Conversion of AI semiconductor orders into revenue is the key focus for FY2027 H1

In FY2026, strong AI-related demand caused orders for cast-steel products for semiconductor manufacturing equipment to increase substantially from the second half, but shipments were scheduled for FY2027, leaving FY2026 revenue at ¥12,290 million. In FY2027 Q1, revenue was ¥2,624 million, operating loss was ¥90 million and ordinary loss was ¥99 million, so the improvement in the order environment had not yet been fully reflected in quarterly earnings.

FY2027 Q1 order intake was ¥3,932 million and order backlog was ¥10,370 million. Compared with the ¥9,062 million order backlog at the end of FY2026, this was an increase of ¥1,308 million, or approximately 14.4%. Order intake was also approximately 1.50 times quarterly revenue of ¥2,624 million, clearly showing an order-led pattern. However, order intake and revenue are recognized at different times, so an increase in order backlog alone cannot be used to judge a recovery in profit.

The company has incorporated increased orders for semiconductor manufacturing equipment into its full-year forecast, projecting FY2027 revenue of ¥14,500 million, operating profit of ¥780 million and net income attributable to owners of the parent of ¥480 million. At the next results announcement, it will be important to disclose not only order intake but also shipments, revenue and product-level order backlog for cast-steel products for semiconductor manufacturing equipment, in millions of yen. In particular, it is necessary to distinguish whether AI-driven orders merely represent a temporary accumulation of orders or have moved into actual shipment and acceptance.

The minimum points to assess in FY2027 H1 are what proportion of the ¥10,370 million order backlog relates to semiconductor manufacturing equipment, whether the FY2027 Q1 operating loss of ¥90 million narrows or turns profitable on a cumulative Q2 basis, and the progress of shipments toward full-year operating profit of ¥780 million. Since the monetary breakdown of semiconductor-related orders, revenue and profit has not been disclosed, whether product-level disclosure is provided at the next results announcement is itself an important point to monitor.