FY2027 started with declining revenue, but the focus is now on the likelihood of achieving the full-year forecast after the upward revision.

First-quarter revenue for FY2027 was ¥43.715 billion, operating profit was ¥6.881 billion, ordinary profit was ¥7.074 billion, and profit attributable to owners of the parent was ¥4.740 billion. Year on year, revenue declined 21.3%, operating profit 11.9%, ordinary profit 11.6%, and net profit 15.0%, making this, on the surface, a start marked by lower revenue and profit. However, the operating margin was approximately 15.7%, up approximately 1.7 percentage points from approximately 14.1% in the same period a year earlier, so profit did not decline as much as the reduction in revenue would suggest.

At the first-quarter stage, the company raised its full-year revenue forecast from ¥187.0 billion to ¥205.3 billion and its operating profit forecast from ¥19.0 billion to ¥22.5 billion. The operating profit increase was ¥3.5 billion, or 18.4%, while the ordinary profit forecast was also raised by ¥3.5 billion, from ¥19.15 billion to ¥22.65 billion. The net profit forecast was raised by ¥1.5 billion, from ¥13.5 billion to ¥15.0 billion. Accordingly, in FY2027-H1, the key issue will be not only how much of the first-quarter revenue decline is recovered in the second quarter, but also whether the higher profit targets set after the upward revision can be maintained.

Based on progress rates, first-quarter revenue represents approximately 21.3% of the full-year forecast, while operating profit represents approximately 30.6%. Operating profit is ahead of the simple quarterly benchmark of 25%, whereas revenue is below it, meaning that profit progress is currently running ahead of revenue progress. Actual FY2026 revenue was ¥174.142 billion and operating profit was ¥17.455 billion, so the current full-year forecast assumes year-on-year growth of 17.9% in revenue and 28.9% in operating profit. In the second quarter, it will be necessary to confirm not only a return to revenue growth, but also cumulative progress toward the ¥22.5 billion full-year operating profit forecast and the maintenance of margins.

Shareholder returns will also attract attention alongside the earnings forecast. The full-year dividend forecast for FY2027 has been raised to ¥140 per share from the ¥70 paid in FY2026, but the first-quarter disclosure did not quantify the payout ratio. In FY2027-H1, the key points will be the interim and year-end dividend breakdown, including the ¥70 special dividend, the payout ratio after the increase, and the shareholder-return policy if the earnings forecast is revised again. Whether the upward earnings revision reflects temporary product-related factors or sustainable improvements in supply and sales through the second half will be the key determinant in assessing both profit and dividends.