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Organo Corporation

6368.THIGHScore: 74.1

Nuclear Operations / Water · Weight: 16%· Data as of 2026-05-04

Also in:Nuclear
¥15,560-1.39%
6-month daily

Investment Thesis

Near-monopoly on BWR condensate water treatment in Japan — IFD technology in ALL Japanese BWR condensate vessels since 1970. Every reactor restart = direct revenue. KK-6 ABWR (1,356 MW) commercially restarted April 16 2026 — strongest single BWR restart since Fukushima, direct Organo maintenance revenue. FY2025 actuals confirmed: revenue ¥163.3B (+8.6%), OP ¥31.1B (+38%), ROE 21.7%. FY2026 guidance raised twice — OP ¥36B (+15.7%), div ¥190/share (raised from ¥160). Semiconductor UPW moat expanding: TSMC JASM Phase 1 operational, Phase 2 groundbreaking Oct 2025 (operations 2027). Rapidus Chitose confirmed customer. Arizona office serving TSMC Arizona — same growth trajectory as Asia. ~70% domestic power plant water treatment share; ~90% reactor purification systems.

Risk

PB 5.73x EXCEEDS ALL-TIME historical maximum of 3.78x (IRBank 15-year data) — hard valuation flag. Stock re-rated ~10x in 5 years; assumes continued secular growth execution. OP growth decelerating: +38% FY2025 → +15.7% FY2026 guidance. Hamaoka BWR suspended by NRA Jan 2026 (data fabrication by utility). KK-7 restart delayed to 2029-2030. AI semiconductor capex slowdown could hit semiconductor UPW segment.

Monitoring Trigger

FY2025 full results due May 13 2026: watch if FY2026 OP guidance holds or is raised again. If PB >7x without corresponding EPS upgrade, trim. Watch each reactor restart announcement — direct revenue event. If Rapidus Chitose execution falters (revenue risk to that order), reassess.

Key Dates

2026-05-13earningsFY2025 full-year results + FY2026 initial guidance
2026-05-13monitoringIf PB >7x without FY2026 EPS upgrade, trim. Watch FY2026 guidance for nuclear vs semiconductor mix.
2026-06-30rebalanceSemiannual portfolio rebalance
2027-H2catalystTSMC JASM Phase 2 operations begin — new UPW maintenance revenue stream

Key Metrics

27
PE
27
Fwd PE
5.73
P/B
21.7%
ROE
20.6%
Op Margin
24%
D/E
1.20%
Div Yield
+¥19B
FCF
¥729B
Mkt Cap

Business Segments

SegmentRevenueShareDescription
Water Treatment Engineering¥105B60%Nuclear, power plant, semiconductor ultrapure water systems
Performance Products¥70B40%Ion exchange resins, chemicals, maintenance services

Supply Chain Evidence

EvidenceCustomerProductDetail
confirmedAll Japanese BWR operators (IFD monopoly)IFD condensate demineralizersIFD technology in ALL BWR condensate demineralizer vessels in Japan since 1970. KK-6 ABWR (1356 MW) restarted commercially April 16 2026 — direct Organo revenue event. ~90% reactor purification systems market share.
confirmedTSMC Kumamoto JASM Phase 1 & 2Ultrapure water systemsPhase 1 full operations Dec 2024. Phase 2 groundbreaking Oct 2025; operations targeted late 2027 — repeat vendor pipeline confirmed.
confirmedRapidus ChitosePure water manufacturing and water treatmentOrgano confirmed as water treatment provider at Rapidus Chitose factory. Rapidus secured ¥267.6B new funding Feb 2026; 2nm production target 2027.
confirmedTSMC ArizonaUltrapure water solutionsOrgano Arizona office already providing solutions for TSMC Arizona. TSMC plans up to 12 Arizona fabs through ~2030 — same long-term pipeline as Asia saw.
probablePWR operators (KEPCO, etc.)Makeup water, waste treatmentOrgano serves both BWR and PWR per product pages. Not the IFD monopoly but established relationships.

Sources & References