ENVALITH
株式会社石井表記 logo

ISHII HYOKI.CO.,LTD.

6336・Standard Market・Machinery

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株式会社石井表記 logo
ISHII HYOKI.CO.,LTD.6336

Business

Ishii Hyoki Co., Ltd. was founded in 1973 and is headquartered in Fukuyama City, Hiroshima Prefecture, listed on the Tokyo Stock Exchange Standard Market. The company has 6 consolidated subsidiaries (including 1 sub-subsidiary) and operates two core business segments: the "Electronic Equipment & Parts Manufacturing Equipment" segment, which handles manufacturing equipment for printed circuit boards and LCDs (polishing machines, plating lines, Inkjet Coaters, etc.), and the "Displays & Electronic Components" segment, which covers membrane switch panels, electronic components mounting, and printing for automotive components. Its main customers include printed circuit board manufacturers, LCD panel manufacturers, machine tool and industrial machinery manufacturers, and automotive-related manufacturers. The company has production bases in China (Shanghai, Suzhou) and the Philippines, and conducts business globally.

Business Model

In the Electronic Equipment & Parts Manufacturing Equipment segment, which accounts for approximately 31% of revenue, the company builds up stock-type revenue through continued sales of Production Consumables in addition to sales of manufacturing equipment for printed circuit boards and liquid crystal displays. In the remaining approximately 69%, the Displays & Electronic Components segment, the company secures stable sales through contract electronic component mounting utilizing its subsidiaries in China and the Philippines, as well as the manufacture and sale of operation panels and printed products. The combination of equipment, consumables, and contract manufacturing forms a structure that diversifies revenue against economic fluctuations.

Company Strengths

The Electronic Equipment & Parts Manufacturing Equipment segment achieved net sales of ¥4,876 million, operating profit of ¥806 million, and an operating margin of 16.5% in FY2026 (ending March 2026). Driven by increased capital expenditure on AI-related package substrates, the segment achieved high growth of 6.5% year-on-year in net sales and 24.6% year-on-year in operating profit.

At Shanghai SunRise Electronics Co., Ltd., orders for electronic components mounting from major customers, including those related to EVs, trended upward, contributing to overall increases in both revenue and profit for the Displays & Electronic Components segment (net sales up 5.2% year-on-year, operating profit up 28.3% year-on-year). Order intake remained strong, up 10.3% year-on-year.

At the end of FY2026 (ending March 2026), the equity ratio stood at 66.9% and interest-bearing debt balance was ¥1,276 million, indicating a high level of financial soundness. The company has secured a liquidity buffer including an unexecuted commitment line balance of ¥1,800 million, while the syndicated loan balance has also been reduced to ¥357 million (term loan).

ENVALITH's Perspective

Cumulative net sales for Q1 of FY2027 (ending January 2027) were ¥4,049 million (up 12.3% year-on-year), and operating profit was ¥367 million (up 98.8% year-on-year), representing progress rates of 24.3% and 31.8%, respectively, against the full-year forecasts of ¥16,666 million in net sales and ¥1,155 million in operating profit. Notably, the operating profit progress rate exceeds the sales progress rate, and while there is a possibility of first-half weighting, this suggests room for upside relative to the full-year forecast. There has been no change to the earnings forecast, and the company maintains a cautious stance.

The Electronic Equipment & Parts Manufacturing Equipment segment showed outstanding growth of +38.5% in net sales and +217.2% in operating profit year-on-year, while the Displays & Electronic Components segment saw net sales increase 3.4% but operating profit decline 8.7%. This is attributable to an operating loss at Silk & Label Printing (JPN, INC.), production adjustments by customers of automotive-use printed products, and sluggish demand for electronic component mounting due to the stagnation of the Chinese economy. Improving the profitability of this core segment, which accounts for approximately 68% of group sales, is key to full-year performance.

In the LCD-related field, there has been no significant demand recovery accompanied by new demand for manufacturing equipment, with the recovery limited to demand for consumables. As external factors, downside risks explicitly cited include the stagnation of the Chinese economy, foreign exchange risk associated with yuan appreciation, and rising energy prices due to the situation in the Middle East. Performance at Shanghai Sailu Electronics Co., Ltd. has remained roughly in line with the same period of the previous year, and a full-scale recovery in the China business is expected to take time. A return to the FY2023 peak (net sales of ¥18,222 million and operating profit of ¥2,016 million) will require improvement across multiple external conditions.

Growth Strategy

Diversifying the earnings base by capturing AI- and EV-related demand and expanding coating technology into new markets

Capturing the increase in capital investment for package substrates driven by growing demand for AI-related semiconductors, the company aims to expand sales of related manufacturing equipment, production consumables, and plating equipment for high-functionality materials. In Q1 of FY2027 (ending January 2027), sales in the Printed Circuit Board-related Business increased 43.7% year on year to ¥1,009 million from ¥702 million in the same period of the previous year, indicating that the strategy is progressing well.

The company aims to expand the inkjet coating technology developed for liquid crystal applications horizontally into new markets such as environmental load reduction, thereby developing new revenue sources to complement the structural decline of the liquid crystal-related business. Sales in the liquid crystal-related business in Q1 of FY2027 (ending January 2027) increased to ¥189 million from ¥135 million in the same period of the previous year, but new demand for manufacturing equipment remains limited, and full-scale development of new markets is still at an early stage.

The company aims to develop new customers and secure new mass-production products at Silk & Label Printing (JPN, INC.), and to achieve a recovery in orders for electronic components mounting, including EV-related orders, at Shanghai Sailuoke Electronics Co., Ltd. In Q1 of FY2027 (ending January 2027), Silk & Label Printing (JPN, INC.) recorded an operating loss due to customer production adjustments and rising material prices, while Shanghai Sailuoke's performance remained roughly in line with the same period of the previous year, indicating that improvement remains halfway through.

The annual dividend forecast for FY2027 (ending January 2027) has been raised to ¥36 per share (up 28.6% from ¥28 in the previous fiscal year). This reflects the company's policy of returning profit growth accompanying the business recovery to shareholders, and is positioned as part of efforts to improve capital efficiency aimed at resolving the sub-1x PBR situation.

Last updated: July 17, 2026