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Valve & Piping Systems Divisions
<Thermoplastic valves, pipes, fittings, engineering business, etc.>
● Promote sales activities that contribute to benefiting our customers by developing products that solve corrosion resistance problems and pursue the functionality of plastic pipe materials.
・ In Japan, capital investment in our core products, such as thermoplastic valves, has shown signs of gradual recovery due to the progress in favorable adjustments in distribution inventories.
・ In the United States, investment in semiconductor factory construction is being postponed to FY2025 or later, or reconsidered altogether, compared to the previous fiscal year when the demand was extremely high.
・ In China, the demand was stagnant due to the postponement of investment for LCD-related businesses and an increase in distribution inventories.
・ As a result, the sales decreased year on year.
・ The engineering business for applications that use thermoplastic piping materials, etc., successfully took in new semiconductor-related projects, and the sales increased year on year.
<Dymatrix products for semiconductor manufacturing equipment>
● We contribute to the sophistication of semiconductors by developing small precision valves to conform to the highly sophisticated semiconductor manufacturing processes.
・ The demand for the semiconductor manufacturing equipment in China and Japan has recovered and remained strong.
<Profits>
・ Profits decreased due to a decrease in sales and an increase in fixed costs such as labor costs, depreciation and repair costs.
| Sales |
52.29 billion yen |
YoY -9.0% |
| Operating profit |
9.05 billion yen |
YoY -33.9% |
| Operating profit ratio |
17.3% |
|
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Resin Divisions
<Electronics materials>
● We continue to pursue low-metal technology for electronics materials, and contribute to the advancement of semiconductors.
・ In Japan, the demand for materials for post-processing relating to generative AI products increases in addition to the demand recovery for photoresist materials for legacy semiconductors such as sensors and power semiconductors.
・ Also in China, there is a strong demand in such areas as FPD, including LCD and organic EL.
・ At Aichi Factory No. 2 completed in July 2024, the customers’ evaluation has been progressed as planned and started contributing to the sales from the fourth quarter of FY 2024.
・ As a result, the sales increased year on year.
<Foundry materials products>
● In the manufacturing of casting products needed in automobiles, construction machinery, etc., we focus on serving our customers by proposing optimal products for a variety of different casting processes.
・ In Japan, along with implementing price revisions to address rising raw material prices, we also promoted proposal-based sales activities, such as proposals to switch to higher value-added products, however, the sales decreased year on year, as the number of automobiles produced in Japan decreased year on year.
・ Overseas automobile production volumes increased year on year in China, India and Mexico and the sales increased year on year.
<Foam material products>
● Since these products are finalized after being installed on-site, we have provided our customers with peace of mind and safety through our efforts to improve the on-site installed quality.
・ The volume of on-site thermal insulation foam materials decreased due to delay in housing and building constructions.
・ As for the civil engineering materials for tunnel excavation, the sales volume decreased due to partial delay in construction for projects already been ordered.
・ As a result, the sales decreased year on year.
<Profits>
・ Profits decreased year on year due to the impact of the large order received in the previous fiscal year by Rand Wick, an ASAHI YUKIZAI subsidiary, that installs spray-applied thermal insulation materials, and the decrease in sales volume in the foundry materials products due to the decrease in the number of automobiles produced in Japan, in addition to the increase in fixed costs such as depreciation and labor costs.
| Sales |
23.05 billion yen |
YoY +3.5% |
| Operating profit |
1.12 billion yen |
YoY -26.8% |
| Operating profit ratio |
4.9% |
|
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Water Treatment & Natural Resources Development Divisions
<Water treatment business>
● We design and construct water treatment facilities and water reclamation systems that make effective use of water resources.
・ Sales increased year on year, as both government and private construction projects are stably progressing and the number of completed constructions increased.
<Natural resources development business>
● We contribute to the effective use of resources in our steam well drilling for geothermal power generation and hot springs development.
・ Sales substantially increased year on year, as the large-scale geothermal drilling project completed as planned, though there was a delay in constructions in hot spring drilling projects..
<Maintenance and pharmaceutical business>
● We provide services and water treatment agents to ensure the stable operation of facilities and equipment.
・ Profits were up year on year thanks to steady progress in multiple repair projects.
・ The sales for the maintenance business increased year on year due to steady progress in various repair projects.
・ The sales in the environmental chemicals business decreased year on year due to a decline in product shipments.
<Profits>
・ Profits increased year on year due to steady progress in facility construction and repair projects, particularly the construction of a large-scale geothermal drilling project completed as planned.
| Sales |
9.82 billion yen |
YoY +27.7% |
| Operating profit |
0.77 billion yen |
YoY +56.2% |
| Operating profit ratio |
7.8% |
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３．Future Outlook
In FY2025, we assume uncertain business circumstances will continue due to such external factors as the US’s customs tariff policy and the slowing-down of Chinese economy. On the other hand, we assume the domestic capital investment will keep a recovering trend supported by the stable demand, though being affected by the labor shortage.
Under such circumstances, we assume that overall economic activities affecting our Group’s business areas, namely, new constructions and expansions of factories for semiconductor products and investments in equipment manufacturing semiconductors in Japan and overseas, will experience a steady progress as several countries continue to stick to their strategy to manufacture semiconductors in their territories, however, in the North American regions, we assume companies continue to take a cautious approach in capital investment due to the increase of uncertainty around the US customs tariff policy and the sense of stagnation in certain areas.
As for the electronics materials area, we expect a steady recovery in demand due to the recovery of the semiconductor market. As for automobile manufacturing, we expect the manufacturing volume globally continues to increase, though the manufacturing in Japan would decrease.
Under such business environment, we assume that semiconductor-related investments in the US and Japan will be kept at high level and will reach the same level as the previous year. In addition, we expect a substantial increase in strategic investments and investments in human capital enhancements as well as the impact of foreign exchange rates aiming for future growth and as for FY2025 consolidated business performance, we estimate as follows.
|
FY2026 forecast (billion yen) |
FY2025 results (billion yen) |
YoY (%) |
| Sales |
85.0 |
85.2 |
-0.2 |
| Operating profit |
9.0 |
11.1 |
-19.1 |
| Ordinary profit |
9.1 |
11.3 |
-19.1 |
| Net profit attributable to owners of parent |
6.4 |
7.6 |
-16.1 |
In addition, we will change our shareholder return policy to ensure further return to our shareholders.
Based on this change, the annual dividend for FY2025 is expected to be 120 yen, 10 yen more compared to that for the previous year (interim: 60 yen, year-end: 60 yen).
