FY2027-Q1 is the point at which to assess the initial pace of the upwardly revised first-half plan.

The information provided does not yet include actual results for the first quarter of the fiscal year ending May 2027. In a September 2026 earnings forecast revision, however, the first-half forecasts for the fiscal year ending May 2027 were set at ¥60.0 billion in revenue, ¥1.4 billion in operating profit, ¥1.6 billion in ordinary profit and ¥1.1 billion in interim net profit attributable to owners of the parent. The full-year forecasts were raised to ¥115.0 billion in revenue, ¥2.35 billion in operating profit, ¥2.7 billion in ordinary profit and ¥1.9 billion in net profit. Accordingly, at the next earnings release, it will be important to determine not only the year-on-year changes, but also whether first-quarter progress against the first-half plan can be confirmed.

The comparison period, FY2026-Q1, recorded revenue of ¥27.739 billion and operating profit of ¥709 million. In FY2026-H1, revenue expanded to ¥58.348 billion and operating profit to ¥1.573 billion, while full-year revenue and operating profit reached ¥120.327 billion and ¥2.763 billion, respectively. The FY2027 first-half operating profit forecast of ¥1.4 billion is below the FY2026-H1 result of ¥1.573 billion. Even after the upward revision, the forecast therefore factors in a year-on-year decline in profit, which requires attention.

First-quarter performance has also been highly volatile in the past. FY2018-Q1 recorded revenue of ¥10.821 billion and operating profit of ¥461 million, a substantial year-on-year increase in profit, while FY2019-Q1 recorded revenue of ¥9.934 billion and operating profit of ¥334 million, and FY2021-Q1 fell to revenue of ¥6.629 billion and operating profit of ¥6 million. FY2022-Q1 recorded revenue of ¥9.827 billion and operating profit of ¥406 million, FY2023-Q1 recorded ¥12.0 billion and ¥1.042 billion, and FY2024-Q1 recorded ¥9.654 billion and ¥393 million, respectively. Given the substantial fluctuations caused by seasonality and customers’ production plans, first-quarter results alone are not suitable for mechanically estimating full-year performance by multiplying them by four.

At the next release, in addition to quarterly revenue and operating profit, we will look for the progress rate against the first-half forecast, the domestic and overseas breakdown, and changes in the assumptions supporting the full-year forecast. At present, standalone FY2027-Q1 segment amounts, sales volumes, order intake, order backlog, and numerical assumptions for foreign exchange rates and raw material prices cannot be confirmed. If these items remain undisclosed, the sustainability of the upward revision will need to be assessed from the combination of the sales and order trends described by the company and the actual profit margins.