HIROSE ELECTRIC CO.,LTD. [6806.T]

TOKYO, May 12 (Pulse News Wire) – Hirose Electric CO.,LTD. (6806.T) outlined its strategic growth plans for the fiscal year ending March 2026, aiming to accelerate long-term expansion through new growth areas.

The company projects revenue of ¥3.5 billion and a target operating profit margin of over 30%, alongside a return on equity (ROE) exceeding 10%. HIROSE ELECTRIC emphasized investments in key sectors such as consumer electronics, automotive, and industrial machinery to drive sustainable growth. Specific initiatives include enhancing production capabilities at the Northeast Advanced Technology Center in Fukushima Prefecture, expanding microconnector development, and establishing a manufacturing base in Chennai, India, targeting vehicle-related products.

The Indian facility is set to commence operations in 2027, aligning with local demand and supply chain diversification strategies. In addition, the company updated its capital allocation policy for the fiscal years 2026 to 2029, prioritizing aggressive investment in growth opportunities while maintaining robust shareholder returns. HIROSE ELECTRIC plans to allocate up to 50% of generated cash flow towards strategic investments, including mergers and acquisitions, and up to 40% for shareholder distributions, reflecting a balanced approach to fostering continued growth and rewarding investors.

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