Tokyo Seimitsu (7729): FY2025 Results Summary — Record Sales as HPC Demand Drives Semiconductor Equipment

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Note: the company labels the fiscal year ended March 2026 as “FY2026/3”; this site classifies the most recently completed fiscal year as FY2025, and all labels, tables and figures below follow the company’s own notation. Tokyo Seimitsu (ACCRETECH) reported consolidated sales of 166.8 BJPY for FY2026/3, up 11% year on year and a new record high, with orders of 163.1 BJPY (+12%) driven by the HPC-related business in the Semiconductor Production Equipment (“SPE”) segment. Operating profit rose 14% to 33.7 BJPY and recurring profit rose 16% to 34.8 BJPY, while net profit was 24.7 BJPY (-4%). The annual dividend is 262 Yen per share, up 9 Yen year on year.

Consolidated Results (FY2026/3 Full Year)

The company describes the year as one in which sales reached a new record high and operating profit and recurring profit also increased. Results came in above the forecast issued in February, with sales +1.8, operating profit +1.7, recurring profit +2.8 and net profit +3.2 versus that forecast. Operating margin was 20%, unchanged year on year (+0pt). R&D expenses rose 16% to 12.0 BJPY, capital expenditure was 11.1 BJPY (+8%) and depreciation was 5.6 BJPY (+9%). Figures are presented in billions of yen (BJPY) as in the source presentation.

Item (BJPY)	FY2026/3	FY2025/3	YoY	vs. Feb. Forecast
Orders	163.1	145.6	+12%	–
Sales	166.8	150.5	+11%	+1.8
Operating profit (OP)	33.7	29.7	+14%	+1.7
(OP Margin)	(20%)	(20%)	+0pt	–
Recurring profit	34.8	29.9	+16%	+2.8
Net profit	24.7	25.6	-4%	+3.2
R&D	12.0	10.4	+16%	+0.0
Capex	11.1	10.2	+8%	-0.9
Depreciation	5.6	5.1	+9%	+0.1
Dividend per share (JPY)	262 Yen	253 Yen	+9 Yen	+40 Yen

Segment Results

In the SPE segment, orders were 123.4 BJPY (+15%) and sales 127.9 BJPY (+13%), with operating profit of 28.4 BJPY (+17%) and an operating margin of 22% (+1pt). In the Metrology segment, orders were 39.7 BJPY (+5%) and sales 39.0 BJPY (+5%), while operating profit was 5.3 BJPY (-1%) and the operating margin 14% (-1pt). On a quarterly basis, company-wide 4Q sales of 53.9 BJPY were described as a new record high, with 4Q operating profit of 12.8 BJPY and a 24% margin. The company notes that 4Q SPE orders were in line for HPC and exceeded expectations for other non-HPC opportunities, with total orders slightly above expectations even after a partial adjustment in the order backlog of approximately 1.0 BJPY.

Segment	Item (BJPY)	FY2026/3	FY2025/3	YoY
SPE	Orders	123.4	107.7	+15%
SPE	Sales	127.9	113.5	+13%
SPE	Operating profit	28.4	24.3	+17%
SPE	(OP Margin)	(22%)	(21%)	+1pt
Metrology	Orders	39.7	37.9	+5%
Metrology	Sales	39.0	37.1	+5%
Metrology	Operating profit	5.3	5.4	-1%
Metrology	(OP Margin)	(14%)	(15%)	-1pt

Balance Sheet and Cash Flows

Total assets stood at 250.5 BJPY at end-March 2026 against 238.0 BJPY a year earlier, with net assets of 192.9 BJPY. The company attributes the increase to fixed assets rising on a factory launch and to higher accounts receivable on increased sales. The equity ratio was 76.3% (73.2% at end-March 2025) and ROE was 13.5% (15.5%). Operating cash flow was +25.0 BJPY and investing cash flow -11.5 BJPY, giving free cash flow of +13.5 BJPY; financing cash flow was -15.7 BJPY and the cash balance at year-end was 53.1 BJPY.

FY2027/3 Forecast

For FY2027/3 the company forecasts sales of 181.5 BJPY (+9%), operating profit of 40.0 BJPY (+19%) for a 22% margin (+2pt), recurring profit of 40.0 BJPY (+15%) and net profit of 28.0 BJPY (+13%). By segment, SPE sales are forecast at 141.5 BJPY (+11%) and Metrology sales at 40.0 BJPY (+3%). The company states that although second-half business is expected to remain robust, the forecast is prepared on an outlook that is reasonably achievable, and that sales and profits are expected to increase driven primarily by high-value-added SPE (probers). The forex assumption is 150 Yen / US$, with forex impact described as minimal given the high ratio of yen-based business. Among the premises, HPC-related business including generative AI is expected to raise its contribution to sales and profits to approximately 40%.

Item (BJPY)	FY2027/3 (Forecast)	FY2026/3 (Actual)	YoY
Sales	181.5	166.8	+9%
Operating profit	40.0	33.7	+19%
(OP Margin)	(22%)	(20%)	+2pt
Recurring profit	40.0	34.8	+15%
Net profit	28.0	24.7	+13%
R&D	13.0	12.0	+8%
Capex	11.0	11.1	-1%
Depreciation	6.2	5.6	+11%
SPE sales	141.5	127.9	+11%
Metrology sales	40.0	39.0	+3%
Dividend per share (JPY)	276	262	+14

Shareholder Returns

The annual dividend for FY2026/3 is 262 Yen per share, an increase of 9 Yen year on year and 40 Yen above the forecast issued in February (111 Yen interim and 151 Yen year-end). For FY2027/3 the company forecasts an annual dividend of 276 Yen per share (+14 Yen), comprising 138 Yen at the interim and 138 Yen at the year-end. Shareholder returns are presented as one of the three pillars of the cash allocation policy under the Mid-Term business Plan, alongside R&D and capital expenditure.

Mid-Term Plan (FY2026/3-FY2028/3): First Fiscal Year

FY2026/3 was the first year of the Mid-Term business Plan covering FY2026/3-FY2028/3, which aims to achieve both preparation for long-term growth and growth during the period. The quantitative targets, set as single-year targets during the plan period in consideration of market volatility, are sales of 185.0 BJPY (SPE 140.0 BJPY, Metrology 45.0 BJPY), operating profit of 45.0 BJPY, an operating margin of 24% and ROE of 15% – described as an approximately 20% increase in sales and 50% increase in operating profit compared with FY2025/3 results.

On cash allocation, the company expects R&D of 35.0-40.0 BJPY over three years and capital expenditure of 30.0-40.0 BJPY over three years (subject to change with construction progress). First-year R&D investment was 12.0 BJPY, directed at high-precision temperature-controlled probers and strengthening product capabilities for leading applications, and first-year capex was 11.1 BJPY covering the Nagoya Plant, the Korea Demonstration Center, the Rechargeable Battery Evaluation Center and other plan-related investments. Reported first-year actions include high-precision temperature control probers contributing to capturing HPC business, grinders for hybrid bonding, high-end metrology instruments capturing new demand in the aerospace and defense area, expansion of built-in measurement to probers, dicers and grinders, and strengthening of consumables and service businesses.

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.