Hosiden (6804): FY2025 Results Summary — Sales Nearly Double on Amusement Demand, Record Net Profit

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Hosiden’s presentation labels the fiscal year ended March 31, 2026 as “FY26/03,” and the following fiscal year’s forecast as “FY27/03”; this article follows the labels used in the materials.

Hosiden Corporation (6804) reported net sales of ¥448.3 billion for FY26/03, approximately 1.8 times year-on-year, as strong sales to the amusement market and increased sales for the automotive market more than offset declines in sales to the mobile communications and other markets. Operating profit increased by 41.7% year-on-year to ¥19.2 billion, and foreign exchange gains of approximately ¥4.2 billion contributed to a 66.8% increase in ordinary profit to ¥24.6 billion. Net profit attributable to owners of the parent reached a record high of ¥16.2 billion, and the annual dividend is planned to be ¥98 per share.

Consolidated Results (Full-Year Actual)

Sales rose from ¥247.6 billion in FY25/03 to ¥448.3 billion in FY26/03, an increase of ¥200.7 billion (+81.1%). Operating profit rose from ¥13.6 billion to ¥19.2 billion, an increase of ¥5.7 billion (+41.7%). The average exchange rate was 150.78 yen/USD in FY26/03, compared with 152.56 yen/USD in FY25/03, and foreign exchange gains were ¥4,182 million in FY26/03 (¥45 million in FY25/03). Net profit for FY2026/03 surpassed the previous record of ¥14.5 billion set in FY2001/03.

Item	FY26/03 (millions of yen)	Profit Margin (%)	YoY
Net sales	448,250	–	+81.1%
Operating profit	19,236	4.3	+41.7%
Ordinary profit	24,644	5.5	+66.8%
Net profit	16,206	3.6	Record high

Sales by Market

In the amusement market, sales of major customers’ new products performed well, and sales increased by ¥208,583 million (+143.4%) year-on-year to ¥354,062 million, or 79.0% of total sales. Mobile communications sales declined 15.4% to ¥45,903 million: sales to key customers were exceptionally strong in Q1 of the previous fiscal year, and a decline in share for some mid-range models in FY26/03 had an impact; however, orders for successor models are being secured in FY27/03. Automotive sales grew 9.6% to ¥33,579 million, mainly due to increased sales of mechanical components to Japanese automotive manufacturers. In the other market, although there was an increase in sales for wearables, the decline in medical, healthcare-related, and AV equipment segments had an impact.

Market	FY25/03 Full-Year (millions)	FY26/03 Full-Year (millions)	YoY (millions)	YoY (%)
Amusement	145,479	354,062	+208,583	+143.4
Mobile Communications	54,231	45,903	▲8,328	▲15.4
Automotive	30,629	33,579	+2,950	+9.6
Other	17,232	14,706	▲2,526	▲14.7
Total	247,571	448,250	+200,679	+81.1

FY27/03 Full-Year Forecast

For FY27/03, Hosiden forecasts net sales of ¥436.0 billion (▲2.7% year-on-year) and operating profit of ¥18.0 billion (▲6.4%). In FY26/03, operating profit was negatively impacted by approximately ¥2.4 billion due to the rapid appreciation of the yen in Q1; for FY27/03, the company assumes an exchange rate of ¥155 and does not expect any foreign exchange impact on operating profit. In FY26/03, non-operating income included approximately ¥1.2 billion in interest and dividend income and approximately ¥4.2 billion in foreign exchange gains; for FY27/03, the company assumes approximately ¥1.0 billion in interest and dividend income and approximately ¥1.0 billion in foreign exchange losses (in H1).

Item	FY26/03 (millions)	FY27/03 Forecast (millions)	YoY (millions)	YoY (%)
Net sales	448,250	436,000	▲12,250	▲2.7
Operating profit	19,236	18,000	▲1,236	▲6.4
Ordinary profit	24,644	18,000	▲6,644	▲27.0
Net profit	16,206	12,500	▲3,706	▲22.9

By market (billions of yen), amusement sales are forecast to decline from ¥354.1 billion to ¥333.2 billion (▲5.9%), as the company expects sales to major customers to decline. Mobile communications sales are forecast to rise from ¥45.9 billion to ¥52.9 billion (+15.2%) on expected increased demand from major customers and a recovery in market share. Automotive sales are forecast to grow from ¥33.6 billion to ¥35.9 billion (+6.9%), mainly in mechanical components. Other sales are forecast at ¥14.0 billion (▲4.8%): although recovery is expected in medical and healthcare related, a decline is anticipated in the AV equipment segment.

Shareholder Returns

Hosiden’s dividend policy is a stable dividend with a dividend payout ratio set at 30%. With a payout ratio of 30%, the year-end dividend for FY26/03 is expected to be ¥73 per share, and together with the interim dividend of ¥25, the annual dividend is planned to be ¥98 per share. For FY27/03, the dividend plan is ¥77 per year. On share repurchases, the company achieved cumulative share buybacks and cancellations of more than ¥10 billion by FY26/03; the FY27/03 buyback amount is shown as TBD. In FY26/03, total dividends were ¥4.9 billion and share buybacks ¥4.2 billion, for a total payout ratio of 55.9%.

Item	FY22/03	FY23/03	FY24/03	FY25/03	FY26/03	FY27/03 (Plan)
Dividend per share (yen)	65	71	68	59	98	77
Total dividends (billions of yen)	3.6	3.8	3.5	3.0	4.9	–
Share buybacks (billions of yen)	1.8	3.0	2.8	3.0	4.2	TBD
Total payout ratio	45.0%	54.0%	54.4%	60.0%	55.9%	–

Topics

Hosiden is constructing new production facilities. In Vietnam, Building 8 of Hosiden Vietnam (Bac Ninh Province) has a floor area of 24,000 square meters (one floor of 6,000 square meters x 4 floors, with solar panels installed on the roof), and operations will commence in March 2026 (solar panels are scheduled to begin operation around summer 2026). The purposes are to increase production capacity (in the past there were 6 factories in China, now there are 2) and expansion in countries and regions other than China, including tariff measures in the United States. In India, a new factory is planned for expansion of production within India and sales both domestically and internationally; initially, production and sales were planned for in-vehicle microphones and air-conditioner remote controls, with construction beginning in FY26/03 and operation scheduled for FY27/03.

Capital investment was ¥7.9 billion in FY26/03 and is forecast at ¥5.6 billion for FY27/03, with FY26/03 investment including capital investments in machinery, tools and equipment, and dies and molds associated with increased production and in-house manufacturing of new products mainly for the amusement market. Depreciation is forecast at ¥5.1 billion and R&D expenses at ¥2.0 billion for FY27/03. On sustainability, the company’s CDP score (climate change) was B in 2025, and its long-term targets aim for a 42% reduction in CO2 by the end of FY2030 compared to FY2023 levels for Scope 1 and 2, and a 25% reduction for Scope 3.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.