Mipox Corporation

Business Details

This segment manufactures and sells polishing-related products centered on Polishing Film, including liquid abrasives (precision cleaning agents / slurries) and Polishing Equipment. It maintains sales networks both domestically and overseas (Japan, Asia, North America, Europe, etc.) and serves both the high-tech precision fields such as optical fiber, hard disk, and semiconductor sectors, as well as the general polishing field. In FY2026 (ending March 2026), this core business accounted for approximately 94% of total group sales. The company is also expanding synergies in the "coating and polishing" domain through the consolidation of Ujike Co., Ltd. as a subsidiary.

Recent Overview

Sales rose sharply by 13.9% to ¥11,339 million, but profit declined 29.8% due to increased investment

Full-year Products Business sales for FY2026 (ending March 2026) were ¥11,339 million (up 13.9% year on year). The data network field remained strong, driven by AI and data center investment, with HDD-related and optical fiber-related sales remaining at high levels. General Polishing-Related Products also performed steadily, supported by increased shipments to key customers and continued switching from competitor products. On the other hand, segment profit declined sharply to ¥928 million (down 29.8% year on year). Profitability was pressured by increased SG&A expenses (packing and shipping costs, personnel expenses, R&D expenses, etc.) resulting from various investments made throughout the year, as well as the burden of common fixed costs from the Contract Services Business. In addition, Ujike Co., Ltd. was consolidated as a subsidiary effective August 1, 2025, resulting in the recognition of a gain on bargain purchase of ¥218 million as extraordinary income. Sales to key customer Fiber Optic Center, Inc. increased significantly to ¥2,347 million (from ¥1,599 million in the prior period).

Key Products

Growth Drivers

• Expanding demand for high-tech products for optical fiber and HDD applications, driven by growing global AI server investment and general-purpose data center investment amid the spread of generative AI
• Continued steady demand for semiconductor-related consumables (such as Probe Card Cleaning Sheets)
• Increased sales of optical fiber Polishing Film to key customer Fiber Optic Center, Inc. (up approximately 46.8% year on year)
• Expanded synergies in the "coating and polishing" domain and strengthened product lineup through the consolidation of Ujike Co., Ltd. as a subsidiary
• Diversification of sales channels utilizing e-commerce and investment in factory automation and labor-saving through manufacturing DX
• Progress in switching from competitor products and increased shipments to key customers in General Polishing-Related Products
• Expansion of business domains through strengthened M&A strategy

Risks

• Pressure on profitability of the Products Business due to a rising burden ratio of common fixed costs resulting from the decline in the Contract Services Business
• Increased SG&A expenses due to rising personnel costs (including base pay increases and J-ESOP related expenses) and a temporary rise in packing and shipping costs
• Increased manufacturing costs due to surging raw material and energy costs
• Rising trade costs due to US trade policy (tariffs) and geopolitical risks
• Risk of demand slowdown due to continued stagnation in the Chinese economy
• Foreign exchange risk (high proportion of overseas sales, broadly deployed across Asia, North America, and Europe, with overseas sales ratio exceeding 50%)
• Risk of sales concentration in a specific customer (Fiber Optic Center, Inc.), which accounted for approximately 19.5% of sales in the current period