Worth reading
65In 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
230
¥100 million (amount of upward revision to the full-year operating profit forecast)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentation materialsSecond quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,315 100 million+34.0%
Operating profit¥1,508 100 million+115.0%
Net income¥1,143 100 million+122.0%
Full-year earnings forecast
Net Sales
¥10,500 100 million
Operating profit (loss)
¥2,550 100 million
Pretax profit
¥2,440 100 million
Profit for the period
¥1,960 100 million
Profit for the year attributable to owners of the parent
¥1,600 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
First-half year-on-year change in operating profit/loss
Environmental factors (market conditions)585
One-off factors190
Mine production cuts (adverse weather in Chile)-70
Focus business: higher sales volume170
Focus business: selling price improvement20
Mine costs, etc.-85
Full-year year-on-year change in operating profit/loss forecast
Environmental factors (market conditions)195
Focus business: higher sales volume40
Focus business: selling price improvement60
Base business: production cuts-145
Base business: margin, cost variance, etc.80
Full-year operating profit/loss forecast variance from previous forecast
Foreign exchange rates, copper prices and other factors197
Focus business: volume variance39
Base business: volume variance-147
Cost variance and other factors141
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign exchange (October to December)
155 JPY/USD
LME copper price (October to December)
630 ¢/lb
Foreign exchange (January to March)
155 JPY/USD
LME copper price (January to March)
600 ¢/lb
New initiatives
- Capacity expansion (semiconductor targets, magnetic material targets, InP substrates, Yupinogue, tantalum powder, titanium-copper, ultrafine nickel powder, water-leak sensors, etc.)
- Joint study with Tronox on a rare-earth refining business
- Capital and business alliance with リネットジャパングループ
- Capital and business alliance with OXIDE Corporation
Key KPIsA metric the company considers important as a management benchmark.
- Foreign exchange rate (yen/USD)159 JPY/USDYear on year against the same period last year+13.0%
- LME copper price (average)622 ¢/lbYear on year against the same period last year+184.0%
- Semiconductor target sales volume27 % increase
- Magnetic material target sales volume12 % increase
- InP substrate sales volume11 % increase
- Rolled copper foil sales volume11 % increase
- Titanium-copper sales volume30 % increase
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales volumes and the amount of improvement in selling prices are provided.Segment results
Focus businesses
Net Sales
¥3,009 100 million+26.0%
Operating profit (loss)
¥622 100 million+81.0%
Base Business
Net Sales
¥2,504 100 million+56.0%
Operating profit (loss)
¥955 100 million+136.0%
Semiconductor Materials
Net Sales
¥1,109 100 million+33.0%
Operating profit (loss)
¥361 100 million+90.0%
Information and Communications Materials
Net Sales
¥1,900 100 million+22.0%
Operating profit (loss)
¥261 100 million+71.0%
Basic materials
Net Sales
¥2,504 100 million+56.0%
Operating profit (loss)
¥955 100 million+136.0%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Mine production cuts-95
Metals and recycling business: production cuts-50
Market Size / Share
Global market shares are stated as approximately 65% for semiconductor targets, approximately 60% for magnetic material targets, approximately 40% for InP substrates, 78% for rolled copper foil, approximately 70% for titanium-copper, and approximately 50% for tantalum powder.Annual Dividend
Annual dividend per share
¥20
Interim
¥10
End of period
¥10
Payout ratio
11 %
Total payout ratio
133 %
Acquisition of treasury shares
Amount
¥1,949 100 million
| Item | Details |
|---|---|
| Document type | Earnings presentation materials |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2027 |
| Net Sales | ¥5,315 100 million (YoY +34.0%) |
| Operating profit | ¥1,508 100 million (YoY +115.0%) |
| Net income | ¥1,143 100 million (YoY +122.0%) |
| Full-year earnings forecast | Net Sales ¥10,500 100 million / Operating profit (loss) ¥2,550 100 million / Pretax profit ¥2,440 100 million / Profit for the period ¥1,960 100 million / Profit for the year attributable to owners of the parent ¥1,600 100 million |
| Segment results | Focus businesses Net Sales ¥3,009 100 million (YoY +26.0%) / Operating profit (loss) ¥622 100 million (YoY +81.0%) / Base Business Net Sales ¥2,504 100 million (YoY +56.0%) / Operating profit (loss) ¥955 100 million (YoY +136.0%) / Semiconductor Materials Net Sales ¥1,109 100 million (YoY +33.0%) / Operating profit (loss) ¥361 100 million (YoY +90.0%) / Information and Communications Materials Net Sales ¥1,900 100 million (YoY +22.0%) / Operating profit (loss) ¥261 100 million (YoY +71.0%) / Basic materials Net Sales ¥2,504 100 million (YoY +56.0%) / Operating profit (loss) ¥955 100 million (YoY +136.0%) |
| Breakdown of Factors Affecting the Change | First-half year-on-year change in operating profit/loss Environmental factors (market conditions) 585 / One-off factors 190 / Mine production cuts (adverse weather in Chile) -70 / Focus business: higher sales volume 170 / Focus business: selling price improvement 20 / Mine costs, etc. -85 / Full-year year-on-year change in operating profit/loss forecast Environmental factors (market conditions) 195 / Focus business: higher sales volume 40 / Focus business: selling price improvement 60 / Base business: production cuts -145 / Base business: margin, cost variance, etc. 80 / Full-year operating profit/loss forecast variance from previous forecast Foreign exchange rates, copper prices and other factors 197 / Focus business: volume variance 39 / Base business: volume variance -147 / Cost variance and other factors 141 |
| Key KPIs | Indicator name Foreign exchange rate (yen/USD) / Value 159 JPY/USD / Year on year against the same period last year 13 JPY/USD, Indicator name LME copper price (average) / Value 622 ¢/lb / Year on year against the same period last year 184 ¢/lb, Indicator name Semiconductor target sales volume / Value 27 % increase / Year on year against the same period last year Not disclosed, Indicator name Magnetic material target sales volume / Value 12 % increase / Year on year against the same period last year Not disclosed, Indicator name InP substrate sales volume / Value 11 % increase / Year on year against the same period last year Not disclosed, Indicator name Rolled copper foil sales volume / Value 11 % increase / Year on year against the same period last year Not disclosed, Indicator name Titanium-copper sales volume / Value 30 % increase / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Sales volumes and the amount of improvement in selling prices are provided. |
| Assumptions Underlying the Business Outlook | Foreign exchange (October to December) 155 JPY/USD / LME copper price (October to December) 630 ¢/lb / Foreign exchange (January to March) 155 JPY/USD / LME copper price (January to March) 600 ¢/lb |
| Risk amount incorporated into the outlook | Mine production cuts -95 / Metals and recycling business: production cuts -50 |
| Annual Dividend | Annual dividend per share ¥20 / Interim ¥10 / End of period ¥10 |
| Payout ratio | 11 % |
| Acquisition of treasury shares | Amount ¥1,949 100 million |
| Market Size / Share | Global market shares are stated as approximately 65% for semiconductor targets, approximately 60% for magnetic material targets, approximately 40% for InP substrates, 78% for rolled copper foil, approximately 70% for titanium-copper, and approximately 50% for tantalum powder. |
| New initiatives | Capacity expansion (semiconductor targets, magnetic material targets, InP substrates, Yupinogue, tantalum powder, titanium-copper, ultrafine nickel powder, water-leak sensors, etc.), Joint study with Tronox on a rare-earth refining business, Capital and business alliance with リネットジャパングループ, Capital and business alliance with OXIDE Corporation |
Items this document does not state (14)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesMedium-term management plan targetsFinancial targetsCapital expendituresOrders 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.First-half earnings growth was driven by the weaker yen, higher copper prices, gains on the sale of part of the interest in Caserones, and increased sales volumes and improved selling prices in the Focus business. The upward revision to the full-year forecast reflects higher copper price assumptions, increased sales volumes and improved selling prices in the Focus business, improved sulfuric acid margins and cost variances. At the same time, the forecast incorporates the impact of production cuts in the mining and Metals & Recycling businesses.
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.