Q1 earnings are ahead of the full-year forecast, but H1 will test whether earnings remain on track

First-quarter revenue was ¥11.141 billion, up 4.3% year on year; operating profit was ¥457 million, up 31.9%; ordinary profit was ¥513 million, up 28.2%; and profit attributable to owners of the parent was ¥294 million, up 48.8%. The full-year forecasts are revenue of ¥46.000 billion, operating profit of ¥1.600 billion, ordinary profit of ¥1.700 billion and net profit of ¥1.000 billion, putting Q1 progress at 24.2%, 28.6%, 30.2% and 29.4%, respectively.

However, the full-year operating profit forecast of ¥1.600 billion is 10.5% below the ¥1.786 billion recorded for the fiscal year ended March 2026. The revenue forecast is 2.5% above the previous year's ¥44.895 billion, and the ordinary profit forecast is 4.3% above ¥1.629 billion, but the forecasts for operating profit and net profit imply declines. Accordingly, the Q1 earnings increase should not by itself be taken as evidence of improved full-year earning power; it is necessary to determine whether the plan assumes lower margins in the second half.

Because the company has not disclosed H1 targets, the simple half-way point of the full-year forecast will be used as a monitoring benchmark for the H1 results. The benchmark is revenue of ¥23.000 billion, operating profit of ¥800 million, ordinary profit of ¥850 million and net profit of ¥500 million. This is not a company plan adjusted for seasonality, but it provides a minimum reference point for determining whether Q1's earnings lead was temporary and whether the high profitability of the industrial machinery and vehicle-related businesses is continuing. It will also be important to check whether the full-year forecast is revised and whether the annual dividend forecast of ¥28 is maintained.