FY2027-H1 plan: earnings ahead in Q1, requiring approximately ¥4.3 billion of operating income in Q2

In FY2027-Q1, revenue was ¥42.275 billion, operating income was ¥4.701 billion, ordinary income was ¥4.402 billion and net income attributable to owners of the parent was ¥2.768 billion. Year on year, revenue increased 7.8% and operating income increased 44.5%, with earnings growth substantially outpacing revenue growth. The operating margin rose from approximately 8.3% in the year-earlier quarter to approximately 11.1%.

The FY2027-H1 plan presented by the company calls for revenue of ¥85.0 billion, operating income of ¥9.0 billion, ordinary income of ¥8.0 billion and net income of ¥4.5 billion. Q1 progress rates were 49.7% for revenue, 52.2% for operating income, 55.0% for ordinary income and 61.5% for net income, showing that the earnings items are running ahead of plan. Net income in particular had already exceeded 60% of the first-half plan in Q1 alone, so it will also be necessary to check for temporary extraordinary gains or losses and changes in the tax burden in Q2.

Subtracting Q1 results from the first-half plan on a simple basis implies Q2 revenue of ¥42.725 billion, operating income of ¥4.299 billion, ordinary income of ¥3.598 billion and net income of ¥1.732 billion. The company has disclosed cumulative first-half and full-year forecasts, but has not specified standalone Q2 revenue or earnings forecasts. At the next results announcement, it will therefore be necessary to calculate the actual standalone Q2 results and assess which factors, including sales volumes, prices and inventory valuation, sustained the Q1 lead in earnings.

Dividing the first-half operating income plan of ¥9.0 billion by planned revenue of ¥85.0 billion gives a planned operating margin of approximately 10.6%. This is slightly below the Q1 actual margin of approximately 11.1%. Meanwhile, the full-year operating margin calculated from forecast revenue of ¥174.0 billion and operating income of ¥16.0 billion is approximately 9.2%, indicating that the full-year forecast does not assume that first-half profitability will be maintained at the same level in the second half. In the H1 results, it will be necessary to confirm not only whether operating income reaches ¥9.0 billion, but also whether the operating margin is around 10.6% and whether the full-year operating income forecast of ¥16,000 million is maintained or revised.