Q1 is ahead of the plan following the full-year upward revision, but H1 will determine whether this can be repeated

Q1 revenue for the fiscal year ending March 2027 was ¥19,560 million and operating profit was ¥1,239 million. With full-year forecasts of ¥79,000 million in revenue and ¥4,000 million in operating profit, Q1 alone reached 24.8% and 31.0%, respectively. Operating profit progress was 6.2 percentage points ahead of revenue progress, indicating a start accompanied by margin improvement rather than simple scale expansion.

However, the company has not issued separate H1 forecasts for revenue or operating profit. If the full-year forecasts are simply divided equally between the two halves, the benchmarks are ¥39,500 million for revenue and ¥2,000 million for operating profit. After deducting Q1 results, Q2 alone would need to generate ¥19,940 million in revenue and ¥761 million in operating profit. This calculation is a mechanical benchmark that does not account for seasonality and is not the company's plan itself.

The current full-year forecast was raised by ¥29,000 million for revenue, according to the Q1 results presentation. The revision reflects higher prices for memory-related products, the launch of new businesses, and the capture of customer demand, while the company itself says it will carefully assess the sustainability of pricing and supply-demand conditions. Accordingly, in the H1 results it will be necessary not simply to extrapolate the Q1 operating profit progress rate of 31.0%, but to check whether the margin declines materially in Q2.

The key issue is whether Q1's upside represents a temporary pull-forward into H1 or earning power that will continue through the remaining period. In addition to cumulative H1 revenue and operating profit, disclosure of whether the full-year forecasts will be maintained, and the levels assumed for memory prices, supply constraints, and foreign exchange rates, would allow a more substantive assessment of the current progress rates.