| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥87.1B | - | +55.2% |
| Operating Income / Operating Profit | ¥15.7B | - | +52.1% |
| Ordinary Income | ¥14.7B | - | +54.9% |
| Net Income / Net Profit | ¥16.7B | - | - |
| ROE | 17.4% | - | - |
For the six months ended August 2026 (Q2), Marumae reported Revenue of ¥87.1B (YoY +¥31.4B, +55.2%), Operating Income of ¥15.7B (YoY +¥8.2B, +52.1%), Ordinary Income of ¥14.7B (YoY +¥5.2B, +54.9%), and Net Income of ¥16.7B (YoY +¥8.3B, +99.1%), achieving strong top- and bottom-line growth. Revenue expansion was driven by semiconductor manufacturing equipment, IT equipment, and base materials, and the M&A of KM Aluminum completed in the prior year also contributed materially. Operating margin remained high at 18.0%, and Net Income nearly doubled due to recognition of subsidy income of ¥10.1B (special gain). Gross margin was 31.6% and SG&A ratio 13.6%, reflecting a healthy profit structure; excluding special gains, the ordinary-level profit still increased by over 50% YoY, indicating core business strength.
Revenue expansion to ¥87.1B (YoY +55.2%) was realized by both the Precision Components Business at ¥39.3B (sales mix 45.1%) and the Functional Materials Business at ¥47.8B (sales mix 54.9%). By product, semiconductor manufacturing equipment ¥33.1B, base materials ¥22.1B, and IT equipment ¥17.4B were primary revenue sources, with particularly pronounced demand growth for semiconductor equipment and IT equipment. KM Aluminum was consolidated as a subsidiary in Q3 of the prior year and the Functional Materials Business was added as a reportable segment, expanding the revenue mix centered on base materials. Gross margin of 31.6% (gross profit ¥27.6B) was maintained at prior-year levels; the ¥11.9B increase in SG&A costs was lower than revenue growth, resulting in Operating Income of ¥15.7B (Operating margin 18.0%). Non-operating expenses included interest expense of ¥1.2B as the main item, leading to Ordinary Income of ¥14.7B (Ordinary margin 16.9%). A special gain of subsidy income ¥10.1B was recorded, producing Profit Before Tax of ¥24.8B; after deducting corporate taxes of ¥8.1B, Net Income was ¥16.7B (Net margin 19.2%). The large increase in Net Income is mainly attributable to the temporary subsidy income, while the +54.9% increase at the ordinary level reflects core business profitability. In conclusion, growth was supported by M&A effects and expanding semiconductor-related demand, sustaining high margins at the operating level while benefiting from scale.
The Precision Components Business recorded Revenue of ¥39.3B and Operating Income of ¥8.3B (margin 21.0%), serving as the primary high-profit segment. Key products were semiconductor manufacturing equipment ¥33.1B and FPD manufacturing equipment ¥4.4B, with sales rising in line with equipment market demand. The Functional Materials Business recorded Revenue of ¥47.8B and Operating Income of ¥7.4B (margin 15.6%), representing the company’s largest business by revenue. Key products were IT equipment ¥17.4B, base materials ¥22.1B, and semiconductor equipment components ¥8.2B, with substantial contribution from base materials following the prior-year acquisition of KM Aluminum. Profitability: Precision Components outperformed Functional Materials by 5.4 percentage points, indicating superior margin profile. The sum of segment profits equals the company Operating Income of ¥15.7B, and corporate adjustments were minimal.
Profitability metrics were high: ROE 17.4%, ROA 6.3%, Operating margin 18.0%, Net margin 19.2%. ROE is decomposed as Net margin 19.2% × Asset Turnover 0.33x × Financial Leverage 2.76x, with the YoY rise mainly driven by the large improvement in Net margin. Operating margin of 18.0% slightly declined from the prior-year estimate of 18.4%, indicating limited operating leverage benefit amid scale expansion. Gross margin of 31.6% is healthy, but an increase in SG&A ratio to 13.6% constrained further Operating margin expansion. Cash quality: Operating Cash Flow (OCF) of ¥15.6B was roughly correlated with Net Income of ¥16.7B at 0.93x, but OCF/EBITDA ratio of 0.73x (EBITDA ¥21.2B = Operating Income ¥15.7B + Depreciation ¥5.5B) indicates room for improvement. OCF generation was weighed down by working capital absorption from inventories up ¥2.4B and trade receivables up ¥1.7B, partially offset by trade payables up ¥3.1B. Investment efficiency: Asset Turnover at 0.33x remained similar to the prior year, showing no material improvement in asset efficiency. Interest coverage was 13.5x (Operating Income ¥15.7B / Interest Expense ¥1.2B), a sufficient level indicating resilience to interest burden. Financial soundness improved with Equity Ratio 36.2% (prior 32.1%), Current Ratio 234%, and Quick Ratio 229% showing strong short-term liquidity. Long-term borrowings of ¥113.2B produced Debt/EBITDA of 5.4x, which is somewhat high and leaves leverage concerns. Goodwill of ¥45.5B represents 47.3% of Net Assets ¥96.2B, making the sustainability of M&A benefits a key assumption.
OCF generated ¥15.6B. From Profit Before Tax ¥24.8B, non-cash additions included Depreciation ¥5.5B and Goodwill amortization ¥1.5B, while inventory increase ¥2.4B, trade receivables increase ¥1.7B, and decrease in accrued corporate tax ¥0.1B were working capital absorptions. Trade payables increase ¥3.1B provided cash, leaving pre-tax working capital-adjusted OCF subtotal of ¥22.5B; after paying corporate tax ¥6.0B, OCF landed at ¥15.6B. Investing Cash Flow was a net inflow of ¥4.6B, mainly due to subsidy receipts ¥9.6B exceeding capital expenditures of ¥4.9B. Free Cash Flow was ¥20.2B (OCF ¥15.6B + Investing CF ¥4.6B), ample and far exceeding dividend payments of ¥3.2B. Financing Cash Flow was a net outflow of ¥11.5B, mainly from long-term debt repayments ¥6.8B, short-term debt repayments ¥1.5B, and dividend payments ¥3.2B. Ending cash was ¥51.2B, up ¥8.7B from beginning cash ¥42.5B, with subsidy receipts and OCF contributing to the increase. OCF/Net Income at 0.93x is generally favorable, but increases in inventory and receivables leave room to improve cash conversion. In H2, normalizing working capital efficiency—particularly compressing work-in-progress (WIP) at ¥18.2B, which is 60.6% of inventories—will be key to additional cash generation.
Net Income ¥16.7B exceeded Ordinary Income ¥14.7B by 14%, mainly due to special gain subsidy income ¥10.1B. Non-operating income ¥0.2B was negligible relative to Revenue (<0.2%), comprised mainly of interest income ¥0.1B and other non-operating income ¥0.1B. Foreign exchange gains included in non-operating income were ¥0.0B and had minimal impact, indicating low earnings sensitivity to FX. Non-operating expenses ¥1.2B were almost entirely interest expense ¥1.2B, reflecting structural interest burden from long-term borrowings ¥113.2B. The special gain ¥10.1B accounted for 60% of Net Income, indicating high dependence on one-off items. The subsidy income relates to public support for capital expenditures and R&D, and its repeatability in subsequent periods is limited. OCF ¥15.6B relative to Net Income ¥16.7B at 0.93x suggests accrual quality is broadly sound, but working capital deterioration from higher inventories and receivables suppressed cash generation. Core earning power is summarized by Operating margin 18.0% and Ordinary margin 16.9%; evaluation of sustainable profitability should be based on ordinary-level profit excluding special gains.
Full Year / FY guidance remains unchanged at Revenue ¥177.0B (YoY +55.2%), Operating Income ¥32.0B (YoY +52.1%), Ordinary Income ¥30.0B (YoY +54.9%), and Net Income ¥27.0B (EPS forecast ¥106.55). Progress against the H1 cumulative results is roughly on plan: Revenue 49.2%, Operating Income 49.0%, Ordinary Income 49.0%; Net Income is front-loaded at 61.9% due to subsidy income of ¥10.1B recognized in the period, and the company does not appear to assume an equivalent one-off gain in the full-year forecast. The company revised dividend guidance in Q2, raising the year-end dividend to ¥19 per share (annual dividend ¥19). Note that a 2-for-1 stock split was implemented as of April 1, 2026, and the year-end dividend guidance is stated on a post-split basis. In H2, normalizing inventory turnover and improving working capital efficiency will focus attention on OCF-driven cash generation. Overall progress is broadly satisfactory, but Net Income should be monitored for reversion due to one-off effects.
Through the end of Q2, dividends paid totaled annualized ¥38 per share; the dividend payout ratio against H1 cumulative Net Income ¥16.7B was 57.5% (total dividends ¥9.6B / Net Income ¥16.7B). Dividend payment relative to Free Cash Flow ¥20.2B was 15.8%, yielding FCF coverage of 6.3x and indicating ample capacity. Full-year dividend guidance is ¥19 per share; considering the stock split (1 share → 2 shares), this equates to ¥38 pre-split and represents a net increase versus the prior year dividend of ¥30 (annualized ¥15 × 2), i.e., an effective increase. The dividend payout ratio versus Full Year Net Income forecast ¥27.0B is approximately 36% (total dividends approx. ¥9.6B / Net Income ¥27.0B), a sustainable level. No share buyback was indicated; shareholder returns are solely via dividends. Dividend policy reflects stable returns aligned with profit growth, and if OCF-driven cash generation continues, dividend sustainability is high.
First, demand volatility in the semiconductor and IT equipment markets is a primary risk. The Precision Components Business depends heavily on semiconductor manufacturing equipment for the majority of its revenue, and the Functional Materials Business derives roughly 54% from IT equipment and semiconductor equipment components. A downturn in semiconductor market conditions could reduce equipment investment and cause a substantial revenue downside. Second, high leverage constrains financial flexibility. Long-term borrowings ¥113.2B result in Debt/EBITDA 5.4x, and in a rising interest-rate environment interest expense would increase and compress earnings. Goodwill ¥45.5B (47.3% of Net Assets) raises impairment risk if M&A outcomes underperform. Third, worsening working capital efficiency would impede cash generation. WIP ¥18.2B comprises 60% of inventories, and trade receivables ¥25.7B are trending upward; concurrent inventory build-up and delayed collections would reduce Free Cash Flow. Receivables turnover days 108 days, inventory turnover days 184 days, and cash conversion cycle 188 days all have room for improvement; persistent deterioration in capital efficiency would constrain investment capacity and dividend resources.
Marumae’s financial position within the precision components & functional materials manufacturing industry is summarized below (reference data compiled by the company). Operating margin 18.0% significantly exceeds the industry median 8.8% (IQR: 3.0%–11.0%), placing the company high in the industry on profitability. Net margin 19.2% also substantially exceeds the industry median 5.4% (IQR: 1.1%–8.2%), though excluding special gains the ordinary-level margin is 16.9%, which still surpasses the industry average. Revenue growth +55.2% far outpaced the industry median +11.7% (IQR: -5.4%–+28.3%), reflecting both M&A effects and market demand expansion. ROE 17.4% well exceeds the industry median 4.4% (IQR: 1.4%–8.7%), indicating outstanding capital efficiency. Conversely, Equity Ratio 36.2% is below the industry median 48.6% (IQR: 26.7%–65.2%), and Financial Leverage 2.76x exceeds the industry median 1.72x (IQR: 1.51–3.63). Net Debt/EBITDA 5.4x is below the industry median 15.35x (IQR: 7.23–75.76), but leverage remains somewhat elevated relative to peers, implying lower financial flexibility. Cash conversion rate 0.73x is below the industry median 0.91x (IQR: -1.33–1.19), suggesting scope to improve cash realization. Inventory turnover days 184 days and receivables turnover days 108 days are both below industry medians (inventory 260.58 days, receivables 105.08 days), indicating relatively favorable working capital efficiency. Overall, the company ranks highly on profitability and growth but has room for improvement in financial solidity and cash generation efficiency.
Key takeaways from the results are as follows. First, the coexistence of a high Operating margin 18.0% and Revenue growth +55.2% demonstrates maintenance of profitability despite scale expansion. Precision Components’ margin of 21.0% is particularly high, reflecting technological capabilities and value-added positioning. Second, the large rise in Net Income (+99.1%) depends on one-off subsidy income ¥10.1B, so sustainable earnings assessment should rely on the ordinary-level increase of +54.9%. As subsidy income likely subsides in H2, normalization of Net Income growth will be a focus. Third, deterioration in working capital efficiency has constrained cash generation; compressing WIP ¥18.2B (60.6% of inventories) and accelerating receivable collections are important priorities for the next period. OCF/Net Income 0.93x and OCF/EBITDA 0.73x indicate room for improvement; normalizing inventory turnover and collection terms will be key to additional cash generation and leverage reduction. Dividend policy is stable, and if FCF generation is sustained, dividend continuity is likely.
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 particular security. Industry benchmarks are reference information compiled by the company from publicly disclosed financial statements. Investment decisions should be made at your own responsibility and, where appropriate, after consulting a professional advisor.