Resin Division
<Electronics Materials Business>
Electronics materials products contribute to advances in semiconductor technology by leveraging low-metal technology.
In Japan, although demand increased for photoresist materials used in legacy semiconductors such as sensors and power semiconductors, as well as for materials used in back-end semiconductor processes, sales decreased year on year due to customer inventory adjustments.
In China, sales increased year on year due to strong demand in the FPD (flat panel display) sector, including LCDs and OLEDs.
Construction of the Nantong Electronics Materials 2nd Plant is underway, with completion scheduled for March 2027.
<Foundry Materials Business>
In the Foundry Materials Business, the Company addressed customer challenges by proposing products optimized for diverse manufacturing processes in Japan and overseas, including improvements in manufacturing quality and productivity as well as better working environments through odor reduction.
In Japan, sales increased year on year as the Company promoted a shift toward environmentally friendly, high-value-added products. Overseas, sales also increased year on year due to the expansion of high-value-added products tailored to customer needs in China, India, and Mexico.
<Foaming Materials Business>
In the Foaming Materials Business, products become finished products through on-site application at construction sites, and the Company contributes to safe and reliable construction by improving application quality.
Sales decreased year on year as housing starts for spray foam insulation materials remained sluggish and shipment volumes of civil engineering materials for tunnel excavation declined due to delays in contracted projects.
<Profit>
Profit decreased year on year due to higher fixed costs, including depreciation and personnel expenses.
| Net Sales |
23.0 billion yen |
YoY Change: - 0.3% |
| Operating profit |
0.9 billion yen |
YoY Change: -18.0% |
Water Treatment & Natural Resources Development Division
<Water Treatment Business>
In the Water Treatment Business, the Company engages in the design and construction of water treatment facilities and the development of water recycling systems for the effective use of water resources.
The Company also focuses on providing maintenance services that support the stable operation of facilities and equipment, as well as water treatment chemicals.
Sales increased year on year due to steady progress in government construction projects and the supply of water treatment chemicals, as well as revisions to contract prices for maintenance services and an increase in repair work orders.
<Natural Resources Development Business>
The Natural Resources Development Business contributes to the effective utilization of natural resources through drilling work for steam wells used in geothermal power generation, a renewable energy source, as well as hot spring development projects.
Sales decreased year on year due to delays in the progress of certain hot spring and geothermal drilling projects.
<Profit>
Profit decreased year on year due to lower sales from hot spring and geothermal drilling projects, delays in project progress, and higher fixed costs, including personnel expenses.
| Net Sales |
9.0 billion yen |
YoY Change: - 8.5% |
| Operating profit |
0.6 billion yen |
YoY Change: -25.1% |
3. Outlook
Regarding the business environment for the fiscal year ending March 31, 2027, the Group recognizes that capital investment across the manufacturing sector is likely to remain cautious amid global inflation trends and geopolitical risks. On the other hand, investment trends vary by industry, with investment continuing in selected growth sectors.
Under these circumstances, demand related to data centers and advanced semiconductors used in AI applications has been improving against the backdrop of expanding AI adoption, and demand conditions in the semiconductor manufacturing equipment sector remain relatively favorable. In addition, demand related to semiconductor plant construction in the U.S. is gradually entering a recovery phase, and related demand is expanding across a broader range of areas. The Group intends to steadily capture these demand opportunities and translate them into expanded business opportunities.
Geopolitical risks, including the situation in the Middle East, may lead to increases in raw material prices and other costs. However, the Group will address such cost fluctuations through price pass-through initiatives and cost controls. At the same time, if constraints arise in the supply of raw materials and various components, there is a risk that this could affect customers’ project schedules and construction progress, and therefore the Group will continue to closely monitor these developments.
Based on the business environment described above and the Group’s response policies, consolidated financial results for the fiscal year ending March 31, 2027 are forecast as follows.
| Net Sales |
90.0 billion yen |
YoY Change: +12.4% |
| Operating profit |
8.5 billion yen |
YoY Change: +12.1% |
| Ordinary profit |
8.7 billion yen |
YoY Change: + 9.3% |
| Profit Attributable to Owners of the Parent |
6.1 billion yen |
YoY Change: +83.4% |
*The forecasts contained in this document are based on information currently available to the Company and certain assumptions deemed reasonable. Actual results may differ materially from these forecasts due to various factors.
