Can the revenue and profit growth of the first quarter of FY2027 ending March be replicated in the first half?

Consolidated net sales in the first quarter of the fiscal year ending March 2027 were ¥45,536 million, operating income was ¥2,979 million, ordinary income was ¥3,178 million, and net income attributable to owners of the parent was ¥1,554 million. Year on year, net sales increased 8.8%, operating income 60.7%, ordinary income 56.3%, and net income 67.2%, with profit growth substantially outpacing revenue growth. The operating margin rose by approximately 2.1 percentage points, from about 4.4% in the same quarter of the previous year to about 6.5%.

The full-year forecasts are ¥210,000 million in net sales, ¥16,700 million in operating income, ¥17,000 million in ordinary income, and ¥11,600 million in net income attributable to owners of the parent. First-quarter progress was 21.7% for net sales and 17.8% for operating income. On a simple time-apportioned basis, assuming each quarter represents 25% of the full year, these figures are approximately 3.3 percentage points below the benchmark for net sales and 7.2 percentage points below it for operating income. However, the company does not disclose quarterly seasonality or order backlogs, so this alone does not indicate that the full-year forecasts will be missed. The mechanical benchmarks investors should monitor in FY2027-H1 are net sales of ¥105,000 million and operating income of ¥8,350 million.

All 3 segments posted higher revenue and profit in the first quarter: Electrical and Information Infrastructure-Related Manufacturing, Construction and Services; Electrical and Information Infrastructure-Related Distribution; and Electronic Components-Related Manufacturing. Net sales were ¥26,934 million, ¥14,075 million, and ¥4,525 million, respectively, and segment profit was ¥1,622 million, ¥717 million, and ¥641 million. Total segment net sales were ¥45,534 million, only ¥2 million below consolidated net sales. Accordingly, in the first half it will be necessary to check not only whether the company as a whole continues to grow revenue, but also whether any of the 3 businesses is losing momentum.

In its first-quarter summary report, the company qualitatively cited investment related to AI and semiconductors, new and expanded data centers, corporate capital investment demand, and the effects of price revisions as performance drivers. However, it did not disclose orders received, order backlogs, volumes, the contribution from price revisions, or quarterly profit plans. The company also did not prepare a quarterly cash flow statement for the first quarter, so operating cash flow cannot be confirmed. In FY2027-H1, key points to monitor will be whether the full-year forecasts are maintained and whether the company newly discloses assumptions regarding the sustainability of demand and profit margins.