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HI-LEX CORPORATION turns lower in afternoon session, hitting year-to-date low as first-half operating profit falls contrary to expectations

Fri Jun 5, 2026 1:11 pm JST Catalyst

HI-LEX CORPORATION <7279> turned lower in Friday's afternoon session, hitting a year-to-date low. Around noon, HI-LEX announced its consolidated financial results for the first half (November 2025?April 2026) of the fiscal year ending October 2026. Net sales reached 209.17 billion yen, up 37.3% year-on-year, beating the previous forecast of 201 billion yen. However, operating income dropped 5.0% year-on-year to 2.23 billion yen, missing the projected 2.35 billion yen, while net income came in at 34.86 billion yen, slightly below the 34.9 billion yen forecast but jumping from 1.78 billion yen in the same period last year. The stock faced selling pressure as investors reacted negatively to the operating income decline, which reversed from initial growth expectations.

Although HI-LEX Act and its 10 subsidiaries, which entered the consolidation scope at the start of the period, supported performance, operating income declined. The drop was driven by rising labor costs at the Mexican subsidiary due to a weaker dollar and stronger Mexican peso, decreased factory operating rates stemming from poor sales at certain customers in China, and lost orders in South Korea. Conversely, ordinary income rose sharply on foreign exchange gains and dividend income, while net income also benefited from negative goodwill and gains on the sale of investment securities.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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