Aiming for sales of 290 billion yen, operating profit margin of over 23%, and ROE of over 12% by FY2029, with aggressive investments centered on micro products and automotive-related products. 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Plans include constructing new factories and establishing a manufacturing base in India.","jir_summary":"### Overview of Medium- to Long-term Growth Strategy\nHirose Electric aims for sales of 290 billion yen, an operating profit margin of over 23%, and ROE over 12% by FY2029. The core growth areas include all consumer sectors (such as smartphones), automotive, and industrial equipment, with new domains like Hirose SER, AI-related products, and optical active connectors actively expanding. The company plans to strengthen product development capabilities, production technology, and global manufacturing capacity to achieve sustainable growth.\n\n### Investment for the Future and Strengthening of Production Bases\nFrom FY2023 onwards, the company will invest actively in facilities, including an expansion of micro connectors (approximately less than 3 billion yen), construction and relocation of the new Koriyama plant (approximately more than 10 billion yen), expansion of functions at the Tohoku Advanced Technology Center (approximately 1.5 billion yen), and development and deployment costs for next-generation SCM (approximately 8 to 9 billion yen). Additionally, a manufacturing site will be established in Chennai, Tamil Nadu, India, aiming for operation in 2027, with a focus on the automotive sector to expand local operations. These investments are positioned as strategic initiatives to respond to growth in the automotive sector and simultaneously enhance supply chain capabilities.\n\n### Update on Medium-term Cash Allocation\nIn May 2026, the company updated its medium-term cash allocation plan, aiming to allocate 50\u201360% of generated cash to growth investments and 40\u201350% to shareholder returns. Strategic investments (e.g., M&A) are estimated at 10\u201320%, while business investments (production equipment and infrastructure) account for 50\u201360%. This approach aims to balance growth investments and shareholder returns while improving capital efficiency.","jir_financial_highlights":"Sales: 290 billion yen (FY2029 target) (unknown)\nOperating profit margin: 23% or more (FY2029 target) (unknown)\nROE: 12% or more (FY2029 target) (unknown)\nExpansion investment amount: Approximately less than 3 billion yen (unknown)\nLand acquisition + construction investment: Approximately more than 10 billion yen (unknown)\nInitial investment amount (Tohoku Advanced Technology Center): Approximately 1.5 billion yen (unknown)\nDevelopment and deployment costs (Next-generation SCM construction): Approximately 8 to 9 billion yen (unknown)","jir_category":"","jir_hashtags":"#HiroseElectric, #MediumLongTermGrowthStrategy, #CapitalInvestment, #IndiaManufacturingBase, #CashAllocation","jir_key_figures":"FY2029 sales target: 290 billion yen\nFY2029 operating profit margin target: 23% or more\nFY2029 ROE target: 12% or more","jir_meta_title":"\u3010Hirose Electric\u3011FY2029 Sales Target of 290 Billion Yen\uff5cMedium- to Long-term Growth Strategy and Capital Investment Plans","jir_meta_description":"Hirose Electric aims for FY2029 sales of 290 billion yen, operating profit margin of over 23%, and ROE of over 12%, accelerating growth in micro products and automotive-related products. It plans aggressive investments including new factory construction and establishing a manufacturing base in India.","jir_og_title":"\u3010Hirose Electric\u3011FY2029 Sales Target of 290 Billion Yen\uff5cGrowth Strategy and Capital Investment","jir_og_description":"Overview of Hirose Electric's FY2029 sales target of 290 billion yen and medium- to long-term growth strategies. Highlights include new factory construction and establishing a manufacturing base in India, with detailed investment plans.","jir_og_image_url":"\/assets\/og\/company-financial_summary.jpg","jir_chart_data_collection":"[]","ir_related_company":7772,"ir_release_date":"","ir_type":"","ir_is_new":false,"ir_document_url":"","jir_ir_type":"financial_summary","footnotes":""},"sector":[],"importance":[],"class_list":["post-46660","ir_release","type-ir_release","status-publish","hentry"],"yoast_head":"\n