HOKURIKU ELECTRIC INDUSTRY CO.,LTD.
6989・Standard Market・Electric Appliances
Business
Hokuriku Electric Industry Co., Ltd. is an electronic components specialist manufacturer founded in 1943, engaged in the manufacture and sale of Resistors (film resistors, variable resistors, etc.), Module Products (hybrid integrated circuits, unit products, etc.), Electronic Devices (sensors, piezoelectric components, etc.), and Other Electronic Components (Circuit Boards, etc.). In addition to domestic manufacturing bases, the company operates a global structure with 17 manufacturing and sales subsidiaries in Malaysia, Thailand, China, Singapore, the United States, and elsewhere. Its major customers are electrical equipment, automotive, and industrial machinery manufacturers, led by Wuxi Sharp Electronic Components Co., Ltd. (15.3% of net sales), and the company positions the four domains of Mobility, GX/DX, Industrial Infrastructure, Smart Home Appliances, and Medical as growth markets. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company operates three core businesses: component electronic components, sensors leveraging MEMS/organic material technology, and mounted modules produced through global bases, investing ¥1,583 million in R&D to create new products. Manufacturing is conducted at ASEAN and China bases, with sales deployed globally through sales subsidiaries in each country. The Electronic Components segment accounts for approximately 98% of net sales, and the company has a vertically integrated profit structure in which the Molds & Machinery Equipment segment supports manufacturing lines within the group.
Company Strengths
The company offers a diverse lineup including resistors, modules, sensors, piezoelectric components, and safety components, with a track record of developing high-functionality products such as the world's fastest-responding capacitive humidity sensor and surge-resistant high-power chip resistors certified by the Japan Aerospace Exploration Agency (JAXA). Research and development expenses amounted to ¥1,583 million annually, and the diversity of technology mitigates dependence on any specific market.
The company operates 17 manufacturing and sales subsidiaries in Malaysia, Thailand, China, Singapore, the United States, and other locations, building a global production and sales structure. As of the end of FY2026 (ending March 2026), net assets stood at ¥25,817 million and cash and deposits at ¥13,079 million, indicating a stable financial base. The company also plans capital expenditures of ¥3,000 million in FY2026, primarily to expand ASEAN facilities, continuing ongoing capacity enhancement.
In FY2026 (ending March 2026), the company decided on its fifth consecutive year of dividend increases, exceeding both the criteria of a dividend on equity ratio (DOE) of 3% or more and a target payout ratio of around 35%. While generating stable operating cash flow, the company paid dividends of ¥713 million and conducted share buybacks of ¥131 million, with the continuity of its shareholder return policy explicitly stated in its securities report.
ENVALITH's Perspective
Performance Trend
Net sales came to ¥43,128 million (down 0.1% year on year), essentially flat. Operating profit was ¥2,311 million (down 11.1%), ordinary profit was ¥2,742 million (down 3.7%), and profit attributable to owners of parent was ¥1,986 million (down 9.5%), with declines at every profit stage. As external factors, the surge in precious metal prices pushed up material costs, while a slowdown in EV-related demand weakened overall demand for electronic components. Comprehensive income increased to ¥3,939 million (versus ¥3,461 million in the previous period), with an increase in the foreign currency translation adjustment account (¥1,208 million) boosting net assets. For FY2027 (ending March 2027), the company expects net sales of ¥47,000 million (up 9.0% year on year), but anticipates a substantial decline in profit, with operating profit of ¥1,800 million (down 22.1%) and net profit of ¥1,200 million (down 39.6%), amid an outlook for continued rising raw material prices and a deteriorating profit environment.
Growth Strategy
Pursuing mid- to long-term growth while addressing a deteriorating profit environment through expansion into new fields, stable materials procurement, and selling price negotiations
Promoting the capture of demand for data centers amid AI expansion, along with product development for mid- to long-term electrification of mobility. In FY2026 (ending March 2026), demand for data centers increased, but due to a slowdown in EV-related demand, overall Electronic Components sales growth was limited to +0.2% year on year.
In response to rising raw material prices driven by surging precious metal prices, the company is pursuing selling price pass-through negotiations with customers alongside cost reduction efforts. The forecast for FY2027 (ending March 2026) anticipates a significant decline in operating profit, and progress on price negotiations will be key to profit recovery.
In preparation for supply chain disruption risks stemming from the deteriorating situation in the Middle East and rising resource prices, the company is focusing on stable procurement of materials. Inventories at the end of FY2026 (ending March 2026) increased, mainly in work in progress (from ¥2,979 million to ¥4,060 million), indicating moves to strengthen procurement.
The group as a whole is continuously working to improve production efficiency. Depreciation expense in FY2026 (ending March 2026) increased to ¥1,158 million (from ¥1,026 million in the previous fiscal year), reflecting efforts to enhance production capacity and efficiency through capital expenditure (fixed asset acquisitions of ¥825 million).
Last updated: July 19, 2026