ENVALITH
平河ヒューテック株式会社 logo

HIRAKAWA HEWTECH CORP.

5821・Prime Market・Nonferrous Metals

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平河ヒューテック株式会社 logo
HIRAKAWA HEWTECH CORP.5821

Business

Hirakawa Hewtech Corporation is a wire and cable manufacturer founded in 1948, forming a group consisting of the company and 20 subsidiaries. In its core Wires & Processed Products segment, the company offers a lineup of products requiring high precision and reliability, including cables for supercomputers and servers, cables for semiconductor testing equipment, Automotive Cables & Wire Harnesses, and Energy Industry-Related Cables (Solar Harness). In the Electronic & Medical Components segment, the company handles broadcasting optical repeaters, switching HUBs, EV chargers, and specialty medical tubes. In addition to domestic production sites, the company has built a global manufacturing and sales network through more than 20 subsidiaries worldwide, including in China, the Philippines, Mexico, Thailand, Taiwan, and North America, targeting growth markets such as IoT, AI, automotive electrification, and decarbonization as its main customer base.

Business Model

The company adopts a division-of-labor system in which high-precision cables and specialty tubes with high added value are manufactured at domestic plants, while mass-produced items are manufactured at overseas bases in the Philippines, China, Mexico, and elsewhere. It handles everything from product development to manufacturing, sales, and service in an integrated manner, investing ¥808 million in R&D expenses (FY2026 (ending March 2026)) to maintain its technological edge. The Wires & Processed Products segment, which accounts for approximately 87% of net sales, is the core pillar of earnings, complemented by the Electronic & Medical Components segment, which has a high profit margin.

Company Strengths

Building on wire and cable extrusion technology cultivated over many years, the company develops and mass-produces in-house 400Gbps/800Gbps server cables, ultra-fine coaxial cables of AWG46 or smaller, 5G-compatible coaxial cables, and other products. R&D expenses amounted to ¥808 million in FY2026, and the company continues to create a diverse range of high-value-added products for applications including semiconductor testers, automotive use, and medical use.

The company has manufacturing and sales bases in China (Lianyungang and Huizhou), the Philippines, Mexico, Thailand, Taiwan, Hong Kong, and North America (the U.S. and Mexico), establishing a division-of-labor structure that combines domestic production of value-added products with overseas production of mass-produced items. In July 2025, Yoshinogawa Densen Co., Ltd. was consolidated to expand the industrial equipment cable business, and a new base in the Philippines is also being constructed to strengthen supply capacity.

In FY2026, orders received in the Wires & Processed Products segment reached ¥39,126 million (146.9% year-on-year), and the order backlog surged to ¥11,384 million (197.0% year-on-year), driven by simultaneous demand growth across multiple areas including North American solar harnesses, automotive cables, and cables for semiconductor testing equipment. This buildup of orders reflects the strength of the company's own order base, which enhances short-term visibility into performance.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) reached ¥4,416 million, with an operating margin of approximately 11.5%, approaching the FY2030 target of 12% or higher. However, net income attributable to owners of parent stood at ¥1,642 million, down 18.9% year on year, due to the recognition of an impairment loss of ¥2,471 million. Whether net income recovers once the impairment processing has run its course will be a key point for future evaluation.

In FY2026 (ending March 2026), Premier PV, LLC was disclosed for the first time as a major customer, accounting for 10.4% of net sales (¥3,979 million). North American mega-solar construction demand is an external macro factor, and there is a risk that changes in U.S. trade and energy policy, as well as this customer's ordering trends, could directly affect business performance. Managing customer concentration will be a challenge.

The equity ratio as of the end of FY2026 (ending March 2026) stood at 74.8% (down from 82.2% in the previous fiscal year), maintaining a still-high level, and the financial base remains solid. On the other hand, liabilities have expanded due to an increase in long-term borrowings (a new borrowing of ¥40,000 million) associated with the consolidation of Yoshinogawa Densen, requiring continued attention to the balance between M&A and capital investment on one hand, and financial soundness on the other.

Growth Strategy

Promoting the medium-term plan "Plan 600," targeting net sales of ¥60.0 billion and an operating margin of 12% or more in FY2030 (ending March 2030)

Positioning automotive cables, medical equipment cables, and industrial equipment cables as core businesses, the company is pursuing business expansion through the acquisition of new mass-production products, new product development, and the consolidation of Yoshinogawa Densen. Management targets for FY2030 (ending March 2030) are net sales of ¥60.0 billion or more, an operating margin of 12% or more, and ROE of 10% or more.

Against the backdrop of strong demand for the construction of mega solar power plants in North America, the company is improving the profitability of its strong Energy Industry-Related Cables (Solar Harness) business and developing it into a core business. In FY2026 (ending March 2026), sales to the key customer Premier PV, LLC expanded to account for 10.4% of net sales (¥3,979 million).

Against the backdrop of expanding demand for generative AI, IoT, and HPC, the company is strengthening the development and mass production of high-speed transmission cables, including cables for 400Gbps/800Gbps-compatible servers and cables for semiconductor inspection equipment. Product development continues, with R&D expenditure of ¥537 million (Wires & Processed Products segment, FY2026 (ending March 2026)).

The company is proceeding with the establishment of a new base in the Philippines utilizing HEWTECH PHILIPPINES CORP. and HEWTECH PHILIPPINES ELECTRONICS CORP., aiming to strengthen production and supply capacity as well as quality assurance for automotive cables. The company also aims to build a global network of production bases.

With the aims of eliminating defects through improved product and administrative quality, and optimizing inventory assets by reviewing production flows with SCM in mind, the company is reviewing its core systems to build a flexible system that supports accurate and swift decision-making. Inventory book value at the end of the fiscal year under review stood at ¥11,030 million.

Last updated: July 19, 2026