First-quarter results were broadly in line with the FY2027 forecast, but sustainability will be confirmed in the first half.

FY2027-Q1 revenue was ¥11,135 million, up 6.1% year on year, while operating profit was ¥2,270 million, up 12.1%. The full-year forecast disclosed by the company in the first quarter calls for revenue of ¥41,100 million and operating profit of ¥8,100 million, implying progress of 27.1% for revenue and 28.0% for operating profit. Both exceed the 25% mark corresponding to one quarter of the full year, indicating that, at least as of the first quarter, revenue and operating profit were not materially behind plan.

However, compared with the previous fiscal year, FY2027 revenue is forecast at ¥41,100 million versus FY2026 actual revenue of ¥41,069 million, an increase of just ¥31 million, or 0.1%. Operating profit is forecast at ¥8,100 million versus ¥8,160 million in the previous fiscal year, implying a decline of ¥60 million, or 0.7%. The first-quarter increases in revenue and profit do not by themselves indicate an upside to the full-year forecast. To meet the full-year forecast, cumulative revenue from the second quarter onward must be kept to ¥29,965 million and operating profit to ¥5,830 million or less. This provides a benchmark for determining whether the first-quarter strength reflects a temporary recovery in demand or front-loaded demand ahead of price revisions.

The full-year forecasts for ordinary profit and net income are ¥9,700 million and ¥6,800 million, respectively, representing expected declines of 10.3% and 15.4% from the previous fiscal year's actual results. In the first quarter, ordinary profit was ¥2,899 million and net income was ¥2,004 million, showing stronger growth than operating profit. At the first-half results stage, however, it will be necessary to separate the contributions from non-operating and extraordinary gains and losses. For FY2027-H1, the key checks will be whether revenue reaches ¥20,550 million and operating profit ¥4,050 million, the halfway points of the full-year forecasts, as well as whether the company maintains or revises its forecasts and changes its assumptions for the second half.