HIRATA Corporation【JP:6258】Stock Price

Hirata Corporation operates three business segments: automotive-related, semiconductor-related, and other automation equipment. The company manufactures and sells automation equipment, providing production system engineering capabilities utilizing cutting-edge technology to customers who hold high market shares in their respective industries.

In the automotive-related segment, the company manufactures and sells production systems, primarily focusing on automatic assembly lines for electric vehicles (EVs), engines, transmissions, and in-vehicle electronic components. This addresses the needs of automotive manufacturers and parts suppliers.

In the semiconductor-related segment, the company manufactures and sells wafer transport equipment used in semiconductor manufacturing processes. Key products include load ports, wafer transport robots, and EFEMs (Equipment Front End Modules), supporting the semiconductor industry through these offerings.

In the other automation equipment segment, the company manufactures and sells assembly equipment for motors embedded in high-performance home appliances, production equipment for home appliances, logistics-related equipment, tire production equipment, and medical and laboratory instruments. This contributes to improved production efficiency across diverse industries.

In Japan, Hirata Corporation procures electronic components for automation equipment manufacturing primarily from its consolidated subsidiary Taihei Technos Corporation. The company also outsources manufacturing operations and maintenance services to Taihei Technos Corporation and Hirata Field Engineering Corporation.

Overseas, consolidated subsidiaries in Asia, North America, and Europe manufacture or sell automation equipment. Through these operations, the Hirata Corporation Group has established worldwide sales activities and support systems.

Hirata Corporation pursues technological innovation based on its founding spirit and aims to contribute to societal development as its management policy. Since fiscal 2022, the company has adopted the slogan "People, Technology, Happiness, Contribution," emphasizing technology and people while pursuing employee well-being and social contribution. Under the new medium-term management plan starting in fiscal 2025, the company has adopted the slogan "Maximizing Profits Through Equipment Innovation," aiming to respond to next-generation products and maximize profits for both customers and the company.

Hirata Corporation recognizes that as capital investment in growth markets expands, expectations for automation and labor-saving solutions are rising. In particular, the automotive market is seeing active investment in both electric vehicles and internal combustion engines, while the semiconductor market is being driven by generative AI-related demand. However, surging energy prices, inflation, and currency fluctuations are affecting profitability, requiring strategies to address these challenges.

Under the medium-term management plan for fiscal 2022 through 2024, the company aimed to strengthen its management foundation and expand business in growth markets, setting targets of 100 billion yen in sales and 10 billion yen in operating profit. However, fiscal 2024 results fell short of targets, with delays in production system setup for semiconductor-related operations being a significant factor. Going forward, strengthening production systems and maximizing customer value are key priorities.

Under the new medium-term management plan starting in fiscal 2025, the company aims to achieve a high-profit business structure and expand its business domains, targeting operating profit of 100 billion yen or more and ROE of 9.3% or higher by March 2028. During the planning period, the company aims for average annual sales growth of 6 to 8%, with plans to strengthen human resources, intellectual property, IT/DX, governance, and sustainability functions.

The five strategic pillars of the new medium-term management plan are: expanding semiconductor-related operations, strengthening profitability of made-to-order business, reinforcing the profit base, expanding mass production business, and establishing new business as a separate division. In particular, for semiconductor-related operations, the company aims to ensure stable supply of high-quality mass-produced products to meet growing demand and expand its service areas in response to market technological evolution.