First-quarter operating profit reached 69% of the full-year forecast, with the gap to the FY2027 plan in focus

FY2027-Q1 revenue was ¥1,647 million, up 26.5% year on year, while operating profit was ¥227 million, up 238.8%. Revenue reached approximately 26.1% of the full-year forecast of ¥6,300 million, about 1.1 percentage points above the 25% implied by a simple quarterly allocation. Operating profit, meanwhile, reached approximately 69.1% of the full-year forecast of ¥329 million, meaning that profit is progressing far ahead of revenue.

In contrast, FY2026 results were revenue of ¥6,028 million and operating profit of ¥502 million. The FY2027 company forecast calls for revenue to rise 4.5% to ¥6,300 million, but operating profit to decline 34.4% to ¥329 million, ordinary profit to decline 33.6% to ¥361 million, and net income to decline 38.1% to ¥248 million. Recording approximately 70% of full-year operating profit in the first quarter suggests that the company forecast may incorporate a slowdown in demand, changes in product mix and higher costs in the second half, but the company has not disclosed a quarterly profit plan or provided an explanation of seasonality.

At the next results announcement, we will look to confirm whether first-half operating profit exceeds the ¥227 million recorded in the first quarter and approaches the full-year forecast of ¥329 million. It will also be important to determine which of the semiconductor industry's expanding demand, capital investment by domestic factories, plant projects, and FA and instrumentation cable orders contributed to revenue and profit. As the monetary value of order intake and order backlog has not been disclosed, it is difficult to determine whether first-half strength is temporary and attributable to the timing of acceptance or reflects an order base that will continue into the second half.

Whether the full-year forecast is revised will also be a key item to monitor. The FY2027-Q1 results alone suggest room for an upward revision, while the company is planning for operating profit to decline from ¥502 million in FY2026 to ¥329 million in FY2027, indicating that it may be taking a cautious view of second-half risks. If first-half operating profit exceeds ¥329 million, it will be necessary to determine whether the underlying assumptions of the full-year plan have changed, rather than merely confirming progress against the plan.