Whether the strong 1Q progress is maintained in FY2027-H1

In 1Q of the fiscal year ending March 2027, revenue was ¥13,706 million, operating income was ¥936 million, and profit attributable to owners of the parent was ¥598 million. The full-year forecasts are revenue of ¥50,000 million, operating income of ¥3,000 million, and net income of ¥2,400 million, resulting in 1Q progress rates of 27.4% for revenue, 31.2% for operating income, and 24.9% for net income. Operating income is ahead of revenue in terms of progress, but this reflects only one quarter and does not mean that the same pace will continue through H1.

For assessing H1, ¥25,000 million in revenue and ¥1,500 million in operating income, obtained by simply dividing the full-year forecasts by two, can be used as mechanical benchmarks. However, the company has not separately disclosed H1 earnings forecasts, so these 50% benchmarks are not company guidance. The comparable FY2026-H1 results were revenue of ¥24,192 million, operating income of ¥1,654 million, and net income of ¥1,305 million. The focus will be on whether revenue exceeds the prior-year H1 level while operating income remains at the prior-year H1 level.

FY2026 full-year results were revenue of ¥50,132 million and operating income of ¥3,014 million. Against these figures, FY2027 full-year forecasts are essentially flat, with revenue down 0.3% and operating income down 0.5%. The company’s plan therefore does not assume significant growth. Meanwhile, 1Q revenue rose 11.3% year on year, while operating income increased only 2.2%, meaning profit growth was modest relative to the increase in revenue. In H1, it will be necessary to assess whether the revenue growth is more than a one-quarter rebound and is translating into the level of profit needed to maintain the full-year plan.

As of 1Q, the full-year earnings forecasts were unchanged from the latest published figures. At the H1 results announcement, it will be important to see whether quantitative supplemental information is added, including the contribution of price revisions, sales volume, and changes in expenses, as well as orders received and order backlog, in addition to cumulative revenue and operating income. At present, the amounts attributable to these individual factors and order-related indicators have not been disclosed. Consequently, even if the H1 figures are strong relative to the full-year plan, their repeatability may not be sufficiently verifiable.