First-half profit is ahead of the full-year plan; only the ordinary profit forecast was revised upward

Consolidated results for FY2026-H1 were revenue of ¥19,626 million, operating profit of ¥1,589 million, ordinary profit of ¥1,988 million and interim net profit attributable to owners of the parent of ¥2,071 million. Compared with the same period of the previous year, revenue increased 7.2%, operating profit 15.4%, ordinary profit 38.3% and interim net profit 158.2%, with profit growth outpacing revenue growth.

Simple progress against the full-year forecasts was 49.1% for revenue, calculated as ¥19,626 million divided by ¥40,000 million; 53.0% for operating profit, calculated as ¥1,589 million divided by ¥3,000 million; 58.5% for ordinary profit, calculated as ¥1,988 million divided by ¥3,400 million; and 59.2% for net profit, calculated as ¥2,071 million divided by ¥3,500 million. Against the mechanical benchmark that the first half represents 50% of the full year, revenue was broadly on plan, while operating profit and ordinary profit were ahead. However, the company has not disclosed quarterly forecast breakdowns or seasonality, so full-year upside cannot be assessed based on progress rates alone.

In the latest revision to the earnings forecasts, only ordinary profit was increased, by ¥300 million, or 9.7%, from ¥3,100 million to ¥3,400 million. Revenue of ¥40,000 million, operating profit of ¥3,000 million, net profit of ¥3,500 million and annual dividends of ¥160 remained unchanged. Accordingly, the key issue to assess in Q3 is whether the upward revision to ordinary profit was driven by non-operating income or foreign exchange factors, or whether it is supported by operating improvements at the segment level.

The gap to the full-year forecasts means that the second half requires revenue of ¥20,374 million, operating profit of ¥1,411 million, ordinary profit of ¥1,412 million and net profit of ¥1,429 million. At the FY2026-Q3 cumulative stage, 75% of the full-year forecasts provides one reference point: revenue of ¥30,000 million, operating profit of ¥2,250 million, ordinary profit of ¥2,550 million and net profit of ¥2,625 million. Interim results include a gain on the sale of investment securities, so Q3 should distinguish progress in operating profit and ordinary profit from that in net profit.