FY2027-Q1 will be assessed based on progress toward the full-year plan rather than against the high year-earlier results.

In FY2026, revenue was ¥3,939.4 million, operating profit was ¥414.7 million, ordinary profit was ¥313.5 million and net income attributable to owners of the parent was ¥212.9 million, with all four figures exceeding the previous fiscal year. The FY2027 company plan calls for revenue of ¥4,350 million, operating profit of ¥420 million, ordinary profit of ¥315 million and net profit of ¥215 million. Revenue is expected to increase by approximately 10.4% from the previous year's results, while operating profit is expected to rise by only approximately 1.3%, making margin maintenance, not only volume growth, a prerequisite for achieving the plan.

Quarterly results are affected by the timing of revenue recognition. In FY2026-Q1, revenue was ¥1,423.4 million and operating profit was ¥264.7 million. Revenue progress against the then full-year forecast of ¥3,704.4 million was approximately 38.4%, while operating profit progress against the forecast of ¥362.3 million was approximately 73.1%. Accordingly, falling below 25% in FY2027-Q1 would not immediately indicate that the plan will be missed, but the extent to which the high level of profit recognized in the prior-year quarter can be replicated will be important.

For the nine months of FY2026, revenue was ¥2,561.4 million and operating profit was ¥331.5 million, representing substantial progress against the FY2026 full-year results. In FY2027-Q1, it will be necessary to assess the progress rates for revenue and operating profit against the full-year plan of ¥4,350 million, together with gross profit margin, units sold and the number of projects scheduled for delivery. As the company has previously explained, completion and delivery dates vary from quarter to quarter, so we want to assess not only year-on-year comparisons but also the distance from the plan and the projects remaining for the second half.

In particular, the FY2027 plan assumes that operating profit growth will be smaller than revenue growth. Even if FY2027-Q1 revenue exceeds the planned pace, a decline in operating margin could indicate that land prices, construction costs, personnel expenses, brokerage fees or interest costs are weighing on profit. At the results announcement, the focus will be on confirming not only whether the full-year forecasts are maintained but also the breakdown of units sold and projects scheduled for completion and delivery.