Whether the high profit progress seen in 1Q will continue in H1 against the full-year plan after the upward revision

In 1Q of the fiscal year ending February 2027, revenue was ¥17,034 million, operating profit was ¥2,204 million, ordinary profit was ¥2,192 million, and net profit attributable to owners of the parent was ¥1,486 million. Compared with revenue of ¥13,839 million and operating profit of ¥1,452 million in the same quarter of the previous fiscal year, revenue increased 23.1% and operating profit increased 51.7%. The operating margin also rose, on a simple calculation, from approximately 10.5% in the same quarter of the previous fiscal year to approximately 12.9% in the current period.

Following the 1Q results, the company raised its full-year revenue forecast by ¥500 million, from ¥65,500 million to ¥66,000 million, and its operating profit forecast by ¥200 million, from ¥5,250 million to ¥5,450 million. The ordinary profit forecast was revised from ¥5,150 million to ¥5,350 million, the net profit forecast from ¥3,350 million to ¥3,450 million, and the annual dividend forecast from ¥50 to ¥51.

Meanwhile, the full-year progress rates stated in the earnings presentation were 26% for revenue, 42% for operating profit, 43% for ordinary profit, and 44% for net profit. The wording indicates that these were calculated against the initial plan. Dividing 1Q operating profit of ¥2,204 million by the revised forecast of ¥5,450 million gives approximately 40.4%, while the stated 42% is consistent with approximately 42.0% calculated using the initial plan of ¥5,250 million as the denominator. A key issue in the H1 results will be whether the company again shows progress rates against the revised plan.

In the previous fiscal year, quarterly operating profit fluctuated between ¥1,421 million in 1Q, ¥717 million in 2Q, ¥1,630 million in 3Q, and ¥1,145 million in 4Q. The seasonal pattern therefore needs to be checked before judging full-year achievement based solely on the strong 1Q progress. Against revised full-year operating profit of ¥5,450 million, the amount still required after the 1Q results is ¥3,246 million. We will assess whether H1 operating profit can reach ¥2,725 million and whether the assumption that ¥3,246 million can be generated in the second half is reasonable.