ENVALITH
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Abalance Corporation

3856・Standard Market・Electric Appliances

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Abalance株式会社 logo
Abalance Corporation3856

Business

Abalance Corporation's core operations consist of a global solar panel manufacturing business centered on Vietnam, Ethiopia, and the United States, and a Green Energy Business focused on the sale and electricity sales of domestic solar power plants. In the manufacturing business, Vietnam Sunergy Joint Stock Company (VSUN) and TOYO Co., Ltd. (listed on the US Nasdaq) work together to build a vertically integrated supply chain spanning from Ingot/Wafer to cells and panels. In the Green Energy Business, WWB Corporation and Barrows Inc. serve as the core entities, accumulating earnings through two pillars: the Flow-type Business (Solar Power Plant & Component Sales) and the Stock-type Business (In-house Power Plant Ownership & Electricity Sales). Consolidated net sales for FY2025 (ending March 2025, an irregular 9-month period) were ¥72,417 million. The company's long-term vision is to become a "core global company in renewable energy," with targets of 1GW of owned power generation capacity and 12GW of panel manufacturing capacity by 2030.

Business Model

In the Solar Panel Manufacturing Business, panels are manufactured at the Vietnam plant (VSUN), while TOYO SOLAR internally produces Solar Cells to enhance cost competitiveness, with sales to the US, India, Europe, and other regions. In the Green Energy Business, the company builds a stable earnings model that generates immediate revenue through the sale of power plants and related equipment (flow-type), while also accumulating electricity sales income (stock-type) by retaining ownership of power plants after completion. In FY2025 (nine months ended March 2025), electricity sales and O&M income reached ¥4,361 million, reflecting the expansion of stock-type revenue.

Company Strengths

The company has built a three-site structure spanning Vietnam (VSUN: panel manufacturing), Ethiopia (TOYO SOLAR: cell manufacturing, Phase 1 already operational), and Texas, USA (new panel plant under construction). It is also advancing in-house production of Ingot/Wafer, achieving both cost competitiveness and resilience against geopolitical risk through an integrated manufacturing structure spanning upstream to downstream.

In July 2024, subsidiary TOYO Co., Ltd. listed on the Nasdaq in the United States. This secured access to global capital markets and strengthened the company's fundraising capability needed for large-scale investments such as the construction of new plants in Ethiopia and Texas, USA. It also contributes to enhanced international brand recognition and creditworthiness.

In the Green Energy Business, the company combines sales of power plants and equipment (Flow-type: ¥2,965 million) with electricity sales and O&M revenue from in-house owned power plants (Stock-type: ¥4,361 million), recording total sales of ¥7,441 million in the nine months of FY2026 (ending March 2026). The accumulation of Stock-type Business revenue is forming an earnings structure that is less susceptible to economic fluctuations.

ENVALITH's Perspective

Net sales of ¥58,662 million and operating profit of ¥6,274 million for the interim period of FY2026 (ending March 2026) substantially exceeded the previous interim period (note that the comparison period differs), and progress toward the full-year forecast (net sales of ¥128,000 million, operating profit of ¥11,500 million) stood at approximately 45.8% and 54.6%, respectively, indicating steady progress. However, of the ¥11,119 million in interim income before income taxes and other adjustments, extraordinary income accounted for ¥5,885 million, and temporary factors such as gains on sales of fixed assets and reversal of provisions have boosted profit, which needs to be discounted when assessing sustainable earning power. In addition, of the ¥8,310 million in interim net income, ¥5,503 million, or approximately 66%, was attributable to non-controlling interests, leaving only ¥2,807 million attributable to owners of the parent, a structural issue that remains.

As an external factor, in addition to AD/CVD tariffs imposed by the US government, reciprocal tariffs (20% for Vietnam, 10% for Ethiopia) have been levied, and the risk of further changes to tariff policy remains high. On the other hand, whether the low-tariff advantage of Ethiopia-made cells and tax incentives at the new US plant (production commencing October 2025, with results reflected from Q4 onward) will function as a competitive advantage is a key point for evaluation. Furthermore, the lawsuit filed in December 2024 by a solar panel manufacturer (involving eight consolidated subsidiaries as parties) and allegations of improper accounting treatment related to past consignment-material transactions (the third-party committee's investigation report was received on December 17, 2025) present an impact on results that is currently difficult to reasonably estimate, and these represent significant tail risks that warrant close monitoring.

The equity ratio improved from 16.6% at the end of the previous fiscal year to 21.9%, and equity capital also increased from ¥24,180 million to ¥37,070 million. However, against total assets of ¥169,239 million, total liabilities remain at a high level of ¥123,718 million. In particular, current liabilities surged from ¥80,283 million to ¥103,830 million, and contract liabilities increased by ¥16,729 million, from ¥8,632 million to ¥25,361 million, which requires careful examination of the nature and collectability of advances received. Short-term borrowings also remain high at ¥34,775 million, and the risk of increased financial costs (interest expense of ¥2,112 million for the current interim period) amid rising interest rates should continue to be monitored closely.

Growth Strategy

Full-scale operation of new plants in Ethiopia and the U.S. and reinforcement of the three-region structure to establish a position in the U.S. market

Phase 1 (2GW) began production in April 2025, and Phase 2 (2GW) began production in August of the same year. Demand for Ethiopia-made cells, which carry a relatively low reciprocal tariff rate of 10% when imported into the U.S., has been robust, and sales to the U.S. and Asia have expanded steadily. Solar Panel Manufacturing Business net sales for the interim period reached ¥53,645 million, exceeding the plan.

Production of Solar Panel Phase 1 (1GW) began in October 2025. The plant is eligible for U.S. government tax incentive measures, and robust demand is expected from large-scale domestic solar power development companies. Business results for October–December 2025 are scheduled to be reflected from the cumulative fourth quarter of FY2026 (ending March 2026).

TOYO SOLAR CLEAN ENERGY COMPANY LIMITED was established in Phu Tho Province, Vietnam on December 5, 2025 (capital of approximately ¥461 million, indirect ownership ratio of 42.23%). A production system is planned to be built at this new base to respond to increasing demand in the Asian and European solar power markets, among others.

The company is promoting in-house ownership of domestic solar power plants (stock-type) to build up a stable earnings base through electricity sales revenue. It has entered the Grid Storage Battery Business in the Hokkaido area and is working to secure new projects. Non-FIT power plant development and M&A are also being actively utilized to expand the business foundation. Green Energy Business net sales for the interim period were ¥4,697 million, with segment profit of ¥864 million.

Last updated: July 17, 2026