Komori
Financial results presentation4971MEC COMPANY LTD.Materials and Chemicals

First-Quarter Financial Results Presentation for the Fiscal Year Ending December 2026

In the first quarter of the fiscal year ending December 2026, revenue and operating profit both significantly exceeded the year-earlier period, driven by higher chemical sales volumes and expanded sales of key products. The full-year forecast calls for revenue of ¥24.5 billion and operating profit of ¥7.6 billion, among other figures.

Worth reading
55In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
90.2
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending December 202615 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,128 million+38.5%
Operating profit¥2,079 million+90.2%
Ordinary income¥2,141 million+102.1%
Net income¥1,528 million+220.8%
Gross Profit Margin65.0%
Operating profit margin33.9%
Selling, general and administrative expenses¥1,900 million
Results for the three months of the current quarterRevenue: ¥6,128 million; operating profit: ¥2,079 million; ordinary profit: ¥2,141 million; net profit for the quarter: ¥1,528 million. Chemical sales were ¥5,997 million and shipments totaled 12,978 tons.
Full-year earnings forecast
Net Sales
¥24,500 million
Operating profit
¥7,600 million
Ordinary income
¥7,700 million
Net income
¥5,550 million
Earnings per share
¥303.93
Operating profit margin
31 %
Ordinary income margin
31.4 %
Annual dividend per share
¥110
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales25.0%
Operating profit27.4%
Ordinary income27.8%
Net income27.5%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesAdhesion promoters, etchants, other chemicals, machinery sales, materials sales, other sales, and foreign exchange effects. The total increase was ¥1,704 million year on year.
Operating profitChemical sales and volumes, chemical gross margin, machinery sales, machinery gross margin, materials and other sales, materials and other gross margin, SG&A expenses, and foreign exchange effects. The total increase was ¥986 million year on year.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
NTD4.96
RMB22.58
THB4.93
EUR183.65
USD156.45
Change in exchange ratesChanged from the exchange rate assumption at the beginning of the fiscal year
New initiatives
  • The Kitakyushu Plant is scheduled to begin operations in December 2026, with maximum production capacity of 2,500 tons per month.
  • Apply the non-roughening technology developed for semiconductor package substrates to high-frequency PCB substrates.
  • Expand technology into new fields, including interposers and high-frequency substrates for generative AI and data centers.
  • Create new businesses and apply existing technologies in new areas.
Key KPIsA metric the company considers important as a management benchmark.
  • Chemical sales¥5,997 million
    Year on year against the same period last yearUp 41.5% year on year
  • Shipment volume12,978 ton
    Year on year against the same period last yearUp 26.7% year on year
  • CZ sales
    Year on year against the same period last yearUp 41.4% year on year
  • SF sales
    Year on year against the same period last yearUp 37.1% year on year
  • EXE sales
    Year on year against the same period last yearUp 26.8% year on year
  • V-Bond sales
    Year on year against the same period last yearUp 18.4% year on year
  • Overseas revenue ratio64.1 %
  • ROE4.9 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Shipment volume was 12,978 tons, up 26.7% year on year. Unit price data: not disclosed.
Segment results
Sales by product type
Chemicals
¥5,997 million
Machinery
¥81 million
Materials
¥38 million
Other
¥10 million
Regional Sales
Japan
¥2,366 million
Taiwan
¥1,115 million
China
¥1,894 million
Europe
¥379 million
Thailand
¥372 million
Medium-term management plan targets
Phase2Basic cash allocation policy for the cumulative period from 2025 through 2027
Growth capital expenditure4,000
Maintenance and renewal capital expenditure4,000
Research and development5,200
Dividend¥5,300–5,400 million
Operating cash flow¥18,200–18,800 million
Financial targets
ROE target13〜16%
Actual ROE4.9% (first quarter of the fiscal year ending December 2026), 17.5% (fiscal year ended December 2025)
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
For a ¥0.1 fluctuation in foreign exchange rates from the assumed rates, the impact for NTD is ¥22 million on revenue and ¥18 million on operating profit, while the impact for RMB is ¥8 million on revenue and ¥6 million on operating profit. However, the risk amount incorporated into the forecast was not explicitly disclosed.
Number of stores and locations
The number of domestic and overseas locations is disclosed, but the number of openings and closures during the period was not disclosed. The Kitakyushu Plant is scheduled to begin operations in December 2026, with maximum production capacity of 2,500 tons per month.
Number of employees
508 employees on a consolidated basis and 292 on a non-consolidated basis, as of 31 December 2025. Changes during the period and the hiring plan were not disclosed.
Capital expenditures
¥3,985 million forecast for the fiscal year ending December 2026
Annual Dividend
Annual dividend per share¥110
Interim¥55
End of period¥55
Payout ratio
35 % or higher
DOE4.0% or more
Acquisition of treasury shares
Actual results¥1,292 million acquired in 2025
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥6,128 million (YoY +38.5%)
Operating profit¥2,079 million (YoY +90.2%)
Ordinary income¥2,141 million (YoY +102.1%)
Net income¥1,528 million (YoY +220.8%)
Gross Profit Margin65.0%
Operating profit margin33.9%
Selling, general and administrative expenses¥1,900 million
Results for the three months of the current quarterRevenue: ¥6,128 million; operating profit: ¥2,079 million; ordinary profit: ¥2,141 million; net profit for the quarter: ¥1,528 million. Chemical sales were ¥5,997 million and shipments totaled 12,978 tons.
Full-year earnings forecastNet Sales ¥24,500 million / Operating profit ¥7,600 million / Ordinary income ¥7,700 million / Net income ¥5,550 million / Earnings per share ¥303.93 / Operating profit margin 31 % / Ordinary income margin 31.4 % / Annual dividend per share ¥110
Progress against full-year forecastNet Sales 25.0% / Operating profit 27.4% / Ordinary income 27.8% / Net income 27.5%
Segment resultsSales by product type Chemicals ¥5,997 million / Machinery ¥81 million / Materials ¥38 million / Other ¥10 million / Regional Sales Japan ¥2,366 million / Taiwan ¥1,115 million / China ¥1,894 million / Europe ¥379 million / Thailand ¥372 million
Breakdown of Factors Affecting the ChangeNet Sales Adhesion promoters, etchants, other chemicals, machinery sales, materials sales, other sales, and foreign exchange effects. The total increase was ¥1,704 million year on year. / Operating profit Chemical sales and volumes, chemical gross margin, machinery sales, machinery gross margin, materials and other sales, materials and other gross margin, SG&A expenses, and foreign exchange effects. The total increase was ¥986 million year on year.
Key KPIsIndicator name Chemical sales / Value ¥5,997 million / Year on year against the same period last year Up 41.5% year on year, Indicator name Shipment volume / Value 12,978 ton / Year on year against the same period last year Up 26.7% year on year, Indicator name CZ sales / Value Not disclosed / Year on year against the same period last year Up 41.4% year on year, Indicator name SF sales / Value Not disclosed / Year on year against the same period last year Up 37.1% year on year, Indicator name EXE sales / Value Not disclosed / Year on year against the same period last year Up 26.8% year on year, Indicator name V-Bond sales / Value Not disclosed / Year on year against the same period last year Up 18.4% year on year, Indicator name Overseas revenue ratio / Value 64.1 % / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 4.9 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsShipment volume was 12,978 tons, up 26.7% year on year. Unit price data: not disclosed.
Number of stores and locationsThe number of domestic and overseas locations is disclosed, but the number of openings and closures during the period was not disclosed. The Kitakyushu Plant is scheduled to begin operations in December 2026, with maximum production capacity of 2,500 tons per month.
Number of employees508 employees on a consolidated basis and 292 on a non-consolidated basis, as of 31 December 2025. Changes during the period and the hiring plan were not disclosed.
Assumptions Underlying the Business OutlookExchange rate NTD 4.96 / RMB 22.58 / THB 4.93 / EUR 183.65 / USD 156.45 / Change in exchange rates Changed from the exchange rate assumption at the beginning of the fiscal year
Risk amount incorporated into the outlookFor a ¥0.1 fluctuation in foreign exchange rates from the assumed rates, the impact for NTD is ¥22 million on revenue and ¥18 million on operating profit, while the impact for RMB is ¥8 million on revenue and ¥6 million on operating profit. However, the risk amount incorporated into the forecast was not explicitly disclosed.
Medium-term management plan targetsPhase2 Basic cash allocation policy for the cumulative period from 2025 through 2027 / Growth capital expenditure 4,000 / Maintenance and renewal capital expenditure 4,000 / Research and development 5,200 / Dividend ¥5,300–5,400 million / Operating cash flow ¥18,200–18,800 million
Financial targetsROE target 13〜16% / Actual ROE 4.9% (first quarter of the fiscal year ending December 2026), 17.5% (fiscal year ended December 2025) / Equity ratio Not disclosed / ROIC Not disclosed / Debt-to-equity ratio Not disclosed
Annual DividendAnnual dividend per share ¥110 / Interim ¥55 / End of period ¥55
Payout ratio35 % or higher
Acquisition of treasury sharesAmount under the acquisition limit Not disclosed / Number of shares under the acquisition limit Not disclosed / Period Not disclosed / Actual results ¥1,292 million acquired in 2025
Capital expenditures¥3,985 million (forecast for the fiscal year ending December 2026)
New initiativesThe Kitakyushu Plant is scheduled to begin operations in December 2026, with maximum production capacity of 2,500 tons per month., Apply the non-roughening technology developed for semiconductor package substrates to high-frequency PCB substrates., Expand technology into new fields, including interposers and high-frequency substrates for generative AI and data centers., Create new businesses and apply existing technologies in new areas.
Items this document does not state (4)
Self-assessment against the planOrders received and order backlogMarket Size / ShareKey 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 addition to higher chemical sales, increased shipment volumes and expanded sales of key products, foreign exchange effects increased revenue by ¥286 million and operating profit by ¥166 million. Over the medium to long term, demand is expected to expand as semiconductor package substrates increase in volume and become denser and more capable of high-frequency operation.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
First-Quarter Financial Results Presentation for the Fiscal Year Ending December 2026 | MEC COMPANY LTD. (4971) timely disclosure | Komori