Following a substantial upward revision to the full-year forecast, assessing whether high growth remains sustainable in FY2027-H1

For the first quarter of the fiscal year ending March 2027, revenue was ¥9,124 million, operating profit was ¥930 million, ordinary profit was ¥1,004 million and quarterly net profit attributable to owners of the parent was ¥766 million. In the same quarter of the previous year, revenue was ¥7,906 million and operating profit was ¥162 million. Operating profit therefore grew substantially faster than revenue, and the operating margin rose from approximately 2.1% to approximately 10.2%. It will be important to determine whether profit growth reflects not only volume growth but also the effects of pricing and the production structure.

Results for the fiscal year ended March 2026 were revenue of ¥30.358 billion and operating profit of ¥837 million. By comparison, the disclosed forecast for the fiscal year ending March 2027 is revenue of ¥34.0 billion, operating profit of ¥2.1 billion and net profit attributable to owners of the parent of ¥1.6 billion, representing substantial increases from the previous forecasts of ¥30.6 billion, ¥940 million and ¥650 million, respectively. As operating profit of ¥931 million was generated in the first quarter alone, the first-half results will need to show whether this profit level was maintained in the second quarter or was concentrated in the first quarter.

As a simple benchmark for the first half, half of the full-year forecast would be revenue of ¥17.0 billion, operating profit of ¥1,050 million and net profit of ¥800 million. However, these are merely mechanical benchmarks that do not account for seasonality, rather than half-year forecasts provided by the company. At the next results announcement, it will be important to see whether the company provides specific explanations not only of the full-year forecast itself but also of the revenue and profit levels required in the second half, and its assumptions regarding raw-material prices, price pass-through and outsourced processing costs.