AI-driven chip demand lifts the core business
Shin-Etsu Polymer Co., Ltd. (TSE: 7970) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on October 26, 2026 under Japanese GAAP. Net sales rose 14.4% to ¥64,325 million, operating profit 31.6% to ¥9,354 million and ordinary profit 26.0% to ¥9,132 million. Net profit attributable to owners of the parent rose 11.2% to ¥6,095 million, or ¥75.79 per share. Generative AI kept semiconductor demand high, centred on memory, and electrified vehicles continued to sell; the company also completed an acquisition during the period to strengthen its competitiveness.
Precision molding does the heavy lifting
Precision molding, the largest segment, grew sales 16.6% to ¥34,028 million and operating profit 21.9% to ¥6,727 million: demand for semiconductor shipping and in-process wafer containers stayed high worldwide, carrier-tape products grew on large electronic components for AI servers and rising demand for tiny components, rollers for office equipment held steady and silicone-rubber parts for catheters and other medical devices grew. Housing and living materials grew sales 11.1% to ¥12,077 million and more than doubled operating profit, up 109.0% to ¥1,632 million, as wrapping film kept expanding and functional compounds for wire coatings in semiconductor equipment and factory automation sold well. Electronic devices grew sales 4.0% to ¥13,186 million and profit 4.7% to ¥676 million, with in-vehicle input devices and EV battery fire-spread cushions offsetting weaker LCD connectors and view-control film. Other businesses, including construction-related work, grew sales 44.7% to ¥5,032 million.
Balance sheet, forecast and dividend
Total assets rose 6.4% to ¥162,808 million, mainly on higher cash and receivables, and net assets 4.6% to ¥135,470 million; the equity ratio slipped to 82.9% from 84.4%. Citing the recent business environment, the company revised the forecast it published on July 23 and now expects FY3/2027 net sales of ¥127,000 million (+10.3%), operating profit of ¥18,200 million (+29.6%), ordinary profit of ¥18,000 million and net profit of ¥11,800 million (+19.2%). It also raised its dividends, paying ¥36 at the interim stage and planning ¥36 at year-end for an annual ¥72, against ¥62 for FY3/2026.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 64,325 | 56,215 | +14.4% |
| Operating profit (¥ million) | 9,354 | 7,110 | +31.6% |
| Ordinary profit (¥ million) | 9,132 | 7,247 | +26.0% |
| Net profit attrib. to owners of parent (¥ million) | 6,095 | 5,483 | +11.2% |
| EPS (¥) | 75.79 | 68.12 | +11.3% |
| Electronic devices — revenue (¥ million) | 13,186 | 12,679 | +4.0% |
| Electronic devices — segment profit (¥ million) | 676 | 646 | +4.7% |
| Precision molding — revenue (¥ million) | 34,028 | 29,185 | +16.6% |
| Precision molding — segment profit (¥ million) | 6,727 | 5,516 | +21.9% |
| Housing & living materials — revenue (¥ million) | 12,077 | 10,874 | +11.1% |
| Housing & living materials — segment profit (¥ million) | 1,632 | 781 | +109.0% |
| Total assets (¥ million) | 162,808 | 153,003 | +6.4% |
| Net assets (¥ million) | 135,470 | 129,553 | +4.6% |
| Equity ratio | 82.9% | 84.4% | −1.5 pt |
| FY3/2027 guidance — revenue (¥ million) | 127,000 | — | +10.3% |
| FY3/2027 guidance — operating profit (¥ million) | 18,200 | — | +29.6% |
| FY3/2027 guidance — ordinary profit (¥ million) | 18,000 | — | +28.5% |
| FY3/2027 guidance — net profit (¥ million) | 11,800 | — | +19.2% |
| Annual dividend per share (¥) | 72.00 | 62.00 | +16.1% |
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.