HIP CORPORATION
2136・Standard Market・Services
Business
Hip Corporation was established in September 1995 in Yokohama City, Kanagawa Prefecture, and operates a single-segment outsourcing business providing technical services in mechanical design, electronic design, and software development to client companies, primarily major manufacturers. Its clients span a wide range of manufacturing industries, including automobiles, aircraft, semiconductor manufacturing equipment, medical devices, and information and communication equipment, and the company provides services to clients' technology, development, and design departments through two contract forms: worker dispatch agreements and outsourcing (contracting) agreements. With multiple sales offices nationwide and a workforce of 855 employees as of the end of FY2026 (ending March 2026), the company operates as a professional group and is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company employs engineers as full-time regular employees and receives technical service fees through dispatching them to client companies or via contract work arrangements. Revenue is structured as "number of deployed engineers × working hours × unit technical service fee," with maintaining utilization rates and raising technical service fee rates serving as the primary drivers of profit improvement. For FY2026 (ending March 2026), net sales were ¥6,194 million, with an operating margin of 9.3%. Funding needs consist mainly of personnel costs and recruitment expenses, and the company maintains a near debt-free financial structure funded by retained earnings and operating cash flow.
Company Strengths
The full-year utilization rate for FY2026 (ending March 2026) remained at a high level of 93.2%, and technical service fees rose 3.8% year on year. The company continues careful negotiations to secure appropriate rates reflecting the value of its engineers, achieving five consecutive periods of revenue growth from ¥5,189 million in FY2022 (ending March 2022) to ¥6,194 million in FY2026 (ending March 2026).
As of the end of FY2026 (ending March 2026), the equity ratio stood at 71.5% (improved from 67.4% in the previous period), with cash and cash equivalents of ¥2,577 million. The company repaid ¥400 million in short-term borrowings, bringing it close to a virtually debt-free position, and maintains a stable financial structure funded primarily by retained earnings and operating cash flow.
The company serves manufacturing clients across five categories, including automobiles, aircraft, semiconductors, medical devices, and information and communications, diversifying away from excessive dependence on any single industry. It operates multiple sales offices nationwide, including in Nagoya, Tokyo, Osaka, Sendai, and Fukuoka, and Kanazawa, and has built up client relationships over 30 years since its founding in 1995.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal periods, rising from ¥5,189 million in FY2022 to ¥6,194 million in FY2026 (a CAGR of approximately 4.5%). Operating profit peaked at ¥578 million in FY2023, dipped temporarily, and then recovered to ¥573 million in FY2026. Net income attributable to owners of parent reached a record high of ¥433 million in FY2026. As external factors, continued development investment by manufacturing-sector clients and a shortage of engineers underpinned demand. On the other hand, an increase in cost of sales associated with improved employee compensation (labor costs account for 98.5% of the composition) and higher SG&A expenses including rebranding costs weighed on margins, causing the operating margin to decline slightly to 9.3% (from 9.5% in the previous period). For FY2027 (ending March 2027), the company forecasts revenue of ¥6,492 million and operating profit of ¥600 million (up 4.7% year on year).
Growth Strategy
Pursuing both scale and profitability through engineer headcount expansion, rate increases, and rebranding
Promoting strengthened new graduate and mid-career recruitment, enhanced engineer training, and job rotation to broaden skill sets. In FY2026 (ending March 2026), staffing levels exceeded the prior-year period, with the increase in engineer headcount serving as the primary driver of revenue growth. The same policy will continue in FY2027 (ending March 2027), targeting a 4.8% increase in net sales.
Through efforts to improve customer satisfaction and careful negotiations reflecting engineer value, technical fees rose year on year in FY2026 (ending March 2026) as well. The same policy will continue in FY2027 (ending March 2027), aiming to maintain and improve the operating margin.
To mark the company's 30th anniversary in September 2025 (Reiwa 7), a new brand message was formulated and the logo and corporate website were renewed. In FY2027 (ending March 2027), the company will move into the phase of instilling and putting into practice the mission of "Continuing to be the 'Home' for hybrid engineers," aiming for sustained strengthening of recruitment competitiveness and customer appeal.
The company's policy is progressive dividends targeting a payout ratio of around 50%. In FY2026 (ending March 2026), it paid ¥70 per share (ordinary dividend of ¥55 plus a 30th anniversary commemorative dividend of ¥15, payout ratio of 62.5%). In FY2027 (ending March 2027), an ordinary dividend of ¥71 (forecast payout ratio of 64.8%) is planned. Share buybacks of ¥127 million were also carried out in FY2026 (ending March 2026).
Last updated: July 19, 2026