FY2027-H1 focus: profit progress against the full-year forecast and whether the forecast is maintained

FY2027-Q1 was reported on a non-consolidated basis, with revenue of ¥673 million, operating profit of ¥17 million, ordinary profit of ¥14 million and net profit of ¥10 million. The prior-year period was reported on a consolidated basis, while the current period is non-consolidated, so performance should be assessed based on progress against the company's FY2027 full-year forecasts rather than year-on-year changes.

Revenue progress was 25.9%, calculated as ¥673 million divided by ¥2,600 million, while operating profit progress was 42.5%, calculated as ¥17 million divided by ¥40 million. Ordinary profit reached 93.3%, at ¥14 million divided by ¥15 million, and net profit of ¥10 million has already exceeded the ¥3 million full-year forecast. However, a gain on the sale of fixed assets of ¥2.743 million was recorded as extraordinary income in Q1, so net profit progress cannot be assessed as equivalent to profitability at the operating or ordinary profit levels.

For FY2027-H1, revenue of ¥1,300 million and operating profit of ¥20 million, equivalent to simple 50% progress against the full-year forecasts, will be the mechanical checkpoints. Ordinary profit has already used up most of the full-year forecast as of Q1, so it will be important to see whether it exceeds ¥15 million in the H1 results and how the company explains any increase in second-half costs or seasonality. We will check for revisions to the full-year forecasts, segment profit contributions and profit levels excluding the Q1 extraordinary gain.