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Earnings presentation5821HIRAKAWA HEWTECH CORP.Iron and Steel and Nonferrous Metals

Materials for the Second-Quarter Financial Results Briefing for the Fiscal Year Ending March 2027

For the cumulative second quarter, revenue and profit increased substantially, driven by higher sales of cables for automotive, energy and industrial equipment applications. The full-year forecasts for revenue, operating profit, ordinary profit and net profit were all revised upward to reflect changes in the assumed exchange rate and strong demand.

Worth reading
58In focus
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Direction
Improvement
Direction inferred from the company’s description.
Scale
1000
¥ million (full-year operating profit forecast revision)
Wording
Definitive
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥25,539 million+41.2%
Operating profit¥2,952 million+38.9%
Ordinary income¥3,006 million+48.0%
Net income¥2,082 million+15.4%
Operating profit margin11.6%
Results for the three months of the current quarter
Wires and Processed Products Sales
First quarter¥11,240 million
Second quarter¥11,882 million
Electronic and Medical Components Sales
First quarter¥1,196 million
Second quarter¥1,203 million
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 yen
BPS
2,941 yen
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¥2,161 million
  • Higher copper prices¥1,197 million
  • Foreign exchange-related losses¥159 million
  • Decrease in R&D expenses¥21 million
  • Lower depreciation expense¥2 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate¥160 per US dollar (full year)
Copper basisUS$13,000/t (full year)
New initiatives
  • New mass-production products for automotive cables
  • Expansion of production of new mass-production products for semiconductor manufacturing equipment cables
  • New medical components
Key KPIsA metric the company considers important as a management benchmark.
  • EPS133 yen
  • BPS2,878 yen
  • Foreign-currency revenue ratio within the segment (wire and processed products)63 %
  • Foreign-currency revenue ratio within the segment (electronic and medical components)21 %
Segment results
Electric Wires and Processed Products
Net Sales
¥23,112 million
Year on year against the same period last year+50.4%
Electronic and medical components
Net Sales
¥2,399 million
Year on year against the same period last year-11.4%
Wires and Processed Products Profit
¥3,008 million
Year on year against the same period last year+44.8%
Electronic and Medical Components Profit
¥464 million
Year on year against the same period last year-12.7%
Financial targets
ROE
Fiscal year ending March 2027, forecast9.3%
Capital expenditures
¥1,550 millions plan for the fiscal year ending March 2027
Annual Dividend
¥57 per share
Interim28
End of period29
Payout ratio
21.6%
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥25,539 million (YoY +41.2%)
Operating profit¥2,952 million (YoY +38.9%)
Ordinary income¥3,006 million (YoY +48.0%)
Net income¥2,082 million (YoY +15.4%)
Operating profit margin11.6%
Results for the three months of the current quarterWires and Processed Products Sales First quarter ¥11,240 million / Second quarter ¥11,882 million / Electronic and Medical Components Sales First quarter ¥1,196 million / Second quarter ¥1,203 million
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 yen / BPS 2,941 yen / ROE 9.3%
Segment resultsElectric Wires and Processed Products Net Sales ¥23,112 million / Year on year against the same period last year +50.4% / Electronic and medical components Net Sales ¥2,399 million / Year on year against the same period last year -11.4% / Wires and Processed Products Profit ¥3,008 million / Electronic and Medical Components Profit ¥464 million
Breakdown of Factors Affecting the ChangeFactors Revenue up / Amount ¥2,161 million, Factors Higher copper prices / Amount ¥1,197 million, Factors Foreign exchange-related losses / Amount ¥159 million, Factors Decrease in R&D expenses / Amount ¥21 million, Factors Lower depreciation expense / Amount ¥2 million
Key KPIsIndicator name EPS / Value 133 yen / Year on year against the same period last year Not disclosed, Indicator name BPS / Value 2,878 yen / Year on year against the same period last year Not disclosed, Indicator name Foreign-currency revenue ratio within the segment (wire and processed products) / Value 63 % / Year on year against the same period last year Not disclosed, Indicator name Foreign-currency revenue ratio within the segment (electronic and medical components) / Value 21 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookExchange rate ¥160 per US dollar (full year) / Copper basis US$13,000/t (full year)
Financial targetsROE 9.3%
Annual Dividend¥57 per share
Payout ratio21.6%
Capital expenditures¥1,550 millions (plan for the fiscal year ending March 2027)
New initiativesNew mass-production products for automotive cables, Expansion of production of new mass-production products for semiconductor manufacturing equipment cables, New medical components
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit 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.

In the wire and processed products segment, new mass-production products, North American energy-related demand, and products for semiconductor manufacturing equipment, factory automation and robotics performed well. The revisions to the full-year forecasts reflect, among other factors, a change in the assumed exchange rate from ¥155 per US dollar to ¥160 per US dollar.

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