Wintest Corp.

Business Details

The company develops, manufactures, and sells test equipment for the manufacturing processes of advanced logic ICs, image sensor ICs, display driver ICs (DDIC), and other devices. It consists of the Yokohama head office, the Osaka business office (development and manufacturing), and a wholly owned subsidiary in Wuhan, China (mass production and local support). Its primary markets are semiconductor manufacturing plants in China and Taiwan. From January 2026, the company formally commercialized new businesses (Tail Lifter, healthcare, liquid lens, X-ray diagnostic equipment, etc.) and is promoting revenue diversification.

Recent Overview

Net sales increased 75.5% year on year, but losses continued as cost of sales exceeded net sales, resulting in a gross loss

Net sales for the first quarter of FY2026 (ending December 2026) (January to March) improved to ¥127 million (up 75.5% year on year), but cost of sales of ¥138 million exceeded net sales, resulting in a gross loss of ¥11 million. Combined with SG&A expenses of ¥167 million, the operating loss widened to ¥179 million (compared with △¥174 million in the same period of the prior year). Material uncertainty regarding the going concern assumption continues to exist. Total assets at the end of the first quarter stood at ¥778 million (down ¥141 million from the end of the prior fiscal year), mainly due to repayment of ¥100 million in short-term borrowings and a decrease in accounts receivable. Exercise of stock acquisition rights increased common stock and capital surplus by ¥86 million each, bringing net assets to ¥352 million (up ¥9 million from the end of the prior fiscal year). As a subsequent event, additional exercise of stock acquisition rights (744,600 shares) took place between April and May 2026, increasing the total number of issued shares to 56,013,200. It was also noted that the resumption of capital investment in the consumer and industrial semiconductor markets may be delayed until after July 2026.

Key Products

Growth Drivers

• Mid- to long-term expansion of demand for DDIC test equipment expected as investment in G8.6 substrate-compatible OLED accelerates in earnest (China and South Korea)
• Expected recovery from 2026 onward in semiconductor demand for AMOLED, foldable OLED, AI smartphones, and AI notebook PCs
• New customer and market development through entry into the front-end test equipment market (WTS-511), with shipments planned to begin by the end of FY2026 (ending March 2026)
• New entry into the power device testing field (building a new profit pillar against the backdrop of expanding AI robot demand)
• Full-scale monetization of new businesses such as Liquid Lens RYUGU, 3D X-ray diagnostic equipment, Strong Alkaline Reduced Water Cleaning Water Generator, and Tail Lifter, formally commercialized from January 2026
• Acquisition of new orders following completion of development of the high-voltage option for the domestic WTS-3000
• Fundraising through exercise of the 13th series of stock acquisition rights (7 million shares) issued to abc Co., Ltd. (for clean room construction and new business development)
• Anticipated reduction in the cost of sales ratio from 2026 onward due to the front-loaded recognition of inventory valuation losses in FY2025 (ended December 2025)

Risks

• Risk of prolonged suspension of capital investment due to the AI-focused bias in the consumer and industrial semiconductor market (full-scale resumption may be delayed until after July 2026)
• Material uncertainty regarding the going concern assumption due to continued recording of operating losses (operating loss of ¥1,218 million in the prior fiscal year; operating loss of ¥179 million in the current first quarter)
• Fundraising through stock acquisition rights is not guaranteed, creating uncertainty over the stabilization of the financial base
• Geopolitical risk and customer concentration risk due to concentration of sales among customers in China and Taiwan
• Risk of supply constraints and cost increases for printed circuit board materials and other components due to geopolitical risks such as U.S.-Iran relations
• Risk of delay in the construction of the clean room required for entry into front-end test equipment (target is to begin shipments by the end of FY2026 (ending March 2026))
• Uncertainty regarding the timing of monetization of new businesses (Tail Lifter, healthcare, cleaning water, liquid lens, X-ray equipment)
• Fragility of the revenue structure, as indicated by cost of sales exceeding net sales (gross loss of △¥11 million in the current first quarter)
• Risk of share dilution due to exercise of stock acquisition rights (number of shares issued increased from 53,641,000 to 56,013,200)