Consolidated Financial Results and Management Overview for the Interim Period (Second Quarter) of the Fiscal Year Ending March 31, 2027
Consolidated Financial Results and Management Overview for the Interim Period (Second 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 interim period (second 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 Interim Period (Second Quarter) of the Fiscal Year Ending March 31, 2027
During the first six 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 amid the rapid spread of generative AI. 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 temporary inventory-securing efforts in Japan amid the situation in the Middle East and, overseas, a continued recovery in investment in semiconductor factory construction in the U.S. following the first quarter, which drove sales growth centered on key products.
| Sales |
43.8 billion yen |
+ 9.8% YoY |
| Operating profit |
5.6 billion yen |
+28.6% YoY |
| Ordinary profit |
5.6 billion yen |
+26.1% YoY |
| Net profit attributable to owners of the parent |
3.9 billion yen |
+30.7% 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.)>
Demand in Japan for core products, including thermoplastic valves, temporarily increased due to inventory buildup in response to the situation in the Middle East, but has recently been returning to normal. In addition, the Division captured increased demand in the U.S. associated with expanding semiconductor-related investment, and overall sales exceeded the level of the same period of the previous fiscal year.
<Dymatrix Products>
In the semiconductor manufacturing equipment market related to Dymatrix products, demand in China paused, while demand increased mainly in Japan and South Korea, supported by growing demand for memory semiconductors driven by generative AI and other factors. Sales exceeded the level of the same period of the previous fiscal year.
<Engineering Business>
The Engineering Business, which uses thermoplastic piping materials and other products, remained generally on par with the same period of the previous fiscal year, 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 |
28.0 billion yen |
+15.4% YoY |
| Operating profit |
5.0 billion yen |
+27.7% 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 firm. Although raw material supplies became unstable and procurement costs rose amid the situation in the Middle East and other factors, the business maintained an uninterrupted supply of products by working closely with suppliers and promoting multiple sourcing. Although inventory adjustments continued at some customers in Japan, sales increased year on year, driven by demand for FPD products in China.
<Foundry Materials Business>
Automotive-related demand remained firm in Japan and overseas, but the business was affected by raw material supply concerns and higher procurement costs amid the situation in the Middle East. Under these circumstances, the business maintained stable raw material procurement by strengthening collaboration with suppliers and promoting multiple sourcing, and revised selling prices in response to higher raw material costs.
As a result of these initiatives, sales increased year on year, supported by expanded sales of high-value-added products and appropriate pass-through of higher raw material costs to selling prices.
<Foaming Materials Business>
Foaming materials products become finished products when applied at construction sites, so the business provides customers with safety and peace of mind through initiatives to improve application quality.
Although the number of condominium starts in the housing market continued to decline, shipments of civil engineering materials for tunnel excavation increased as work resumed at multiple sites. In response to raw material supply concerns and higher procurement costs amid the situation in the Middle East and other factors, the business secured stable procurement and promptly revised selling prices. As a result, it continued to provide customers with a stable supply of products and improved profitability, and sales increased year on year.
<Profit>
Although raw material prices rose in the early part of the interim period amid the situation in the Middle East and other factors, profit increased year on year due to higher sales volume and selling price revisions.
| Sales |
12.4 billion yen |
+ 7.1% YoY |
| Operating profit |
0.6 billion yen |
+41.6% 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 builds water reclamation systems that enable the effective use of water resources. The business also focuses on maintenance services that support the stable operation of facilities and equipment, and on the supply of environmental improvement chemicals. Sales decreased due to fewer large-scale construction projects in both the public and private sectors.
<Natural Resources Development Business>
The Natural Resources Development Business contributes to the effective use of resources by carrying out drilling work such as steam wells for geothermal power generation, a form of renewable energy, as well as hot spring development work. Sales decreased year on year due to delays in the start and progress of work on both hot spring and geothermal drilling projects.
<Profit>
Profit decreased year on year due to lower sales from water treatment construction and hot spring and geothermal drilling work.
| Net Sales |
3.4 billion yen |
-16.2% YoY |
| Operating profit |
-0.1 billion yen |
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