Organo Corporation
6368.THIGHNuclear Operations / Water · Weight: 16%· Data as of 2026-05-04
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
Update History
FY2024 earnings confirmed +39.5% growth. ROE updated 23.5%→18.4% (3Q annualized). PE confirmed at 26.1x.
KK-6 ABWR (1356 MW) commercially restarted April 16 2026 — direct revenue event. FY2025 actuals confirmed: Rev ¥163.3B (+8.6%), OP ¥31.1B (+38%), ROE 21.7%. PB 5.43→5.73 — now exceeds all-time historical max of 3.78x (HARD FLAG). Rapidus Chitose confirmed. TSMC Arizona confirmed. JASM Phase 2 groundbreaking Oct 2025. Earnings date corrected May 12→May 13. OP growth decelerating (+38%→+15.7%).
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Water Treatment Engineering | ¥105B | 60% | Nuclear, power plant, semiconductor ultrapure water systems |
| Performance Products | ¥70B | 40% | Ion exchange resins, chemicals, maintenance services |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | All Japanese BWR operators (IFD monopoly) | IFD condensate demineralizers | IFD 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.[source](2026-04) |
| confirmed | TSMC Kumamoto JASM Phase 1 & 2 | Ultrapure water systems | Phase 1 full operations Dec 2024. Phase 2 groundbreaking Oct 2025; operations targeted late 2027 — repeat vendor pipeline confirmed.[source](2025-10) |
| confirmed | Rapidus Chitose | Pure water manufacturing and water treatment | Organo confirmed as water treatment provider at Rapidus Chitose factory. Rapidus secured ¥267.6B new funding Feb 2026; 2nm production target 2027.(2026-02) |
| confirmed | TSMC Arizona | Ultrapure water solutions | Organo Arizona office already providing solutions for TSMC Arizona. TSMC plans up to 12 Arizona fabs through ~2030 — same long-term pipeline as Asia saw.(2026-04) |
| probable | PWR operators (KEPCO, etc.) | Makeup water, waste treatment | Organo serves both BWR and PWR per product pages. Not the IFD monopoly but established relationships. |
Sources & References
Peer Comparison
| Company | PE | Fwd PE | ROE | Op Margin | FCF |
|---|---|---|---|---|---|
| IHI Corporation | 23.7 | 22 | 26.8% | 8.8% | +¥68B |
| Hitachi | 28.96 | 27.58 | 13.65% | 11.1% | +¥1,390B |
| Japan Steel Works | 33.5 | 31.1 | 9.09% | 8.4% | -¥19.7B |
| Yokogawa Electric | 38.8 | 23.8 | 11.5% | 13.7% | +¥44B |
| Fuji Electric | 20.3 | 17.7 | 11.8% | 10.3% | +¥51B |
| Kanadevia | 10.97 | 11 | 5.2% | 1.9% | -¥22.6B |
| Organo Corporation | 27 | 27 | 21.7% | 20.6% | +¥19B |
| Kurita Water Industries | 22.3 | 21.8 | 6.8% | 12.4% | +¥25B |
| Sumitomo Heavy Industries | 19.3 | 18 | 5.0% | 4.8% | -¥2.3B |
| Toyo Tanso | 23.2 | 23.8 | 5.7% | 14.6% | -¥5.8B (capex phase) |
| Okano Valve | 21.6 | 8.2% | 10.1% | +¥624M | |
| Kobe Steel | 8.7 | 8.5 | 7.2% | 4.8% | N/A |
| Ebara | 30.9 | 25.4 | 15.8% | 12.1% | -¥51.5B (capex) |
| Stella Pharma | -9.8% | -23.6% | N/A | ||
| Teikoku Denki | 10.49 | 9.5 | 12% | 18% | N/A |