Optorun (6235): FY2025 Results Summary — Orders Rebound 43% While One-Off Costs Halve Operating Profit

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Optorun’s fiscal year ends in December. The presentation labels the completed year “FY12/2025” and the current year “FY12/2026,” and those labels are used throughout this article.

Optorun Co., Ltd., an optical thin-film deposition equipment maker, released its consolidated results for FY12/2025 on February 13, 2026. Orders received (real terms) rose 42.9% year on year to ¥41,210 million and net sales increased 4.5% to ¥33,861 million, but operating profit fell 49.2% to ¥3,335 million and ordinary income fell 60.9% to ¥3,203 million. The company states that for FY12/2025 sales exceeded the plan but profits fell short. For FY12/2026 the company guides for net sales of ¥38,200 million (up 13% year on year), operating profit of ¥6,200 million (up 86%), ordinary profit of ¥7,400 million (up 131%) and net income attributable to owners of parent of ¥5,600 million (up 89%). Alongside the results the company announced new mid-term management goals under a “second founding” initiative.

Consolidated Results (FY12/2025 Actual)

Operating profit decreased by 49% to ¥3.3 billion, impacted by a ¥1.3 billion increase in temporary expenses (including inventory impairment and allowance for doubtful accounts). Ordinary profit decreased 61% to ¥3.2 billion, due to a ¥1.0 billion negative impact from the conversion of Anhui Fanfeng New Energy Technology (Fanfeng) to a non-equity method affiliate (investment ratio: previously 25.9% → now 19.6%) following its IPO application, and a ¥550 million negative impact from increased development costs at Zhejiang Crystal-Run Opto-Electronics Technology (49% investment ratio). Net income attributable to owners of the parent decreased 53% to ¥3.0 billion, reflecting a ¥1.0 billion gain on the sale of Fanfeng shares recorded as extraordinary income. Gross profit margin decreased to 33.8%, down 11.0 percentage points year on year, due to lower sales of profitable ALD equipment; excluding temporary impacts it was 37.6%, broadly in line with the plan.

Item	FY12/2025	FY12/2024	YoY %
Orders (¥mn)	41,210	28,841	42.9
Sales (¥mn)	33,861	32,406	4.5
Operating profits (¥mn)	3,335	6,570	-49.2
Ordinary income (¥mn)	3,203	8,191	-60.9
Net profits (¥mn)	2,959.7	6,351.4	-53.4
Gross profit (¥mn)	11,440	14,499	-21.1
Gross profit margin (%)	33.8	44.7	-11.0
OP margin (%)	9.8	20.3	-10.4
ROE (%)	5.1	11.0	–
DPS (¥)	54.00	52.00	–

Against the previous forecast for FY12/2025 (sales ¥33,000 million, operating profit ¥3,800 million, ordinary income ¥4,000 million, net profit ¥3,250.0 million), sales came in above plan while each profit line came in below. R&D expenses were ¥3,802 million, or 11.2% of net sales. The FY12/2025 period-average exchange rate was ¥149.63/USD and ¥20.81/CNY.

Orders and Sales by Business Domain

Orders received (real terms) for Q4 FY12/2025 increased 27% quarter on quarter (up 72% year on year) to ¥13.3 billion, exceeding the company’s plan by ¥3.7 billion. In Q4, semiconductor-optical integration and electronic devices slowed with a 6% decrease quarter on quarter, while smartphone-related orders increased 25% quarter on quarter, EV/connected cars grew 48%, and optical components expanded 52% quarter on quarter. The company notes that the combined composition ratio of deposition equipment and sputtering equipment accounted for 93% of orders and 87% of sales in FY12/2025. Order backlog at the end of FY12/2025 stood at ¥31,286 million, up 29.5% year on year.

Business domain	Metric	FY12/2025 (¥mn)	FY12/2024 (¥mn)	YoY %
Optics	Orders	33,624	22,753	47.8
AI smartphones	Orders	14,126	8,558	65.1
EV/connected car	Orders	7,514	5,939	26.5
Optical components	Orders	11,985	8,256	45.2
Semi. optical fusion and devices	Orders	4,758	2,785	70.8
Parts and services, others	Orders	2,828	3,304	-14.4
Optics	Sales	26,271	28,523	-7.9
AI smartphones	Sales	10,226	18,549	-44.9
EV/connected car	Sales	6,740	4,917	37.1
Optical components	Sales	9,306	5,056	84.0
Semi. optical fusion and devices	Sales	3,829	1,261	203.6
Parts and services, others	Sales	3,761	2,622	43.5
Total sales	Sales	33,861	32,406	4.5

FY12/2026 Forecast

Assuming an exchange rate of ¥148/USD, and based on the recognition of sales from orders received in FY12/2025 and the completion of one-time expenses, the plan projects net sales of ¥38.2 billion (up 13% year on year), operating profit of ¥6.2 billion (up 86%), ordinary profit of ¥7.4 billion (up 131%) and net income attributable to owners of parent of ¥5.6 billion (up 89%). Equipment lead times require 9 months from order receipt to acceptance, partly due to the rising proportion of new equipment models; consequently the sales composition by business domain is expected to align closely with the FY2025 order intake composition. The gross profit margin is projected to exceed the FY2025 figure of 37.6% excluding temporary impacts, and non-operating income/expense is expected to improve by approximately ¥1.3 billion year on year, compared with the ¥130 million loss in FY12/2025. The FY12/2026 assumptions are ¥148/USD and ¥22/CNY.

Item	FY12/2026 (Current Forecast)	YoY %	FY12/2025 (Actual)
Sales (¥mn)	38,200	12.8	33,861
Operating profits (¥mn)	6,200	85.9	3,335
Ordinary income (¥mn)	7,400	131.1	3,203
Net profits (¥mn)	5,600	89.2	2,959.7
R&D (¥mn)	3,900	–	3,802
OP margin (%)	16.2	–	9.8
DPS (¥)	56.00	–	54.00

By end market, the company expects smartphone-related orders to remain at a similar level to the previous year in FY12/2026 after recovering 65% year on year to ¥14.1 billion in FY12/2025, and automotive-related orders to remain at the same level as the previous year after reaching ¥7.5 billion in FY12/2025 (up 27%). Optical communications business orders are planned at approximately ¥3.6 billion in FY2025 (a 3.6-fold increase) and ¥5.0 billion in FY2026 (a 40% increase), supported by U.S. hyper-scaler capital expenditure, which surged 2.3 times year on year to $376.2 billion in FY2025 and is projected to expand a further 56% to $587.1 billion in FY2026.

Shareholder Returns

Shareholder returns are projected as an annual dividend per share of ¥52 for FY2024 (up ¥2 year on year), ¥54 for FY2025 (up ¥2) and ¥56 for FY2026 (up ¥2). Share buybacks totaled approximately ¥4.8 billion in FY2024 and approximately ¥4.1 billion in FY2025. The total return ratio (dividend amount plus share buyback amount) exceeded 100% for two consecutive years. The company intends to advance share price enhancement measures, including shareholder returns and enhanced IR activities, aligned with the selection criteria anticipated in the Tokyo Stock Exchange Group’s TOPIX reform proposal. Under cash allocation for FY2025–2027, the company shows cash in of ¥25.0 billion of operating cash flow (excluding R&D expenses) and ¥31.4 billion of cash on hand, against cash out of ¥12.3 billion for R&D investment, ¥3.1 billion for capital investment, ¥12.0 billion for M&A etc., ¥7.0 billion for dividends, ¥4.1 billion for others and ¥17.0 billion retained as cash on hand.

New Mid-Term Management Goals

The company previously set medium-term management targets of an operating profit margin of 20% or higher, ROE of 10% or higher, and a consolidated dividend payout ratio of 30% or higher. Considering collaborations with technical partnership companies and improvements in capital efficiency, it has revised these targets to a net profit margin attributable to parent company shareholders of 15% or higher, ROE of 10% or higher, and a consolidated dividend payout ratio of 30% or higher. Founded in August 1999 as an optical thin-film deposition equipment manufacturer, Optorun plans, from 2026 as its “second founding” phase, to establish a deposition product business and then evolve into an optoelectronics convergence company by launching a silicon photonics business.

Item (Unit: ¥100 million, %)	12/2026	12/2028	12/2030
Group Sales [A]+[B]	532	660	840
[Products] [A]	150	180	200
Consolidated Sales [B]	382	480	640
[Manufacturing equip.]	382	440	480
[Silicon photonics]	–	40	160
Operating profit	62 (16.2)	100 (20.8)	140 (21.9)
Non-operating income and expenses	12	20	30
Ordinary income	74 (19.4)	120 (25.0)	170 (26.6)
Net income attributable to owners of the parent	56 (14.7)	88 (18.3)	120 (18.8)
Dividend payout ratio	30% or more	30% or more	30% or more
ROE	10% or more	10% or more	10% or more

Topics: Partner Strategy and Investees

As an application of its equipment technology, Optorun plans to establish a smartphone-related product business centered on Zhejiang Crystal-Run Opto-Electronics Technology, in collaboration with Zhejiang Crystal-Optech, which holds a 51% stake against Optorun’s 49%. Crystal-Run Opto-Electronics plans ¥21.6 billion in capital investment over the next three years, aiming for ¥15.0 billion in sales by FY12/2026 and turning its net income positive; combined group sales for Optorun and Crystal-Run Opto-Electronics are projected to reach ¥53.2 billion by FY12/2026. In February 2025 the company formed a capital and business alliance with AI MECHATEC, including the joint venture Nano-Lithotics. Optorun also holds a 3.89% stake in Micro-OLED maker SeeYA Technology, recorded on the balance sheet as an equity-method affiliate investment valued at ¥2.02 billion as of December 2025; SeeYA’s listing application was accepted by the Shanghai Stock Exchange on June 28, 2025 and approved on December 24, with a potential STAR Market listing between March and April 2026.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.