Will the strong start in the first quarter continue through the first-half cumulative results?

First-quarter revenue for the fiscal year ending March 2027 was ¥34,490 million, up 18.6% year on year, while operating profit was ¥2,137 million, up 152.4%, and profit attributable to owners of the parent was ¥1,215 million, up 976.9%. Profit growth was substantially higher than revenue growth, which may reflect not only higher volumes but also improved profitability and the reversal of expenses incurred in the same quarter of the previous year.

The full-year forecast is revenue of ¥125,000 million, operating profit of ¥7,000 million and profit attributable to owners of the parent of ¥4,100 million. First-quarter progress rates were 27.6%, 30.5% and 29.6%, respectively, with operating profit 5.5 percentage points ahead of the 25% of the calendar year that had elapsed. However, this is a mechanical comparison that does not account for quarterly seasonality, and the company itself has not presented progress against the full-year forecast or a self-assessment against its plan in its earnings presentation materials.

Using 50% of the full-year forecast as a simple benchmark for FY2027-H1, the comparison figures are cumulative revenue of ¥62,500 million, operating profit of ¥3,500 million and profit attributable to the parent of ¥2,050 million. After deducting first-quarter results, the second quarter alone would need to generate revenue of ¥28,010 million, operating profit of ¥1,363 million and profit attributable to the parent of ¥835 million to maintain the full-year forecast on a mechanical basis.

At the next earnings release, we will assess through revenue and operating profit by segment whether demand for the HDD automation equipment, data-center-related products and electrical construction materials that were strong in the first quarter continued into the second quarter. Even if first-half results exceed the mechanical 50% benchmark, repeatability in the second half cannot be assessed without quantitative information on orders received, order backlog, volumes and unit prices.