HIOKI E.E. CORPORATION

Business Details

The HIOKI Group consists of the Company and its subsidiaries, with its core business being the development, manufacturing, and sale of electrical measuring instruments. The product lineup is categorized into Automated Test Equipment, Recording Instruments, Electronic Measuring Instruments, Field Measuring Instruments, and Peripheral Devices. Based on domestic manufacturing, the Group operates globally through sales subsidiaries in China, South Korea, Taiwan, Southeast Asia, India, Europe, the United States, and other regions. The Group focuses on four key target markets—battery, energy, mobility, and components—and provides measurement solutions that leverage tailwinds from decarbonization, EV adoption, and data center expansion.

Recent Overview

In the first half of FY2026 (ending December 2026), sales increased 23.5% and operating profit increased 53.5%, achieving substantial growth in both revenue and profit

In the first half (January to June) of FY2026 (ending December 2026), sales were ¥24,129 million (up 23.5% year on year), operating profit was ¥5,053 million (up 53.5% year on year), ordinary profit was ¥5,283 million (up 61.4% year on year), and profit for the first half was ¥3,990 million (up 73.7% year on year). Electronic Measuring Instruments led the growth with a 34.9% increase, driven by demand for inspection of electronic components for data centers and battery testers for ESS. By region, China surged 30.1% (¥6,941 million) and Taiwan surged 44.2% (¥997 million). Orders received grew even faster than sales, reaching ¥27,250 million (up 38.5% year on year), with orders for Automated Test Equipment in particular surging 127.3%. The elimination of foreign exchange losses (¥211 million) recorded in the same period of the prior year, which turned into a foreign exchange gain (¥42 million), also contributed significantly to the increase in ordinary profit. The full-year earnings forecast (sales of ¥47,700 million, operating profit of ¥9,500 million) remains unchanged. As of the end of the first half, progress against the full-year forecast stood at 50.6% for sales and 53.2% for operating profit, indicating steady progress.

Key Products

Growth Drivers

• Rapid expansion in demand for electronic measuring instruments such as resistance meters, LCR meters, and power analyzers, driven by increased production of electronic components (such as power inductors) amid data center expansion
• Rapid growth in demand for battery testers for ESS (energy storage systems): battery demand is diversifying from EV-led demand to multiple markets including ESS, driven by renewable energy expansion and investment in power grid stabilization
• Substantial sales growth in the Chinese market (up 30.1% year on year in the first half of FY2026 (ending December 2026)) and a sharp surge in orders received from Taiwan (up 204.7% year on year), reflecting expanding demand across Asia as a whole
• Increased demand for field measuring instruments such as clamp meters and insulation resistance testers, driven by rising demand in the power and energy sector and expanding maintenance and inspection needs at data centers
• Orders received for Automated Test Equipment surged 127.3% year on year, functioning as a leading indicator suggesting sales recognition is expected to increase in the second half and beyond
• Full-scale operation of the Nagoya Technical Center (April 2026), promoting technical collaboration in the automotive and battery materials fields and strengthening support for customers in the Tokai region
• Strengthened global local support capabilities, including the opening of an after-sales service center at the Vietnam subsidiary (June 2026), enhancing HIOKI brand penetration and customer satisfaction
• Continued rollout of high-value-added products centered on high-frequency, high-current, high-precision measurement technologies (such as ESR measurement, clamp sensors, µΩ-level ultra-low resistance measurement, and world-leading power analyzer performance)

Risks

• Escalating tensions in the Middle East (U.S. and Israeli attacks on Iran) could affect full-year operating profit through risks to the Strait of Hormuz, sustained high energy prices, inflation, concerns over an economic slowdown, and a rising trend in component costs
• Risk of rising logistics costs and constraints on materials procurement affecting the supply chain due to disruptions in maritime shipping
• Risk of delayed sales recognition due to long production lead times for Automated Test Equipment (in the first half of FY2026 (ending December 2026): orders received up 127.3% versus sales down 6.0%)
• Impact of foreign exchange rate fluctuations on the yen value of overseas sales (a risk that can work in either direction)
• Continued efforts are needed to achieve the ROE target (15% or higher) and the overseas sales ratio target (75%) (overseas sales ratio was 65.3% in the first half of FY2026 (ending December 2026))
• Impact on business performance from fluctuations in raw material and energy prices, changes in demand trends, and changes in procurement strategy
• Risk of sales concentration in specific regions (such as China and Taiwan) and the possibility of sudden demand shifts due to geopolitical risk