First-quarter operating profit reached 34.6% of the full-year forecast, but full-year guidance was left unchanged

Revenue for the first quarter of the fiscal year ending March 2027 was ¥24,967 million, while operating profit was ¥606 million. The full-year forecasts are ¥99,400 million in revenue and ¥1,750 million in operating profit, putting progress at 25.1% for revenue and 34.6% for operating profit. As of the first quarter, revenue was broadly in line with the calendar-year pace, while operating profit was 9.6 percentage points ahead of the simple elapsed-period pace.

Profit progress was even more skewed. Ordinary profit was ¥311 million, reaching 61.0% of the ¥510 million full-year forecast, while net income attributable to owners of the parent was ¥204 million. With the full-year net income forecast at only ¥10 million, the first-quarter results alone could suggest that additional expenses or extraordinary losses are expected in the second half. However, the disclosed materials do not sufficiently break down whether this gap reflects normal seasonality or incorporates future expenses and losses.

First-quarter extraordinary income included a ¥143 million gain on the sale of investment securities, but operating profit of ¥606 million itself is a core operating measure. Accordingly, the high progress on operating profit is a positive factor, but assessing progress on ordinary profit or net income as an indication of the likelihood of achieving the full-year target requires confirmation of one-off factors such as gains on the sale of investment securities, the tax burden, and the outlook for product warranty costs and R&D expenses in the second half.

For FY2027-H1, revenue of around ¥49,700 million and operating profit of around ¥875 million would represent the simple half-year pace. For operating profit in particular, we will need to see not only whether the first-quarter progress rate of 34.6% can be maintained, but also whether profit-reduction factors in the automotive equipment and energy solutions businesses will expand in the second quarter and whether the increase in profit at the electronic equipment business will continue.