INNOTECH CORPORATION
9880・Prime Market・Electric Appliances
Business
Innotech Corporation is a total solutions provider in the electronics field, comprising the Company, 20 subsidiaries, and 1 affiliate. Its business is divided into three segments—"Test Solutions," "Semiconductor Design-related," and "System & Services"—and it offers a broad range of products and services, including test systems and probe cards for semiconductor memory, EDA software and LSI contract design, embedded CPU boards, cashless payment terminals, and embedded software verification tools. Its major customers span a wide range of fields, including semiconductor manufacturers, automobile manufacturers, social infrastructure, and defense-related companies, and it has built a global operating structure with business locations both in Japan and overseas.
Business Model
In the Test Solutions segment, the company sells in-house developed semiconductor test systems as well as probe cards and reliability evaluation equipment from STAr Technologies, aiming to improve profit margins through high-value-added products. In the Semiconductor Design-related business, long-term contract sales and maintenance services for Cadence Design Systems' EDA software serve as a stable revenue base, while LSI contract design and simulation model development add further value. In the Systems and Services segment, in addition to sales of embedded products, the company is expanding stock-type businesses such as cloud service revenue from payment terminals, aiming for a structure that enhances the stability of its earnings.
Company Strengths
The company develops semiconductor test systems in-house and combines them with probe cards and reliability evaluation equipment from Taiwan's STAr Technologies, enabling it to provide integrated solutions covering the test process from upstream to downstream. In FY2026 (ending March 2026), sales of the test solutions business reached ¥18,456 million (up 23.2% year on year), and the segment turned profitable with segment income of ¥1,190 million, compared with a segment loss of ¥312 million in the prior period.
Long-standing expertise built up through years of handling Cadence (US) EDA software, together with long-term contract renewals with customers, underpin stable earnings. Sales of the semiconductor design-related business grew steadily to ¥13,729 million (up 5.7% year on year) in FY2026 (ending March 2026), with segment income up 43.6% year on year to ¥656 million, while the order backlog also remained at a high level of ¥16,027 million (up 29.6% year on year).
The company holds a diverse portfolio of proprietary brand products, including the embedded CPU board "INNINGS," AI camera systems, cashless payment terminals, and embedded software verification tools, thereby diversifying its dependence on any single business. On the financial side, it maintains a sound financial base with an equity ratio of 54.8% and a D/E ratio of 0.19x (against the medium-term plan target of 0.5x or lower), securing flexible capacity for growth investment.
ENVALITH's Perspective
Performance Trend
Revenue expanded 25.5% over five fiscal years, from ¥37,238 million in FY2022 (ended March 2022) to ¥46,737 million in FY2026 (ending March 2026). Operating profit recovered sharply, rising 64.7% from ¥1,887 million in FY2025 (ended March 2025) (a second consecutive year of decline) to ¥3,108 million in FY2026 (ending March 2026). The main driver was the Test Solutions business, which swung from a segment loss of ¥312 million to a segment profit of ¥1,190 million, aided externally by an improvement in the semiconductor memory market and expanding demand for new products aimed at overseas markets. Profit attributable to owners of parent came to ¥4,111 million (up 242.6% year on year), including extraordinary income such as a ¥2,911 million gain on sale of fixed assets. For the next fiscal year, the company forecasts revenue of ¥50,000 million, operating profit of ¥3,700 million, and net income of ¥4,850 million (including an expected gain on sale of fixed assets).
Growth Strategy
The company is advancing three key pillars: product diversification in the test business, stable expansion in the design-related business, and development of new domains in the system business.
The company will continue to expand sales of new testers for overseas markets, while promoting expansion into peripheral solutions beyond memory (such as those for CMOS image sensors) and into the high-frequency, compound semiconductor, and power semiconductor fields. STAr Technologies' probe card business is expected to remain strong on the back of AI-related demand, but profits are projected to decline due to increased R&D investment.
In the next fiscal year, the company will focus on renewing several large-scale EDA contracts while promoting expanded sales of tools for system products. Saneihightechs' domestic semiconductor-related business is expected to remain steady, but weak AI-related demand at its Vietnamese subsidiary remains an ongoing risk. Contribution from Modec's contracted R&D projects is expected to support performance.
In addition to continued demand for embedded products for defense applications, the company will promote expanded demand for its proprietary brand "INNINGS" for data centers. While maintaining stable income from IT Access's cloud payment services, the company aims to generate new revenue contributions through the launch of its security-related business. The automotive-related business is expected to be affected to some extent by restrained investment in the automotive industry.
The company is promoting a capital policy that combines both improved ROE and shareholder returns by implementing a special dividend funded by the sale of fixed assets (head office land, buildings, etc.) together with a share buyback (up to 1,000,000 shares / ¥2,500 million, from May to December 2026). ROE for FY2026 (ending March 2026) improved significantly to 15.9% (from 4.8% in the previous fiscal year).
Last updated: July 19, 2026