Hirose Electric (6806) Results briefing: Upwardly revised full-year guidance still cautious

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

Hirose Electric (6806)

Results briefing: Upwardly revised full-year guidance

still cautious

Hirose Electric held a results briefing at 10:45 JST on August 5. Our overall

impression is positive. Management raised its full-year guidance to reflect strong

demand, but it seems cautious overall. In particular, the 2Q guidance appears to

conservatively reflect the startup of new capacity and other cost increases. We

think further earnings overshoots are likely.

Order trends: Orders in 1Q FY2026 were ¥71.1 billion (+36% YoY, +12%

QoQ), and the book-to-bill ratio remained high at 1.14 (versus 1.16 in 4Q

FY2025). The book-to-bill ratio was slightly over 1.2 for general industrial

machinery applications, slightly under 1.1 for smartphone applications, and

over 1.1 for automotive, consumer, and telecom infrastructure equipment

applications.

1Q summary: (1) Sales were ¥20.6 billion (+46% YoY, +19% QoQ) for

general industrial machinery applications, ¥10.8 billion (+4% YoY, +6% QoQ)

for smartphone applications, ¥9.5 billion (+11% YoY, +13% QoQ) for

consumer and mobile equipment applications, ¥15.6 billion (+22% YoY, +11%

QoQ) for automotive applications, and ¥2.5 billion (+92% YoY, +14% QoQ)

for telecom infrastructure equipment applications. Hirose SER’s sales were

¥1.1 billion (versus ¥0.7 billion in 4Q FY2025). (2) Management said orders

for general industrial machinery applications remained strong in 1Q. Orders

from the US and Europe, which were strong last fiscal year, increased, as did

orders from China and Japan. In addition, increased sales of new products and

adoption in industrial peripheral equipment, including factory automation

(FA) cameras and servo motors used in CNC machining and torque control

applications, also contributed. (2) Management plans to continue passing

through cost increases (with price hikes), moves that improved 1Q operating

profit by ¥0.7 billion.

Full-year guidance: (1) Management raised its FY2026 sales guidance for

general industrial machinery applications from ¥71.0 billion (+15% YoY) to

¥83.0 billion (+34%), for smartphone applications from ¥43.0 billion (-3%) to

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