Can the sharp recovery forecast for FY2027, ending March 2027, show the basis for revenue generation and a return to profitability in the first half?

FY2026 full-year actual results were revenue of ¥50 million, an operating loss of ¥906 million, an ordinary loss of ¥922 million and a net loss attributable to owners of the parent of ¥396 million. By contrast, the company's FY2027 forecasts are revenue of ¥750 million, operating profit of ¥30 million, ordinary profit of ¥30 million and net profit attributable to owners of the parent of ¥20 million, implying roughly 15 times the revenue scale and a shift from an operating loss to operating profit. This is not a plan for a modest improvement, but one based on a change in the business's earnings structure during FY2027.

FY2027 first-quarter results were revenue of ¥57 million, an operating loss of ¥91 million, an ordinary loss of ¥93 million and a quarterly net loss attributable to owners of the parent of ¥93 million. Revenue had reached only 7.6% of the full-year forecast, while operating results were still ¥121 million below the full-year forecast of ¥30 million in profit. Although it is not possible to determine full-year achievement from the first quarter alone, it is clear that the plan concentrates a substantial increase in revenue recognition and an improvement in earnings in the second half.

In the financial summary available this time, no breakdown of FY2027 first-quarter revenue by product or service, such as medical devices, cell therapy services or exosome-related products, or gross margin was disclosed. Since the company has been operating as a single Medical segment since the first half of FY2026, it is also difficult to separate, using financial figures alone, the revenue decline from the sale of the former Real Asset business from the increase in new revenue generated by the Medical business.

At the next earnings release, cumulative first-half revenue, operating results, cash and cash equivalents, and revenue by product and service should be reviewed. First-half revenue of ¥375 million is merely the simple 50% benchmark for the full-year forecast, and cannot be used for a mechanical pass/fail judgment because no seasonality has been disclosed. However, whether the pace of revenue recognition has accelerated from the first-quarter ¥57 million and whether the operating loss of ¥91 million has widened further in the first half will at least be concrete thresholds for assessing the reliability of the full-year forecast.