Worth reading
82Important
Scored from 4 of 6 sectionsDirection
Improvement
Direction inferred from the company’s description.Scale
629
Millions of yen (year-on-year increase in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials on financial resultsFirst quarter of the fiscal year ending December 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥19,153 million+8.7%
Operating profit¥3,630 million+21.0%
Ordinary income¥4,247 million+30.6%
Net income¥1,926 million +12.2%profit attributable to owners of the parent
Selling, general and administrative expenses¥2,546 millions; SG&A expenses as a percentage of net sales were approximately 13.3%
Gross Profit Margin32.2%, an improvement of approximately 2.0 percentage points year on year (gross profit increased 16.1% and net sales increased 8.7%)
Operating profit margin19.0%, an improvement of 2.0 percentage points year on year
Results for the three months of the current quarterFor the consolidated first quarter, net sales were ¥19,153 million, operating income was ¥3,630 million, ordinary income was ¥4,247 million, and quarterly net income attributable to owners of the parent was ¥1,926 million. The presentation also includes quarterly results charts by segment.
Full-year earnings forecastNet sales of ¥84,000 million, operating income of ¥15,400 million, an operating margin of 18.3%, ordinary income of ¥17,200 million, an ordinary income margin of 20.5%, and net income attributable to owners of the parent of ¥10,000 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Government subsidy income: ¥328 million to ¥310 million; foreign exchange gains: ¥0 million to ¥262 million; foreign exchange losses: ¥185 million to ¥0 million; equity in losses of affiliates accounted for under the equity method: ¥210 million to ¥270 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The semiconductor market is projected to grow at a CAGR of approximately 8% from 2025 to 2030, reaching US$1 trillion in 2029. Demand in China's 12-inch market is projected to exceed 4 million wafers per month in 2030.New initiatives
Focused investment during 2026–2028; restarting operations at the Sanbongi No. 7 Plant; acquiring the Tainan No. 2 Plant; investment in reclaimed wafer plants; expanding production capacity for 8-inch and 12-inch Prime Wafers; pursuing M&A from 2027 onward; and strengthening investor relations activitiesKey KPIsA metric the company considers important as a management benchmark.
The Wafer Reclamation Business has an approximately 31% global share. Reclaimed wafer production capacity is expected to reach approximately 1.19 million wafers per month by 2028. GRITEK's share of China's 8-inch market was 18% in 2025–2026; the target share of China's 12-inch market is 7%, and the target share of China's 8-inch market is 20% from 2027 onward.Unit price and quantity metricsThese figures show sales broken down by price and volume.
For the Wafer Reclamation Business, the presentation describes the revenue structure in terms of processing price × wafers shipped and sales price × wafers sold. Specific price figures: not disclosedSegment results
Wafer Reclamation Business: net sales of ¥7,038 million, up 6.4% year on year; operating income of ¥2,710 million, up 14.0%; operating margin of 38.5%, up 2.5 percentage points. Prime Wafer Manufacturing and Sales Business: net sales of ¥6,352 million, up 31.9%; operating income of ¥1,329 million, up 21.9%; operating margin of 20.9%, down 1.7 percentage points. Semiconductor-Related Equipment and Components Business: net sales of ¥6,384 million, down 1.2%; operating income of ¥240 million, up 2,900.0%; operating margin of 3.8%, up 3.7 percentage points.Medium-term management plan targets
Targets for 2026–2028 include 2028 net sales of ¥115,000 million, operating income of ¥19,000 million, ordinary income of ¥20,000 million, and net income attributable to owners of the parent of ¥13,000 million. ROIC of at least 11% and ROE of at least 13%. The 2026 budget calls for net sales of ¥84,000 million and operating income of ¥15,400 million.Financial targets
ROIC of at least 11% and ROE of at least 13%. Actual results for 2025 were ROIC of 10.8% and ROE of 12.5%. WACC was 9.0% and the cost of equity was 10.5%.Market Size / Share
The global semiconductor market is expected to reach US$1 trillion in 2029, with a CAGR of approximately 8% from 2025 to 2030. The Wafer Reclamation Business has an approximately 31% global share. The silicon wafer market exceeds ¥2 trillion.Capital expenditures
Wafer Reclamation Business: ¥40.5 billion; research and development: ¥2.7 billion; 8-inch Prime Wafers: ¥3.8 billion; self-consumption solar power generation: ¥4.0 billion; energy business: ¥6.0 billion
Annual Dividend
¥45 per share for fiscal 2025 (the breakdown between the interim and year-end dividends: not disclosed); projected at ¥55 per share for fiscal 2026Payout ratio
12.8% for fiscal 2025. The total payout ratio was 12.8% for fiscal 2025 and is projected at 14.6% for fiscal 2026.| Item | Details |
|---|---|
| Document type | Presentation materials on financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Net Sales | ¥19,153 million (YoY +8.7%) |
| Operating profit | ¥3,630 million (YoY +21.0%) |
| Ordinary income | ¥4,247 million (YoY +30.6%) |
| Net income | ¥1,926 million (profit attributable to owners of the parent) (YoY +12.2%) |
| Gross Profit Margin | 32.2%, an improvement of approximately 2.0 percentage points year on year (gross profit increased 16.1% and net sales increased 8.7%) |
| Operating profit margin | 19.0%, an improvement of 2.0 percentage points year on year |
| Selling, general and administrative expenses | ¥2,546 millions; SG&A expenses as a percentage of net sales were approximately 13.3% |
| Results for the three months of the current quarter | For the consolidated first quarter, net sales were ¥19,153 million, operating income was ¥3,630 million, ordinary income was ¥4,247 million, and quarterly net income attributable to owners of the parent was ¥1,926 million. The presentation also includes quarterly results charts by segment. |
| Full-year earnings forecast | Net sales of ¥84,000 million, operating income of ¥15,400 million, an operating margin of 18.3%, ordinary income of ¥17,200 million, an ordinary income margin of 20.5%, and net income attributable to owners of the parent of ¥10,000 million |
| Segment results | Wafer Reclamation Business: net sales of ¥7,038 million, up 6.4% year on year; operating income of ¥2,710 million, up 14.0%; operating margin of 38.5%, up 2.5 percentage points. Prime Wafer Manufacturing and Sales Business: net sales of ¥6,352 million, up 31.9%; operating income of ¥1,329 million, up 21.9%; operating margin of 20.9%, down 1.7 percentage points. Semiconductor-Related Equipment and Components Business: net sales of ¥6,384 million, down 1.2%; operating income of ¥240 million, up 2,900.0%; operating margin of 3.8%, up 3.7 percentage points. |
| Breakdown of Factors Affecting the Change | Government subsidy income: ¥328 million to ¥310 million; foreign exchange gains: ¥0 million to ¥262 million; foreign exchange losses: ¥185 million to ¥0 million; equity in losses of affiliates accounted for under the equity method: ¥210 million to ¥270 million |
| Key KPIs | The Wafer Reclamation Business has an approximately 31% global share. Reclaimed wafer production capacity is expected to reach approximately 1.19 million wafers per month by 2028. GRITEK's share of China's 8-inch market was 18% in 2025–2026; the target share of China's 12-inch market is 7%, and the target share of China's 8-inch market is 20% from 2027 onward. |
| Unit price and quantity metrics | For the Wafer Reclamation Business, the presentation describes the revenue structure in terms of processing price × wafers shipped and sales price × wafers sold. Specific price figures: not disclosed |
| Assumptions Underlying the Business Outlook | The semiconductor market is projected to grow at a CAGR of approximately 8% from 2025 to 2030, reaching US$1 trillion in 2029. Demand in China's 12-inch market is projected to exceed 4 million wafers per month in 2030. |
| Medium-term management plan targets | Targets for 2026–2028 include 2028 net sales of ¥115,000 million, operating income of ¥19,000 million, ordinary income of ¥20,000 million, and net income attributable to owners of the parent of ¥13,000 million. ROIC of at least 11% and ROE of at least 13%. The 2026 budget calls for net sales of ¥84,000 million and operating income of ¥15,400 million. |
| Financial targets | ROIC of at least 11% and ROE of at least 13%. Actual results for 2025 were ROIC of 10.8% and ROE of 12.5%. WACC was 9.0% and the cost of equity was 10.5%. |
| Annual Dividend | ¥45 per share for fiscal 2025 (the breakdown between the interim and year-end dividends: not disclosed); projected at ¥55 per share for fiscal 2026 |
| Payout ratio | 12.8% for fiscal 2025. The total payout ratio was 12.8% for fiscal 2025 and is projected at 14.6% for fiscal 2026. |
| Capital expenditures | Wafer Reclamation Business: ¥40.5 billion; research and development: ¥2.7 billion; 8-inch Prime Wafers: ¥3.8 billion; self-consumption solar power generation: ¥4.0 billion; energy business: ¥6.0 billion |
| Market Size / Share | The global semiconductor market is expected to reach US$1 trillion in 2029, with a CAGR of approximately 8% from 2025 to 2030. The Wafer Reclamation Business has an approximately 31% global share. The silicon wafer market exceeds ¥2 trillion. |
| New initiatives | Focused investment during 2026–2028; restarting operations at the Sanbongi No. 7 Plant; acquiring the Tainan No. 2 Plant; investment in reclaimed wafer plants; expanding production capacity for 8-inch and 12-inch Prime Wafers; pursuing M&A from 2027 onward; and strengthening investor relations activities |
Items this document does not state (8)
Progress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.In the Wafer Reclamation Business, higher sales volumes from investment in capacity expansion and the normalization of the sales wafer mix contributed to results. In the Prime Wafer Business, increased sales volumes of 8-inch wafers and silicon components were the main contributor. In the Semiconductor-Related Equipment and Components Business, higher production volumes of optical pickup modules contributed. On a consolidated basis, government subsidy income, foreign exchange gains and the decrease in foreign exchange losses were also cited as factors behind the increase in profit.
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