Hirose Electric

6806.TMEDIUM

Connectors / HV · Weight: 4%· Data as of 2026-05-18

¥21,620-0.94%

6-month daily

Investment Thesis

FY2026 record revenue ¥211.26B (+11.5%) driven by AI/datacenter coaxial connectors (+34.2% YoY) and industrial; automotive steady. FY2027 guidance: ¥230B revenue, ¥46B OP (+7%) — approaches FY2022 record. New ZE150HV (1000V/10A EV connector) won CES 2026 Innovation Award in Vehicle Tech. Near-zero debt, net cash >¥80B, dividend raised to ¥505/share (+3.1%), guided ¥520 FY2027. FCF ~¥36B.

Risk

AP01 MONITORING: Revenue at ALL-TIME RECORD (¥211.26B) — two consecutive record years. Op margin declining 20.3% vs 22-23% FY2022 peak — copper/gold input cost inflation only partially passed through. Amphenol ($16.2B rev) and TE Connectivity expanding EV connector portfolios with scale advantages; Chinese customers demanding discounts. No specific 800V OEM design wins publicly confirmed for HVH-280/ZE150HV. FY2027 ¥46B OP target requires successful cost pass-through.

Monitoring Trigger

UPGRADE if: op margin recovers above 22% OR 800V platform OEM design win announced. REDUCE if: op margin falls below 18% for 2+ quarters OR revenue misses ¥230B FY2027 by >10%. Watch Q1 FY2027 earnings (~Aug 2026) for margin trend.

Key Dates

2026-05monitoringUPGRADE trigger: 800V OEM design win announcement OR margin recovery above 22%.

2026-06-30rebalanceSemiannual portfolio rebalance

2026-08earningsQ1 FY2027 earnings — op margin trend (target >22%) and automotive revenue

2026-11earningsH1 FY2027 earnings — ZE150HV design win disclosure expected

Update History

2026-05-18evolveHOLD

View report →

FY2026 record revenue ¥211.26B; OP flat at ¥43B despite revenue surge (margin pressure); FY2027 guidance ¥230B/¥46B; ZE150HV CES 2026 Award; dividend raised to ¥505/share; conviction HOLD

pe:23.6223.3pb:1.841.9roe:8.0%9.0%div_yield:2.3%2.1%fcf:+¥26B~+¥36Bmarket_cap:¥695B~¥830B

Key Metrics

23.3

23.5

Fwd PE

1.9

P/B

9.0%

ROE

20.3%

Op Margin

D/E

2.1%

Div Yield

~+¥36B

FCF

~¥830B

Mkt Cap

Business Segments

Segment	Revenue	Share	Description
Multi-Pin Connectors	¥121B	60%	Automotive, industrial, EV HV connectors
Coaxial Connectors	¥50B	25%	RF, antenna, 5G
Other	¥30B	15%	Custom solutions

Supply Chain Evidence

Evidence	Customer	Product	Detail
confirmed	Marelli (Tier 1)	Automotive connectors	Sole recipient of Marelli Supplier Excellence Co-Innovation Award 2024[source](2024-01)
confirmed	Unnamed leading EV OEM	AU1 USB Type-C connector	Press release Mar 2026 — adopted for production[source](2026-03)
confirmed	Nissan	GT17HN connector in Leaf TCU	Teardown confirmed[source](2025-01)
confirmed	Global EV OEMs (target)	ZE150HV connector (1000V/10A, board-to-wire, EV/HEV powertrain)	ZE150HV won CES 2026 Innovation Awards Honoree in Vehicle Tech — designed for 400V-1000V EV architectures. Production OEM wins not yet announced.[source](2026-01)

Primary IR Documentation

Values and insights cited from official company IR releases (earnings, 決算短信, MoUs, presentations).

IR landingHirose Electric Investor Relations landing↗

Cites: Primary IR portal — presentations, financial statements, integrated report

https://www.hirose.com/corporate/en/ir/

Earnings releaseConsolidated Financial Results for FY ended March 31, 2026 (May 11, 2026)↗

Cites: Full-year FY2026 tanshin (IFRS) — backs 20.3% op margin, 42.6% gross margin, near-zero debt, ¥80B+ FCF thesis

https://www.hirose.com/medias/20260511HRS4Q_tanshin_e.pdf

Press releaseHirose Launches FX31 Series — High Current + Vibration-Resistant Board-to-Board Connector for EV/HEV (Jul 2025)↗

Cites: World's-first board-to-board connector combining high current + vibration resistance for EV/HEV — high-spec EV connector thesis

https://www.hirose.com/corporate/en/additional/pressreleases/FX31_202507

Sources & References

↗Nikkei FY2026 決算短信https://www.nikkei.com/nkd/disclosure/tdnr/20260511522298/↗Investing.com earnings surgehttps://www.investing.com/news/earnings/hirose-electric-shares-surge-8-after-beating-profit-forecasts-93CH-4679731 ↗RTTNews full-year resultshttps://www.rttnews.com/3649970/hirose-electric-co-ltd-full-year-profit-advances.aspx ↗ZE150HV producthttps://info.hirose.com/ze150hv

Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Murata Manufacturing	~49.7x TTM (impairment-distorted; fwd PE ~37x on FY2026 guidance)	~37x (on FY2026 OP +34.8% guidance)	7.25%	15.4%	+¥239B
TDK Corp	26.51	23.71	11.4%	12.4%	+¥169B
Fuji Electric	20.59	17.97	8.2%	8.7%	+¥51B
Sumitomo Metal Mining	28.63	19.76	5.0%	5.0%	+¥87B
AGC Inc	17.89	14.7	4.7%	6.2%	+¥65B
Kureha Corp	N/A	19	-6.7%	-11.1%	~est. negative (capex ongoing)
Asahi Kasei	13.4	12.9	7.7%	7.5%	+¥134B
Mitsubishi Electric	32.85	30.6	10.1%	9.1%	+¥317B
Nidec Corp			6.3%	5.0%	+¥174B
Hirose Electric	23.3	23.5	9.0%	20.3%	~+¥36B
Sumitomo Electric	25.5	29.7	10.2%	8.2%	+¥102B (est.)
Resonac Holdings	83.53	~31.6x	5.72%	4.3%	+¥24B
Rohm Co.	Loss (NI -¥158.4B SiC impairment)	~125x (near-breakeven NI; FY2028 target >20% OP margin)	Loss	+1.6% Q3 FY2026 (recovering from -9.0% year ago)	-¥44B
Shindengen Electric Manufacturing Co., Ltd.	30.8	N/A	N/A	N/A	N/A
GS Yuasa Corporation	11.04	N/A	9.59%	N/A	N/A
Mitsuba Corporation	5.5	N/A	N/A	N/A	N/A
Daido Steel Co., Ltd.	~11x	N/A	N/A	N/A	+est.
Nippon Seiki Co., Ltd.	12.45	12.05	N/A	N/A	+confirmed
Musashi Seimitsu Industry Co., Ltd.	31.6	N/A	N/A	11.1%	N/A
Stanley Electric Co., Ltd.	13.8		4.5%	6.3%	N/A
Honda Motor Co., Ltd.	7.77		5.82%	7.0%	N/A
Mitsui High-tec, Inc.	15.3	13	11.8%	5.8%	-¥12B
MinebeaMitsumi Inc.	18.7	13.75	9.1%	6.2%	-¥21B
Ryobi Limited	~8x	N/A	4.4%	3.2%	N/A
Tokai Rika Co., Ltd.	~8x	N/A	10.9%	5.9%	+est. ¥15-20B
Nippon Chemi-Con Corporation	91	7	3.1%	2.9%	~0 (thin; ¥20B capex planned)
Japan Aviation Electronics Industry, Ltd.	13.7		5.1%	7.1%	thin (¥63B capex over 3yr)
ARCHION Corporation	11	11	~6%	~2.0%	Negative on integration capex through FY2027
Alps Alpine Co., Ltd.	18.3	N/A	N/A	2.4%	N/A
Nichicon Corporation	16.74	N/A	N/A	3.8%	N/A
Mikuni Corporation	4.2	N/A	N/A — confirm vs J-Quants	N/A — thin, est. 1-3%	N/A
T.RAD Co., Ltd.	N/A — confirm vs StockAnalysis	N/A	N/A — confirm vs J-Quants	N/A	N/A
Renesas Electronics Corporation	N/A (EPS negative — IDT amortization ¥370B/yr; operating profit positive)	N/A	~10.5% (pre-impairment FY2025; currently impaired by amortization)	N/A — confirm vs J-Quants	N/A
Shin-Etsu Chemical Co., Ltd.	24.79x TTM	22.32x (pre-PVC recovery)	~10.5-11.5%	~24.7% (FY2026; compressed -14.4% from PVC weakness)	+¥739.4B (FY2025 — outstanding)
Sumitomo Bakelite Co., Ltd.	~17.2x TTM	~12.0x (FY2025 guidance ¥25.5B NI)	6.54%	10.3% (FY2025 guidance)	+¥46B est (EV/FCF 8.73x, EV ~¥400B)
NSK Ltd	32.12	22.70	1.8%	2.96%	+¥44B (est.)
Toray Industries Inc	25.97	16.62	3.19%	5.0%	N/A
SMC Corporation	29.0	27.24	7.9%	N/A	+¥200B (est., high net income + minimal capex)
Mitsui Kinzoku Company, Limited	~29.7x TTM / ~22.3x forward (StockAnalysis/Simply Wall St, May 2026)	~22.3x	~18.4%	~15.6% (implied: OP ¥117B / revenue ¥750B FY2025E)	N/A (verify J-Quants; positive expected given OP margins)
UBE Corporation	~8.4x TTM (cheaply valued)	N/A	~5.1% (WARNING: below TSE 8% target — ROE guardrail triggered. Override: capex-heavy transition period; electrolyte growth pipeline.)	~4.7% (thin — monitor for recovery to 7%+)	N/A (capex-heavy with Louisiana plant — verify against J-Quants when available)
Taiyo Yuden Co., Ltd.	20.79x TTM (StockAnalysis, May 2026)	27.52x (FY2026 guidance: +8% revenue, +50% OP income)	3.92%	~3.3% TTM (trough); guided to ~4.8–5% FY2026 on +50% OP recovery	N/A
F.C.C. Co., Ltd.	9.5x	N/A	N/A	N/A	N/A
Nittoku Co., Ltd.	14.12x	15.45x	N/A	N/A	N/A
NOK Corporation	15.5x	N/A	~3-5%	4.9%	N/A
Yokowo Co., Ltd.	N/A	N/A	N/A	5.1%	N/A
Yamaha Motor Co., Ltd.	7.5	N/A	1.4%	5.0%	+¥52.5B
Hioki E.E. Corporation	27.8x	N/A	N/A	N/A	N/A
Tsubakimoto Chain Co.	~11.2x	N/A	8.75%	~8.1%	est. +¥20-25B
Central Glass Co., Ltd.	17.7x	~14x (26% EPS growth forecast; analyst consensus)	~8.2% (est: NI ¥8.36B / book value ¥101B)	~3.2% (compressed; was ~6-9% pre-Chinese LiPF6 price war)	N/A (J-Quants not available; cross-validate before entry)
CKD Corporation	~36x	~20x (analyst forecast; likely conservative given 35.7% recent earnings growth)	9.19%	12.4%	N/A
Panasonic Holdings Corporation	32.4x	~15x (FY2027 NI expected +2.2x from ¥75B base)	4.77% (FY2026 trough; guided higher FY2027)	~2.9% (FY2026: OP ¥236.4B / Revenue ¥8,049B; compressed by restructuring charges)	N/A (Panasonic Energy capex-heavy; cross-validate before entry)
UACJ Corporation	15.46x	~22x (FY2027 NI guided ¥28B from ¥38.8B; NI decline; caution)	11.21%	~5.4% (Q3 FY2026 9M operating profit margin improving from prior year)	N/A (capital-intensive aluminum rolling; verify before entry)
Kanto Denka Kogyo Co., Ltd.	N/A (loss year FY2026 due to fire). Forward PE ~32x on FY2027 guided EPS ¥118.3	~32x (FY2027 guided NI ¥6.8B / shares 57.46M = ¥118.3 EPS; price ¥3,775)	-4.74% (FY2026 fire loss). FY2027 guided ROE ~10% (¥6.8B NI / ¥68B book)	~8.7% guided FY2027 (¥10B OP / ¥95B revenue). Depressed in FY2026 (fire losses)	Negative FY2026 (fire year). Recovery expected FY2027.