FY2027 is a period for assessing the initial pace of profit growth against a plan for higher revenue in the fiscal year ending March 2027

FY2026 revenue was ¥12,639 million and operating income was ¥85 million, while the company forecasts FY2027 revenue of ¥13,000 million and operating income of ¥100 million. The plan calls for revenue to increase 2.9% year on year and operating income to increase 17.0%. Although the profit level is expected to improve, the operating margin is projected to rise only modestly, from approximately 0.67% in FY2026 to approximately 0.77%. The plan does not assume high profit growth, so both the recovery in revenue and the improvement in profitability need to be confirmed.

FY2027 first-quarter revenue was ¥3,397 million, representing approximately 26.1% of the full-year forecast. This is approximately 1.1 percentage points above the simple quarterly elapsed-period rate of 25%. Operating income, however, was ¥13 million, only 13.0% of the ¥100 million full-year forecast. Judging from the first quarter alone, revenue is ramping up steadily, but profit is below the simple quarterly pace implied by the full-year plan. One benchmark for FY2027-H1 will be whether cumulative operating income builds to approximately ¥50 million.

The year-earlier period recorded an operating loss of ¥36 million, meaning operating income improved by ¥49 million. The company cites a review of selling prices in response to higher production costs, increased overseas sales, price revisions, and cost reductions from reviewing manufacturing processes as factors behind the improvement. However, it has not disclosed the amounts attributable to each factor, such as the revenue increase from price revisions, changes in sales volume, or reductions in raw-material and energy costs. Accordingly, FY2027-H1 will require confirmation of whether the increase in revenue is price- or volume-driven, and whether the improvement in operating income reflects temporary price-cost gains or the establishment of process improvements.

First-quarter ordinary income was ¥74 million and net income attributable to owners of the parent was ¥66 million, both exceeding operating income of ¥13 million. The company has also explained the contribution from dividend income and foreign exchange gains, so the improvement at the operating level needs to be separated from the contribution of non-operating income and expenses. For FY2027-H1, we will compare cumulative operating-income progress, the cost ratio, the effect of selling-price revisions, the increase in overseas sales, and the dividend and foreign-exchange factors lifting ordinary income with the year-earlier period.