Will the strong first-quarter earnings progress be maintained in the first half and exceed the full-year plan?

In the first quarter of the fiscal year ending March 2027, revenue was ¥1,644 million, up 11.6% year on year, and operating profit was ¥349 million, up 35.0%. Ordinary profit was ¥347 million, up 34.6%, and net income attributable to owners of the parent was ¥239 million, up 33.0%. All earnings items exceeded the year-earlier period, as did revenue.

The full-year forecasts are revenue of ¥6,600 million, operating profit of ¥1,270 million, ordinary profit of ¥1,220 million and net income of ¥890 million. First-quarter progress was 24.9%, 27.5%, 28.5% and 26.9%, respectively. Progress in each earnings item is ahead of revenue, and the company says revenue and earnings are tracking above expectations. However, the first-quarter earnings report contained no revision to the latest full-year forecast. Whether the plan will be changed for the first time in the upcoming first-half results is a key point to monitor.

Assuming that 50% of the full-year plan is achieved in the first half, the benchmarks for cumulative first-half results would be revenue of ¥3,300 million, operating profit of ¥635 million, ordinary profit of ¥610 million and net income of ¥445 million. Based on first-quarter results, the second quarter alone would need to generate revenue of ¥1,656 million, operating profit of ¥286 million, ordinary profit of ¥263 million and net income of ¥206 million. These are not company guidance for the first half, but mechanical benchmarks that do not take seasonality into account.

Last fiscal year, full-year revenue was ¥6,192 million and operating profit was ¥1,150 million, while this year's forecasts represent increases of 6.6% and 10.4%, respectively. In the first-half results, it will be necessary to assess not only whether revenue and earnings increased year on year, but also whether the first quarter's strong earnings progress reflects a one-off benefit from price revisions or productivity improvements that will continue into the first half, together with whether the full-year forecast is maintained, raised or lowered.