First-half results: a mechanical benchmark is reaching half of the full-year plan

First-quarter revenue was ¥9,355 million, up 51.2% year on year, while operating profit was ¥3,104 million, up 49.4%. The company's FY2027 full-year forecasts are revenue of ¥37,000 million and operating profit of ¥12,000 million, putting simple progress rates at 25.3% for revenue and 25.9% for operating profit. Since 3 months represents one-quarter of 12 months, revenue and operating profit were not materially off track at least as of the first quarter.

However, the earnings presentation does not disclose progress against the full-year forecasts or the company's own assessment that results are "above plan" or "in line with plan." This assessment is therefore only a mechanical calculation that does not account for seasonality or order delivery schedules. For FY2027-H1, revenue of ¥18,500 million and operating profit of ¥6,000 million, equivalent to 50% of the full-year forecasts, should first be used as comparable benchmarks.

After deducting first-quarter results, standalone second-quarter revenue of ¥9,145 million will be required to achieve first-half revenue of ¥18,500 million, while standalone second-quarter operating profit of ¥2,896 million will be required to achieve operating profit of ¥6,000 million. If standalone second-quarter revenue falls below this level, reliance on the second half to achieve the full-year plan will increase. Conversely, if operating profit exceeds this level, it will also be possible to confirm whether the first-quarter operating margin of 33.2% is being maintained.

At the next earnings release, we will want to confirm not only the first-half amounts but also whether the full-year forecasts of ¥37,000 million in revenue and ¥12,000 million in operating profit remain unchanged, as well as the levels of standalone second-quarter revenue and operating profit. Ordinary profit of ¥12,100 million and net income attributable to owners of the parent of ¥8,800 million are also given as full-year forecasts, but these figures are affected by foreign exchange gains and extraordinary gains. Priority should therefore first be given to whether operating profit from the core business reaches ¥6,000 million.