Turning profitable in the first half does not mean the full-year forecast will be achieved ahead of schedule; the focus is on whether this can be sustained in the second half

Consolidated revenue in FY2026-H1 was ¥893.4725 million, up 107.8% from ¥430.0018 million in the same period of the previous year. Operating profit was ¥13.8723 million, ordinary profit was ¥27.2877 million, and interim net profit attributable to owners of the parent was ¥3.6449 million. All three profit measures turned profitable, compared with an operating loss of ¥29.9045 million, an ordinary loss of ¥23.7853 million, and an interim net loss of ¥22.7982 million in the same period of the previous year.

The latest full-year forecasts are revenue of ¥1.6 billion, operating profit of ¥200 million, and net profit attributable to owners of the parent of ¥50 million. On a simple progress-rate basis, first-half results represent 55.8% of the full-year revenue forecast, 69.4% of the operating profit forecast, and 72.9% of the net profit forecast. Accordingly, the amounts required in the second half to achieve the full-year forecasts are ¥706.5275 million in revenue, ¥61.277 million in operating profit, and ¥13.551 million in net profit. Although a considerable portion of the forecast profit has already been secured in the first half, approximately ¥700 million in additional revenue will be needed in the second half, making it important to determine whether the sharp first-half revenue growth can continue through the full year.

The recovery was led by the Electronics and Machine Tools, among Others segment, which generated revenue of ¥862.9654 million and segment profit of ¥11.0819 million. The Optoelectronic Equipment segment also generated revenue of ¥30.5071 million and segment profit of ¥2.7903 million. However, first-half profit included ¥12.4412 million in impairment allowance provisions recorded as an extraordinary loss. Thus, while the return to operating profitability has been confirmed, the cushion at the net profit level is not as large as that at the operating profit level.

In FY2026-Q3, we will monitor whether cumulative revenue exceeds ¥1.2 billion, equivalent to 75% of the full-year forecast, cumulative operating profit exceeds ¥150 million, and cumulative net profit exceeds ¥37.5 million. If these thresholds are met, progress against the full-year forecasts is likely to be viewed as solid. However, if only revenue falls short and the shortfall is offset by profit margins, the effects of product mix and temporary profitability improvements will need to be examined more closely than the sustainability of demand. We will also monitor whether the company maintains its forecasts of ¥1.6 billion in revenue, ¥200 million in operating profit, ¥50 million in net profit, and ¥5 in annual dividends.