Hi-Lex Corporation raises forecast despite impairment losses

Hi-Lex Corporation announced an upward revision to its consolidated financial forecast for the fiscal year ending October 2025. While net sales and operating income remained in line with previous expectations, ordinary income surpassed projections due to a JPY 983 million foreign exchange gain. Profit attributable to owners of parent also exceeded forecasts, largely due to a JPY 1,993 million deferred tax asset related to the liquidation of a Spanish subsidiary, which offset JPY 1,241 million in impairment losses.

The impairment losses, categorized as extraordinary losses, were recognized on fixed assets in PT. HI-LEX CIREBON (Indonesia) and HI-LEX SERBIA D.O.O. (Serbia), totaling JPY 511 million due to a reassessment of business profitability. Additionally, Hi-Lex Medical Inc. (Japan) recorded a JPY 730 million impairment loss on intangible fixed assets related to medical device sales.

The revised forecast now projects net sales of JPY 304,100 million, operating income of JPY 3,390 million, ordinary income of JPY 7,270 million, and profit attributable to owners of parent of JPY 8,419 million, resulting in JPY 224.72 per share.