Full-year plan after the upward revision: assess the quality of progress in Q3

FY2026-H1 revenue was ¥9,954 million, operating profit was ¥1,723 million, ordinary profit was ¥1,480 million, and interim net profit attributable to owners of the parent was ¥1,156 million. The full-year forecast revised in August is revenue of ¥21.9 billion, operating profit of ¥3.1 billion, ordinary profit of ¥2.7 billion, and net profit attributable to owners of the parent of ¥2.0 billion, giving simple H1 progress rates of 45.5% for revenue, 55.6% for operating profit, and 57.8% for net profit. In particular, the amount of operating profit still required to meet the full-year target has narrowed to ¥1,377 million.

However, the H1 profit level should not be extrapolated directly into the second half without caution. During H1, there was a timing gap between sales price revisions and the recognition of higher raw material costs in cost of sales, while higher inventory unit costs also boosted profit. Accordingly, in Q3 it will be necessary to assess not only revenue growth but also the operating margin after the timing of sales price and raw material cost recognition has normalised.

At the next earnings release, we will assess how much cumulative operating profit through the end of September increased from ¥1,723 million and whether the company remained profitable on a standalone basis for the 3 months from July to September. In addition, whether the company revises its full-year forecast again after the upward revision, and whether it maintains the ¥3.1 billion operating profit plan after factoring in higher raw material costs in the second half, will be specific points for assessing the sustainability of earnings momentum.