HOKURIKU ELECTRIC INDUSTRY CO.,LTD.

Business Details

Manufactures and sells 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.). The company has manufacturing and sales bases both domestically and overseas, expanding globally centered on Asian bases such as Malaysia, Thailand, and China. It is focusing on the four domains of mobility, GX/DX, industry & infrastructure, and smart appliances & medical, and is promoting sales expansion into new fields with high value-added ratios.

Recent Overview

Operating income decreased 5.1% year on year due to increased material costs from surging precious metal prices

In the Electronic Components segment for FY2026 (ending March 2026), net sales remained roughly flat at ¥42,275 million (up 0.2% year on year), but operating income declined to ¥3,467 million (down 5.1% year on year) as precious metal prices surged in the latter half of the fiscal year, increasing material costs. While demand for data centers increased against the backdrop of AI expansion, EV-related demand slowed, and overall demand for electronic components trended weak. The company worked to expand sales into new fields with high value-added ratios and improve production efficiency, but this was not enough to absorb the impact of rising raw material prices.

Key Products

Growth Drivers

• Increased demand for data centers against the backdrop of AI expansion
• Sales expansion into new fields with high value-added ratios (mobility, GX/DX, etc.)
• Expansion of component demand accompanying the medium- to long-term progress of electrification in mobility
• Expansion of Module Products for new markets and new customers
• Improved profitability through enhanced production efficiency
• Increase in yen-converted overseas sales due to strength in Asian currencies and yen depreciation

Risks

• Pressure on profitability from rising raw material prices due to surging precious metal prices
• Weakening demand for electronic components due to a slowdown in EV-related demand
• Risk of sluggish domestic demand in China and dependence on sales to major customers
• Impact on automotive-related exports from US tariff policy
• Risk of supply chain disruption and resource price increases due to deteriorating conditions in the Middle East
• Downward pressure on segment profit from increased company-wide expenses (adjustment amount of ¥-1,323 million in FY2026 (ending March 2026), versus ¥-1,222 million in the prior period)