Can the strong growth seen in FY2027 Q1 be replicated in the first half?

In FY2027 Q1, revenue was ¥15,974 million, operating income was ¥4,741 million, ordinary income was ¥4,835 million, and net income attributable to owners of the parent was ¥3,311 million. Year on year, revenue increased 20.5%, operating income 48.6%, ordinary income 56.2%, and quarterly net income 55.1%, with profit growth substantially outpacing revenue growth. The operating margin, calculated simply from revenue and operating income, was 29.7%, up approximately 5.6 percentage points from approximately 24.1% in the same period a year earlier.

The full-year forecasts are revenue of ¥61,000 million, operating income of ¥15,500 million, ordinary income of ¥16,000 million, and net income attributable to owners of the parent of ¥10,800 million. At the 1Q stage, progress was 26.2% for revenue, 30.6% for operating income, and 30.7% for net income, with progress on profit items ahead of revenue. In FY2026, first-half revenue of ¥25,674 million accounted for 44.3% of full-year revenue of ¥57,976 million, while first-half operating income of ¥6,079 million accounted for 41.5% of full-year operating income of ¥14,640 million. Accordingly, one comparison point for FY2027 H1 will be whether revenue reaches around 44% and operating income around 41% of the full-year forecasts.

However, the explanation of FY2027 Q1 results attributed performance mainly to continued capital investment at major customers' semiconductor plants and high production levels, without disclosing the amount of profit uplift attributable to individual factors such as capital investment projects, gas sales, and maintenance. In addition, because the company did not prepare a consolidated statement of cash flows for the first quarter, it is not possible to confirm whether the increase in profit translated into operating cash flow.

At the next earnings announcement, it will be important to confirm not only year-on-year revenue and profit growth, but also whether the operating margin can remain near 30%, whether growth in the core business reflects temporary project recognition, and whether first-half progress toward the full-year operating income forecast of ¥15,500 million is sufficient. The full-year forecast had not been revised as of 1Q, so whether it is maintained or raised in FY2027 H1 will be an important disclosure point in assessing the quality of the first-half figures.