First-half forecast raised, while full-year forecast unchanged, making FY2027-H1 the key period for verification

First-quarter revenue was ¥4.0359 billion, up 14.6% year on year, while operating profit was ¥930 million, up 135.6%. Profit for the period attributable to owners of the parent was ¥501 million, up 78.3%, while the gross profit margin improved by 2.1 percentage points year on year to 23.1% and the operating margin improved by 1.2 points to 2.3%. The important point is that the company got off to a start accompanied by margin improvement, rather than simply expanding its revenue scale.

Following the strong 1Q performance, the company raised its first-half forecast to revenue of ¥8.1885 billion, operating profit of ¥2.130 billion and profit for the period attributable to owners of the parent of ¥1.345 billion. Meanwhile, the full-year forecast was left unchanged at revenue of ¥157.0 billion, operating profit of ¥3.4 billion and profit for the period attributable to owners of the parent of ¥2.208 billion. After deducting 1Q results, 2Q alone will need to generate revenue of ¥4.1526 billion and operating profit of ¥1.200 billion, so at the next results announcement we will first assess whether 2Q results reached these levels.

The first-half plan represents 52.2% of the full-year revenue forecast, 62.6% of the operating profit forecast and 60.9% of forecast profit attributable to owners of the parent. By contrast, at the end of 1Q, progress against the full-year forecast was 25.7% for revenue, 27.4% for operating profit and 22.7% for profit attributable to owners of the parent, with operating profit progress exceeding revenue progress. However, subtracting the first-half forecast of ¥2.130 billion from the full-year operating profit forecast of ¥3.4 billion leaves ¥1.270 billion of operating profit required in the second half. In FY2026, second-half operating profit was approximately ¥1.641 billion, calculated by subtracting first-half operating profit of ¥1.638 billion from full-year operating profit of ¥3,279 million, meaning the company has set a conservative second-half forecast on a year-on-year basis.

It is not clear from the earnings summary alone whether this conservatism intentionally reflects growth investment, foreign exchange, overseas demand for personnel or seasonality. At the next results announcement, it will be necessary to confirm the pre-revision first-half forecast and the size of the revision, why the full-year forecast was not raised, and the investments and expenses planned for the second half. In particular, if the company leaves the full-year forecast unchanged even after achieving first-half operating profit of ¥2.130 billion, the focus will be on whether it can explain the specific factors behind the assumed slowdown in second-half profit.