Seikoh Giken (TSE: 6834) — Q3 FY2026 Filings & Earnings Report
Report date: March 21, 2026 Earnings release: February 13, 2026 (Q3 FY3/26, nine months ended December 31, 2025) FY end: March 31 | Next earnings: May 19, 2026 (full year FY3/26)
1. Q3 FY2026 Financial Results
9-Month Cumulative (Apr 1 – Dec 31, 2025)
| Metric | 9M FY2026 | 9M FY2025 | YoY Change |
|---|---|---|---|
| Net sales | ¥20,169M | ¥13,321M | +51.4% |
| Operating income | ¥4,844M | ¥1,704M | +184.2% |
| Ordinary income | ¥5,114M | ¥1,848M | +176.7% |
| Net income (parent) | ¥3,886M | ¥1,338M | +190.4% |
| Basic EPS | ¥435.50 | ¥146.69 | +196.9% |
| Operating margin | 24.0% | 12.8% | +11.2pp |
| Net margin | 19.3% | 10.0% | +9.3pp |
Source: Official tanshin (決算短信), English version from Seikoh Giken IR.
Q3 Standalone Quarter (Oct – Dec 2025)
| Metric | Q3 FY2026 | Q3 FY2025 | YoY Change |
|---|---|---|---|
| Net sales | ¥8,036M | ¥4,259M | +88.7% |
| Operating income | ¥2,087M | ¥675M | +209.2% |
| Net income | ¥1,657M | ¥566M | +192.8% |
| Basic EPS | ¥185.36 | ¥62.16 | +198.1% |
| Gross margin | 46.6% | 37.6% | +9.0pp |
| Operating margin | 26.0% | 15.9% | +10.1pp |
Q3 was the strongest quarter yet -- revenue accelerating sequentially (Q1: ¥5,536M, Q2: ¥6,597M, Q3: ¥8,036M) with operating margin expanding to 26%. This is a company hitting its stride as supply constraints clear and AI data center demand accelerates.
Quarterly Trend
| Quarter | Revenue (¥M) | Op. Income (¥M) | Net Income (¥M) | EPS (¥) | Op. Margin |
|---|---|---|---|---|---|
| Q3 FY26 | 8,036 | 2,087 | 1,657 | 185.36 | 26.0% |
| Q2 FY26 | 6,597 | 1,581 | 1,283 | 143.75 | 24.0% |
| Q1 FY26 | 5,536 | 1,176 | 946 | 106.20 | 21.2% |
| Q4 FY25 | 6,661 | 1,112 | 887 | 99.54 | 16.7% |
| Q3 FY25 | 4,259 | 675 | 566 | 62.16 | 15.9% |
Revenue is accelerating every quarter. Margins expanding every quarter. This is what real operating leverage looks like.
2. Full Year FY2026 Guidance (Revised Upward Feb 13, 2026)
| Metric | Revised Guidance | Prior Guidance (Nov 13) | YoY vs FY25 Actual |
|---|---|---|---|
| Net sales | ¥30,000M | ¥24,000M (+25%) | +50.1% (FY25: ¥19,980M) |
| Operating income | ¥7,000M | ¥4,900M (+43%) | +148.5% (FY25: ¥2,816M) |
| Ordinary income | ¥7,200M | — | +141.7% |
| Net income (parent) | ¥5,400M | — | +142.7% (FY25: ¥2,225M) |
| EPS (forecast) | ¥605.10 | — | +146.7% (FY25: ¥245.30) |
Implied Q4: Revenue ~¥9.8B, operating income ~¥2.16B. That means they're guiding for another sequential acceleration in Q4. Ambitious but plausible given the Q3 trajectory.
9M progress vs full-year guidance:
- Revenue: 67.2% achieved (¥20.2B / ¥30.0B) — needs ¥9.8B in Q4
- Operating income: 69.2% achieved (¥4.84B / ¥7.0B) — needs ¥2.16B in Q4
- Net income: 72.0% achieved (¥3.89B / ¥5.4B) — needs ¥1.51B in Q4
The 72% net income achievement through 9 months suggests guidance may actually be conservative. There could be another upward revision when they report full year in May.
3. Segment Breakdown
Precision Machinery Business (9M FY2026)
| Metric | 9M FY2026 | YoY Change |
|---|---|---|
| Net sales | ¥7,438M | +15.4% |
| Operating income | ¥817M | +130.6% |
| Operating margin | 11.0% | — |
Products: Precision molds for vehicles/electronics, injection molded components, metal parts. Sales of automotive sensor-related parts remained strong, but EV parts/molds for mass production declined. MG Co., Ltd. (consolidated Oct 2024) added profit contribution.
Optical Products Business (9M FY2026)
| Metric | 9M FY2026 | YoY Change |
|---|---|---|
| Net sales | ¥12,731M | +85.2% |
| Operating income | ¥4,027M | +198.2% |
| Operating margin | 31.6% | — |
Products: Optical connectors, ferrules, polishing machines, measurement devices, optical transmission equipment, electric field sensors, micro resin lenses.
This is the segment that matters. Optical Products is 63% of revenue but 83% of operating income. The +85.2% revenue growth and 31.6% operating margin tell the story -- AI data center fiber optic demand is real, and the polishing machine bottleneck has been resolved.
Full Year Segment Guidance (Revised)
| Segment | Sales Guidance | Op. Income Guidance |
|---|---|---|
| Optical Products | ¥20,200M (+39% vs prior ¥14,500M) | ¥6,000M (+50% vs prior ¥4,000M) |
| Precision Machinery | — | ¥1,000M (+11% vs prior) |
Key narrative from management: The spread and expansion of generative AI drove a global boom in data center construction, increasing demand for optical communication components. The company shortened lead times by reviewing staffing and strengthening supplier/subcontractor relationships, significantly boosting sales of optical connector polishing machines and measuring devices.
New production capacity: Launched mass production of optical communication components at SEIKOH GIKEN (THAILAND). Laying groundwork for new facility in Henan Province, China for next-generation optical communication devices.
4. Balance Sheet Highlights (As of December 31, 2025)
| Item | Dec 31, 2025 | Mar 31, 2025 | Change |
|---|---|---|---|
| Total assets | ¥37,944M | ¥34,383M | +¥3,560M |
| Current assets | ¥27,416M | ¥24,042M | +¥3,374M |
| Non-current assets | ¥10,527M | ¥10,341M | +¥186M |
| Total liabilities | ¥6,614M | ¥6,240M | +¥375M |
| Net assets | ¥31,330M | ¥28,144M | +¥3,186M |
| Shareholders' equity ratio | 82.2% | 81.4% | +0.8pp |
Reference: Shareholders' equity at Dec 31, 2025: ¥31,172M (vs ¥27,993M at Mar 31, 2025).
Key Balance Sheet Observations
- Net cash position: ~¥14B+ cash with minimal debt. Fortress balance sheet.
- Current ratio: ~4.1x (¥27.4B current assets / ¥6.6B total liabilities) -- extremely liquid.
- Equity ratio: 82.2% -- the company finances almost everything with equity. Zero financial risk.
- Asset growth drivers: Increase in cash/deposits, receivables, and inventories (building for Q4 demand). Non-current asset increase from machinery/equipment investment for optical component production.
- Liability increase: Mainly income taxes payable (paying more tax because they're making so much more money).
- Book value per share: ~¥3,489 (¥31,172M / 8.94M shares).
5. Dividend Information
FY2026 Dividends (Revised Upward)
| Period | FY2026 (Forecast) | FY2025 (Actual) |
|---|---|---|
| Interim (Q2) | ¥40.00 | ¥30.00 |
| Year-end | ¥60.00 (revised up from ¥35.00) | ¥35.00 |
| Full year | ¥100.00 | ¥65.00 |
Year-end dividend revision: Announced Feb 13, 2026 -- raised from ¥35 to ¥60 per share, a 71% increase from the prior forecast. Full year dividend of ¥100 represents a 53.8% increase over FY2025's ¥65.
Ex-dividend date: March 30, 2026 (upcoming) Payment date: June 23, 2026
Dividend Yield & Payout
| Metric | Value |
|---|---|
| Annual dividend (FY26E) | ¥100.00 |
| Yield (at ¥26,180) | 0.38% |
| Forward yield (StockAnalysis: ¥120) | 0.44% |
| Payout ratio (on ¥605 EPS guidance) | 16.5% |
The yield is negligible. This is a growth stock, not an income play. The low payout ratio (16.5%) means plenty of room for future increases, but don't buy this for the dividend.
6. Stock Price & Valuation (As of March 19, 2026)
| Metric | Value |
|---|---|
| Stock price | ¥26,180 |
| Market cap | ¥234.0B (~$1.56B at ¥150/USD) |
| Shares outstanding | 8.94M |
| 52-week range | ¥2,534 – ¥30,500 |
| 1-year return | +514% |
| Trailing P/E (TTM) | 49x (on TTM EPS ¥535) |
| Forward P/E | 43x (on FY26E EPS ¥605) |
| P/B | 7.5x (on BV/share ~¥3,489) |
| P/S (TTM) | 8.7x |
| EV/EBITDA | ~33x (est.) |
| Beta | 0.62 |
| RSI | 56 |
Valuation context: The trailing P/E has compressed from the ~62x noted in the March 9 buy checklist to ~49x as earnings caught up with the stock price. Forward P/E of 43x on ¥605 EPS guidance is still rich by Japanese standards but a lot more defensible for a company growing earnings 140%+. If FY27 can deliver ¥800+ EPS (continued AI data center demand), forward P/E drops to ~33x.
Stock price note: Down from ATH of ¥30,500 -- currently 14% off highs. RSI at 56 is neutral territory, no longer overbought.
7. English IR Materials & PDF Links
Official Seikoh Giken IR Page (English)
- IR Homepage: https://www.seikoh-giken.co.jp/en/irinfo/index.html
- Financial Reports: https://www.seikoh-giken.co.jp/en/irinfo/finanrep.html
Q3 FY2026 Documents
- Q3 FY2026 Tanshin (English PDF): https://www.seikoh-giken.co.jp/en/irinfo/pdf/gyo_e_2026_3.pdf (398KB)
- Q2 FY2026 Tanshin (English PDF): https://www.seikoh-giken.co.jp/en/irinfo/pdf/gyo_e_2026_2.pdf (596KB)
Presentation Materials
- Q2 FY2026 results briefing (Nov 18, 2025)
- FY2025 annual briefing (May 16, 2025)
- Available at: https://www.seikoh-giken.co.jp/irinfo/briefing.html (Japanese page; some materials have English versions)
Other News Releases (Feb 13, 2026)
- "Notification of Revision (Increase) to Year-End Dividend Forecasts"
- "Notice Concerning Revisions to the Full-Year Consolidated Earnings Forecast"
IR Contact
- Phone: +81-47-311-6401 (Mon–Fri, 8:30–17:30 JST)
- IR Department Manager: Yuji Saitoh
8. Key Takeaways
The bull case is intact and getting stronger. Q3 was the best quarter yet -- ¥8B revenue at 26% operating margin, with sequential acceleration across every metric. The revised FY guidance implies another step-up in Q4 to ~¥9.8B revenue. Management is expanding production in Thailand and building a new China facility, suggesting they expect this demand cycle to last.
What's changed since the March 9 buy checklist:
- Stock pulled back 9% from ¥28,730 to ¥26,180 -- slightly better entry
- RSI cooled from 73 (overbought) to 56 (neutral)
- Trailing P/E compressed from 62x to 49x as earnings grew into the price
- Forward P/E at 43x on management guidance, but guidance may prove conservative
What to watch:
- Q4 execution -- implied Q4 revenue of ~¥9.8B would be another record. Any shortfall and the stock sells off hard.
- FY2027 guidance (May 19, 2026) -- this is the big one. If they guide for continued 30%+ growth, the stock re-rates higher. If they guide conservatively, expect a correction.
- Hyperscaler capex commentary -- Meta, Google, Microsoft, Amazon AI capex budgets directly drive Seikoh Giken's demand pipeline.
- Thailand and China production ramp -- capacity expansion signals management confidence in demand durability.
Sources: Seikoh Giken Q3 FY2026 tanshin (English), StockAnalysis, Asymmetric Opportunities, Yahoo Finance, Simply Wall St, Investing.com
Topics
- ai-infrastructure
- optical-components
- japan-semi