HI-LEX CORPORATION (7279) Stock Price

Hirex Corporation manufactures and sells remote control cables for two-wheeled and four-wheeled vehicles, industrial equipment, medical devices, housing equipment, and ships, along with components and modules such as four-wheel window regulators, door modules, door latches, and power liftgates. The company also develops, manufactures, and sells dedicated production equipment, with a focus on design and research and development.

The company's primary customers are domestic and international automakers, with component sales for finished vehicles forming the core of its revenue. Parts supply to group factories both domestically and internationally, as well as exports, serve as additional revenue sources. The medical device business, which handles ventricular assist devices, also supports a portion of sales.

Operations are divided into four main segments: control cables and mechanical components for automobiles, door-related modules and power liftgates, medical devices, and production equipment. The company operates manufacturing facilities in Japan, North America, China, Asia, Europe, and South America, managing quality and supply through global vehicle model support and centralized design and development.

The company aims to become a global top supplier of automotive door closure systems and modules. Despite headwinds from sanctions, currency fluctuations, and primary market uncertainty, the company is restructuring its product portfolio. Control cables represent approximately one-quarter of consolidated sales, while door-related components such as window regulators and door modules have grown to nearly two-thirds, reflecting this shift. The company prioritizes securing and expanding equity capital and operating profit, with emphasis on improving return on equity (ROE) and net income attributable to parent company shareholders. The goal is sustainable shareholder returns and enhanced corporate value.

Priority investment focuses on higher-value-added products and stronger profitability. Specifically, the company concentrates investment in differentiated technologies such as door latches and power sliding doors. Cost structure improvements will be achieved through in-house production utilizing existing equipment, procurement cost reduction via joint purchasing, and logistics network consolidation. Additionally, the company will advance equipment automation and factory digitalization (DX) to improve margins on mature products, aiming to differentiate from competitors in both product strength and profitability.

For new market development and business expansion, the company welcomed Hydrex Act (formerly Mitsui Kinzoku Act) on November 4, 2025, and will accelerate global expansion by leveraging group synergies. With manufacturing bases in Japan, North America, China, Asia, Europe, and South America, the company will strengthen supply of door closures and modules while developing medical devices such as implantable artificial hearts and specialized production equipment to diversify its business portfolio. Through "front-loading"—proactive proposals to customers—the company will enter original equipment manufacturers' development cycles early to expand order opportunities.

Technology innovation is driven by research and development and human capital development. Cross-functional teams will merge Hydrex Group and Hydrex Act technologies to accelerate new product and feature creation. In operations, the company will leverage advanced technologies including factory automation, DX, and AI to reduce costs and stabilize quality. Investment in young talent, women, and global personnel will strengthen proposal and decision-making capabilities, building long-term competitive advantage.