The recovery in semiconductor demand is shifting from the FY2026 surge to a capacity-constrained phase

Consolidated revenue in FY2026 was ¥20,434 million, up 79.2% year on year, while operating profit was ¥4,130 million, up 99.8%. For FY2027, the company is forecasting revenue of ¥28,000 million and operating profit of ¥6,500 million, implying further growth from FY2026 of approximately 37% in revenue and 57% in operating profit. The key issue is whether future production capacity will constrain this plan, rather than the plan simply reflecting a recovery in market demand.

In the Precision Components business, semiconductor sales rose 23.1% year on year to ¥7,551 million, while FPD sales fell 12.4% to ¥1,127 million. Accordingly, the company-wide increase in revenue is highly dependent on semiconductor demand and the Functional Materials business, leaving limited scope for FPD and other areas to offset any delay in investment plans for semiconductor manufacturing equipment. At the next results announcement, it will be important to review not only the semiconductor sales growth rate but also the breakdown between consumables, equipment components and mass-production orders from new customers.

The company says quarterly semiconductor orders reached a record high, but it has not disclosed specific order intake or order backlog figures. As a result, it is difficult to determine whether the FY2027 revenue forecast of ¥28,000 million depends on drawing down existing backlog, an increase in current-period orders or a continued market recovery. At the next results announcement, a key disclosure issue will be whether the company provides order intake, order backlog, average lead times and delivery delays, where possible, in volume or monetary terms.

Although customer requests for higher production are extremely strong, the company says it is unclear whether production capacity can be expanded quickly enough. Capital expenditure is being increased to ¥5,600 million in FY2027. This investment is intended to avoid missing order opportunities, but delays in equipment installation and ramp-up could affect the timing of revenue recognition. At the next results announcement, it will be necessary to review the breakdown between equipment ordered and equipment in operation, the timing of the production increase taking effect, and the additional burden from labour costs and depreciation.