MATSUDA SANGYO Co.,Ltd.

Business Details

This segment engages in Precious Metals Recycling & Smelting, sales of Precious Metal Bullion & Chemical Products and electronic materials, and Industrial Waste Collection, Transport & Treatment. Its main customers are in the electronics industry (electronic devices field). The segment develops and expands production sites both domestically and overseas, and pursues differentiation through comprehensive resource recycling capabilities and the development of High-Performance Electronic Materials. Supported by an increase in the volume of precious metals recycling handled, including the jewelry field, and an overall rise in precious metal prices, the segment achieved substantial increases in both revenue and profit in FY2026 (ending March 2026).

Recent Overview

Rising precious metal prices and increased recycling volume drove 57.7% revenue growth and 90.0% operating profit growth

In FY2026 (ending March 2026), an increase in the volume of precious metals recycling handled, including the jewelry field, combined with a general rise in precious metal prices, provided a tailwind, resulting in revenue of ¥570,422 million (up 57.7% year on year) and operating profit of ¥19,342 million (up 90.0% year on year). In the electronics industry's electronic devices field, demand for automotive applications remained sluggish, but expanding demand for AI data centers drove overall production of semiconductors and electronic components on a moderately recovering trend.

Key Products

Growth Drivers

• Boost to revenue and profit from a general rise in precious metal prices (particularly gold and silver)
• Moderate recovery in semiconductor and electronic component production driven by robust demand for AI servers and data centers
• Increase in the volume of precious metals recycling handled, including the jewelry field
• Enhanced ability to secure raw materials and processing capacity through development and expansion of domestic and overseas production sites
• Differentiation and increased added value through the development and promotion of sales of High-Performance Electronic Materials
• Securing and expanding contracted industrial waste treatment in response to circular economy needs

Risks

• Risk of significant fluctuations in revenue and profit due to a sharp decline in precious metal prices (high dependency of revenue on market prices)
• Decrease in recycling raw material supply volume due to continued stagnation in EV-related electronic device production
• Supply chain disruption due to prolonged U.S. trade policy and geopolitical risks
• Increased working capital needs due to a sharp rise in precious metal procurement costs (inventory assets significantly increased year on year)
• Delayed demand recovery due to continued weakness in the automotive electronic devices field
• Profit pressure from price declines in platinum group products and other items