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Financial results presentation6989HOKURIKU ELECTRIC INDUSTRY CO.,LTD.Electrical Equipment and Precision Instruments

Financial Results Briefing Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue was broadly in line with the previous fiscal year, while operating income decreased by ¥290 million. For the fiscal year ending March 2027, revenue is expected to increase, but operating income and all lower profit figures are forecast to decline due to factors including soaring material prices. The Company plans to significantly increase capital expenditures.

Worth reading
53Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-2.9
¥100 million
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥431.3 100 million-0.1%
Operating profit¥23.1 100 million-11.1%
Ordinary income¥27.4 100 million-3.7%
Net income¥19.9 100 million-9.5%
Operating profit margin5.4 %
Full-year earnings forecast
Fiscal Period CoveredFull year ending March 2027
Net Sales
¥470 100 million
Operating profit
¥18 100 million
Ordinary income
¥16 100 million
Net income
¥12 100 million
Operating profit margin
3.8 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating income for the fiscal year ended March 2026 from the previous fiscal year
  • Foreign Exchange Movements¥-0.2 100 million
  • Lower sales¥-0 100 million
  • Product mix¥0.9 100 million
  • Higher material prices¥-3.1 100 million
  • Other¥-0.5 100 million
Change in forecast operating income for the fiscal year ending March 2027 from the previous fiscal year
  • Foreign Exchange Movements¥0.4 100 million
  • Revenue up¥2.1 100 million
  • Product mix¥-1.6 100 million
  • Higher material prices¥-2.7 100 million
  • Other¥-3.4 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Period-end exchange rate
¥153 /US$
New initiatives
  • Expansion of ASEAN sites and enhancement of production facilities
  • Opening of a representative office in India and strengthening sales activities in the Indian market
  • Launch of new mobility products, including modules for EVs
  • Customer development and development project for seat sensors
  • Development of hydrogen sensor modules
  • Horizontal expansion and broader sales of IoT forklift services among customers
  • Start of mass production of ultrasonic sonar systems for buses
Key KPIsA metric the company considers important as a management benchmark.
  • Mobility ratio70 %
  • Production ratio in FY2025 (ASEAN)30 %
  • Sales ratio of new products and new businesses15 %
  • Sales ratio of environmentally friendly products35 %
    Year on year against the same period last year+8.0%
  • Employee engagement score67 %
  • Percentage of Female Managers6 %
  • Major information security incidents0 Engagements
Segment results
By product
  • Modules
    Net Sales¥228.9 100 million
  • Electronic component devices (resistors, etc.)
    Net Sales¥123.4 100 million
  • Electronic component devices (sensors, etc.)
    Net Sales¥65.9 100 million
  • Molds and machinery
    Net Sales¥7.7 100 million
  • Other
    Net Sales¥5.4 100 million
By market
  • Mobility
    Net Sales¥302.2 100 million
  • Industrial Equipment
    Net Sales¥44 100 million
  • Consumer electronics
    Net Sales¥31.5 100 million
  • Information and communications equipment
    Net Sales¥13.7 100 million
  • Other
    Net Sales¥39.8 100 million
Medium-term management plan targets
Target fiscal yearFY2027
Net Sales
¥480 100 million
Operating profit
¥34 100 million
Operating profit margin
7 %
ROE
10 %
Financial targets
ROE
Medium-term target10 %
Actual results8.2 %
Capital expenditures
¥30 100 million
Annual Dividend
Annual dividend per share¥95
Interim¥47.5
End of period¥47.5
Payout ratio
Guideline35 %
FY2025 actual38 %
FY2026 forecast62 %
Total payout ratio
FY2025 actual44 %
DOE
Standard3% or higher
Acquisition of treasury shares
Financial figureNet assets decreased by ¥121 million due to the acquisition and disposal of treasury shares
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥431.3 100 million (YoY -0.1%)
Operating profit¥23.1 100 million (YoY -11.1%)
Ordinary income¥27.4 100 million (YoY -3.7%)
Net income¥19.9 100 million (YoY -9.5%)
Operating profit margin5.4 %
Full-year earnings forecastFiscal Period Covered Full year ending March 2027 / Net Sales ¥470 100 million / Operating profit ¥18 100 million / Ordinary income ¥16 100 million / Net income ¥12 100 million / Operating profit margin 3.8 %
Segment resultsBy product Name Modules / Net Sales ¥228.9 100 million / yoy_pct -2.4, Name Electronic component devices (resistors, etc.) / Net Sales ¥123.4 100 million / yoy_pct 0, Name Electronic component devices (sensors, etc.) / Net Sales ¥65.9 100 million / yoy_pct 7.5, Name Molds and machinery / Net Sales ¥7.7 100 million / yoy_pct 9.6, Name Other / Net Sales ¥5.4 100 million / yoy_pct -6.5 / By market Name Mobility / Net Sales ¥302.2 100 million / yoy_pct 3.8, Name Industrial Equipment / Net Sales ¥44 100 million / yoy_pct -11.2, Name Consumer electronics / Net Sales ¥31.5 100 million / yoy_pct -6.9, Name Information and communications equipment / Net Sales ¥13.7 100 million / yoy_pct 48.2, Name Other / Net Sales ¥39.8 100 million / yoy_pct -17
Breakdown of Factors Affecting the ChangeChange in operating income for the fiscal year ended March 2026 from the previous fiscal year Factors Foreign Exchange Movements / Amount ¥-0.2 100 million, Factors Lower sales / Amount ¥-0 100 million, Factors Product mix / Amount ¥0.9 100 million, Factors Higher material prices / Amount ¥-3.1 100 million, Factors Other / Amount ¥-0.5 100 million / Change in forecast operating income for the fiscal year ending March 2027 from the previous fiscal year Factors Foreign Exchange Movements / Amount ¥0.4 100 million, Factors Revenue up / Amount ¥2.1 100 million, Factors Product mix / Amount ¥-1.6 100 million, Factors Higher material prices / Amount ¥-2.7 100 million, Factors Other / Amount ¥-3.4 100 million
Key KPIsMobility ratio 70 %, Production ratio in FY2025 (ASEAN) 30 %, Sales ratio of new products and new businesses 15 %, Sales ratio of environmentally friendly products 35 %, Employee engagement score 67 %, Percentage of Female Managers 6 %, Major information security incidents 0 Engagements
Assumptions Underlying the Business OutlookPeriod-end exchange rate ¥153 /US$
Medium-term management plan targetsTarget fiscal year FY2027 / Net Sales ¥480 100 million / Operating profit ¥34 100 million / Operating profit margin 7 % / ROE 10 %
Financial targetsROE Medium-term target 10 % / Actual results 8.2 %
Annual DividendAnnual dividend per share ¥95 / Interim ¥47.5 / End of period ¥47.5
Payout ratioGuideline 35 % / FY2025 actual 38 % / FY2026 forecast 62 % / Total payout ratio FY2025 actual 44 % / DOE Standard 3% or higher
Acquisition of treasury sharesBuyback limit Not disclosed / Number of Shares Not disclosed / Period Not disclosed / Financial figure Net assets decreased by ¥121 million due to the acquisition and disposal of treasury shares
Capital expenditures¥30 100 million
New initiativesExpansion of ASEAN sites and enhancement of production facilities, Opening of a representative office in India and strengthening sales activities in the Indian market, Launch of new mobility products, including modules for EVs, Customer development and development project for seat sensors, Development of hydrogen sensor modules, Horizontal expansion and broader sales of IoT forklift services among customers, Start of mass production of ultrasonic sonar systems for buses
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders 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.

The ¥290 million decrease in operating income for the fiscal year ended March 2026 resulted from negative factors comprising a ¥20 million decline in revenue, an approximately zero impact from foreign exchange fluctuations, a ¥310 million increase in material prices, and ¥50 million in other factors, which outweighed the ¥90 million positive impact from the product mix. The forecast decrease in operating income for the fiscal year ending March 2027 reflects expected positive factors of a ¥210 million increase in revenue and a ¥40 million impact from foreign exchange fluctuations, offset by negative factors of ¥160 million from the product mix, ¥270 million from higher material prices, and ¥340 million from other factors.

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Financial Results Briefing Materials for the Fiscal Year Ending March 2026 | HOKURIKU ELECTRIC INDUSTRY CO.,LTD. (6989) timely disclosure | Komori