Worth reading
65In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
50
¥100 million (versus the previous full-year operating profit forecast)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationSecond quarter (interim period) of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,311 100 million+18.3%
Operating profit¥575 100 million+44.7%
Ordinary income¥609 100 million+55.7%
Net income¥395 100 million+107.6%
Selling, general and administrative expenses¥421 100 million
Gross Profit Margin23.1% (gross profit of ¥99.7 billion ÷ revenue of ¥431.1 billion; 21.9% in the same period of the previous year, up 1.2 percentage points year on year)
Operating profit margin13.3% (10.9% in the same period of the previous year, up 2.4 percentage points year on year)
Results for the three months of the current quarterQuarterly sales volumes of key products are provided. In Q1/Q2 of fiscal 2026, electrolytic copper foil was 1,750t/month and 1,670t/month, VSP was 660t/month and 730t/month, and MicroThin was 4,070k-m2/month and 4,440k-m2/month, respectively. The standalone three-month consolidated earnings figures are Not disclosed.
Full-year earnings forecast
Net Sales
¥8,750 100 million
Operating profit
¥990 100 million
Ordinary income
¥1,040 100 million
Profit attributable to owners of the parent
¥780 100 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
First-half operating profit was ¥57.5 billion, compared with the previous forecast of ¥45.0 billion. The full-year forecasts for revenue, operating profit and ordinary profit were revised upward from the previous forecasts, and the company expects higher revenue and profit on a consolidated basis, while net profit was revised downward.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in company-wide operating profit
Higher sales volume / production variance61
Inventory effects / market prices and FX95
Precious metals price impact76
Margins, costs and other factors-55
Year-on-year change in ordinary profit, Functional Materials
Copper foil183
Thin Films44
Headquarters-47
Year-on-year change in ordinary profit, Metals
Market prices (zinc and lead) / FX45
T/C terms (zinc)0
Inventory effects27
Equity-Method Income28
Energy Costs-11
Other-85
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
LME zinc price
First-half actual$3,647 /t
Second-half forecast$3,800 /t
LME lead price
First-half actual$1,906 /t
Second-half forecast$1,900 /t
Copper prices
First-half actual622 ￠/lb
Second-half forecast658 ￠/lb
Foreign Exchange
First-half actual159.4 yen/US$
Second-half forecast155 yen/US$
Zinc T/C terms
FY2026$85 /t
New initiatives
- Decided to build a new copper foil plant in Malaysia
- Invest approximately ¥190 billion in MicroThin and VSP manufacturing equipment, land and buildings
- The new plant is scheduled to begin operations in stages from April 2031.
Key KPIsA metric the company considers important as a management benchmark.
- Electrolytic copper foil sales volume1,670 t/month
- VSP sales volume730 t/month
- MicroThin sales volume4,440 k-m²/month
- FaradFlex sales volume80 k-m²/month
- Two-wheeler catalyst sales volume106 Index
- Four-wheeler catalyst sales volume95 Index
- Semiconductor equipment protective materials sales volume141 Index
- Zinc production volume53 thousand tonnes
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales and production volumes are provided, but the breakdown into revenue per customer and selling price per unit is Not disclosed.Segment results
Functional Materials
Net Sales
¥2,118 100 million+40.7%
Operating profit
¥464 100 million+65.4%
Ordinary income
¥451 100 million+70.6%
Metals
Net Sales
¥2,115 100 million+31.2%
Operating profit
¥157 100 million-11.3%
Ordinary income
¥188 100 million+2.2%
Head office operations
Net Sales
¥801 100 million-28.5%
Operating profit
¥-5 100 million
Ordinary income
¥12 100 million
Business Creation
Operating profit
¥-43 100 million
Financial targets
Debt-to-equity ratio
0.28 times
As ofFiscal year ending March 2027 forecast
Net debt-to-equity ratio
0.16 times
As ofFiscal year ending March 2027 forecast
Equity ratio
61.1 %
As ofFiscal year ending March 2027 forecast
Capital expenditures
¥550 100 million FY2026 forecast
Annual Dividend
Annual
32 yen per share
Interim
14 yen per share
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥4,311 100 million (YoY +18.3%) |
| Operating profit | ¥575 100 million (YoY +44.7%) |
| Ordinary income | ¥609 100 million (YoY +55.7%) |
| Net income | ¥395 100 million (YoY +107.6%) |
| Gross Profit Margin | 23.1% (gross profit of ¥99.7 billion ÷ revenue of ¥431.1 billion; 21.9% in the same period of the previous year, up 1.2 percentage points year on year) |
| Operating profit margin | 13.3% (10.9% in the same period of the previous year, up 2.4 percentage points year on year) |
| Selling, general and administrative expenses | ¥421 100 million |
| Results for the three months of the current quarter | Quarterly sales volumes of key products are provided. In Q1/Q2 of fiscal 2026, electrolytic copper foil was 1,750t/month and 1,670t/month, VSP was 660t/month and 730t/month, and MicroThin was 4,070k-m2/month and 4,440k-m2/month, respectively. The standalone three-month consolidated earnings figures are Not disclosed. |
| Full-year earnings forecast | Net Sales ¥8,750 100 million / Operating profit ¥990 100 million / Ordinary income ¥1,040 100 million / Profit attributable to owners of the parent ¥780 100 million |
| Self-assessment against the plan | First-half operating profit was ¥57.5 billion, compared with the previous forecast of ¥45.0 billion. The full-year forecasts for revenue, operating profit and ordinary profit were revised upward from the previous forecasts, and the company expects higher revenue and profit on a consolidated basis, while net profit was revised downward. |
| Segment results | Functional Materials Net Sales ¥2,118 100 million (YoY +40.7%) / Operating profit ¥464 100 million (YoY +65.4%) / Ordinary income ¥451 100 million (YoY +70.6%) / Metals Net Sales ¥2,115 100 million (YoY +31.2%) / Operating profit ¥157 100 million (YoY -11.3%) / Ordinary income ¥188 100 million (YoY +2.2%) / Head office operations Net Sales ¥801 100 million (YoY -28.5%) / Operating profit ¥-5 100 million / Ordinary income ¥12 100 million / Business Creation Operating profit ¥-43 100 million |
| Breakdown of Factors Affecting the Change | Year-on-year change in company-wide operating profit Higher sales volume / production variance 61 / Inventory effects / market prices and FX 95 / Precious metals price impact 76 / Margins, costs and other factors -55 / Year-on-year change in ordinary profit, Functional Materials Copper foil 183 / Thin Films 44 / Headquarters -47 / Year-on-year change in ordinary profit, Metals Market prices (zinc and lead) / FX 45 / T/C terms (zinc) 0 / Inventory effects 27 / Equity-Method Income 28 / Energy Costs -11 / Other -85 |
| Key KPIs | 1,670 t/month, 730 t/month, 4,440 k-m²/month, 80 k-m²/month, 106 Index, 95 Index, 141 Index, 53 thousand tonnes |
| Unit price and quantity metrics | Sales and production volumes are provided, but the breakdown into revenue per customer and selling price per unit is Not disclosed. |
| Assumptions Underlying the Business Outlook | LME zinc price First-half actual $3,647 /t / Second-half forecast $3,800 /t / LME lead price First-half actual $1,906 /t / Second-half forecast $1,900 /t / Copper prices First-half actual 622 ￠/lb / Second-half forecast 658 ￠/lb / Foreign Exchange First-half actual 159.4 yen/US$ / Second-half forecast 155 yen/US$ / Zinc T/C terms FY2026 $85 /t |
| Financial targets | Debt-to-equity ratio 0.28 times / Net debt-to-equity ratio 0.16 times / Equity ratio 61.1 % |
| Annual Dividend | Annual 32 yen per share / Interim 14 yen per share / End of period Not disclosed |
| Capital expenditures | ¥550 100 million (FY2026 forecast) |
| New initiatives | Decided to build a new copper foil plant in Malaysia, Invest approximately ¥190 billion in MicroThin and VSP manufacturing equipment, land and buildings, The new plant is scheduled to begin operations in stages from April 2031. |
Items this document does not state (10)
Progress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioAcquisition of treasury sharesOrders 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 the first half, sales volumes of products such as MicroThin ultra-thin copper foil and VSP electrolytic copper foil for AI servers increased in the Functional Materials segment, while the Metals segment benefited from the weaker yen, higher metal prices and improved inventory factors. The full-year forecasts incorporate expectations that sales volumes of key Functional Materials products will remain strong, as well as the downward trend in metal prices and an extraordinary loss associated with the revision of the retirement benefit plan.
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