Consolidated Financial Results and Management Overview for the First Quarter of the Fiscal Year Ending March 31, 2027
Consolidated Financial Results and Management Overview for the First Quarter of the Fiscal Year Ending March 31, 2027
We would like to express our sincere gratitude to our shareholders for their continued support of ASAHI YUKIZAI.
Today, we announced our consolidated financial results for the first quarter of the fiscal year ending March 31, 2027. Below is a summary of those results. We appreciate your continued support and look forward to your ongoing confidence in the growth of the ASAHI YUKIZAI Group.
Kazuya Nakano
President & CEO
ASAHI YUKIZAI CORPORATION
1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027
During the first three months of the fiscal year under review, the economy in Japan continued its moderate recovery trend, and capital expenditure demand remained firm, driven by investments in labor-saving and efficiency-enhancing initiatives.
Overseas, capital investment in the U.S. remained strong, mainly in areas such as AI, semiconductors, and infrastructure. In contrast, capital investment in China continued to lack momentum due to the prolonged slump in domestic demand.
Under these circumstances, the Company saw an overall increase in both sales and profit, supported by the business environment surrounding the Group such as inventory-securing efforts in Japan amid the situation in the Middle East and a recovery in investment in semiconductor factory construction in the U.S.
| Sales |
21.1 billion yen |
+ 5.5% YoY |
| Operating profit |
2.3 billion yen |
+ 8.1% YoY |
| Ordinary profit |
2.5 billion yen |
+15.2% YoY |
| Net profit attributable to owners of the parent |
1.6 billion yen |
+18.9% YoY |
2. Overview of Each Business Segment
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Valve & Piping Systems Division
The Valve & Piping Systems Division’s basic strategy is to expand the thermoplastic piping materials market, with thermoplastic valves as its core products. The Division pursues initiatives to help customers by resolving corrosion-related issues and enhancing the functionality of thermoplastic piping materials.
<Core Products (Thermoplastic Valves, Pipes, Fittings, etc.)>
Sales of core products, including thermoplastic valves, increased, driven by stronger demand for key products resulting from inventory buildup in Japan in response to the situation in the Middle East, as well as increased demand associated with expanding investment in the electronics industry in the U.S.
<Dymatrix Products>
In the semiconductor manufacturing equipment market related to Dymatrix products, demand in China paused, while signs of a recovery emerged mainly in South Korea, supported by growing demand for memory semiconductors.
<Engineering Business>
The Engineering Business, which uses thermoplastic piping materials and other products, remained generally firm as the Division steadily advanced projects already secured, despite delays in the progress of some projects.
<Profit>
Profit increased due to higher sales and progress in passing higher raw material costs on to selling prices.
| Sales |
13.8 billion yen |
+13.9% YoY |
| Operating profit |
2.3 billion yen |
+25.4% YoY |
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Resin Division
<Electronics Materials Business>
Electronics materials products contribute to advances in semiconductor technology through efforts to reduce metal impurities. Overall demand in the semiconductor market remained resilient. Although raw material supplies became unstable and procurement costs increased due partly to the situation in the Middle East, the Division maintained stable procurement through close collaboration with suppliers and multiple sourcing, thereby continuing to supply customers without interruption. However, sales decreased year-on-year due to continued inventory adjustments by some customers.
<Foundry Materials Business>
Automotive-related demand remained firm both in Japan and overseas. However, the business was affected by uncertainty over raw material supplies and higher procurement costs due to the situation in the Middle East. Under these circumstances, the Division maintained stable raw material procurement by strengthening collaboration with suppliers and implementing multiple sourcing, while revising selling prices in response to higher raw material costs.
In India, a growing market, the Division has begun constructing a second Resin-Coated Sand (RCS) plant to meet growing demand and strengthen its supply system. Through this project, the Division is reinforcing its business foundation in accordance with the Mid-Term Management Plan GNT2030. These initiatives expanded sales of high-value-added products and facilitated the appropriate pass-through of higher costs to selling prices, resulting in higher sales year-on-year.
<Foaming Materials Business>
As foam materials become finished products through installation at construction sites, the Division provides customers with safety and peace of mind by improving installation quality. In the housing market, condominium construction starts continued to decline, while demand for civil engineering materials, particularly those used in tunnel excavation, remained strong. In response to uncertainty over raw material supplies and higher procurement costs due partly to the situation in the Middle East, the Division secured stable procurement and promptly revised selling prices. As a result, the Division maintained a stable supply to customers, improved profitability, and recorded higher sales year-on-year.
<Profit>
Profit decreased year-on-year due to the non-recurrence of high-margin additional construction work at Randwick Co., Ltd. that contributed to profit in the same period of the previous fiscal year.
| Sales |
6.1 billion yen |
+ 0.1% YoY |
| Operating profit |
0.2 billion yen |
-42.1% YoY |
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Water Treatment & Natural Resources Development Division
<Water Treatment Business>
The Water Treatment Business designs and constructs water treatment facilities and develops water reclamation systems that enable the effective use of water resources. The business also focuses on providing maintenance services that support the stable operation of facilities and equipment, as well as environmental improvement chemicals. Sales from both public- and private-sector projects decreased due to fewer large-scale construction projects.
<Natural Resources Development Business>
The Natural Resources Development Business contributes to the effective use of resources by drilling geothermal steam wells for geothermal power generation, a form of renewable energy, and undertaking hot spring development projects. Sales decreased year-on-year due to delays in project commencement and progress for both hot spring and geothermal drilling projects.
<Profit>
Profit decreased year-on-year due to lower sales from water treatment construction projects and hot spring and geothermal drilling projects.
| Net Sales |
1.3 billion yen |
-31.2% YoY |
| Operating profit |
-0.2 billion yen |
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