Hirakawa Hewtech Corp. Reports Q4 Loss and Adjusts Full-Year Forecasts

HIRAKAWA HEWTECH CORP. [5821.T]

TOKYO, May 07 (Pulse News Wire) – Hirakawa Hewtech Corp. (5821.T) reported a special loss of ¥2.471 billion due to impairment charges in its Philippine subsidiary, HEWTECH PHILIPPINES ELECTRONICS CORP., impacting the fiscal year ending March 31, 2026.

The company also revised its full-year forecasts for the same period. The impairment charge was primarily attributed to delays in operations and production schedules caused by a new model's impact. Despite expecting long-term growth in the automotive sector, the subsidiary’s performance fell short of initial projections. As a result, Hirawa Hewtech recorded the impairment loss based on auditing perspectives emphasizing recent uncertainty in future outlooks.

Adjusted forecasts for the fiscal year show: - Revenue: ¥38.42 billion (up 5.3% from previous estimates) - Operating profit: ¥4.410 billion (up 10.3%) - Ordinary profit: ¥4.630 billion (up 15.8%) - Net profit attributable to shareholders: ¥1.640 billion (down 50.3%) Despite strong sales in North American renewable energy markets and recovery in industrial machinery segments, the net profit forecast was reduced due to the impairment loss. The company maintained its dividend forecast unchanged despite the losses. The adjusted foreign exchange rate assumption for the full year is $1 = ¥151, with copper prices set at $10,800 per ton. Hirawa Hewtech emphasized that actual results could differ due to various factors affecting future performance.

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