OPTORUN CO.,LTD.

Business Details

The Group is a single-segment company whose main business is the manufacture and sale of optical thin-film deposition equipment. It provides deposition equipment for a wide range of end products, including smartphones, in-vehicle cameras, optical communications, and semiconductor optics, and is characterized by total solutions that include advice on deposition processes. Customers are optical thin-film deposition manufacturers and end-product manufacturers, with high dependence on the Greater China market. The Group consists of 8 consolidated subsidiaries and 2 affiliated companies.

Recent Overview

Q1 net sales down 11.8%, quarterly net loss recorded, but full-year forecast unchanged

In Q1 FY2026 (ending December 2026) (January to March), while sales of equipment for smartphone camera modules and data-center-related optical communications remained strong, net sales were ¥6,968 million (down 11.8% year on year) due to a decline in parts service and equipment modification projects. Operating profit was ¥511 million (down 32.3% year on year). Ordinary profit was ¥286 million (down 61.3% year on year), reflecting the recognition of an equity-method investment loss of ¥201 million and a foreign exchange loss of ¥111 million. Quarterly net loss attributable to owners of the parent was ¥82 million. Meanwhile, following the listing of Raontech Co., Ltd. (held by consolidated subsidiary Guangchi Technology (Shanghai) Co., Ltd.) on the Shanghai Stock Exchange (STAR Market), investment securities increased substantially, valuation difference on available-for-sale securities increased by ¥22,926 million, and quarterly comprehensive income turned sharply positive at ¥24,021 million. The full-year earnings forecast (net sales of ¥38,200 million, operating profit of ¥6,200 million) remains unchanged.

Key Products

Growth Drivers

• Expanding demand for deposition equipment for automotive displays and cameras (driven by autonomous driving, HUDs, and touch panel adoption)
• High growth in optical communications (optical-electronic convergence, silicon photonics)-related equipment driven by generative AI and data center demand (continued strong performance in Q1 FY2026 ending December 2026)
• Strong performance of equipment for semiconductor optics and optoelectronics (e.g., OWLS-1800)
• Demand for enhanced camera functionality driven by AI-equipped, foldable, and high-end smartphone models (strong sales for optical-area smartphone camera modules continued in Q1 FY2026 ending December 2026)
• Prospects for substantial recovery based on full-year earnings forecast (net sales of ¥38,200 million, up 12.8% year on year; operating profit of ¥6,200 million, up 85.9% year on year)
• Substantial increase in investment securities and net assets due to the listing of Raontech Co., Ltd., held by a consolidated subsidiary, on the Shanghai Stock Exchange

Risks

• High dependence on sales to the Greater China market, with geopolitical risk and supply chain disruption risk from US-China trade friction
• Significant volatility in profitability due to fluctuations in sales of high-margin products such as ALD equipment (in FY2025 ending December 2025, a decline in sales of this equipment was the main cause of a 49.2% decrease in operating profit)
• Risk of expanding equity-method investment losses (¥201 million recorded in Q1 FY2026 ending December 2026, approximately 5 times the amount in the same period of the prior year)
• Foreign exchange loss risk (a foreign exchange loss of ¥111 million was recorded in Q1 FY2026 ending December 2026)
• Risk of sales fluctuation due to a decline in parts service and equipment modification projects (the main cause of the decline in revenue in Q1 FY2026 ending December 2026)
• Risk of global economic slowdown and curtailed customer capital expenditure due to changes in US tariff policy
• Risk of fluctuation in the valuation of investment securities due to share price movements of Raontech Co., Ltd. (deferred tax liabilities increased to ¥7,452 million)