ¥523.7B last year. OCF subtotal ¥565.0B less changes in working capital -¥55.1B (inventory decrease +¥1.8B, trade receivables decrease +¥22.2B, trade payables decrease -¥51.8B, other -¥27.3B) produces the figure. Investing Cash Flow was a large outflow of -¥1,229.8B, mainly due to a major M&A—acquisition of subsidiary shares -¥777.1B—and capital expenditures -¥291.1B, expanding investment scale from -¥234.8B last year. Financing Cash Flow was an inflow of ¥417.9B, mainly due to long-term borrowings raised ¥360.2B and bond issuance ¥199.1B, absorbing dividend payments -¥79.2B and long-term borrowings repayments -¥31.2B. Free Cash Flow was OCF ¥509.9B + Investing CF -¥1,229.8B = -¥719.9B, a substantial negative driven mainly by M&A and growth investments. Cash and deposits decreased by ¥283.5B to ¥471.9B, a 37.5% decline from ¥755.4B last year. Base FCF (OCF - CapEx) was ¥218.8B, sufficient to cover dividends of ¥79.2B; improving working capital efficiency is key to future cash generation.
With Operating Income ¥370.2B and non-operating net +¥11.9B, Ordinary Income totaled ¥382.0B, indicating a stable ordinary earnings base. Non-operating income of ¥78.8B (2.3% of revenue) includes dividend income ¥6.5B, interest income ¥3.6B, and equity-method investment income ¥16.1B, while non-operating expenses were ¥66.9B (including interest expense ¥14.2B), resulting in limited net contribution. Extraordinary items netted -¥17.4B (equivalent to -13.6% of Net Income), with special gains ¥43.1B (gain on sale of investment securities ¥18.8B, gain on sale of fixed assets ¥8.0B, etc.) offset by special losses ¥60.5B (impairment losses ¥14.3B, loss on disposal of fixed assets ¥0.2B, etc.). The gap between Ordinary Income ¥382.0B and Net Income ¥127.9B (-66.5%) is primarily due to high effective tax rate of 38.2% (taxes ¥139.2B) and net special losses -¥17.4B. OCF ¥509.9B ÷ EBITDA ¥579.7B = 0.88x, slightly below benchmark, suggesting impact from working capital increases (DSO 79 days, DIO 121 days). The accrual ratio of -5.2% is favorable and indicates high cash conversion of earnings, but caution is warranted regarding Net Income quality due to tax burden and one-off losses.
Annual dividend is ¥120 (interim ¥60, year-end ¥60), up ¥70 from ¥50 last year. Based on 72,088 thousand shares outstanding (treasury stock 143 thousand shares), total dividends amount to approximately ¥8.65B. Actual dividend payments were ¥7.92B, and the payout ratio relative to Net Income attributable to owners of the parent ¥127.9B is 61.9%. Free Cash Flow of -¥719.9B yields a negative dividend coverage, but this is mainly due to one-off M&A and growth investments; base FCF of ¥218.8B is sufficient to cover dividends. No share buyback is noted; shareholder returns are dividend-centric. The payout ratio of 61.9% is, on the face of it, within a sustainable range relative to earnings, but a flexible dividend policy will be required considering future investment cadence and goodwill amortization burden.
Semiconductor and advanced materials demand volatility risk: The Electronic Advanced Materials segment accounts for Operating Income ¥156.8B (42.4% of company total); a downside to the semiconductor cycle would materially affect company earnings. Although this segment’s margin improved to 17.1% from 11.0% (+6.1pt), the business remains highly sensitive to demand swings.
Working capital efficiency deterioration risk: DSO 79 days, DIO 121 days, CCC 131 days indicate an extended working capital cycle. Inventory buildup of ¥74,35.0B (Products ¥26,30.0B, Raw materials ¥25,12.0B, Work-in-process ¥22,93.0B)—note: figures presented as stated in source—carries obsolescence and impairment risk and can pressure OCF generation. Changes in working capital reduced OCF subtotal by -¥55.1B, so efficiency improvement is a key challenge.
Tax burden and goodwill amortization risk: A high effective tax rate of 38.2% is pressuring Net Income—taxes of ¥139.2B were recorded against Pre-tax Profit ¥364.6B (tax burden factor 0.609). Additionally, goodwill surged to ¥586.5B (from ¥0.7B last year, +84,894%), driven by large M&A, introducing goodwill amortization under JGAAP and future impairment risk that may increase earnings volatility. Goodwill/EBITDA is 1.01x and goodwill/Net Assets is 19.7%—currently within acceptable range but requiring ongoing monitoring.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 10.6% | 7.8% (4.6%–12.3%) | +2.8pt |
| 純利益率 | 3.7% | 5.2% (2.3%–8.2%) | -1.5pt |
Operating margin outperforms the industry median of 7.8% by +2.8pt, indicating top-tier profitability within manufacturing, but Net Profit margin of 3.7% lags the median 5.2% by -1.5pt, reflecting the impact of tax burden and one-off losses.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 1.9% | 3.7% (-0.4%–9.3%) | -1.8pt |
Revenue growth of 1.9% is -1.8pt below the industry median 3.7%, indicating a somewhat conservative growth pace relative to peers.
※Source: Company compilation
Expansion in Electronic Advanced Materials revenue and improvement in gross margin enabled an operating margin of 10.6%, up +1.9pt from 8.7% last year. Electronic Advanced Materials Operating Income ¥156.8B (+63.6%) accounted for 42.4% of company-wide profits, with semiconductor demand recovery as the revenue driver. Conversely, Chemicals declined due to softer market conditions, highlighting momentum divergence across segments.
Large M&A (acquisition of subsidiary shares ¥777.1B) and aggressive CapEx (¥291.1B) have strengthened the growth base, shifting asset composition to Goodwill ¥586.5B, Intangible Assets ¥632.2B, and Construction in Progress ¥300.4B. With Debt/EBITDA 2.61x, Interest Coverage 26.1x, and Current Ratio 174.6%, financial resilience is maintained; however, goodwill amortization burden and working capital efficiency (CCC 131 days) are key to future cash generation improvement.
Net Income fell YoY by 59.6% due to high effective tax rate of 38.2% and special losses ¥60.5B, making the payout ratio 61.9% appear high on the surface. Base FCF ¥218.8B sufficiently covers dividends ¥7.92B, but normalizing tax rate and monitoring goodwill amortization effects are important for earnings stability.
This report is an earnings analysis document automatically generated by AI from 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 publicly available financial statements. Investment decisions should be made at your own responsibility, and, if necessary, after consulting a professional advisor.