Can the strong start in 1Q be repeated in H1?

In the first quarter from April to June 2026, revenue was ¥3,815 million, up 24.9% year on year, and operating profit was ¥708 million, up 155.1%. Ordinary profit was ¥766 million and net income attributable to owners of the parent was ¥527 million, up 110.8% and 105.1%, respectively, year on year. Both revenue and each profit level grew substantially, confirming an expansion in the profit margin.

The full-year forecasts are revenue of ¥15,700 million and operating profit of ¥2,520 million, putting 1Q progress at 24.3% and 28.1%, respectively. Operating profit progress was approximately 3.8 percentage points ahead of revenue progress, making it important to assess how much can be added in 2Q against the simple H1 benchmarks of ¥7,850 million in revenue and ¥1,260 million in operating profit. However, no quantitative explanation of seasonality or delivery timing for projects has been identified, so the 50% level should be treated as a mechanical benchmark for measuring progress, not as the company's plan itself.

The 1Q operating margin was approximately 18.6%, calculated by dividing ¥708 million by ¥3,815 million, up approximately 9.5 percentage points from approximately 9.1% in the same period of the previous year. The company explains that it captured capital investment demand related to automotive applications, semiconductors, and data centers, while also working to reduce costs despite increases in the purchase cost of overseas products and personnel expenses resulting from base-pay increases. Accordingly, in H1 it will be necessary to determine not only whether revenue growth continues, but also whether the margin expansion resulted from temporary product mix or delivery timing, and whether the benefits of cost reduction are continuing.

The 1Q disclosure indicates that the full-year forecasts were revised, but the pre-revision figures and change rates cannot be confirmed. Nor can specific H1 cumulative revenue and operating profit amounts be confirmed from the numerical items provided. At the next results announcement, the focus will be on comparing cumulative H1 results with the full-year forecasts of ¥15,700 million and ¥2,520 million, and checking for a slowdown in standalone 2Q, another revision to the full-year plan, or normalization of the profit margin.