These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | YoY Period | YoY |
|---|---|---|---|
| Revenue | ¥36.72B | ¥30.88B | +18.9% |
| Operating Income | ¥5.92B | ¥4.58B | +29.2% |
| Ordinary Income | ¥6.43B | ¥4.46B | +44.1% |
| Net Income | ¥4.74B | ¥3.24B | +46.3% |
| ROE | 2.5% | 1.7% | - |
Led by the core Semiconductor Manufacturing Equipment Business, the Company posted higher revenue and profits, accompanied by improved profit margins. Revenue was ¥36.72B (¥30.88B in the prior year, +18.9%), while operating income was ¥5.92B (¥4.58B in the prior year, +29.2%), resulting in an operating margin of 16.1%, an improvement of 1.3pt from 14.8% in the prior year. Ordinary income was ¥6.43B (+44.1%), while net income attributable to owners of the parent was ¥4.67B (¥3.23B in the prior year, +44.5%), representing profit growth exceeding the rate of revenue growth. The primary drivers of profit growth were higher gross margins resulting from improved pricing and product mix and enhanced productivity in the Semiconductor Manufacturing Equipment segment. The shift from a foreign exchange loss to a foreign exchange gain in non-operating items also supported growth at the ordinary income level.
【Revenue】Revenue of ¥36.72B (+18.9%) was driven by the core Semiconductor Manufacturing Equipment segment, which generated ¥28.51B (+21.1%) and accounted for 77.7% of total Company revenue. The Metrology Business segment grew to ¥8.20B (+11.8%), although its growth rate was below that of the core business. Contract liabilities (customer advances) increased to ¥10.37B (¥6.49B in the prior year, +60.0%), indicating that the order backlog is building.
【Profit and Loss】Operating income of ¥5.92B (+29.2%) was primarily attributable to an improvement in the gross margin to 41.9% (up +1.8pt from 40.2% in the prior year), which absorbed the increase in the SG&A ratio to 25.8%. Ordinary income of ¥6.43B (+44.1%) benefited from the prior-year foreign exchange loss (▲¥0.15B) turning into a foreign exchange gain of ¥0.16B in the current period. However, the scale of non-operating income and expenses itself remained limited at approximately 1.4% of revenue, with growth in core operating income serving as the main driver. Extraordinary income and expenses were virtually absent (extraordinary income of ¥0.003B), indicating that the substance of profit growth was based on the core business. Accordingly, the results can be characterized as a margin-improvement-driven earnings performance, with both revenue and profit growth and a profit growth rate exceeding the revenue growth rate.
The Semiconductor Manufacturing Equipment segment generated revenue of ¥28.51B (+21.1%), operating income of ¥5.41B (+34.2%), and an operating margin of 19.0% (improved from 17.1% in the prior year), accounting for approximately 91.4% of total Company operating profit and serving as the primary engine of revenue and profit growth. The Metrology Business segment secured revenue growth to ¥8.20B (+11.8%), but operating income declined to ¥0.51B (-6.9%), with its operating margin remaining at 6.2% (down from 7.5% in the prior year). The difference in profit margins between the two segments (19.0% versus 6.2%) is substantial, indicating a structure in which the Company-wide margin depends on the pace of revenue growth in the Semiconductor Manufacturing Equipment segment. If profitability in the Metrology Business improves, this could provide upside potential for the Company-wide profit margin.
【Profitability】The operating margin improved to 16.1% (up +1.3pt from 14.8% in the prior year), the gross margin improved to 41.9% (up +1.8pt from 40.2% in the prior year), and the net margin attributable to owners of the parent improved to 12.7% (up +2.3pt from 10.5% in the prior year). 【Cash Quality】Comprehensive income was ¥5.31B, consisting of net income attributable to owners of the parent of ¥4.67B plus other comprehensive income of ¥0.57B, including foreign currency translation adjustments of +¥0.29B and valuation differences on available-for-sale securities of +¥0.35B. The difference from net income was small, indicating that earnings quality was generally sound. 【Investment Efficiency】Quarterly, non-annualized ROE was 2.5%, while the total asset turnover ratio was 0.146 times (quarterly), both at low levels. The accumulation of work-in-process inventory associated with long-term made-to-order equipment production is suppressing asset efficiency. 【Financial Soundness】The equity ratio was 76.4% (slightly down from 77.0% in the prior year). Interest-bearing debt was limited to ¥7.80B (short-term ¥1.30B and long-term ¥6.50B) against cash and deposits of ¥59.92B, while the current ratio was 341% (current assets of ¥174.56B / current liabilities of ¥51.14B), indicating a strong financial foundation.
As the cash flow statement has not been disclosed, cash trends are analyzed based on changes in the balance sheet. Cash and deposits increased by +¥6.85B (+12.9%) from the prior year to ¥59.92B, strengthening liquidity. This appears to reflect the cash collection and customer advance effects arising from the reduction in accounts receivable and notes receivable to ¥32.22B from ¥42.52B in the prior year, a decrease of -¥10.31B (-24.2%), and the increase in contract liabilities (customer advances) to ¥10.37B, up +¥3.89B (+60.0%). Meanwhile, work-in-process inventory increased by +¥5.27B (+13.0%) to ¥45.64B, resulting in funds being tied up in investment associated with the progress of long-lead-time equipment projects. Long-term borrowings decreased by -¥1.50B (-18.8%) to ¥6.50B from ¥8.00B in the prior year, indicating that interest-bearing debt reduction is progressing alongside the increase in cash. Overall, the accumulation of customer advances and collection of accounts receivable are supporting cash generation, while the increase in work-in-process inventory is slowing cash turnover. The progress of converting WIP into cash as orders are completed will determine future capital efficiency.
Profit growth in the current period was almost entirely derived from the core business, and earnings quality can generally be assessed as sound. The ¥1.76B difference between ordinary income of ¥6.43B and net income attributable to owners of the parent of ¥4.67B can be explained by income taxes of ¥1.70B and net income attributable to non-controlling interests of ¥0.07B, with no unusual adjustment factors identified. Non-operating income of ¥0.58B (including dividend income of ¥0.05B, foreign exchange gains of ¥0.16B, and gains on investment business partnerships of ¥0.05B) was limited to 1.6% of revenue. The increase in ordinary income therefore reflects operating income growth (+29.2%) supplemented by a modest non-operating tailwind. Extraordinary items consisted only of extraordinary income of ¥0.003B and had no material impact, indicating that profit growth was not driven by temporary factors. Comprehensive income of ¥5.31B was close to net income of ¥4.67B, and fluctuations in other comprehensive income, such as foreign currency translation adjustments and valuation differences on securities, were limited. From an accrual perspective as well, no signs were identified that would undermine earnings sustainability.
The full-year earnings forecast is revenue of ¥189.00B (+13.3%), operating income of ¥44.00B (+30.4%), and ordinary income of ¥44.00B (+26.3%). As of this disclosure, revisions have been made to both the earnings forecast and the dividend forecast. The Q1 progress rates were 19.4% for revenue, 13.5% for operating income, 14.6% for ordinary income, and 15.2% for net income (attributable to owners of the parent, versus the full-year plan of ¥30.80B), all below the 25% benchmark for simple quarterly straight-line progress. In the equipment business, acceptance inspections and mass-production ramp-ups tend to be weighted toward the second half. The 60.0% year-on-year increase in contract liabilities (customer advances) can be viewed as a leading indicator of the depth of orders supporting revenue recognition in the second half. The key issue going forward will be determining whether the apparently low progress rates are merely due to timing differences within the fiscal year or reflect a structural downside.
The full-year dividend forecast is ¥304 per share, implying an expected payout ratio of approximately 40.1% (¥304 ÷ ¥758.83) against the full-year EPS forecast of ¥758.83. Interest-bearing debt was limited to ¥7.80B against cash and deposits of ¥59.92B, resulting in net cash of ¥52.12B. From the perspective of securing funds for dividends, the Company therefore has substantial financial support. The dividend forecast was revised in this disclosure, which may reflect a revision incorporating the profit growth recorded in Q1. Going forward, cash generation from operating activities as orders are completed will be a factor determining the stability of dividend funding throughout the full year.
Segment concentration risk: The Semiconductor Manufacturing Equipment segment accounts for 77.7% of revenue (¥28.51B/¥36.72B) and 91.4% of operating income (¥5.41B/¥5.92B), creating a structure in which fluctuations in semiconductor-related capital investment trends are likely to affect overall results.
Working capital efficiency: Work-in-process inventory of ¥45.64B accounts for 62.5% of total inventories (approximately ¥73.02B, comprising raw materials, work-in-process, and finished goods), while accounts receivable and notes receivable of ¥32.22B are equivalent to 87.7% of quarterly revenue. These figures reflect the long order-to-acceptance cycle for made-to-order equipment, making the time lag before cash conversion an item requiring monitoring.
Foreign exchange sensitivity: The foreign exchange gain of ¥0.16B included in non-operating income represented a reversal from the foreign exchange loss in the prior year and supported part of the +44.1% growth in ordinary income. Although specific sensitivity data has not been disclosed, given the characteristics of the equipment business, which is believed to have a certain level of overseas project exposure, fluctuations in the yen exchange rate could affect future non-operating income and expenses.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 16.1% | 8.7% (4.2%–14.2%) | +7.4pt |
| Net Margin | 12.9% | 7.0% (3.2%–10.6%) | +5.9pt |
Both the operating margin and net margin significantly exceed the industry median, placing the Company among the higher-performing companies in the industry in terms of profitability.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 18.9% | 6.2% (-1.1%–14.6%) | +12.7pt |
The revenue growth rate also significantly exceeds the industry median, placing the Company among the industry’s leading group in terms of growth.
※Source: Compiled by the Company
Revenue and profit growth in the Semiconductor Manufacturing Equipment segment and the expansion of its operating margin to 19.0% led the improvement in the Company-wide profit margin. Contract liabilities (customer advances) increased to ¥10.37B (¥6.49B in the prior year, +60.0%), attracting attention as a leading indicator of order depth.
The full-year progress rates of 19.4% for revenue and 13.5% for operating income were below simple quarterly straight-line progress of 25%. However, the equipment business may be weighted toward the second half due to concentrated acceptance inspections, and the evaluation of progress rates should account for quarterly seasonality.
With an equity ratio of 76.4%, cash and deposits of ¥59.92B against interest-bearing debt of ¥7.80B, and a high level of financial soundness, the funds for the full-year dividend forecast of ¥304 (expected payout ratio of approximately 40.1%) appear to be secured.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit 5-year fade). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥5,701 |
| base | ¥6,062 |
| bull | ¥6,185 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥4,732 |
| Adjusted Forecast EPS | ¥872.6 |
| Cost of Equity r | 9.15% (10-year government bond 2.65% + equity risk premium 6.00% + size premium 0.50%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 40.1% |
| Forecast EPS Confidence Adjustment | ×1.150 (based on the Company’s historical track record of achieving its guidance) |
| Implied PBR / PER |
Sensitivity: ¥5,892–¥6,241 at ±1% for the cost of equity, and ¥6,029–¥6,113 at ±0.1 for ω.
Notes:
(Calculation model: Residual Income Model / Interest Rate Reference Month: 2026-06 / This value does not forecast or guarantee the future share price)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings summary data. It does not recommend investment in any specific issue. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, after consulting with a professional as necessary.
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| 1.28x / 6.9x |