Tri Chemical Half-Year Profit Rises 22% on AI Data-Centre Demand as Taiwan Sales Jump 37%

A supplier of the chemicals that get deposited on a wafer

Tri Chemical Laboratories Inc. (TSE: 4369) published consolidated results for the six months to July 31, 2026 on August 31, 2026 under Japanese GAAP. Net sales rose 18.8% to ¥14,705 million, operating profit 20.8% to ¥3,838 million, ordinary profit 19.1% to ¥4,526 million and net profit 21.5% to ¥3,373 million, for earnings per share of ¥103.81 against ¥85.45.

The company makes high-purity chemical compounds for semiconductor manufacturing and runs the business as a single segment. It describes the end market plainly: consumer demand such as smartphones still lacks strength, but data-centre investment tied to the spread of generative AI and capital appetite centred on leading-edge logic and memory have held firm, and demand for high-purity compounds has risen with them.

The operating margin widened to 26.1% from 25.7% — profit grew slightly faster than sales despite raw-material and energy costs, which the company met with company-wide cost reduction, selling-price revisions and closer coordination between group companies and divisions. Ordinary profit again exceeded operating profit, by ¥688 million against ¥623 million a year earlier, chiefly through equity-method income from the Korean affiliate SK Tri Chem Co., Ltd.

Where the growth came from

The geographic split is uneven in a way worth noting. Taiwan rose 36.9% to ¥4,950 million and China 25.5% to ¥5,841 million — together ¥2,520 million of the ¥2,330 million total increase, meaning the two more than accounted for all of it. Japan slipped 0.5% to ¥2,206 million, South Korea 2.1% to ¥1,276 million and other regions 25.8% to ¥433 million. Greater China now takes 73.3% of sales against 66.8% a year earlier.

By application, the two largest lines both grew strongly: High-k materials rose 17.3% to ¥7,132 million and metal materials 36.9% to ¥3,198 million. Etching materials were nearly flat at ¥1,870 million (+2.6%), other silicon-semiconductor uses rose 31.4% to ¥1,997 million, and non-silicon applications fell 17.1% to ¥509 million. On capacity, the company continues to build out the production system at its Minami-Alps site, the base for new etching materials, and to strengthen production and quality control for new AI-related materials.

Balance sheet, guidance and dividend

Total assets rose 3.9% from the January year-end to ¥49,121 million. Current assets grew ¥1,191 million on higher cash, and fixed assets ¥655 million as equity-method income lifted investment securities. Current liabilities fell ¥2,015 million while fixed liabilities rose ¥1,761 million on higher long-term borrowings — a maturity shift rather than a change in leverage. Net assets rose 5.8% to ¥38,249 million and the equity ratio improved to 77.9% from 76.5%.

Full-year FY1/2027 guidance was revised, announced separately the same day alongside the variance between first-half guidance and actuals. It now stands at net sales of ¥29,500 million (+23.5%), operating profit of ¥7,450 million (+26.2%), ordinary profit of ¥8,720 million (+23.0%) and net profit of ¥6,570 million (+19.1%), for earnings per share of ¥202.17. The half therefore represents 51.5% of the full-year operating-profit target on 49.8% of the sales target. The annual dividend is held at ¥35.00, paid entirely at year-end with no interim.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.