JTEC CORPORATION

Business Details

Manufactures and sells custom-made ultra-high-precision X-ray nano-focusing mirrors developed through industry-academia collaboration with Osaka University, for synchrotron radiation facilities and X-ray free-electron laser facilities in Japan and overseas. Achieves surface shape accuracy of 1 nm or less, the world's highest level of precision, with customers mainly being researchers at national research institutions and universities. In recent years, expansion into the European market has progressed, with the AdvancedKB Mirror securing its first order at a European facility. The company is also promoting technology deployment into industrial fields such as semiconductors and space.

Recent Overview

Domestic synchrotron radiation facility shipments drove net sales up 23.0% year on year, with profit margin also improving significantly

For the cumulative Q3 FY2026 (ending March 2026) period (July 2025 to March 2026), Optical Business net sales were ¥715 million (up 23.0% year on year), and segment profit was ¥245 million (up 77.7% year on year). During Q3, shipments to domestic synchrotron radiation facilities were substantial, with the domestic share of sales by country exceeding 50%. Increased shipments of high-margin products contributed to an improved gross profit margin. In the European market, the AdvancedKB Mirror secured its first order outside the Asia region. The company continues active sales expansion activities, including visits to China's SHINE facility and planned visits to facilities in Beijing, Hefei, and Shenzhen.

Key Products

Growth Drivers

• Progress in upgrades to fourth-generation systems and new construction plans at synchrotron radiation and X-ray free-electron laser facilities worldwide (China's SHINE, HEPS, HALF, IASF; Japan's SPring-8 upgrade, NanoTerasu, etc.)
• Orders received increased 186.9% year on year (¥1,903 million) and order backlog increased 202.5% year on year (¥1,321 million), forming a foundation for future sales growth
• With the first order secured for the AdvancedKB Mirror in the European market, full-scale development of new markets outside Asia is underway; significant demand expansion is expected given high compatibility with fourth-generation facilities
• Improved gross profit margin due to increased shipments of high-margin products (segment profit margin of 34.2% for cumulative Q3 FY2026, an improvement of 10.5 percentage points year on year)
• Technology deployment into industrial fields such as semiconductors and space (increasing inquiries in the laser, EUV, and DUV domains)
• Optimization of internal lead times and production systems through separation of front-end and back-end processes utilizing the Tochigi Production Technology Center

Risks

• Risk that sales recognition timing may shift due to prolonged design review or order plan changes at customer facilities, given the characteristic of custom-made products requiring roughly one year from order to completion (delays occurred on many projects in FY2025, ended March 2025)
• Risk of declining segment profit margin due to increased costs such as rising labor costs associated with headcount growth (SG&A expenses trending upward year on year)
• Lead times at outsourced processing partners (line-scribing and film-forming processes) affecting overall lead times, with diversification of suppliers and in-house production not yet complete
• Customer concentration risk, with public research institutions accounting for approximately 81.8% of net sales (susceptible to changes in national research institution budgets and policy)
• Increasing dependence on the Chinese market and the impact of geopolitical risk and US-China tensions (actively pursuing orders from China's SHINE, HEPS, HALF, and IASF)
• Possibility that deteriorating performance at Other Business (Electronic Science Co., Ltd.) may indirectly affect segment profit/loss through company-wide cost allocation