Can Q1's high growth carry through to the full-year forecast?

FY2027-Q1 revenue was ¥3,017 million, up 24.0% year on year, and operating profit was ¥1,517 million, up 27.0%. Ordinary profit was ¥1,535 million, up 36.5%, and net income attributable to owners of the parent was ¥1,007 million, up 35.1%, meaning that each profit level exceeded the year-earlier quarter, not just revenue.

The full-year forecasts are revenue of ¥11,346 million, operating profit of ¥6,115 million, ordinary profit of ¥6,137 million and net income of ¥4,059 million. On a simple calculation, Q1 progress was 26.6% for revenue, 24.8% for operating profit, 25.0% for ordinary profit and 24.8% for net income, not materially behind the 25% elapsed-quarter benchmark. Operating profit in particular reached an amount close to one-quarter of the full-year forecast in Q1.

By contrast, the previous fiscal year's results were revenue of ¥10,947 million and operating profit of ¥5,858 million, so the FY2027 full-year forecasts imply increases of only 3.6% and 4.4%, respectively. Compared with Q1 year-on-year growth of 24.0% and 27.0%, this may imply an assumption that growth will normalize over the remaining 3 quarters. It will therefore be important to see how much of the revenue and operating profit growth is maintained in FY2027-H1.

The Q1 earnings explanation cited solid domestic demand, one-off orders arising from concerns about the situation in the Middle East, and sales growth in Europe, the United States and other regions. Accordingly, in FY2027-H1 it will be necessary to assess not only simple progress ratios but also underlying demand excluding one-off orders, the contribution to revenue growth by region and management's assessment of the full-year forecast. The next focus is whether the company maintains strong progress without revising its forecast or moves to an upward revision.