Hirayama Research Memo (9): Business foundations steadily being built toward the ¥3,600 million operating-profit target for the fiscal year ending June 2030 (FISCO)

HIRAYAMA HOLDINGS Co.,Ltd. set long-term targets for the fiscal year ending June 2030 of revenue of ¥60,000 million, operating profit of ¥3,600 million and ROE above 24%, and announced VISION HIRAYAMA 2030 and the medium-term plan First Stage2027 to achieve them. First Stage2027 calls for 3 years of business-foundation building, with the basic policy of strengthening earnings power by using education to address the shortage of highly skilled workers as a manufacturing company without its own facilities or sites.

For the fiscal year ending June 2027, the final year of the medium-term plan, the company targets revenue of ¥46,000 million, operating profit of ¥2,200 million and ROE above 20%, and has indicated that it expects to maintain ROE above 20% after 2027. At the same time, it explained the factors behind the revenue shortfall against the initial targets, including uncertainty over the US high-tariff policy and intensifying competition to recruit technical staff. As growth investments and group reorganisation continue through 2027, the company has also indicated that it will prioritise achieving its ROE target.

Achieving the targets for the fiscal year ending June 2030 is expected to require annual growth of 12.2% in revenue and 16.9% in operating profit. Growth in technical staffing and expansion of the foreign-worker employment management support business are expected to contribute. M&A will continue to be considered as part of the growth strategy, potentially targeting companies engaged in technical staffing and highly specialised fields. The policy of using ROIC as an investment metric remains unchanged.