HIRAYAMA HOLDINGS Co.,Ltd. (7781) Stock Price

Hirayama Holdings provides manufacturing outsourcing, manufacturing dispatch services, and engineer dispatch as its core business, combined with on-site improvement services. The company partners with on-site improvement specialists to enhance productivity, reduce costs, and create stable employment.

Its primary customers are domestic and international manufacturers in medical devices and pharmaceuticals, transportation equipment, housing fixtures, food-related products, aerospace, automotive, railways, home appliances, and precision equipment. The company's revenue comes mainly from performance-based fees under manufacturing contracts, dispatch fees, and contract income from engineer dispatch services, consulting, and training programs.

The business is divided into four segments: (1) in-house support centered on manufacturing outsourcing and dispatch, (2) engineer dispatch for design, evaluation, and analysis, (3) manufacturing dispatch services overseas, and (4) other operations including consulting, training, employment placement, and welfare services. Through consolidated subsidiaries, the company operates these businesses domestically and internationally, improving the effectiveness of customers' production operations through on-site improvement services.

As an overview of its growth strategy, the company has established the long-term vision "VISION HIRAYAMA 2030" for 2030, positioning 2025–2027 as the "First Stage" to drive transformation and growth. For medium-term targets, the company aims for revenue of 46 billion yen, operating profit of 2.2 billion yen, and an operating margin of 4.8% by 2027, with further targets of 60 billion yen in revenue, 3.6 billion yen in operating profit, and a 6.0% operating margin by 2030. Additionally, ROE targets exceed 20% by 2027 and 24% by 2030, with a dividend policy assuming a total payout ratio of 50% or less and a dividend payout ratio exceeding 40%, thereby establishing clear numerical targets for both profitability and shareholder returns.

In prioritized investment areas and differentiation strategy, the company is concentrating management resources on outsourced manufacturing and staffing services—including medical devices and automotive-related sectors—as well as technical engineer dispatch and on-site improvement consulting. The company is particularly focused on semiconductor production, equipment maintenance, and field engineer development, establishing internal training centers and new facilities to produce high-value-added talent. It differentiates itself through a "site-responsible outsourcing" model rather than simple labor supply. For recruitment, the company is implementing concrete measures to improve retention through regional television advertising, social media, expanded recruitment networks via partnerships, and the placement of career counselors. For M&A decisions, the company prioritizes return on invested capital (ROIC).

Regarding new market development and business expansion plans, the company is expanding outsourcing domestically and broadening contract scope with existing clients, while also working to improve profitability in overseas expansion centered on ASEAN. Based on forecasts that the manufacturing outsourcing and staffing market will reach approximately 2.6 trillion yen by 2026 and the technical engineer dispatch market approximately 1.52 trillion yen, the company plans to enter high-value-added areas such as smart factory support and semiconductor equipment maintenance, as well as new sectors including biotech and chemicals that expand female employment. Additionally, the company plans to expand its foreign worker recruitment and management support services, broadening domestic acceptance and placement services beyond specified skilled worker and technical intern programs.

Regarding technological innovation efforts, the company aims to improve productivity and quality through expanded AI-driven services and the implementation of proprietary work optimization systems. For internal digital transformation, the company is advancing group-wide IT infrastructure development, expanding information systems talent, and implementing robotic process automation (RPA) to streamline indirect operations. For on-site applications, the company is jointly developing smart factories and establishing training environments where engineers can learn software development for hardware integration. Through these digital investments, the company aims to establish a business structure that generates high added value with minimal capital expenditure.