First quarter performance broadly on track against full-year forecast

First-quarter revenue was ¥36,698 million, operating profit was ¥24,860 million, ordinary profit was ¥32,049 million, and quarterly net profit attributable to owners of the parent was ¥22,697 million. Year on year, these figures increased by 13.2%, 15.7%, 17.7% and 16.3%, respectively, with all major profit levels increasing. No one-off extraordinary gains or losses were recorded, confirming that the apparent profit growth was not driven by extraordinary items.

The full-year forecasts are revenue of ¥148.7 billion, operating profit of ¥98.0 billion, ordinary profit of ¥114.5 billion and net profit of ¥82.0 billion. First-quarter progress was 24.7% for revenue, 25.4% for operating profit, 28.0% for ordinary profit and 27.7% for net profit. Revenue and operating profit are close to 25%, the simple quarterly allocation. Ordinary profit and net profit, however, are affected by non-operating items and the tax burden, so in H1 it will be necessary to check separately whether growth below operating profit is also maintained.

The company cited corporate investment in system upgrades driven by demand for DX and other factors, system implementation for the OBIC7 series, new customer acquisition, and operations support and maintenance services centered on cloud solutions as factors behind the revenue growth. In the first quarter, revenue was ¥15,145 million for the System Integration business, ¥19,589 million for the System Support business and ¥1,964 million for the Office Automation business, totaling ¥36,698 million. Next time, we will look to see whether growth is being built on increases in customers and projects across each business, rather than on specific large projects or a rebound from the previous year’s quarter.

The first-quarter earnings summary did not revise the full-year forecasts, and no supplementary earnings presentation materials or earnings briefing were disclosed. Accordingly, the earnings summary provides limited information on leading indicators such as cumulative first-half bookings, order backlog, project delivery schedules and the timing of revenue recognition. In FY2027-H1, the key checks will be whether revenue maintains near-double-digit year-on-year growth, whether the operating margin does not fall materially from the first-quarter level, and whether the full-year outlooks of ¥148.7 billion in revenue and ¥98.0 billion in operating profit remain unchanged.