Research

Microwave Chemical: Going-concern events flagged after delayed large projects

Microwave Chemical Co., Ltd. (9227) · Published 2026-10-24 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • Microwave Chemical, founded in 2007 and listed on the TSE Growth market in June 2022, describes itself as a technology provider that replaces heat-and-pressure manufacturing processes with electrically generated microwaves. It offers customers everything from lab and pilot development through engineering, equipment construction and production support, in fields including carbon materials, chemical recycling, metal smelting and mining, electronic materials and pharmaceuticals.
  • Microwave revenue comes mainly from joint development contracts organized in four phases, from initial development (Phase 1) to commercial equipment and ongoing revenue (Phase 4). Revenue is recognized when the customer accepts deliverables, so it tends to fall in the October–March half, when Japanese customers with March year-ends spend R&D budgets.
  • In September 2025 the company acquired the DualPore solution business from DPS Co., which recovers palladium and other precious metals from customers' wastewater using cartridges installed on site. It is reported as a non-reportable 'other' segment alongside the single reportable microwave segment, and segment profit is measured on a gross-profit basis.
  • The company moved its fiscal year-end from March to June, so the year to June 2026 covers 15 months (April 2025 to June 2026). It had 49 employees plus temporary staff at June 30, 2026, with R&D and engineering staff making up most of the headcount.

Investment case

  1. The annual securities report states that the DualPore business uses a recurring model of cartridge exchange and regeneration, and that adding installations builds the future revenue base. The company states that pairing it with the project-driven microwave business is intended to diversify and stabilize revenue; cartridges were installed on five lines at the end of June 2026.
  2. The full-year earnings release forecasts a return to operating, ordinary and net profit for the year to June 2027 (see Performance & Balance). The company attributed the 15-month loss to customers revising development plans and investment timing on several large projects, not to cancellations, and says it is continuing discussions with those customers.
  3. The annual report lists development milestones during the period, including a completed lithium ore smelting pilot unit with Mitsui & Co., an MOU with PMET Resources and Mitsui & Co. on microwave calcination of spodumene, and bench-scale iron ore reduction. It won 25 new projects against a plan of 22.
  4. The company states it has secured operating liquidity through new long-term borrowing during the period and a renewed commitment line (see Performance & Balance). Mitsui Chemicals, a business alliance partner since 2017, is a major shareholder (see Shareholders).

Bear case

  1. The company reported an operating loss, ordinary loss and net loss for the 15-month period, and net assets and the equity ratio fell. It disclosed that events or conditions exist that raise significant doubt about its ability to continue as a going concern, although management concluded there is no material uncertainty.
  2. The company states that its reliance on the chemical industry and on a small number of large projects makes short-term results volatile. Resonac and Mitsui & Co. were the disclosed major customers for the period, replacing MiRESSO and Dai Nippon Printing in the prior year.
  3. Phase 2 still provides most microwave revenue, and the company states that Phase 4 recurring revenue depends on customers carrying projects through to commercialization. The total number of contracted projects fell to 61 at June 2026 from 71 a year earlier, short of the plan of 62.
  4. The company states that it funds R&D from its own funds, bank borrowing and issuance of new shares, and it issued stock acquisition rights during the period. It paid no dividend and forecasts none for the year to June 2027.

Catalysts

  • The annual general meeting is scheduled for September 25, 2026, the first after the change to a June fiscal year-end.
  • Quarterly results for the year to June 2027 will show progress against the company's forecast return to profit and whether the delayed large projects convert to orders.
  • The company tracks new contracts, total contracts and revenue by phase for the microwave business, and installed cartridge lines and recovered metal volume for DualPore; it has not set numerical targets for DualPore.

Key risks

  • Management's going-concern judgment rests on two stated assumptions: revenue forecasts reflecting order timing and business development progress, and continued access to bank funding and credit lines.
  • Revenue depends on lump-sum development payments recognized on customer acceptance; delays in acceptance or extensions of development periods shift revenue between periods, while most SG&A costs are fixed.
  • DualPore revenue depends on precious-metal market prices and on how each country classifies and regulates the transport of recovered metals; the company states that legal changes could delay or halt shipments.
  • The company identifies dependence on its president and CEO and its representative director and CSO, who lead strategy and R&D and who are also the two largest shareholders (see Shareholders). The board has six directors, three of them outside directors, and no nomination or compensation advisory committee.

Trading liquidity

Median daily trading value US$1.31mn
Average daily volume 677,222 shares

2025-10-08 to 2026-10-23 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • The year to June 2026 is a 15-month transitional period, and the company provides no year-on-year comparisons; its contract and phase-revenue figures for that period sit alongside 12-month figures for the years to March 2024 and March 2025.
  • The earnings release and the annual report use different English-equivalent names for the same segments (microwave chemistry-related business versus Microwave Solutions business; low-concentration precious metal recovery versus DualPore solution business).
  • Qualitative statements are taken from the annual securities report for the 15-month period ended June 2026 and the full-year earnings release for the period ended June 2026.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

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Securities of Japanese issuers. The securities discussed are issued by companies incorporated in Japan and listed on the Tokyo Stock Exchange. They may not be registered under the U.S. Securities Act of 1933, and the issuers may not be subject to the periodic reporting requirements of the Securities Exchange Act of 1934. Information about these issuers may be less extensive than information about U.S. issuers, and their financial statements are prepared under Japanese GAAP, IFRS or U.S. GAAP as each issuer elects. U.S. persons may face restrictions, tax consequences and practical limits on buying, holding or selling these securities. Investments in non-U.S. securities involve risks that include currency movements, lower trading liquidity, and differences in market practice, corporate governance and legal protection.

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Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

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Overview
Services

Microwave Chemical Co.,Ltd.

Microwave Chemical is a technology provider specializing in microwave-based industrial chemical processes, replacing conventional fossil fuel-driven heat-and-pressure methods with electrically driven microwave energy to achieve energy savings, high efficiency, and compact manufacturing. The company has developed a proprietary technology platform—comprising reaction system design capabilities, reactor design simulation, and a suite of 20 element technologies—enabling commercial-scale microwave process production (up to 3,000 tonnes per year) across sectors including specialty chemicals, food additives, and pharmaceutical peptides. Targeting the global chemical and energy industries, Microwave Chemical licenses technology, supplies equipment, and forms joint ventures, positioning its microwave process as a key enabling technology for decarbonization and carbon neutrality goals.

Market Cap
¥9.92B
US$63.3M
EV
¥10.6B
US$67.7M
Stock¥624▼-1.11%
US$1 = ¥156.80 (2026-10-23)
LTM EV/EBITDA
NM
LTM EV/EBIT
NM
LTM PER
NM
LTM PBR
82.7
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-40.4%pt
1001
Oct 24, 25 – Oct 23, 26StockTOPIX
1Jan 14, 26Acquired low-grade precious metal recovery business from DPS
MC → EV Bridge
9.92BUS$63.3MMarket Cap1.10BUS$6.99M+ Debt0.40BUS$2.56M− Cash0.00BUS$0.00M− Inv. Sec.10.6BUS$67.7MEV
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Performance & Balance
Revenue 5Y (¥B)
0.46US$2.92M'21/31.22US$7.75M'23/31.86US$11.9M'24/31.61US$10.3M'25/31.06US$6.74M'26/6
EBITDA 5Y (¥B)
-0.28-US$1.81M'21/30.13US$0.84M'23/30.21US$1.36M'24/30.29US$1.84M'25/3-0.80-US$5.07M'26/6
Net Income 5Y (¥B)
0.08US$0.48M'23/3-0.94-US$6.02M'24/30.16US$1.03M'25/3-0.96-US$6.15M'26/6
Capital Structure
90%
EquityD/E 9.13xDebt
Liquidity vs Debt 5Y (¥B)▼ Net Debt
CashInv. Sec.Debt
0.39US$2.50M0.63US$3.99M'21/31.25US$7.98M0.75US$4.75M'23/30.53US$3.38M0.53US$3.35M'24/30.51US$3.23M0.68US$4.32M'25/30.40US$2.56M1.10US$6.99M'26/6
Shareholders
Top 10 hold 27.6%
1
Iwao YOSHINO
7.90%
2
Yasunori TSUKAHARA
6.90%
3
Mitsui Chemicals,Inc.
4.90%
4
Morgan Stanley MUFG Securities Co., Ltd.
1.90%
5
Daiwa Securities Co. Ltd.
1.50%
6
Mitsui Kinzoku-SBI MaterialInnovation Fund
1.30%
7
Chishima Tochi Co., Ltd.
1.30%
8
Michio TOMINAGA
0.70%
9
Tomoya SHIMOJO
0.60%
10
Hiroaki SAEKI
0.60%
Management
6 officers
Iwao YOSHINO
Representative Director, President and CEO
Apr 1990 Joined Mitsui & Co., Ltd. May 2002 Completed MBA, Haas School of Business, University of California, Berkeley May 2007 Representative Director, President, Narapro Technologies Co., Ltd. Aug 2007 Founded Microwave Environmental Chemistry Co., Ltd. (now the Company); Representative Director, President Apr 2015 Representative Director, TMT Co., Ltd. Jun 2023 Representative Director, President and CEO of the Company (current)
1967-07-19
Yasunori TSUKAHARA
Representative Director, CSO
Mar 2004 Completed doctoral program, Graduate School of Science, Osaka University; Doctor of Science Jul 2006 Specially Appointed Associate Professor, Graduate School of Engineering, Osaka University Oct 2011 Director, CSO, Microwave Environmental Chemistry Co., Ltd. (now the Company) Apr 2015 Director, TMT Co., Ltd. Jun 2024 Representative Director, CSO of the Company (current)
1974-06-28
Okimasa URATA
Director
Apr 2002 Joined Sony Corporation Sep 2007 Joined McKinsey & Company, Inc. Japan Aug 2012 Joined Innovation Network Corporation of Japan Aug 2015 Representative Director, President, Nihon Zairyo Giken Co., Ltd. (current) Dec 2018 Advisor to the Company Jun 2023 Director of the Company (current)
1980-01-07
Tomoya SHIMOJO
Director, Audit and Supervisory Committee Member
Apr 1996 Joined Sanwa Bank, Ltd. (now MUFG Bank, Ltd.) Oct 1999 Joined Tohmatsu Audit Corporation (now Deloitte Touche Tohmatsu LLC) Apr 2003 Registered as Certified Public Accountant Apr 2008 Joined Kringle Pharma Inc. Dec 2008 Director, General Manager, Business Administration Department, Kringle Pharma Inc. Nov 2013 Joined the Company; General Manager, Administration Department Jun 2014 Director, General Manager, Administration Department of the Company Apr 2015 Director, TMT Co., Ltd. Jun 2023 Director, Audit and Supervisory Committee Member (full-time) of the Company (current)
1972-10-31
Yuko TAKAHASHI
Director, Audit and Supervisory Committee Member
Oct 1992 Joined Century Audit Corporation (now Azsa LLC) Apr 1996 Registered as Certified Public Accountant Feb 2001 Joined Dentsu Inc. Apr 2010 General Manager, Business Management Department, Global Business Division, Dentsu Inc. Aug 2014 General Manager, Global Finance Department, Corporate Strategy Division, Dentsu Inc. Jan 2017 General Manager, Accounting Division, Dentsu Inc. Jan 2020 Executive Officer, Dentsu Group Inc. Jan 2022 Outside Audit & Supervisory Board Member, 17LIVE Inc. Mar 2022 Director (non-executive), Dentsu Group Inc. Mar 2023 Outside Director, Hulic Co., Ltd. (current) Jun 2023 Director, Audit and Supervisory Committee Member of the Company (current) Jun 2024 Outside Director, Audit and Supervisory Committee Member, LY Corporation (current)
1965-12-19
Shuichi SAITO
Director, Audit and Supervisory Committee Member
Apr 2001 Joined Ichijo Co., Ltd. Apr 2006 Joined Recruit Agent Co., Ltd. (now Recruit Co., Ltd.) May 2013 Full-time Audit & Supervisory Board Member, Hamee Corp. Jul 2018 Director, Hamee Corp. May 2021 Representative Director, Hachisan Foundation (current) Mar 2022 Outside Director, LIG Inc. May 2022 Outside Director, Belc Co., Ltd. (current) Jun 2022 Outside Audit & Supervisory Board Member, 17LIVE Inc. (current) Nov 2022 Advisor to the Company Jun 2023 Director, Audit and Supervisory Committee Member of the Company (current) Jul 2025 Outside Director, Audit and Supervisory Committee Member, LIG Inc.
1976-05-20
Large Shareholding Reports
SMBC Nikko Securities Inc.
2026-10-07
9.09%
Disclosures
No disclosures
Primary Source Filings
EDINET
2026-10-07
Large Shareholding Report
EDINETAmended
2026-10-05
Amended Annual Securities Report
Period: Apr 2025 – Jun 2026
EDINET
2026-09-17
Annual Securities Report
Period: Apr 2025 – Jun 2026
EDINET
2026-08-31
Securities Registration Statement
TDnet
2026-08-12
Full-Year Earnings Flash
FY ending Jun 2026
TDnet
2026-02-10
Q3 Earnings Flash
FY ending Jun 2026
EDINET
2025-11-13
Semi-Annual Securities Report
Period: Apr 2025 – Jun 2026
TDnet
2025-08-05
Q1 Earnings Flash
FY ending Jun 2026
EDINET
2025-06-26
Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2025-02-13
Q3 Earnings Flash
FY ending Mar 2025
EDINET
2024-11-13
Semi-Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2024-08-09
Q1 Earnings Flash
FY ending Mar 2025
EDINET
2024-06-27
Annual Securities Report
Period: Apr 2023 – Mar 2024
EDINET
2024-02-09
Quarterly Securities Report
Period: Oct 2023 – Dec 2023
EDINET
2023-11-10
Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINET
2023-08-08
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-06-29
Annual Securities Report
Period: Apr 2022 – Mar 2023
EDINET
2023-02-10
Quarterly Securities Report
Period: Oct 2022 – Dec 2022
EDINET
2022-11-11
Quarterly Securities Report
EDINET
2022-08-12
Quarterly Securities Report
EDINET
2022-06-29
Annual Securities Report
EDINETAmended
2022-06-16
Amended Securities Registration Statement
EDINETAmended
2022-06-08
Amended Securities Registration Statement
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