Hibino Corporation

Business Details

Centered on the import and sale of professional audio, video, lighting and control equipment, along with system design, installation and maintenance, and also handling the sale of LED Display Systems. Domestically, the segment serves broadcasters, halls, stadiums/arenas, commercial facilities and similar customers as its main clientele, while overseas it operates in Asia (South Korea, Singapore) and Oceania (Australia). Consolidated subsidiaries include Hibino Intersound, Electori Co., Ltd., the InSight Systems group, and Spectrum Audio Visual Pte. Ltd., among others.

Recent Overview

Net sales reached a record high, but segment profit declined significantly due to a rebound from large projects in the prior period

Net sales for FY2026 (ending March 2026) reached a record high of ¥32,690 million (up 7.1% year on year). Meanwhile, segment profit decreased significantly to ¥1,098 million (down 48.0% year on year). The main cause was the rebound effect from highly profitable large projects recorded in the prior period, such as Nagasaki Stadium City. Although gross profit margin is on an improving trend owing to appropriate pricing and thorough profitability management, changes in project mix put pressure on profit. Overseas, the sales scale of the Asia-Oceania region expanded due to the new consolidation of Spectrum Audio Visual Pte. Ltd. and the full-year contribution of the InSight Systems group. For the next fiscal year (FY2027, ending March 2027), net sales of ¥40,600 million (up 24.2% year on year) and segment profit of ¥1,500 million (up 36.5% year on year) are expected. The consolidation of Ascent Co., Ltd. (made a subsidiary in April 2026) and Photron Kikaku Co., Ltd. (scheduled to become a subsidiary in July 2026) is expected to contribute to performance.

Key Products

Growth Drivers

• Continued demand for LED Display Systems (stadiums/arenas, street vision displays, commercial facilities, station premises, etc.)
• Securing import sales and installation projects for professional audio and video equipment, centered on replacement demand in the broadcaster and hall markets
• Strengthened one-stop proposal capability for AV & IT systems through the consolidation of Ascent Co., Ltd. (made a subsidiary in April 2026) and Photron Kikaku Co., Ltd. (scheduled to become a subsidiary in July 2026)
• Securing large-scale projects such as stadium/arena development, urban redevelopment, and the Osaka IR, which are expected to gain momentum from FY2027 onward
• Expansion of sales scale in the Asia-Oceania region utilizing Spectrum Audio Visual Pte. Ltd. and the InSight Systems group
• Continued operational efficiency and cost reduction effects from the merger of South Korean subsidiaries

Risks

• Risk of profit-level volatility due to a rebound decline from highly profitable large projects recorded in the prior period (such as Nagasaki Stadium City)
• Risk of changes in project mix due to not factoring in large LED display projects of the same scale as the current period for the next fiscal year
• Political and economic risk at the South Korean subsidiary (occurrence of project postponements or cancellations)
• Foreign exchange fluctuation risk (increasing impact as the proportion of overseas sales expands)
• Post-M&A integration and goodwill amortization burden (goodwill amortization of ¥466 million in FY2026, ending March 2026) and risk of integrating new subsidiaries' performance
• Risk of rising procurement costs and supply chain disruption, given the segment's reliance on imported sales
• Impact on overseas business from uncertainty over US trade policy and geopolitical risk