Sustainability of the semiconductor pump recovery led by generative AI and data centres

In the first quarter of the fiscal year ending March 2027, revenue was ¥4.927 billion and operating profit was ¥397 million, up 24.1% and 97.4%, respectively, year on year. Progress against the full-year revenue forecast of ¥18.8 billion was approximately 26.2%, while progress against the operating profit forecast of ¥1.3 billion was approximately 30.5%, meaning profit was ahead of revenue at the one-quarter mark. However, semiconductor-related orders may not be recognised evenly from quarter to quarter, making continued revenue and profit growth in the second quarter important.

Compared with the same quarter of the previous year, revenue and profit improved from revenue of ¥3.971 billion and operating profit of ¥201 million in the first quarter of the fiscal year ended March 2026. In addition, first-half revenue of ¥8.953 billion and operating profit of ¥409 million in the fiscal year ended March 2026 improved substantially from revenue of ¥7.616 billion and an operating loss of ¥96 million in the first half of the fiscal year ended March 2025, indicating that the recovery in pumps for semiconductor manufacturing equipment marked a turning point in performance.

The company explained that the semiconductor market expanded against a backdrop of the spread of generative AI and growing data-centre demand, while orders for pumps used in semiconductor manufacturing equipment remained firm. However, current disclosure is limited to a qualitative assessment of orders, with no figures provided for order intake, order backlog or the breakdown between generative-AI and conventional applications. The company has also described demand for conventional applications such as automobiles, PCs and smartphones as sluggish, so it is necessary to distinguish between a broad-based semiconductor recovery and one concentrated in generative AI.

In the next earnings release, first-half revenue of ¥8.953 billion and first-half operating profit of ¥409 million will be key comparison benchmarks. It will also be important to confirm order intake and order backlog for pumps used in semiconductor manufacturing equipment, the proportion of generative-AI-related projects, recovery in conventional applications, and whether the full-year forecasts of revenue of ¥18.8 billion and operating profit of ¥1.3 billion are maintained or revised.