Macnica Overview
Macnica Holdings is Japan's largest independent semiconductor distributor and one of the largest technology distributors in Asia. In FY3/2026 it had consolidated net sales of ¥1.214 trillion. About 85% of revenue comes from technical "value-added distribution" of semiconductors: analog ICs, FPGAs/PLDs, microcontrollers, ASSPs, memory and power devices from suppliers including Analog Devices, Infineon, Renesas and Altera. About 14% comes from cybersecurity, where Macnica is a leading Japanese distributor and integrator of endpoint, cloud and network security software, increasingly sold on subscription. The company was founded on the idea of placing field engineers inside customers' design teams. It now earns 55% of sales outside Japan, mainly in China, Korea, Taiwan, ASEAN and India, and is building Europe and the Middle East through acquisitions. Under Vision 2030 it wants to move from distribution toward services and solutions, with targets of ¥2 trillion in sales and ¥150 billion in operating profit. Its CPS Solutions business (autonomous shuttles and smart manufacturing) is still loss-making.
What the company does
Macnica Holdings is a pure holding company. It sets group strategy, governance and capital allocation, and its subsidiaries run the businesses. The main operating company is Macnica, Inc. (Yokohama, 100% owned). Over the last six years Macnica, Inc. has absorbed the main domestic group companies: Fuji Electronics in October 2020, Macnica Networks in October 2021, and the acquired peer GLOSEL in October 2025. Overseas activity runs through regional subsidiaries, including Macnica Cytech (Hong Kong and Singapore), Macnica Galaxy (Taiwan, 67.6%), Macnica Anstek (Taiwan, 51.0%), Macnica Chungju (Taiwan), Macnica Cytech Thailand, Netpoleon Solutions (Singapore), Macnica ATD Europe (France and Germany), Macnica Americas, CyberKnight (UAE) and Navya Mobility SAS (France, 70.9%).
In its statutory filings the group describes itself as engaged in integrated circuits, electronic devices, network/IT and related businesses, organized by product and service. Until FY3/2026 it reported two segments: "Integrated Circuits, Electronic Devices and Other" and "Network". In FY3/2026 the Network segment was renamed "Cybersecurity and Other IT Solutions". Management now presents three businesses: Semiconductor, Cybersecurity and CPS Solutions.
Business model and revenue model
| Revenue type | Approximate value (JPY Bn) | Share of group (%) |
|---|---|---|
| Product resale: semiconductors and electronic devices | 1,028.6 | 84.7 |
| Cybersecurity software (largely subscription/licence) | 134.0 | 11.0 |
| Cybersecurity services | 25.8 | 2.1 |
| Cybersecurity hardware | 14.1 | 1.2 |
| CPS Solutions (vehicles, systems, services) | 11.7 | 1.0 |
Semiconductor business (about 85% of sales). Macnica buys components from franchised suppliers and resells them to OEMs, EMS providers and module makers. Gross margin comes from the distribution spread plus value-added services: design-in engineering, reference designs, FPGA IP and boards, programming services, inventory and logistics, and supply-chain finance. The model has three core features:
Demand creation (design-in): Field application engineers win "design slots" in customer products. Those wins become multi-year production revenue.
Line-card curation: Macnica has historically taken on emerging, often US, chip companies before larger trading houses did. Altera/Xilinx-era FPGAs are the classic example, and AI-era names such as SiMa.ai, Ambarella and Tenstorrent are recent ones.
Channel transfers: Global suppliers have been moving distribution franchises overseas to Macnica, especially in analog. This lifted FY3/2026 and H1 FY3/2027 sales sharply, but at lower initial margins.
Cybersecurity business (about 14% of sales, about 40% of segment operating profit). Macnica distributes and integrates security software, hardware and services from global vendors, mainly to large Japanese enterprises, government and telecom carriers. It adds its own SOC, threat-intelligence and managed services (for example ANTERAS and Prophet AI). Revenue has shifted toward software and subscriptions: domestic subscription sales were ¥96.2 billion in FY3/2026, 85% of the domestic cyber business, up from 70% in FY3/2021.
CPS Solutions (about 1% of sales). This business sells autonomous EV shuttles (Navya platform), remote-operation management systems, smart-mobility data platforms and smart-manufacturing sensing (STREAL strain sensors, Mpression motor sensors). It is the main vehicle for the move toward a "Services and Solutions" model, but it lost ¥7.9 billion in FY3/2026.
Revenue-type mix (FY3/2026, management basis):
Product resale: semiconductors and electronic devices: Approximate value (¥ bn): 1028.6; Share of group (%): 84.7
Cybersecurity software (largely subscription/licence): Approximate value (¥ bn): 134.0; Share of group (%): 11.0
Cybersecurity services: Approximate value (¥ bn): 25.8; Share of group (%): 2.1
Cybersecurity hardware: Approximate value (¥ bn): 14.1; Share of group (%): 1.2
CPS Solutions (vehicles, systems, services): Approximate value (¥ bn): 11.7; Share of group (%): 1.0
Value-chain position
Macnica sits between semiconductor and security vendors upstream and equipment makers and enterprise IT departments downstream. It does not run fabs or contract manufacturing. Its own development (FPGA IP, boards, sensing units, autonomous-driving integration and security services) is a small share of revenue. The holding company spent ¥2.51 billion on R&D in FY3/2026, all of it in the IC/electronic devices segment. In semiconductor terms it is a demand-creation franchised distributor, comparable to Avnet, Arrow or WPG rather than to broadline catalog distributors.
Customers and end-markets
Semiconductor sales by application, FY3/2026 (management basis, ¥ bn): industrial equipment 379.1 (37%), automotive 310.2 (30%), computers including AI servers 130.1 (13%), consumer 82.8, telecom infrastructure 62.1, OA/peripherals 38.2 and telecom terminals 26.1. Customers are split between Japanese corporations (Japanese-company sales fell 1% in FY3/2026 and rose 30% in H1 FY3/2027) and overseas local customers, who grew 69% in FY3/2026 and 75% in H1 FY3/2027.
Cybersecurity customers are mainly large Japanese enterprises, carriers and government. Overseas cyber sales were ¥60.8 billion in FY3/2026 (+15%), through Netpoleon (ASEAN/ANZ/India) and CyberKnight (Middle East and Africa).
Independent characterization
Macnica is a high-volume, low-margin, working-capital-heavy distributor with two earnings engines on different cycles. The semiconductor business follows the silicon and inventory cycle: operating margin fell from 6.2% (FY3/2024) to 3.5% (FY3/2026) and rebounded to about 4.0% in H1 FY3/2027. The cybersecurity business is a steadier, subscription-weighted franchise with operating margins near 10%. Long-term equity value depends on three things: whether the larger overseas, lower-margin analog franchises reach Japanese-level margins; whether the cyber business keeps compounding at double digits; and whether management can limit or fix the CPS losses that have so far diluted the services transition.
Strategy
Purpose and long-term concept
Macnica's purpose is phrased as "Envisioning the Future, Creating the Now". Its consumer-facing tagline is "Making advanced technology available to everyone". Vision 2030, the long-term management concept, aims to "connect technologies and knowledge from around the world to create new value toward a prosperous future society". It does this by combining two things:
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Expanding the high-value-added distribution model in semiconductors and cybersecurity.
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Evolving into a Services & Solutions model, led by CPS Solutions, in-house services and AI.
Vision 2030 numerical targets (FY3/2031): consolidated net sales of at least ¥2 trillion, operating profit of at least ¥150 billion, operating margin of at least 7.5% and ROE of at least 15%. Social goals are framed as contributing to economic development by solving customer problems, creating safe and comfortable living, and building a sustainable global environment.
Three-step transformation roadmap
| Phase | Period (company fiscal-year labels) | Theme |
|---|---|---|
| Step 1 | FY2022–FY2024 | Combining management resources; building in-house services; developing DX and brand |
| Step 2 | FY2025–FY2027 (FY3/2026–FY3/2028) | Strengthening the business, expanding in-house services, popularizing DX |
| Step 3 | FY2028–FY2030 | Stabilizing in-house services; maintaining the brand; reaching the long-term targets |
Step 1: Period (company fiscal-year labels): FY2022–FY2024; Theme: Combining management resources; building in-house services; developing DX and brand
Step 2: Period (company fiscal-year labels): FY2025–FY2027 (FY3/2026–FY3/2028); Theme: Strengthening the business, expanding in-house services, popularizing DX
Step 3: Period (company fiscal-year labels): FY2028–FY2030; Theme: Stabilizing in-house services; maintaining the brand; reaching the long-term targets
Across all phases the semiconductor and cybersecurity businesses share common priorities: winning cutting-edge product lines, globalization and portfolio expansion.
Medium-Term Management Plan (FY3/2026–FY3/2028)
| Metric (JPY Bn unless %) | FY3/2026 actual | FY3/2027 original plan | FY3/2027 revised forecast (Nov 2026) | FY3/2028 target |
|---|---|---|---|---|
| Group net sales | 1,214.2 | 1,300 | 1,670 | 1,400 |
| Group operating income | 42.0 | 52 | 67.5 | 80 |
| Group operating margin (%) | 3.5 | 4.0 | 4.0 | 5.7 |
| Semiconductor net sales | 1,028.6 | 1,088 | — | 1,140 |
| Semiconductor operating income | 32.5 | 37.5 | — | 52 |
| Cybersecurity net sales | 173.9 | 196 | — | 230 |
| Cybersecurity operating income | 17.3 | 20.1 | 19.0 | 24 |
| CPS Solutions net sales | 11.7 | 16 | — | 30 |
| CPS Solutions operating income | -7.9 | -5.6 | -8.0 | 4 |
Group net sales: FY3/2026 actual: 1214.2; FY3/2027 original plan: 1300; FY3/2027 revised forecast (Nov 2026): 1670; FY3/2028 target: 1400
Group operating income: FY3/2026 actual: 42.0; FY3/2027 original plan: 52; FY3/2027 revised forecast (Nov 2026): 67.5; FY3/2028 target: 80
Group operating margin (%): FY3/2026 actual: 3.5; FY3/2027 original plan: 4.0; FY3/2027 revised forecast (Nov 2026): 4.0; FY3/2028 target: 5.7
Semiconductor net sales: FY3/2026 actual: 1028.6; FY3/2027 original plan: 1088; FY3/2027 revised forecast (Nov 2026): not separately disclosed; FY3/2028 target: 1140
Semiconductor operating income: FY3/2026 actual: 32.5; FY3/2027 original plan: 37.5; FY3/2027 revised forecast (Nov 2026): not separately disclosed; FY3/2028 target: 52
Cybersecurity net sales: FY3/2026 actual: 173.9; FY3/2027 original plan: 196; FY3/2027 revised forecast (Nov 2026): not separately disclosed; FY3/2028 target: 230
Cybersecurity operating income: FY3/2026 actual: 17.3; FY3/2027 original plan: 20.1; FY3/2027 revised forecast (Nov 2026): 19.0; FY3/2028 target: 24
CPS Solutions net sales: FY3/2026 actual: 11.7; FY3/2027 original plan: 16; FY3/2027 revised forecast (Nov 2026): not separately disclosed; FY3/2028 target: 30
CPS Solutions operating income: FY3/2026 actual: -7.9; FY3/2027 original plan: -5.6; FY3/2027 revised forecast (Nov 2026): -8.0; FY3/2028 target: 4
Shareholder-return policy: total payout ratio of 40–50% and a target dividend-on-equity (DOE) ratio of 5%.
The revised FY3/2027 sales forecast of ¥1.67 trillion is already above the FY3/2028 sales target of ¥1.40 trillion. The revised operating income of ¥67.5 billion is still below the ¥80 billion target. The plan's main challenge has therefore shifted from growing sales to improving margins.
Initiatives in the last 24 months
| Initiative | Date | Description |
|---|---|---|
| Overseas channel acquisition | FY3/2026–FY3/2027 | Taking over transferred distribution franchises, centred on analog ICs, in overseas industrial markets. Overseas local-customer sales grew 69% in FY3/2026 and 75% in H1 FY3/2027 |
| AI business expansion | Ongoing | Group-wide AI sales of ¥47.9 billion in FY3/2026 (+142%), covering AI servers, data-centre networking and AI software. New lines include Tenstorrent (with Fixstars), Ambarella, NVIDIA Jetson and VAST Data |
| In-house cybersecurity services | Aug–Sep 2026 | Launch of the Prophet AI SOC platform and the ANTERAS DarkWeb service |
| European engineering depth | May 2026 | Indesmatech acquisition adds design-in engineering and its "REP 2.0" representation model in the Nordics, the UK and Poland |
| Digital-transformation consulting | Aug 2026 | Major stake in Orangeleaf Consulting, combining Malaysian software-engineering talent with Macnica's Japanese customer base |
| Autonomous logistics | 2,026 | Strategic partnership with Applied EV; Blanc Robot solution for logistics and industrial sites |
| Domestic consolidation | Oct 2025 | GLOSEL merged into Macnica, Inc. |
| Management-base DX | FY3/2026 | Customer database grew to 367,000 records (187,000 in FY3/2021); about ¥100 million saved through RPA and about ¥120 million through process mining; 330 staff trained on Microsoft Power Platform and 104 on RPA |
| Talent and academia | 2,026 | Collaboration with eight Japanese universities (September 2026); Claremont Graduate University "AI for Humanity" letter of intent (February 2026) |
| Sustainability | 2,026 | SBTi-validated emissions targets; 100% resource-recycling initiative with Suzuyo Shoji (October 2026); GREEN×EXPO 2027 exhibit |
| Investor communication | Oct 2026 | LIMITLESS 2026 integrated report (including an AI-readable version); investor event in October 2026 |
| Capital returns | Nov 2026 | Dividend forecast raised to ¥90; buyback of up to ¥5 billion |
Overseas channel acquisition: Date: FY3/2026–FY3/2027; Description: Taking over transferred distribution franchises, centred on analog ICs, in overseas industrial markets. Overseas local-customer sales grew 69% in FY3/2026 and 75% in H1 FY3/2027
AI business expansion: Date: Ongoing; Description: Group-wide AI sales of ¥47.9 billion in FY3/2026 (+142%), covering AI servers, data-centre networking and AI software. New lines include Tenstorrent (with Fixstars), Ambarella, NVIDIA Jetson and VAST Data
In-house cybersecurity services: Date: Aug–Sep 2026; Description: Launch of the Prophet AI SOC platform and the ANTERAS DarkWeb service
European engineering depth: Date: May 2026; Description: Indesmatech acquisition adds design-in engineering and its "REP 2.0" representation model in the Nordics, the UK and Poland
Digital-transformation consulting: Date: Aug 2026; Description: Major stake in Orangeleaf Consulting, combining Malaysian software-engineering talent with Macnica's Japanese customer base
Autonomous logistics: Date: 2026; Description: Strategic partnership with Applied EV; Blanc Robot solution for logistics and industrial sites
Domestic consolidation: Date: Oct 2025; Description: GLOSEL merged into Macnica, Inc.
Management-base DX: Date: FY3/2026; Description: Customer database grew to 367,000 records (187,000 in FY3/2021); about ¥100 million saved through RPA and about ¥120 million through process mining; 330 staff trained on Microsoft Power Platform and 104 on RPA
Talent and academia: Date: 2026; Description: Collaboration with eight Japanese universities (September 2026); Claremont Graduate University "AI for Humanity" letter of intent (February 2026)
Sustainability: Date: 2026; Description: SBTi-validated emissions targets; 100% resource-recycling initiative with Suzuyo Shoji (October 2026); GREEN×EXPO 2027 exhibit
Investor communication: Date: Oct 2026; Description: LIMITLESS 2026 integrated report (including an AI-readable version); investor event in October 2026
Capital returns: Date: Nov 2026; Description: Dividend forecast raised to ¥90; buyback of up to ¥5 billion
Products & Services
Semiconductor business: product lines
| Product line | FY3/2025 | FY3/2026 | — | — |
|---|---|---|---|---|
| Analog ICs | 235.7 | 305.8 | — | — |
| Microcontrollers | 149.2 | 165.6 | — | — |
| Power and other ICs | 138.9 | 141.9 | — | — |
| ASSP | 97.7 | 106.2 | — | — |
| PLD/FPGA | 73.2 | 98.8 | — | — |
| Electronic devices | 72.5 | 78.8 | — | — |
| Memory | 56.3 | 62.2 | — | — |
| Other | 28.8 | 52.8 | — | — |
| ASIC | 18.7 | 16.6 | — | — |
| Product line | Description and capabilities | Target customers | Key suppliers / flagship offerings | Pricing model |
| Analog ICs | Data converters, amplifiers, power management, interface and sensor-signal-chain ICs. Largest line (30% of segment sales); +29.8% in FY3/2026 and +74.8% in H1 FY3/2027, helped by overseas channel transfers | Industrial automation, automotive, test and measurement, AI-server power | Analog Devices (main supplier named in the annual securities report) | Distribution resale |
| PLD/FPGA | Programmable logic plus Macnica's IP, boards, programming services and design support; +34.9% in FY3/2026 on AI and data-centre demand | Telecom infrastructure, industrial vision, broadcast, data centre | Altera (long-standing core franchise) | Resale plus design services |
| Microcontrollers | 8/16/32-bit MCUs and SoCs for embedded control | Automotive ECUs, industrial controllers, consumer | Renesas, Infineon | Resale |
| Power and other ICs | Power semiconductors, discrete devices, standard logic | Automotive electrification, industrial drives | Infineon and others | Resale |
| ASSP | Application-specific standard products: video, networking, edge-AI processors | Cameras, robotics, smart infrastructure | Ambarella (long-term distribution agreement for the Americas and EMEA, September 2026), SiMa.ai (MLSoC edge-AI, partnership July 2025) | Resale plus enablement |
| Memory | DRAM, NAND and specialty memory; +118.6% in H1 FY3/2027 as prices rose | Servers, industrial, automotive | Not individually disclosed | Resale |
| ASIC | Custom silicon design and supply | OEMs with high volumes | Not individually disclosed | Project and resale |
| Electronic devices | Passive and electromechanical components, power supplies, sensors, camera modules | Industrial, consumer, automotive | Bourns (franchise widened from Japan to all of Asia-Pacific, February 2026); NAMUGA Vision Connectivity camera and 3D-sensing modules (Macnica Americas, June 2026) | Resale |
| AI infrastructure and systems | AI servers, GPU modules, high-speed data-centre networking, AI storage; AI-related sales ¥47.9 billion in FY3/2026 (+142%) and ¥38.3 billion in H1 FY3/2027 (+31%) | Data centres, research institutes, enterprise AI | NVIDIA Jetson modules (Jetson Orin Nano 2 planned from September 2026); VAST Data (Macnica named APAC AI Solutions Partner of the Year, March 2026); Tenstorrent AI processors with Fixstars (October 2026) | Resale plus integration |
| IoT connectivity and security | Embedded SIM, device certificates, IoT security | Industrial IoT device makers | Chip SIM with Misora Connect (March 2026); DigiCert IoT security partnership | Resale and subscription |
Net sales by product (management basis, ¥ bn)
Macnica proprietary and engineering offerings (Semiconductor and CPS)
| Offering | Description | Launch / latest year | Target customer |
|---|---|---|---|
| STREAL semiconductor strain sensor (NE-series monitoring unit) | High-sensitivity strain sensing for predictive maintenance and machining monitoring; orders for the NE series opened in April 2026 | 2026 (NE series) | Machine-tool and factory operators |
| Mpression Smart Motor Sensor | Motor condition monitoring for predictive maintenance, also offered in ASEAN | Latest version not publicly disclosed | Factories, utilities |
| SENSPIDER | Edge-computing terminal for sensor-data collection | 2,018 | Industrial IoT |
| macnica.ai / Digital Synergy Factory | AI and data-utilization services, data-science consulting | 2,020 | Enterprises adopting AI |
| Edge-AI fraud-call detection (with Elith) | Japan's first proof-of-concept detecting fraudulent phone calls with edge AI | 2,026 | Telecom and consumer electronics |
Cybersecurity business
| Product type | FY3/2025 | FY3/2026 | — | — |
|---|---|---|---|---|
| Software | 116.0 | 134.0 | — | — |
| Services | 22.3 | 25.8 | — | — |
| Hardware | 15.6 | 14.1 | — | — |
| Offering | Description | Launch / latest year | Target customer | Pricing model |
| Endpoint security distribution | EDR/XDR and next-generation antivirus; demand rose 57% YoY in H1 FY3/2027 | Ongoing | Large enterprises, government | Subscription |
| Cloud security distribution | CASB, SASE, cloud workload protection | Ongoing | Enterprises moving to cloud | Subscription |
| Network security hardware | Firewalls and network appliances | Ongoing; declining share | Enterprises, carriers | Perpetual hardware plus maintenance |
| Prophet AI | Described by Macnica as Japan's first AI-powered next-generation SOC platform | August 2026 | Enterprise SOCs, MSSPs | Subscription/service |
| ANTERAS DarkWeb | Dark-web investigation service that detects leaked information, including previously unknown assets found by attack-surface management (ASM) | September 2026 | Enterprises, government | Service subscription |
| ANTERAS (ASM platform) | Attack-surface management service | Latest version not publicly disclosed | Enterprises | Subscription |
| Managed security / SOC services | Monitoring, incident response, threat intelligence | Ongoing | Enterprises | Recurring service |
| Data and AI platforms | Big-data analytics and AI development/operations software; AI development software +144% in FY3/2026 | Ongoing | Enterprises, research | Subscription/licence |
| Overseas VAD (Netpoleon, CyberKnight) | Value-added distribution of zero-trust and security portfolios in ASEAN/ANZ/India and the Middle East/Africa | Netpoleon since 2017; CyberKnight since 2023 | Resellers, system integrators, MSSPs | Resale |
| Content management (via Netpoleon) | Box intelligent content management in Singapore | August 2025 | Enterprises | Subscription |
Net sales by product type (¥ bn)
CPS Solutions business
| Offering | Description | Latest year | Target customer |
|---|---|---|---|
| Autonomous EV shuttles (Navya platform) | Level-4 autonomous shuttles, including the EVO platform, designed and built by Navya Mobility SAS | Ongoing; sales below plan in FY3/2026 and H1 FY3/2027 | Municipalities, transit operators, airports, campuses |
| Remote operation management system | Fleet supervision and remote control of autonomous vehicles | Ongoing | Transit operators |
| Blanc Robot | Site-specific autonomous logistics vehicle solution integrating sensors and algorithms, built with Applied EV's base vehicles (strategic partnership, 2026) | 2,026 | Logistics, factories, industrial sites |
| Macnica Mobility Data Platform (MMDP) | Mobility data collection and analytics | 2,021 | Smart-city operators |
| Smart manufacturing solutions | Sensing, predictive maintenance and factory-data platforms; sales ¥1.3 billion in FY3/2026 (+86%) | Ongoing | Manufacturers |
| Smart mobility | Sales ¥4.3 billion in FY3/2026 (+10%) | Ongoing | Public sector |
Product Portfolio
| Product line | FY3/2025 | FY3/2026 | ||
|---|---|---|---|---|
Analog ICs | 235.7 | 305.8 | ||
Microcontrollers | 149.2 | 165.6 | ||
Power and other ICs | 138.9 | 141.9 | ||
ASSP | 97.7 | 106.2 | ||
PLD/FPGA | 73.2 | 98.8 | ||
Electronic devices | 72.5 | 78.8 | ||
Memory | 56.3 | 62.2 | ||
Other | 28.8 | 52.8 | ||
ASIC | 18.7 | 16.6 | ||
Product line | Description and capabilities | Target customers | Key suppliers / flagship offerings | Pricing model |
Analog ICs | Data converters, amplifiers, power management, interface and sensor-signal-chain ICs. Largest line (30% of segment sales); +29.8% in FY3/2026 and +74.8% in H1 FY3/2027, helped by overseas channel transfers | Industrial automation, automotive, test and measurement, AI-server power | Analog Devices (main supplier named in the annual securities report) | Distribution resale |
PLD/FPGA | Programmable logic plus Macnica's IP, boards, programming services and design support; +34.9% in FY3/2026 on AI and data-centre demand | Telecom infrastructure, industrial vision, broadcast, data centre | Altera (long-standing core franchise) | Resale plus design services |
Microcontrollers | 8/16/32-bit MCUs and SoCs for embedded control | Automotive ECUs, industrial controllers, consumer | Renesas, Infineon | Resale |
Power and other ICs | Power semiconductors, discrete devices, standard logic | Automotive electrification, industrial drives | Infineon and others | Resale |
ASSP | Application-specific standard products: video, networking, edge-AI processors | Cameras, robotics, smart infrastructure | Ambarella (long-term distribution agreement for the Americas and EMEA, September 2026), SiMa.ai (MLSoC edge-AI, partnership July 2025) | Resale plus enablement |
Memory | DRAM, NAND and specialty memory; +118.6% in H1 FY3/2027 as prices rose | Servers, industrial, automotive | Not individually disclosed | Resale |
ASIC | Custom silicon design and supply | OEMs with high volumes | Not individually disclosed | Project and resale |
Electronic devices | Passive and electromechanical components, power supplies, sensors, camera modules | Industrial, consumer, automotive | Bourns (franchise widened from Japan to all of Asia-Pacific, February 2026); NAMUGA Vision Connectivity camera and 3D-sensing modules (Macnica Americas, June 2026) | Resale |
AI infrastructure and systems | AI servers, GPU modules, high-speed data-centre networking, AI storage; AI-related sales ¥47.9 billion in FY3/2026 (+142%) and ¥38.3 billion in H1 FY3/2027 (+31%) | Data centres, research institutes, enterprise AI | NVIDIA Jetson modules (Jetson Orin Nano 2 planned from September 2026); VAST Data (Macnica named APAC AI Solutions Partner of the Year, March 2026); Tenstorrent AI processors with Fixstars (October 2026) | Resale plus integration |
IoT connectivity and security | Embedded SIM, device certificates, IoT security | Industrial IoT device makers | Chip SIM with Misora Connect (March 2026); DigiCert IoT security partnership | Resale and subscription |
| Product type | FY3/2025 | FY3/2026 | ||
|---|---|---|---|---|
Software | 116.0 | 134.0 | ||
Services | 22.3 | 25.8 | ||
Hardware | 15.6 | 14.1 | ||
Offering | Description | Launch / latest year | Target customer | Pricing model |
Endpoint security distribution | EDR/XDR and next-generation antivirus; demand rose 57% YoY in H1 FY3/2027 | Ongoing | Large enterprises, government | Subscription |
Cloud security distribution | CASB, SASE, cloud workload protection | Ongoing | Enterprises moving to cloud | Subscription |
Network security hardware | Firewalls and network appliances | Ongoing; declining share | Enterprises, carriers | Perpetual hardware plus maintenance |
Prophet AI | Described by Macnica as Japan's first AI-powered next-generation SOC platform | August 2026 | Enterprise SOCs, MSSPs | Subscription/service |
ANTERAS DarkWeb | Dark-web investigation service that detects leaked information, including previously unknown assets found by attack-surface management (ASM) | September 2026 | Enterprises, government | Service subscription |
ANTERAS (ASM platform) | Attack-surface management service | Latest version not publicly disclosed | Enterprises | Subscription |
Managed security / SOC services | Monitoring, incident response, threat intelligence | Ongoing | Enterprises | Recurring service |
Data and AI platforms | Big-data analytics and AI development/operations software; AI development software +144% in FY3/2026 | Ongoing | Enterprises, research | Subscription/licence |
Overseas VAD (Netpoleon, CyberKnight) | Value-added distribution of zero-trust and security portfolios in ASEAN/ANZ/India and the Middle East/Africa | Netpoleon since 2017; CyberKnight since 2023 | Resellers, system integrators, MSSPs | Resale |
Content management (via Netpoleon) | Box intelligent content management in Singapore | August 2025 | Enterprises | Subscription |
Financial Narrative
Income statement
Per-share figures reflect the 3-for-1 split effective 1 October 2024. Diluted EPS equals basic EPS because there are no dilutive securities.
Margins and growth (%)
Net-sales CAGR from FY3/2022 to FY3/2026 was 12.4%. Over the same period operating income grew at a 3.3% CAGR and net income at 1.9%. The company has grown sales far faster than profit.
Balance sheet
At 30 September 2026 total assets had risen further. They were ¥773.7 billion at 30 June 2026, when the equity ratio was 37.1%. Short-term borrowings rose ¥40.1 billion during H1 FY3/2027 to fund receivables and inventory. Book value per share was ¥1,643.25 at 30 September 2026.
Cash flow
Total capital investment, including software and intangibles, was ¥4,333 million in FY3/2026: ¥3,293 million in Semiconductor and ¥1,040 million in Cybersecurity. In H1 FY3/2027 operating cash flow was −¥32.57 billion, compared with +¥23.61 billion a year earlier, because receivables and inventory grew with the 44.5% sales increase.
Commentary on trends, inflections and drivers
FY3/2022–FY3/2023: shortage-era boom. During the 2021–2022 component shortage, sales rose 37.5% and then 35.1%, passing ¥1 trillion in FY3/2023. Prices were firm, industrial and automotive demand was strong, and the yen was weak. Operating margin rose to 6.0% and ROE to 22.2%. Inventory rose from ¥138.8 billion to ¥218.9 billion. In FY3/2022 operating cash flow was negative (−¥15.5 billion) as the company built buffer stock. Payables jumped in FY3/2023 (DPO 75.5 days), which partly funded that inventory.
FY3/2024: peak profitability. Sales were flat at ¥1,028.7 billion, but operating income reached a record ¥63.7 billion (6.2% margin) and net income a record ¥48.1 billion. Cybersecurity (+20.6%) offset the start of a semiconductor correction in the second half. GLOSEL was consolidated, with a ¥15.1 billion acquisition outflow.
FY3/2025: industrial downturn. Sales grew only 0.5%. Semiconductor segment operating income fell 54% to ¥26.3 billion as high-margin domestic industrial-equipment demand collapsed, and SG&A rose 24% with the GLOSEL consolidation and growth investment. Operating income fell 37.8% to ¥39.6 billion and net income 47.4% to ¥25.3 billion. Cybersecurity operating income rose 88% to ¥13.3 billion and was the main offset.
FY3/2026: volume recovery, margin dilution. Sales rose 17.4% to a record ¥1,214.2 billion, driven by AI-related demand and overseas channel transfers. Semiconductor orders rose 77.5% to ¥1,384.2 billion and the year-end backlog 71.3% to ¥826.8 billion. Gross margin fell to 10.7%, the lowest in five years, because the new overseas analog business carries lower initial spreads and the CPS loss widened to ¥7.9 billion. As a result operating income grew only 5.8% to ¥42.0 billion. Receivables rose ¥78.0 billion and operating cash flow fell to ¥18.8 billion.
H1 FY3/2027: operating leverage returns. Net sales rose 44.5% to ¥831.3 billion, operating income 91.5% to ¥33.5 billion and net income 102.1% to ¥22.3 billion. Operating margin recovered to 4.0% as gross margin improved and SG&A was spread over much higher volumes. Q1 operating income alone (¥16.5 billion) was 31.7% of the original full-year plan, against a six-year average of 23.6%. The semiconductor backlog rose to ¥1.371 trillion at end-September 2026, from about ¥1.065 trillion at end-June. The cost of this growth is a weaker balance sheet: operating cash flow was negative and short-term borrowings rose ¥40.1 billion.
Capital efficiency. ROE fell from about 22% in FY3/2023–FY3/2024 to about 10% in FY3/2025–FY3/2026, against the Vision 2030 target of 15%. The revised FY3/2027 net-income forecast of ¥46.0 billion implies ROE back in the mid-teens on an equity base of about ¥290–300 billion. Leverage remains modest: net debt/EBITDA was 0.5x at March 2026 and all interest-bearing debt is short-term bank borrowing.
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View Subscription PlansFinancial Detail
Segment (Statutory) Overview
| Segment (statutory) | Contents |
|---|---|
Integrated Circuits, Electronic Devices and Other ("Semiconductor") | Sale of ICs (analog, PLD/FPGA, ASSP, ASIC, microcontrollers, memory, power), electronic devices, development boards, IP, design and programming services. Until FY3/2026 this segment also contained CPS Solutions (autonomous mobility, smart manufacturing) |
Cybersecurity and Other IT Solutions (named "Network" until FY3/2025) | Network and security software, hardware and services; SOC and managed security; data/AI infrastructure products |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Segment metric | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|
Semiconductor segment net sales | 907.8 | 880.3 | 1,040.0 |
Cybersecurity/Network segment net sales | 120.9 | 153.9 | 174.2 |
Semiconductor segment operating income | 56.7 | 26.3 | 24.7 |
Cybersecurity/Network segment operating income | 7.0 | 13.3 | 17.2 |
Semiconductor segment operating margin (%) | 6.2 | 3.0 | 2.4 |
Cybersecurity/Network segment operating margin (%) | 5.8 | 8.6 | 9.9 |
Semiconductor segment sales growth (%) | -2.3 | -3.0 | 18.2 |
Cybersecurity/Network segment sales growth (%) | 20.6 | 27.3 | 13.2 |
Semiconductor share of group sales (%) | 88.2 | 85.1 | 85.7 |
Cybersecurity/Network share of group sales (%) | 11.8 | 14.9 | 14.3 |
Segment Margins & Growth (%)
| Business metric | FY3/2025 | FY3/2026 |
|---|---|---|
Semiconductor net sales | 871.1 | 1,028.6 |
Cybersecurity net sales | 153.9 | 173.9 |
CPS Solutions net sales | 9.2 | 11.7 |
Semiconductor operating income | 30.0 | 32.5 |
Cybersecurity operating income | 14.1 | 17.3 |
CPS Solutions operating income | -6.2 | -7.9 |
Semiconductor operating margin (%) | 3.4 | 3.2 |
Cybersecurity operating margin (%) | 9.2 | 9.9 |
Busine Overview
| Business | Net sales | YoY (%) | Operating income | YoY (%) |
|---|---|---|---|---|
Semiconductor | 721.34 | 46.7 | 29.26 | 117.1 |
Cybersecurity | 105.89 | 31.2 | 8.97 | 14.8 |
CPS Solutions | 4.07 | 25.9 | -4.65 | loss widened from -3.73 |
Group | 831.29 | 44.5 | 33.52 | 91.5 |
Group Entities
| Subsidiary | Location | Voting interest (%) | Role |
|---|---|---|---|
Macnica, Inc. | Yokohama, Japan | 100.0 | Core operating company (semiconductor, cybersecurity, CPS) |
Macnica Cytech Limited | Hong Kong | 100.0 | Greater China semiconductor distribution |
Macnica Cytech Pte. Ltd. | Singapore | 100.0 | ASEAN/India/ANZ regional HQ |
Macnica Galaxy Inc. | Taipei, Taiwan | 67.6 | Taiwan/China distribution (formerly Galaxy Far East) |
Macnica Anstek Inc. | New Taipei, Taiwan | 51.0 | Industrial-focused distribution |
Macnica Chungju Co., Ltd. | Taipei, Taiwan | 100.0 | Distribution |
Macnica Cytech (Thailand) Co., Ltd. | Bangkok, Thailand | 100.0 | Distribution |
Navya Mobility SAS | Lyon, France | 70.9 | Autonomous shuttle design and manufacture |
Netpoleon Solutions Pte Ltd | Singapore | 100.0 | Cybersecurity distribution, Asia-Pacific |
Income Statement and Per-Share Data
| Metric | FY3/2022 | FY3/2023 | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|---|---|
Net sales (JPY Mn) | 761,823 | 1,029,263 | 1,028,718 | 1,034,180 | 1,214,196 |
Cost of sales (JPY Mn) | 671,104 | 903,359 | 899,101 | 912,928 | 1,083,758 |
Gross profit (JPY Mn) | 90,719 | 125,904 | 129,617 | 121,252 | 130,438 |
SG&A (JPY Mn) | 53,965 | 64,149 | 65,702 | 81,517 | 88,234 |
Operating income (JPY Mn) | 36,811 | 61,648 | 63,733 | 39,650 | 41,951 |
Depreciation & amortization (JPY Mn) | 2,804 | 3,468 | 3,620 | 3,897 | 4,579 |
EBITDA (JPY Mn) | 39,615 | 65,116 | 67,353 | 43,547 | 46,530 |
Ordinary income (JPY Mn) | 35,487 | 56,832 | 61,966 | 37,318 | 37,392 |
Pre-tax income (JPY Mn) | 37,080 | 58,148 | 66,261 | 37,490 | 38,639 |
Income taxes (JPY Mn) | 9,557 | 15,339 | 17,534 | 10,658 | 10,093 |
Net income attributable to owners (JPY Mn) | 25,798 | 41,030 | 48,069 | 25,279 | 27,765 |
Comprehensive income (JPY Mn) | 35,584 | 47,655 | 60,335 | 25,324 | 40,623 |
EPS basic, split-adjusted (JPY) | 138.30 | 221.63 | 264.88 | 140.93 | 155.54 |
EPS diluted (JPY) | 138.30 | 221.63 | 264.88 | 140.93 | 155.54 |
Dividend per share, split-adjusted (JPY) | 33.33 | 46.67 | 66.67 | 70.00 | 70.00 |
Margin Analysis (%)
| Metric | FY3/2022 | FY3/2023 | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|---|---|
Gross margin (%) | 11.91 | 12.23 | 12.60 | 11.72 | 10.74 |
SG&A ratio (%) | 7.08 | 6.23 | 6.39 | 7.88 | 7.27 |
Operating margin (%) | 4.83 | 5.99 | 6.19 | 3.83 | 3.45 |
EBITDA margin (%) | 5.20 | 6.33 | 6.55 | 4.21 | 3.83 |
Pre-tax margin (%) | 4.87 | 5.65 | 6.44 | 3.63 | 3.18 |
Net margin (%) | 3.39 | 3.99 | 4.67 | 2.44 | 2.29 |
Effective tax rate (%) | 25.77 | 26.38 | 26.46 | 28.43 | 26.12 |
Net sales growth (%) | 37.5 | 35.1 | -0.1 | 0.5 | 17.4 |
Operating income growth (%) | 74.0 | 67.5 | 3.4 | -37.8 | 5.8 |
Balance Sheet and Margin Analysis (%)
| Metric | FY3/2022 | FY3/2023 | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|---|---|
Cash and deposits (JPY Mn) | 25,174 | 37,571 | 38,710 | 48,530 | 54,388 |
Trade receivables (JPY Mn) | 154,893 | 202,696 | 206,729 | 214,420 | 292,451 |
Inventories (JPY Mn) | 138,764 | 218,905 | 234,001 | 234,549 | 263,912 |
Total current assets (JPY Mn) | 335,032 | 491,080 | 518,749 | 524,936 | 667,872 |
Goodwill (JPY Mn) | 2,107 | 1,576 | 1,049 | 579 | 105 |
Other intangible assets (JPY Mn) | 7,038 | 6,407 | 5,995 | 6,319 | 5,932 |
Goodwill and intangibles (JPY Mn) | 9,145 | 7,983 | 7,044 | 6,898 | 6,037 |
Total assets (JPY Mn) | 362,584 | 517,620 | 552,244 | 556,438 | 700,887 |
Trade payables (JPY Mn) | 57,692 | 186,838 | 151,126 | 147,887 | 225,254 |
Short-term debt (JPY Mn) | 44,119 | 46,039 | 60,587 | 74,728 | 75,786 |
Long-term debt (JPY Mn) | 13,835 | 8,000 | 3,000 | 0 | 0 |
Total debt incl. leases (JPY Mn) | 59,158 | 55,318 | 64,855 | 75,924 | 77,491 |
Net debt (JPY Mn) | 33,984 | 17,747 | 26,145 | 27,394 | 23,103 |
Total current liabilities (JPY Mn) | 161,249 | 298,764 | 291,058 | 293,061 | 409,570 |
Total liabilities (JPY Mn) | 182,821 | 309,859 | 295,825 | 294,962 | 411,773 |
Shareholders' equity excl. minorities (JPY Mn) | 170,131 | 199,792 | 244,313 | 252,413 | 278,931 |
Total net assets (JPY Mn) | 179,764 | 207,762 | 256,420 | 261,477 | 289,115 |
Working capital (JPY Mn) | 173,783 | 192,316 | 227,691 | 231,875 | 258,302 |
Equity ratio (%) | 46.9 | 38.6 | 44.2 | 45.4 | 39.8 |
Book value per share (JPY) | 911.52 | 1,099.75 | 1,357.63 | 1,414.76 | 1,562.10 |
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View Subscription PlansCash Flow
| Metric | FY3/2022 | FY3/2023 | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|---|---|
Operating cash flow (JPY Mn) | -15,534 | 38,896 | 39,949 | 24,232 | 18,774 |
Capital expenditure, PP&E (JPY Mn) | -936 | -996 | -1,368 | -1,657 | -1,414 |
Free cash flow (JPY Mn) | -16,470 | 37,900 | 38,581 | 22,575 | 17,360 |
Acquisitions, net (JPY Mn) | 1,793 | 0 | -15,110 | -4,175 | 0 |
Investing cash flow (JPY Mn) | -1,653 | -869 | -18,457 | -9,573 | -1,306 |
Dividends paid (JPY Mn) | -4,043 | -7,782 | -9,385 | -13,492 | -12,573 |
Share buybacks (JPY Mn) | 0 | -6,001 | -5,003 | -3,001 | 0 |
Debt issued (JPY Mn) | 24,228 | 0 | 0 | 17,496 | 2,183 |
Debt repaid (JPY Mn) | -4,000 | -6,907 | -5,784 | -5,265 | -3,000 |
Financing cash flow (JPY Mn) | 14,368 | -27,100 | -23,014 | -4,229 | -15,158 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY3/2022 | FY3/2023 | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|---|---|
ROE, reported (%) | 16.5 | 22.2 | 21.6 | 10.2 | 10.5 |
ROA, net income / year-end assets (%) | 7.11 | 7.93 | 8.70 | 4.54 | 3.96 |
Ordinary income / total assets, reported (%) | 10.6 | 12.9 | 11.6 | 6.7 | 5.9 |
ROIC, after-tax OP / (equity + debt − cash) (%) | 12.8 | 20.1 | 16.6 | 9.8 | 9.9 |
Current ratio (x) | 2.08 | 1.64 | 1.78 | 1.79 | 1.63 |
Total debt / equity (x) | 0.33 | 0.27 | 0.25 | 0.29 | 0.27 |
Net debt / EBITDA (x) | 0.86 | 0.27 | 0.39 | 0.63 | 0.50 |
Interest coverage, OP / interest expense (x) | 110.5 | 32.4 | 33.7 | 20.9 | 17.5 |
Asset turnover, sales / year-end assets (x) | 2.10 | 1.99 | 1.86 | 1.86 | 1.73 |
Days sales outstanding (days) | 74.2 | 71.9 | 73.3 | 75.7 | 87.9 |
Days inventory outstanding (days) | 75.5 | 88.4 | 95.0 | 93.8 | 88.9 |
Days payables outstanding (days) | 31.4 | 75.5 | 61.4 | 59.1 | 75.9 |
Cash conversion cycle (days) | 118.3 | 84.8 | 106.9 | 110.4 | 100.9 |
Dividend payout ratio (%) | 24.1 | 21.1 | 25.2 | 49.7 | 45.0 |
Revenue by Region and Region Margins & Growth (%)
| Region | FY3/2022 | FY3/2023 | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|---|---|
Japan net sales (JPY Bn) | 361.5 | 529.1 | 607.0 | 533.7 | 548.6 |
China net sales (JPY Bn) | 165.3 | 216.1 | 161.1 | 191.7 | 249.3 |
Other regions net sales (JPY Bn) | 235.1 | 284.1 | 260.6 | 308.8 | 416.2 |
Japan growth (%) | 0 | 46.4 | 14.7 | -12.1 | 2.8 |
China growth (%) | 0 | 30.7 | -25.5 | 19.0 | 30.1 |
Other regions growth (%) | 0 | 20.8 | -8.3 | 18.5 | 34.8 |
Overseas share of net sales (%) | 52.6 | 48.6 | 41.0 | 48.4 | 54.8 |
Region Overview
| Region | Share of semiconductor sales (%) | YoY growth (%) |
|---|---|---|
Japan | 42 | about flat (Japanese-company sales -1%) |
Asia excluding China | 28 | 48 |
China | 24 | 30 |
Others (Europe, Americas) | 6 | — |
“—” = not publicly disclosed.
Geographic Revenue
| Application | FY3/2025 | FY3/2026 |
|---|---|---|
Industrial equipment | 310.7 | 379.1 |
Automotive | 288.2 | 310.2 |
Computers (incl. AI servers) | 80.5 | 130.1 |
Consumer products | 76.4 | 82.8 |
Telecom infrastructure | 54.1 | 62.1 |
OA/peripherals | 35.5 | 38.2 |
Telecom terminals | 25.7 | 26.1 |
Share Price and Valuation Multiples (x)
| Metric | FY3/2022 | FY3/2023 | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|---|---|
FY-end share price, split-adjusted (JPY) | 885 | 1,263 | 2,463 | 1931 | 2,318 |
Year-end P/E, reported (x) | 6.4 | 5.7 | 9.3 | 13.7 | 14.9 |
Year-end P/B (x) | 0.97 | 1.15 | 1.81 | 1.36 | 1.48 |
Performance metric | Value | — | — | — | — |
Closing price, 2 November 2026 | ¥3,705 | — | — | — | — |
Year-to-date high (14 October 2026) | ¥5,096 | — | — | — | — |
52-week low | ¥1,989 | — | — | — | — |
Decline from YTD high to 2 Nov 2026 | -27.3% | — | — | — | — |
52-week price change (mid-September 2026) | +79.8% | — | — | — | — |
1-year total shareholder return (late July 2026) | +71.0% | — | — | — | — |
Change since FY3/2023 year-end (about 3.6 years) | +193% | — | — | — | — |
Change since FY3/2022 year-end (about 4.6 years) | +319% | — | — | — | — |
Beta (5-year) | 0.68–0.74 | — | — | — | — |
Valuation Snapshot
| Multiple | Value |
|---|---|
Market capitalization | ¥661.6 bn |
Enterprise value (market cap plus 31 March 2026 net debt of ¥23.1 bn) | ¥684.7 bn |
P/E on FY3/2026 actual EPS (¥155.54) | 23.8x |
P/E on revised FY3/2027 EPS forecast (¥257.56) | 14.4x |
P/B (BVPS ¥1,643.25, 30 September 2026) | 2.25x |
EV/Sales, FY3/2026 | 0.56x |
EV/Sales, FY3/2027 forecast (¥1.67 tn) | 0.41x |
EV/EBITDA, FY3/2026 (¥46.5 bn) | 14.7x |
EV/Operating income, FY3/2027 forecast (¥67.5 bn) | 10.1x |
Dividend yield, FY3/2027 forecast (¥90) | 2.43% |
Capital Markets
| Item | Value |
|---|---|
QUICK consensus, FY3/2027 net income (May 2026, before guidance revisions) | ¥33.8 bn |
MarketScreener consensus, FY3/2027 net sales / net income | ¥1,556 bn / ¥42.3 bn |
MarketScreener consensus, FY3/2028 net sales / net income | ¥1,650 bn / ¥49.3 bn |
Company revised FY3/2027 forecast | ¥1,670 bn / ¥46.0 bn |
Per-Share Data and Margin Analysis (%)
| Metric | FY3/2022 | FY3/2023 | FY3/2024 | FY3/2025 | FY3/2026 |
|---|---|---|---|---|---|
DPS, split-adjusted (JPY) | 33.33 | 46.67 | 66.67 | 70.00 | 70.00 |
Payout ratio (%) | 24.1 | 21.1 | 25.2 | 49.7 | 45.0 |
Total dividends paid (JPY Mn) | 4,043 | 7,782 | 9,385 | 13,492 | 12,573 |
DOE, reported (%) | 0 | 0 | 4.9 | 5.0 | 4.7 |
Amount by Period
| Period | Amount (JPY Bn) | Notes |
|---|---|---|
FY3/2023 | 6.0 | Completed |
FY3/2024 | 5.0 | Plan announced 29 January 2024 |
FY3/2025 | 3.0 | Completed |
FY3/2026 | 0 | — |
4 Nov – 21 Dec 2026 | Up to 5.0 | Up to 1.6 million shares (0.89% of shares outstanding excluding treasury stock); market purchases |
Analyst Conclusions
Management guidance (FY3/2027, revised 2 November 2026)
| Metric | Original (May 2026) | Revised (Nov 2026) | Change vs original (%) | Implied YoY vs FY3/2026 (%) |
|---|---|---|---|---|
| Net sales (¥ bn) | 1,300 | 1,670 | 28.5 | 37.5 |
| Operating income (¥ bn) | 52.0 | 67.5 | 29.8 | 60.9 |
| Ordinary income (¥ bn) | 47.0 | 66.0 | 40.4 | 76.5 |
| Net income attributable to owners (¥ bn) | 32.0 | 46.0 | 43.7 | 65.7 |
| EPS (¥) | 179.21 | 257.56 | 43.7 | 65.6 |
| DPS (¥) | 80 | 90 | 12.5 | 28.6 |
Net sales (¥ bn): Original (May 2026): 1300; Revised (Nov 2026): 1670; Change vs original (%): 28.5; Implied YoY vs FY3/2026 (%): 37.5
Operating income (¥ bn): Original (May 2026): 52.0; Revised (Nov 2026): 67.5; Change vs original (%): 29.8; Implied YoY vs FY3/2026 (%): 60.9
Ordinary income (¥ bn): Original (May 2026): 47.0; Revised (Nov 2026): 66.0; Change vs original (%): 40.4; Implied YoY vs FY3/2026 (%): 76.5
Net income attributable to owners (¥ bn): Original (May 2026): 32.0; Revised (Nov 2026): 46.0; Change vs original (%): 43.7; Implied YoY vs FY3/2026 (%): 65.7
EPS (¥): Original (May 2026): 179.21; Revised (Nov 2026): 257.56; Change vs original (%): 43.7; Implied YoY vs FY3/2026 (%): 65.6
DPS (¥): Original (May 2026): 80; Revised (Nov 2026): 90; Change vs original (%): 12.5; Implied YoY vs FY3/2026 (%): 28.6
The revised forecast implies H2 FY3/2027 sales of about ¥839 billion, about flat on H1's ¥831 billion, and H2 operating income of about ¥34.0 billion, also about flat on H1. Given the ¥1.371 trillion backlog, this looks achievable unless memory prices or industrial demand fall sharply. CPS is expected to lose ¥8.0 billion for the full year, against a ¥4.65 billion loss in H1. Cybersecurity operating income was trimmed to ¥19.0 billion.
Consensus growth expectations
Before the revision, consensus expected FY3/2027 net income of about ¥33.8–42.3 billion and FY3/2028 net income of about ¥49.3 billion. The company's revised ¥46.0 billion should push FY3/2027 estimates up and support upgrades for FY3/2028.
Bull case
-
Earnings leverage to the semiconductor super-cycle. WSTS expects the global market to reach about US$1.9 trillion in 2027 (+27%). Macnica's backlog grew from ¥826.8 billion (March 2026) to ¥1.371 trillion (September 2026), giving unusual visibility into FY3/2028.
-
Margins recovering as transferred channels mature. Group operating margin recovered to 4.0% in H1 FY3/2027 from 3.5%. If the transferred overseas business approaches mature margins, the FY3/2028 target of ¥80 billion operating profit (5.7% margin) is plausible on a sales base already above plan.
-
Valuation and capital returns. At 14.4x forward earnings and about 2.4% yield, with a 40–50% payout, a 5% DOE target, a new ¥5 billion buyback and a 9.18% activist shareholder, there are both earnings and capital-allocation catalysts for a re-rating toward peers that earn higher ROE.
Bear case
-
Cyclical peak risk. H1 FY3/2027 growth (memory +118.6%, industrial +83%) partly reflects price inflation and possible double-ordering. A correction would expose ¥263.9 billion of inventory (higher after H1) and reverse operating leverage, as in FY3/2025, when operating income fell 37.8%.
-
Structurally lower margins and weak cash conversion. Gross margin fell 190 basis points between FY3/2024 and FY3/2026. H1 FY3/2027 operating cash flow was −¥32.6 billion, funded by ¥40.1 billion of new short-term debt. Growth that consumes cash and earns thin margins limits ROE.
-
CPS value destruction. The CPS business lost ¥6.2 billion, ¥7.9 billion and a forecast ¥8.0 billion over FY3/2025–FY3/2027, with a customer halting vehicle development and lead times lengthening. The ¥4 billion operating-profit target for FY3/2028 looks distant, and the services transition at the heart of Vision 2030 is unproven.
Key catalysts and things to watch (next 12 months)
| Timing | Catalyst / item to watch |
|---|---|
| 4 Nov – 21 Dec 2026 | Execution of the ¥5 billion share buyback |
| 2 Dec 2026 | Payment of the ¥40 interim dividend |
| Early Feb 2027 | Q3 FY3/2027 results: backlog conversion, memory pricing, gross-margin trend |
| Through FY3/2027 | Dalton Investments' stake (9.18%) and any engagement or shareholder proposals before the June 2027 AGM |
| Through FY3/2027 | CPS Solutions: autonomous-bus deliveries, Blanc Robot orders, any restructuring of Navya Mobility |
| May 2027 | FY3/2027 results and FY3/2028 guidance compared with the ¥80 billion operating-profit target; possible updates to the medium-term plan and shareholder-return policy |
| June 2027 | 12th AGM; annual securities report; governance changes |
| Ongoing | Integration of Indesmatech and Orangeleaf; further overseas M&A (India, China, Europe) |
| Ongoing | Export-control and tariff changes affecting China (20.5% of sales) |
| Ongoing | Yen/USD rate compared with the ¥150 planning assumption |
4 Nov – 21 Dec 2026: Catalyst / item to watch: Execution of the ¥5 billion share buyback
2 Dec 2026: Catalyst / item to watch: Payment of the ¥40 interim dividend
Early Feb 2027: Catalyst / item to watch: Q3 FY3/2027 results: backlog conversion, memory pricing, gross-margin trend
Through FY3/2027: Catalyst / item to watch: Dalton Investments' stake (9.18%) and any engagement or shareholder proposals before the June 2027 AGM
Through FY3/2027: Catalyst / item to watch: CPS Solutions: autonomous-bus deliveries, Blanc Robot orders, any restructuring of Navya Mobility
May 2027: Catalyst / item to watch: FY3/2027 results and FY3/2028 guidance compared with the ¥80 billion operating-profit target; possible updates to the medium-term plan and shareholder-return policy
June 2027: Catalyst / item to watch: 12th AGM; annual securities report; governance changes
Ongoing: Catalyst / item to watch: Integration of Indesmatech and Orangeleaf; further overseas M&A (India, China, Europe)
Ongoing: Catalyst / item to watch: Export-control and tariff changes affecting China (20.5% of sales)
Ongoing: Catalyst / item to watch: Yen/USD rate compared with the ¥150 planning assumption
Analyst verdict
Macnica Holdings is entering FY3/2027 with the strongest operating momentum in its 11-year history as a listed holding company. Sales growth of 44.5% and near-doubled operating profit in H1, a semiconductor backlog of ¥1.371 trillion and a guidance raise of about 30% mean the company should report record profits in FY3/2027, with net income forecast at ¥46.0 billion against the previous peak of ¥48.1 billion in FY3/2024. The record rests on two capabilities. Suppliers keep choosing Macnica when they consolidate channels, and its cybersecurity franchise keeps compounding at double digits with about 85% of domestic sales on subscription.
The quality of these earnings is less strong. Gross margin is about two percentage points below its FY3/2024 level, operating cash flow has turned negative as receivables and inventory build, and all growth funding is short-term bank debt. The CPS business, the main proof of the Vision 2030 shift to "Services & Solutions", is losing about ¥8 billion a year with no clear path to the ¥4 billion profit target. Revenue is now running ahead of the medium-term plan, but margins are not.
At about 14x revised forward earnings, 2.25x book value and a 2.4% yield, the market is not paying a peak-cycle multiple. The 27% fall from the October high already reflects worries about the durability of the cycle and the CPS losses. Capital discipline would add to that case: a 40–50% payout, a 5% DOE target, buybacks and a growing activist stake together create pressure to raise ROE back toward 15%. The main things to watch are gross-margin progress in the transferred channels, a return to positive operating cash flow in H2, and a decisive plan for CPS. If management delivers on all three, Macnica can move from being priced as a cyclical distributor to being priced as a compounding technology-services platform. If it does not, the stock is likely to keep following the semiconductor cycle.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Position | Independence | Background and tenure | Born / age |
|---|---|---|---|---|
Kazumasa Hara | Representative Director, President & CEO; President & Co-CEO of Macnica, Inc.; Representative Director of Macnica Ventures | Executive | Joined Macnica in 1995; Representative Director and President of the holding company since June 2019; CEO since June 2021; career employee | Born 1971 |
Akinobu Miyoshi | Representative Director, Executive Vice President (COO) | Executive | COO since 2019 | Born 1971 |
Makoto Okawara | Director | Executive | Former Managing Executive Officer; designated contact for financial disclosure and investor relations | Age 62 (2023 data) |
Eiichi Nishizawa | Director | Executive / internal | — | — |
Shinichiro Omori | Outside Director | Independent | Former executive officer and board chair at a global company | — |
Tsunesaburo Sugaya | Outside Director | Independent | Career at a semiconductor manufacturer and in venture capital; runs an investment company | — |
Yasuaki Mori | Outside Director | Independent | Former semiconductor-company executive; adviser to advanced-technology start-ups | — |
Shinichi Abe | Outside Director | Independent | Appointed June 2025 | — |
Shinichi Onodera | Director, full-time Audit & Supervisory Committee member | Internal | — | — |
Kei Miwa | Director, Audit & Supervisory Committee member | Independent outside | Audit board member since 2023 | — |
Yukie Sugita | Director, Audit & Supervisory Committee member | Independent outside | Certified public accountant | — |
“—” = not publicly disclosed.
Directors' Remuneration
| Category | Total | Base | Bonus | Stock | Number |
|---|---|---|---|---|---|
Directors (excluding outside directors) | 356 | 108 | 108 | 139 | 8 |
Statutory auditor (internal) | 23 | 21 | 0 | 1 | 1 |
Outside officers | 54 | 54 | 0 | 0 | 7 |
Board & Management Changes
| Date | Change |
|---|---|
June 2025 | Shinichi Abe joins as a new outside director; two directors retire on reaching the mandatory retirement age |
5 January 2026 | Sebastien Dignard appointed CEO of Macnica's Atlantic Region (Americas and Europe) to drive the global "component-to-solutions" and vertical strategy |
| 2026 | Nestor Amaya appointed Vice President of Engineering at Macnica Americas |
30 March 2026 | Board proposes reappointment of all 11 director candidates |
24 June 2026 | 11th AGM reappoints all candidates |
Major Shareholders
| Rank | Shareholder | Shares held | Holding (%) |
|---|---|---|---|
| 1 | The Master Trust Bank of Japan, Ltd. (trust account) | 23,577,000 | 13.20 |
| 2 | Kamiyama Foundation | 18,000,000 | 10.08 |
| 3 | Custody Bank of Japan, Ltd. (trust account) | 13,896,000 | 7.77 |
| 4 | Seeds Technology Co., Ltd. | 10,500,000 | 5.88 |
| 5 | Haruki Kamiyama | 9,600,000 | 5.38 |
| 6 | JP Morgan Chase Bank 380055 | 7,021,000 | 3.93 |
| 7 | State Street Bank and Trust Company 505001 | 3,040,000 | 1.70 |
| 8 | Yuko Kamiyama | 2,940,000 | 1.65 |
| 9 | Nomura Trust and Banking Co., Ltd. (investment trust account) | 2,579,000 | 1.44 |
| 10 | State Street Bank and Trust Company 505223 | 2,469,000 | 1.38 |
Competitive Landscape
Key Competitors
| Competitor | Segment overlap | Relative positioning |
|---|---|---|
Kaga Electronics (TSE 8154) | Semiconductors/components, EMS, IT products | Japan's other ¥600 bn+ independent electronics trader; broader EMS exposure, less focus on technical design-in |
Restar Corporation (TSE 3156) | Semiconductor and component distribution, EMS, energy | Comparable scale; strong in image sensors and consumer/industrial |
Ryoyo Ryosan Holdings (TSE 167A) | Semiconductor distribution | Formed in 2024 by merging Ryoyo Electro and Ryosan; Mitsubishi Electric-related channels |
Tokyo Electron Device (TSE 2760) | Semiconductors and network/IT | Closest two-business analogue (semiconductors plus computer networks) |
Marubun Corporation (TSE 7537) | Semiconductor distribution | Smaller independent trader |
Tomen Devices (TSE 2737) | Memory distribution | Concentrated on Samsung memory |
Arrow Electronics (NYSE: ARW) | Global component distribution and enterprise computing | Global leader with 2025 sales of US$30.9 bn |
Avnet (Nasdaq: AVT) | Global component distribution | Global demand-creation distributor competing in Japan and Asia |
WPG Holdings (TWSE 3702) | Asian semiconductor distribution | Largest Asian distributor; competes in Greater China and ASEAN |
WT Microelectronics (TWSE 3036) | Asian semiconductor distribution | Grew through the acquisition of Future Electronics |
Networld, SB C&S, TD Synnex, Westcon-Comstor, Exclusive Networks | Cybersecurity distribution | Competing security VADs in Japan, Asia-Pacific and EMEA |
Peer Comparison FY2012
| Company | Fiscal year | Revenue | Revenue growth (%) | Operating margin (%) | Net margin (%) |
|---|---|---|---|---|---|
Macnica Holdings | FY3/2026 | ¥1,214.2 bn | 17.4 | 3.5 | 2.3 |
Kaga Electronics | FY3/2026 | ¥658.9 bn | 20.3 | 4.2 | 4.7 |
Restar Corporation | FY3/2026 | ¥630.9 bn | 12.5 | 2.7 | 1.2 |
Arrow Electronics | FY12/2025 | US$30.9 bn | 10.0 | 3.8 (Q4 2025, non-GAAP) | 1.9 |
