Furuya Metal H1 26 Update: Data Center Boom and Weak Yen Drive Major Guidance Upgrade

Furuya Metal's H1 FY2026 results showed a significant outperformance, with management raising full-year profit guidance by over 80%, driven by strong demand from the data center sector and favorable currency exchange rates. While revenue surged by 63.7%, net income growth was a more moderate 28.7%, indicating a shift in product mix and margins. The core driver was the 'Thin Film' segment, which supplies critical iridium and ruthenium sputtering targets for HDD storage and semiconductors, with its gross profit increasing by 40%. The company has significantly improved its financial health, reducing short-term debt and generating strong operating cash flow, strengthening its equity ratio to 55.1%. Despite the strong performance and a dividend hike, the stock trades at a low forward P/E of ~9.6x, suggesting it is an undervalued 'picks and shovels' play on the AI and data infrastructure boom.