First-quarter profit progress is strong, but execution against the full-year plan should be reassessed in FY2027-H1.

FY2027 Q1 revenue was ¥34,914 million, operating profit was ¥4,297 million, ordinary profit was ¥4,594 million, and net income attributable to owners of the parent was ¥3,492 million. The full-year revenue and operating profit forecasts are ¥134,500 million and ¥10,700 million, respectively, producing simple progress rates of 26.0% for revenue and 40.2% for operating profit. The fact that operating profit is ahead of revenue in terms of progress is the key point to assess in the first half.

However, the 50.0% progress rate is merely a mechanical comparison based on the assumption that the first half represents half of the full year, not a company plan adjusted for seasonality. FY2026 actual revenue was ¥129,022 million and operating profit was ¥10,318 million, so the FY2027 full-year forecast implies growth of 4.2% in revenue and 3.7% in operating profit. Even if cumulative second-quarter revenue reaches ¥67,250 million and operating profit reaches ¥5,350 million, that alone would not guarantee achievement of the full-year plan. The timing of expenses in the second half must also be considered.

The first-quarter operating margin was 12.3%, calculated by dividing ¥4,297 million by ¥34,914 million, well above the FY2026 full-year margin of 8.0%. However, the financial summary available for the quarter does not include quantitative KPIs that would break down the reasons for higher margins, such as revenue by product group, segment profit, sales volume, orders received or order backlog. It is not currently possible to determine whether the improvement reflects a better mix of high-value-added products or the timing of expenses such as advertising and personnel costs.

In the next release, revenue, operating profit and operating margin on a cumulative second-quarter basis, as well as revenue and segment profit for the domestic and overseas businesses, should be reviewed. The specific issues in assessing the likelihood of achieving the plan will be whether operating profit continues to run ahead of revenue in terms of progress, whether the full-year operating profit forecast of ¥10,700 million remains unchanged, and whether the first-quarter margin of 12.3% was temporary.