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Earnings presentation5821HIRAKAWA HEWTECH CORP.Iron and steel and non-ferrous metals

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue, operating profit and ordinary profit exceeded the year-earlier period, mainly due to a significant increase in revenue from the Wires and Processed Products segment. Full-year forecasts were revised upward to ¥4,300 million for revenue, ¥1,000 million for operating profit, ¥1,000 million for ordinary profit and ¥700 million for net income.

Worth reading
48Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
5000
¥ million (revision to the full-year revenue forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 20278 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥12,443 million+52.7%
Operating profit¥1,335 million+72.6%
Ordinary income¥1,448 million+121.5%
Net income¥1,019 million+7.7%
Operating profit margin
Rate10.7%
Full-year earnings forecast
Net Sales
¥48,000 million
Operating profit
¥5,500 million
Ordinary income
¥5,700 million
Net income attributable to owners of the parent
¥4,100 million
EPS
¥263
BPS
¥2,941
ROE
9.3 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue up¥1,297 million
  • Higher copper prices¥-640 million
  • Foreign exchange-related losses¥-87 million
  • Increase in depreciation and amortization¥-9 million
  • Decrease in R&D expenses¥1 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Assumed exchange rate160 Yen/dollar
  • Assumed copper base price13,000 USD/t
New initiatives
  • Expansion of production of new mass-production products
Segment results
  • Electric Wires and Processed Products
    Net Sales¥11,240 million (YoY +67.5%)
    Segment profit¥1,341 million (YoY +80.0%)
  • Electronic and medical components
    Net Sales¥1,196 million (YoY -16.4%)
    Segment profit¥232 million (YoY -12.5%)
Financial targets
ROE
Fiscal year ending March 2027 forecast9.3 %
Capital expenditures
¥1,550 million FY2027/3 plan
Annual Dividend
Annual dividend per share
¥57
Interim
¥28
End of period
¥29
Payout ratio
21.6 %
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥12,443 million (YoY +52.7%)
Operating profit¥1,335 million (YoY +72.6%)
Ordinary income¥1,448 million (YoY +121.5%)
Net income¥1,019 million (YoY +7.7%)
Operating profit marginRate 10.7% / Year-on-year change (points) Not disclosed
Full-year earnings forecastNet Sales ¥48,000 million / Operating profit ¥5,500 million / Ordinary income ¥5,700 million / Net income attributable to owners of the parent ¥4,100 million / EPS ¥263 / BPS ¥2,941 / ROE 9.3 %
Segment resultsSegment Electric Wires and Processed Products / Net Sales ¥11,240 million (YoY +67.5%) / Segment profit ¥1,341 million (YoY +80.0%), Segment Electronic and medical components / Net Sales ¥1,196 million (YoY -16.4%) / Segment profit ¥232 million (YoY -12.5%)
Breakdown of Factors Affecting the ChangeFactors Revenue up / Amount ¥1,297 million, Factors Higher copper prices / Amount ¥-640 million, Factors Foreign exchange-related losses / Amount ¥-87 million, Factors Increase in depreciation and amortization / Amount ¥-9 million, Factors Decrease in R&D expenses / Amount ¥1 million
Assumptions Underlying the Business OutlookAssumed exchange rate 160 Yen/dollar, Assumed copper base price 13,000 USD/t
Financial targetsROE 9.3 %
Annual DividendAnnual dividend per share ¥57 / Interim ¥28 / End of period ¥29
Payout ratio21.6 %
Capital expenditures¥1,550 million (FY2027/3 plan)
New initiativesExpansion of production of new mass-production products
Items this document does not state (15)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Newly mass-produced automotive cables, cables related to the energy industry for the North American market, cables for semiconductor manufacturing equipment and cables for industrial equipment performed well. Higher revenue lifted operating profit, while higher copper prices, foreign-exchange-related losses and increased depreciation expenses were factors weighing on profit. Lower research and development expenses contributed positively. As a basis for revising the full-year forecasts, the assumed exchange rate was changed from ¥155/USD to ¥160/USD.

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Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | HIRAKAWA HEWTECH CORP. (5821) timely disclosure | Komori