HIRAYAMA HOLDINGS Co.,Ltd.

Business Details

Provides Manufacturing Contracting (Insourcing), Manufacturing Staffing, and Retail Contracting within the manufacturing processes of client companies producing medical devices/pharmaceuticals, transportation equipment, housing equipment, food-related products, and more. Productivity improvement and cost reduction services in collaboration with on-site improvement consultants serve as a differentiating factor. The business is operated mainly through consolidated subsidiary Heiwa Corporation, which maintains a broad client base spanning the defense industry, medical devices, electronic devices, semiconductors, automotive (including rubber products), logistics, and food service-related sectors.

Recent Overview

Significant profit growth achieved through increased orders and improved unit pricing in the defense, semiconductor, and automotive-related sectors.

For the cumulative nine months of FY2026 (ending March 2026) (July 2025 to March 2026), revenue reached ¥22,856 million (up 4.7% year on year) and segment profit reached ¥1,891 million (up 36.4% year on year). Growth was driven by increased orders related to the defense industry, medical devices, electronic devices, semiconductor manufacturing, and automotive (including rubber products). In particular, new orders related to electronic devices and semiconductor manufacturing increased in Q3. Profitability improved as client understanding was largely secured regarding staffing unit price increases associated with the October 2025 minimum wage revision. On the other hand, costs are increasing due to the establishment of new sites and training centers and the expansion of recruiting staff and instructors.

Key Products

Growth Drivers

• Increased orders related to the defense industry, medical devices, electronic devices, semiconductor manufacturing, and automotive (including rubber products)
• Increases in staffing and contracting unit prices in line with minimum wage revisions (client understanding is progressing)
• Improved production efficiency and profitability through on-site improvement activities at manufacturing contracting sites
• Acquisition of new orders and additional orders from existing clients in logistics and food service-related sectors
• Stabilization of production through the retention of new graduate hires from 2025, and acquisition of high-value projects through enhanced training of high-end skilled personnel (such as equipment maintenance engineers and semiconductor-related technicians)
• Improved profitability through the promotion of conversion from Manufacturing Staffing to Manufacturing Contracting (Insourcing)
• Strengthening of diverse recruiting channels, including regional TV commercials, social media, and network-based hiring, to secure personnel

Risks

• Deteriorating recruitment environment: intensifying mid-career hiring competition amid the service industry's recovery, leading to rising recruitment and labor costs
• Risk of rising personnel costs due to minimum wage increases and delays in passing these costs on to clients through unit price adjustments
• Risk of decreased orders due to deteriorating domestic manufacturing production trends (external environmental changes such as U.S. tariff measures)
• Risk of increased costs and profit pressure due to the establishment of new sites/training centers and the expansion of recruiting staff and instructors
• Increased expenses due to rising recruitment costs for new graduates in FY2026
• Risk of revenue concentration among major clients