Hi-Lex Corporation

Basic Information

Stock Code
7279
Industry
Transportation Equipment
Category Detail
Auto Parts
Prefecture
Hyogo Prefecture
Establishment Year
January 1946
Listing Year
June 1977
Official Website
http://www.hi-lex.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Overview

Hi-Lex Corporation is a transportation equipment manufacturer founded in 1946, boasting a high market share and advanced technological capabilities in the automotive control cable sector.

Current Situation

Hi-Lex Corporation recorded consolidated sales of approximately 195.7 billion yen and employs about 12,800 people in the fiscal year ended October 2020, with numerous manufacturing bases and sales offices both in Japan and overseas. Its core automotive control cable business maintains the top market share in the industry and focuses on technology development leveraging its strengths. In recent years, it has expanded into the medical equipment sector to promote diversification. Overseas, it has established local subsidiaries in North America, Asia, Europe, and other regions to build a global supply system. The company emphasizes sustainable manufacturing processes and quality management, aiming to enhance reliability through ISO 9001 certification and similar initiatives. In the medium to long term, it positions expansion in emerging markets and adoption of advanced technologies as key pillars of its growth strategy. It establishes sustainable competitive advantages by integrating environmental impact reduction, technological innovation, and overseas expansion. In terms of investment, it is actively pursuing R&D in medical equipment-related technologies, with expectations for growth in new business areas.

Trivia

Interesting Facts

  • Holds the top market share in Japan for automotive remote control cables.
  • Has continuously operated manufacturing business for over 70 years since founding.
  • Entry into medical equipment is unique in the industry.
  • Operates local subsidiaries in over a dozen countries worldwide.
  • Former name 'Nippon Cable System' still remains at dormitory entrance.
  • Supplies high-quality cables essential for automotive safety.
  • Holds numerous patents from long-standing product technologies.
  • Products extend beyond automobiles to motorcycles and industrial machinery.
  • Strict quality management backed by ISO 9001 certification.
  • Successfully developed precision medical cables, opening new fields.
  • Promotes continuous technological innovation through overseas engineer exchanges.
  • Has track record in developing platform screen door lift devices.
  • Also manufactures parts for shipbuilding outside automotive industry.
  • Stable financial base with capital of approximately 5.65 billion yen.
  • Listed on the Tokyo Stock Exchange Standard Market.

Hidden Connections

  • Builds strong, long-term relationships through ongoing transactions with automakers worldwide.
  • Accelerates entry into medical field via technical alliance with major medical equipment firm.
  • Achieves rapid response to local needs through technical cooperation at overseas factories.
  • Many executives from the former name era still active, preserving traditional technologies.
  • Actively supports local education, contributing to improved corporate image.
  • Collaborates with marine equipment suppliers to promote diversification.
  • Participates in developing automotive environmental compliance technologies, contributing to standards.
  • Involved in industry association efforts with peers to standardize technical criteria.

Future Outlook

Growth Drivers

  • Global strengthening of automotive safety and environmental regulations
  • Expanding demand for high-function cables in electric vehicles
  • Technology application and new development in medical equipment
  • Growth of automotive industry in overseas emerging markets
  • Advancement of smart mobility-related product development
  • Innovation in eco-friendly materials and manufacturing technologies
  • Strengthening of global supply chain
  • Revenue base reinforcement through diversification
  • Promotion of sustainable manufacturing and social contributions
  • Productivity improvements via digitalization and IoT utilization
  • Market expansion from international harmonization of automotive regulations
  • Potential for new product creation from medical technology advancements

Strategic Goals

  • Expand global market share in automotive control cables
  • Increase medical equipment-related sales to 10% of total
  • Establish manufacturing processes with significant environmental load reduction
  • Further strengthen global production system
  • Complete development of next-generation smart mobility products
  • Achieve 20% improvement in manufacturing efficiency through digital technology
  • Expand and visualize CSR activities
  • Promote employee diversity and work-style reforms
  • Expand to over 20 sales bases in emerging countries
  • Support sustainable economic growth in collaboration with local communities

Business Segments

Automotive Parts Manufacturing

Overview
Manufactures a wide range of automotive cables and related parts, supplying to manufacturers domestically and internationally.
Competitiveness
Stable supply of high-quality products through long years of specialized technology and global production network.
Customers
  • Domestic Automakers
  • Overseas Automakers
  • Domestic Motorcycle Manufacturers
  • Overseas Motorcycle Manufacturers
  • Automotive Parts Distributors
  • Auto Repair Shops
  • Industrial Machinery Manufacturers
  • Transportation Equipment Manufacturers
Products
  • Control Cables
  • Brake Cables
  • Shift Cables
  • Clutch Cables
  • Steering Device Parts
  • Mold Parts
  • Industrial Machinery Parts
  • Marine Equipment

Medical Equipment Division

Overview
Develops and manufactures high-precision cables and equipment specialized for the medical field.
Competitiveness
Applies industrial technology to achieve advanced precision processing and quality control.
Customers
  • Medical Equipment Manufacturers
  • Hospitals
  • Research Institutions
  • Medical Equipment Distributors
Products
  • Assist Artificial Heart Cables
  • Medical Catheters
  • Medical Supply Items

Industrial Machinery and Shipbuilding Related

Overview
Manufactures and supplies high-durability parts for industrial machinery and ships.
Competitiveness
Broad product portfolio responding to diverse industrial needs.
Customers
  • Shipbuilders
  • Industrial Machinery Manufacturers
  • Marine Equipment Manufacturers
Products
  • Marine Control Cables
  • Industrial Machinery Parts
  • Molds

Competitive Advantage

Strengths

  • Strong technological expertise as a specialist in automotive control cables
  • Global production and sales network
  • Adaptability to diverse products and markets
  • Extensive industry experience and robust quality management system
  • Business diversification into the medical field

Competitive Advantages

  • Top market share in Japan for automotive remote control cables
  • Local subsidiaries worldwide for proximity to customers
  • High reliability backed by ISO 9001 certification and other quality assurance systems
  • Entry into medical equipment market to develop new frontiers
  • Diversified product lineup to mitigate single-client risk

Threats

  • Decline in demand for traditional cables due to global automotive electrification
  • Intensifying international competition and rise of emerging market manufacturers
  • Risk of fluctuating raw material prices
  • Earnings volatility from exchange rate fluctuations
  • Increased manufacturing costs from stricter environmental regulations

Innovations

2023: Enhanced Development of Assist Artificial Heart Cables for Medical Use

Overview
Developed new high-durability cables for assist artificial hearts and advanced commercialization.
Impact
Achieves market share expansion and higher value-added in new markets.

2022: Global Production Efficiency Improvement Program

Overview
Optimized overseas factory production lines to achieve cost reductions and quality enhancements.
Impact
10% reduction in production costs and shortened delivery times.

2021: New Cable Development for Hybrid Vehicles

Overview
Developed lightweight, high heat-resistant new structure cables for hybrid automobiles.
Impact
Strengthens competitiveness in eco-friendly vehicle markets.

2020: Promotion of Digital Manufacturing Technology Adoption

Overview
Advanced automation of manufacturing processes and quality control using IoT and AI.
Impact
Reduced defect rates and accelerated product development.

Sustainability

  • CO2 emission reduction programs in manufacturing processes
  • Internal systems to improve waste recycling rates
  • Expansion of energy-saving equipment adoption
  • Increased use of environmentally friendly materials
  • ISO 14001 environmental management certification