OHARA INC. (5218) Stock Price

Ohara is a specialized manufacturer and distributor of high-performance glass materials for optical and electronics products. The company's core products include optical glass materials used in camera and smartphone lenses, as well as high-quality glass materials essential for semiconductor manufacturing equipment. These products play a critical role in fields requiring precise optical properties and extremely high uniformity.

The company's revenue structure consists of two main pillars: the Optical Business and the Electronics Business. Major customers include leading optical equipment manufacturers such as Canon, with transaction terms determined through negotiations that consider market prices and total costs. The parent company handles material production and sales, while consolidated subsidiaries worldwide manage product processing and sales.

In the Optical Business, the company manufactures and sells optical glass materials and lens materials for optical equipment through subsidiaries in Taiwan, Malaysia, China, the United States, Germany, and Hong Kong. In the Electronics Business, the company handles advanced materials including high-uniformity optical glass for semiconductor lithography equipment, ultra-low expansion glass, and fused silica glass. This business is supported by overseas subsidiaries as well as domestic companies OPC Corporation and Ohara Quartz Corporation.

Ohara has set a target of achieving a return on equity of 8.0% or higher by 2035, marking the company's 100th anniversary, under its "Long-Term Vision 2035." The company plans phased growth over 15 years divided into five phases, and is currently executing the second phase: a medium-term management plan (fiscal year ending October 2024 through October 2026). This plan sets financial targets of net sales of 320 billion yen or more, operating profit of 37 billion yen or more, and return on equity of 6.5% or higher, with the aim of strengthening the management foundation and improving capital efficiency.

The company's priority investment areas focus on establishing technological superiority in growth markets and expanding production capacity. In the electronics business, the company continues to strengthen production equipment for semiconductor lithography materials driven by growing AI chip demand, and plans significant capital investment in quartz glass manufacturing processes from fiscal year ending October 2026 onward. Additionally, the Taiwan facility is constructing new dedicated manufacturing equipment for low-dielectric glass for electronic substrates to support the expanding AI server market. Through these investments, the company is converting existing optical glass production equipment toward high-value-added products to improve asset efficiency.

In new market development, the company is actively pursuing entry into next-generation technology fields. In the XR (cross-reality) market, it is collaborating with capital partners to develop glass materials for AR glasses display modules, aiming to establish a business foundation in this growing sector. In the optical business, the company is strengthening its supply and sales system for high-value-added lens-processed products through Southeast Asian supply chain development to enhance competitiveness in overseas markets.

Regarding technological innovation, the commercialization of lithium-ion conductive glass ceramic "LICGC™" is noteworthy. This product features top-class ion conductivity among oxide-based solid electrolytes and offers two product lines: an additive for liquid lithium-ion batteries "LICGC™PW-01" and a next-generation battery material "LICGC™SP-01." The company is expanding adoption among domestic and international battery manufacturers through new manufacturing line installation, aiming to capture new demand through mass production technology establishment. In parallel, the company is also conducting research and development on new optical glass products that are rare-earth-free or low-rare-earth content to mitigate rare-earth procurement risks.