4238.T

• Overall Consolidated Performance

  • Consolidated revenue for the 2nd quarter was 6.34 billion yen, down 10.3% year-over-year; operating profit was 0.334 billion yen, down 60% year-over-year; net profit attributable to parent company shareholders was 0.283 billion yen, down 53% year-over-year. Both segments maintained steady utilization, so operating profit beat the previous guidance by 0.07 billion yen and net profit beat guidance by 0.067 billion yen, prompting an upward revision to guidance on September 4.
  • Cumulative profit margin recovered to 5.3%, up from 3.5% in the 1st quarter, driven by the recovery of the molding machine business.
  • Capital expenditure in the first half was 0.531 billion yen, down 69.8% year-over-year; depreciation expense was 0.673 billion yen, up 24.8% year-over-year, with the increase tied to recent automation and capacity expansion investments.

• Mid-Term Growth Strategy (Third Founding Period)

  • Core strategic goal: Address over-concentration of the business portfolio by building additional revenue pillars beyond silicon wafer shipping containers to enable sustainable growth across multiple high-growth markets. Original mid-term numerical targets are maintained unchanged.
  • Growth approach: Expand from the core existing business base; pursue organic growth and share expansion for silicon wafer containers, respond rapidly to evolving quality requirements from technical innovation to open new markets. High-performance resin products have remaining growth opportunities in both front-end and back-end semiconductor processes. Special molding machines for automotive next-generation motors are targeted as a future core product line. The company will actively pursue M&A to enter new synergistic fields that complement existing technologies and markets.

• Capital Allocation

  • The company will balance aggressive investment for sustainable stable growth with shareholder returns. While there is a notable funding gap for growth investments (R&D, capital expenditure, M&A) after accounting for working capital, it will consider appropriate use of financial leverage to improve capital efficiency, and maintain active dialogue with shareholders to deliver expected shareholder return policies.

• Capital Expenditure Progress

  • Full-year capital expenditure is projected between 1.5 billion yen and 2.5 billion yen, focused on production equipment. The first phase automated line completed last year is currently producing customer-evaluated prototypes (depreciation has already started), and mass production will launch immediately after customer approval. The second phase automated line is scheduled for completion within the current fiscal year, with commercial launch timing to be determined based on market conditions.

• Given the high volatility of semiconductor industry cycles, the company only provides quarterly guidance for the upcoming 3rd quarter of the 2026 January term.
• For the plastic molding business: While generative AI-driven demand has lifted advanced semiconductors, legacy semiconductor products remain in an adjustment phase. Overall the market is in a gradual recovery, but has not yet gained enough momentum to drive strong growth in the silicon wafer market. Container products and high-performance resin products for semiconductor equipment are both expected to see flat to slightly increased performance compared to the first half.
• The company expects 3rd quarter operating profit of 0.49 billion yen, accounting for depreciation from recent capital expenditures and a temporary utilization reduction for automated equipment delivery in August.
• Full-year capital expenditure guidance is maintained at 1.5 billion yen to 2.5 billion yen, with full-year depreciation expected between 1.4 billion yen and 1.6 billion yen.

1. Plastic Molding Segment: Revenue of 5.675 billion yen, segment profit of 0.602 billion yen, contributing 89.5% of total consolidated revenue. In the 2nd quarter, revenue decreased by approximately 0.16 billion yen compared to the 1st quarter; shipment volumes of silicon wafer container products were almost flat quarter-over-quarter, but were impacted by product mix, and demand for high-performance resin products for semiconductor equipment was weak amid industry adjustment. Stable production volume maintained consistent utilization, leading to a slight improvement in profit margin quarter-over-quarter.
2. Molding Machine Segment: Revenue of 0.763 billion yen, segment profit of 0.072 billion yen, contributing 10.5% of total consolidated revenue. This segment produces made-to-order equipment of varying scales, so profit margins fluctuate heavily based on individual order details. After extremely low utilization in the 1st quarter due to delayed orders, orders recovered in the second half of the 1st quarter, and the 2nd quarter saw sales return to near-normal levels.

• The semiconductor industry is in a gradual recovery after hitting a bottom in Q3 2024, but there is still no clear sign of full-scale recovery; a prolonged period of stop-start gradual recovery is expected.
• Silicon wafer inventory remains elevated, and semiconductor equipment capital expenditure has softened, limiting the pace of near-term recovery.
• The company faces ongoing uncertainty from the impact of China's semiconductor production technology development and expanding production capacity.
• Fixed costs have increased due to capacity expansion: higher depreciation expense from recent investments and increased utility costs from expanded factory area have put downward pressure on operating profit, to date reducing operating profit by a combined 0.217 billion yen.
• Demand for high-performance resin products is tied to semiconductor equipment industry conditions, and volume zone semiconductor equipment remains in a prolonged adjustment phase.

Q: What are the current and projected trends for FOSB and FOUP through the third quarter? / A: Miraial does not disclose segmented data for these two products, but as a reference, overall volumes have not changed greatly across the first and second quarters. FOSB saw a slight increase from Q1 to Q2, while FOUP volumes were almost flat. Year-over-year, FOSB volumes are up, while FOUP is slightly down, a change driven by order scheduling adjustments that leaves overall performance near flat. Management expects the third quarter to be flat to slightly up, with neither significant declines nor strong growth expected.

Q: Has the reuse ratio for FOSB changed recently? / A: There has been no structural change to the FOSB reuse ratio. Short-term, temporary increases in reuse can be seen during periods when existing inventory is being drawn down, but this is only routine volatility, and the overall rate remains consistent with historical levels.

Q: What is the current share of wafer container sales going to China? / A: The China sales share for wafer containers has remained stable at a range of tens of percent, with no major change in the ratio over the past several years.