Will growth in low-dielectric resins and aqueous composite binders for battery anodes continue into FY2027-H1?

Consolidated revenue in FY2027 Q1 was ¥27.501 billion, up 44.4% year on year. The company attributed the increase mainly to expanded sales of low-dielectric resin materials for high-end servers and aqueous composite binders for lithium-ion battery anodes. Revenue from Electronics & Information was ¥10.840 billion, up 56.3%, while Environment & Energy generated ¥8.416 billion, up 81.9%.

The growth businesses also made a substantial contribution in the previous fiscal year. For FY2026, Electronics & Information recorded revenue of ¥30.507 billion and operating profit of ¥6.203 billion, while Environment & Energy recorded revenue of ¥23.304 billion and operating profit of ¥3.142 billion. A key point for the next results announcement will be whether the growth of low-dielectric resin materials and battery materials represents a full-year change in the product portfolio rather than a one-off quarterly factor.

However, the explanation for Q1 also includes a temporary increase in demand for certain products against the backdrop of the situation in the Middle East. Accordingly, at the interim results, it will be necessary to distinguish whether growth was supported by sales volumes, customer numbers, adopted projects or the penetration of price revisions, rather than simply by repeating Q1's high revenue level in Electronics & Information and Environment & Energy. Against the full-year revenue forecast of ¥97.0 billion, Q1 progress was 28.4%, ahead of a simple equal quarterly allocation.

The current financial summary does not disclose revenue, sales volumes, order backlogs or regional revenue by product for low-dielectric resin materials and aqueous composite binders for battery anodes. At the next results announcement, we will assess the disclosed revenue contribution and volumes of the 2 products, the expansion of customers and applications including overseas, and whether the temporary demand increase has continued beyond Q2.