Assuming a concentration in the fourth quarter, FY2027-H1 will require assessing the certainty of deliveries scheduled for the second half.

In the first quarter of the fiscal year ending March 2027, revenue was ¥4.735 billion, operating profit was ¥252 million, ordinary profit was ¥117 million, and net profit attributable to owners of the parent was ¥64 million. Revenue increased 60.2% year on year, and the company returned to profitability from an operating loss in the same quarter of the previous year. However, the full-year forecasts are revenue of ¥37.0 billion, operating profit of ¥6.3 billion, ordinary profit of ¥5.8 billion, and net profit of ¥3.8 billion, leaving first-quarter progress at only 12.8% for revenue and 4.0% for operating profit. It is difficult to conclude that the improvement in the first quarter alone has materially narrowed the gap to the full-year forecasts.

The company continues to explain that its business structure results in revenue and profit being weighted toward the second half, particularly the fourth quarter, because of the delivery-based revenue recognition applied to property sales and the timing of property completions. In fact, fourth-quarter revenue and operating profit were ¥14.37501 billion and ¥2.79776 billion in FY2024, ¥16.27778 billion and ¥3.63354 billion in FY2025, and ¥15.64450 billion and ¥3.11595 billion in FY2026, respectively. In FY2026, the fourth quarter alone accounted for approximately 47.5% of full-year revenue and 55.4% of operating profit, making execution of second-half deliveries essential to achieving the full-year results.

Accordingly, what should be checked in FY2027-H1 is the progress of individual projects through completion, sale and delivery, rather than cumulative profit and loss alone. First-quarter sales comprised 3 real estate products and 1 construction product, and 8 buildings were completed, but the timing of their contribution to reported revenue has not been disclosed. Next time, in addition to cumulative second-quarter revenue and operating profit, it will be necessary to check the number of properties scheduled for delivery in the second half, properties under sales contracts, and whether completion schedules have changed.

There was no revision to the full-year forecasts in the first quarter, and the company has maintained its assumption that completions and deliveries will be concentrated in the second half. However, after deducting first-quarter actual results, the revenue required in the second half is ¥32.265 billion and the operating profit required is ¥6.048 billion. Although simple, even progress should not be expected given the seasonality, uncertainty over achievement of the full-year forecasts will increase if the buildup of projects cannot be confirmed in FY2027-H1.