FY2027 full-year plan: profit is ahead of revenue progress in Q1; visibility into repeatability in H1

Consolidated revenue in Q1 was ¥3,659.068 million, up 14.4% year on year; operating profit was ¥163.500 million, up 261.2%; ordinary profit was ¥156.383 million, up 154.3%; and net profit attributable to owners of the parent was ¥136.032 million, up 404.6%. The FY2027 full-year forecasts are revenue of ¥14,000 million, operating profit of ¥260 million, ordinary profit of ¥200 million and net profit of ¥150 million. In Q1 alone, progress reached 26.1% for revenue, 62.9% for operating profit, 78.2% for ordinary profit and 90.7% for net profit.

The fact that profit progress substantially exceeds revenue progress is positive, but Q1 profit may also be excessively front-loaded relative to the full-year forecasts. Revenue was ¥3,197.937 million and operating profit was ¥45.265 million in the same quarter of the previous year, so the operating margin rose from approximately 1.4% to approximately 4.5%. At the same time, the company has consistently explained that revenue, particularly in its drug discovery support business, is seasonal and concentrated in the second half, especially Q4.

In H1 of the previous fiscal year, revenue was ¥6,224.853 million, operating profit was ¥71.405 million, ordinary profit was ¥83.248 million and interim net profit attributable to owners of the parent was ¥29.547 million. In FY2027-H1, we want to confirm not only that Q1 was strong, but also Q2 standalone revenue and operating profit, the cumulative H1 operating margin, and the remaining amount required to meet the full-year forecasts. In particular, ¥96.500 million would remain out of the ¥260 million full-year operating profit forecast, so the key issue will be how specifically the company explains the feasibility of securing the profit required in the second half, even if H1 profit remains high.