Can the FY2027 plan for higher revenue and profit demonstrate a recovery in the first half?

Consolidated revenue for FY2027-Q1 was ¥832.327 million, up 2.6% year on year, while operating profit was ¥25.858 million, up 12.4%. Revenue and operating profit increased from ¥811.448 million and ¥22.997 million, respectively, in the same period of the previous year. Ordinary profit turned from a ¥2.012 million loss in the same period of the previous year to a ¥25.950 million profit, while profit attributable to owners of the parent turned from a ¥6.434 million loss to a ¥17.603 million profit. Thus, earnings trends have improved, although revenue growth has remained limited to 2.6%.

The company's full-year FY2027 forecasts are revenue of ¥3,650 million, operating profit of ¥310 million, ordinary profit of ¥310 million and profit attributable to owners of the parent of ¥180 million. First-quarter progress was approximately 22.8% for revenue and 8.3% for operating profit, indicating that profit is progressing more slowly than revenue. FY2026-H1 revenue was ¥1,626.346 million, operating profit was ¥61.739 million and ordinary profit was ¥37.314 million. Accordingly, in FY2027-H1, the key issue will not simply be whether the first quarter was profitable, but whether cumulative operating profit exceeds the previous first-half level and ordinary profit recovers after excluding costs related to the change in market segment.

The company made no revisions to its full-year forecasts in its first-quarter results, and has not disclosed the level required during the remaining period to meet the full-year targets or its internal first-half plan. In FY2027-H1, we will look at second-quarter standalone revenue and operating profit, year-on-year changes in cumulative first-half results and progress against the full-year forecasts. In particular, if revenue exceeds the previous first-half's ¥1,626.346 million but operating profit remains below ¥61.739 million, the structure in which revenue growth does not translate into profit may still be in place.