Focus on whether the full-year target can be met after the downward revision to first-half ordinary profit

The 5 November earnings revision was reported to have cut the ordinary profit forecast for the six months ended September 2026, the second quarter of the fiscal year ending March 2027, from the previous ¥250 million to around ¥160 million. Another report gave the revised ordinary profit as ¥168 million, revenue as ¥9,384 million, net profit attributable to owners of the parent as ¥78 million, and earnings per share as ¥7.0. The next earnings summary will first need to confirm whether these preliminary estimates match the formally disclosed figures.

First-quarter results were revenue of ¥4,591 million, ordinary profit of ¥128 million and net profit of ¥60 million. If the first-half forecasts are revenue of ¥9,384 million, ordinary profit of ¥168 million and net profit of ¥78 million, a simple subtraction implies that the second quarter alone would need to generate revenue of ¥4,793 million, ordinary profit of ¥40 million and net profit of ¥18 million. This is not the company’s standalone quarterly forecast, but a mechanical calculation based on the first-half cumulative forecast and first-quarter results. It provides a basis for assessing how much the first-half profit built on the first quarter’s profit.

The full-year ordinary profit forecast was reported to have been maintained at around ¥420 million. If revised first-half ordinary profit is ¥168 million, the second half would need to generate around ¥252 million, meaning the plan assumes that the second half alone will produce approximately 1.5 times the first-half amount. Ordinary profit was ¥532 million in the fiscal year ended March 2026, so the full-year forecast is below the prior-year result. At the next earnings announcement, the key points will be not only the first-half results, but also the basis for maintaining the full-year forecast and the factors supporting a second-half recovery.

The revision reports provide the new first-half levels for revenue, ordinary profit and net profit, but do not break down the amounts of the downward revision attributable to personnel expenses, acquisition-related costs and facility utilisation. At the next earnings announcement, it will be necessary to confirm how much operating profit and ordinary profit remained from revenue of ¥9,384 million, as well as what assumptions the company has made for expense ratios and facility utilisation from the third quarter onward in order to maintain full-year ordinary profit of around ¥420 million.