Shinhokoku Material Corp.
5542・Standard Market・Iron & Steel
Special Alloys Business
Core business centered on low thermal expansion alloy components for semiconductor and FPD manufacturing equipment
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (Q1 cumulative, FY2026 (ending December 2026)) | ¥1,439 million | ¥1,606 million (Q1 cumulative, FY2025 (ended December 2025)) | ↓ |
| Segment profit (operating profit) (Q1 cumulative, FY2026 (ending December 2026)) | ¥125 million | ¥181 million (Q1 cumulative, FY2025 (ended December 2025)) | ↓ |
| Net sales (most recent full-year results) | ¥5,387 million (full year, FY2025 (ended December 2025)) | — | — |
| Operating profit (most recent full-year results) | ¥348 million (full year, FY2025 (ended December 2025)) | — | — |
Business Details
Utilizing its casting plant and outsourcing network, the company manufactures and sells Low Thermal Expansion Alloy (Invar Alloy) Castings and Precision Machined Parts for semiconductor and FPD manufacturing equipment, Tools for Seamless Steel Pipe Manufacturing, Electrical Resistance Materials and Special Welding Rod Core Wire, Contract Rolling and Wire Drawing Processed Products, and other products. Major customers are Canon Inc. (28.7% of sales), Nikon Corporation (26.4% of sales), and Nippon Steel Corporation (15.4% of sales), resulting in high dependence on the semiconductor and FPD industries. This is the core segment, accounting for 97.3% of the company's total sales.
Recent Overview
Sales and profit declined year-on-year, but sales increased by ¥300 million versus the prior Q4, indicating a recovery trend
In Q1 of FY2026 (ending December 2026), net sales in the Special Alloys Business were ¥1,439 million (down 10.5% year on year), and segment profit was ¥125 million (down 31.1% year on year). While sales and profit declined compared to the extremely strong Q1 of the prior year, semiconductor investment for AI and data centers has been recovering since bottoming out in Q4 of the prior year, achieving an increase of ¥300 million in net sales and ¥105 million in operating profit compared to Q4 of the prior year. Order conditions have remained solid, and sales are expected to increase going forward compared to the prior period.
Key Products
Growth Drivers
- Expanding capital investment in advanced semiconductor manufacturing equipment for AI (medium- to long-term investment in mass production of advanced high-performance products and advanced packaging technology)
- Progress in overseas sales expansion following the start of sample shipments to European semiconductor manufacturing equipment makers
- Advancing practical application testing of the Invar alloy "IC-DX" in the hydrogen-related field (joint testing with multiple companies and cryogenic property evaluation at public research institutions)
- New market development through expansion of "VIC-65" for thermoplastic CFRP molding dies
- Large-scale investment in metal 3D additive manufacturing and establishment of manufacturing technology (¥60 million in subsidies already received for introduction of 3D manufacturing equipment)
Risks
- Risk of demand fluctuation due to high dependence on the semiconductor and FPD industries (over 97% of net sales)
- Risk of more cautious semiconductor capital investment due to US tariff policy and US-China trade friction
- Risk of delayed recovery in silicon wafer-related products (for general-purpose consumer applications)
- Risk of weak demand due to a plateau in capital investment related to FPD manufacturing equipment
- Uncertainty about the outlook due to a significant decline in orders received and order backlog (orders received down 30.9% year on year, order backlog down 42.7% year on year)
- Risk of sales concentration in specific customers (top three customers account for 70.5% of net sales)
Last updated: April 3, 2026