Will operating profit growth despite lower revenue continue in FY2027-H1?

FY2027-Q1 revenue was ¥13.617 billion, down ¥910 million, or 6.3%, from ¥14.528 billion in the same period of the previous year. Operating profit, however, rose to ¥229 million from ¥213 million, while ordinary profit was ¥102 million and net profit attributable to owners of the parent was also positive at ¥18 million. As profit increased while revenue contracted, it is necessary to distinguish the contributions of product mix, foreign exchange, technology VE, and cost improvements rather than attributing the result simply to a recovery in demand.

The operating margin was approximately 1.5% in the same period of the previous year and approximately 1.7% in FY2027-Q1, representing an improvement of only approximately 0.2 percentage points. FY2026-H1 revenue was ¥29.776 billion and operating profit was ¥553 million. Therefore, to exceed the previous year's operating profit level in FY2027-H1, Q2 alone would need to generate at least approximately ¥324 million, assuming Q1 operating profit of ¥229 million. This is a mechanical benchmark for determining whether the previous year's level was exceeded, not company guidance.

For FY2027, the company forecasts revenue of ¥60 billion, operating profit of ¥1.4 billion, ordinary profit of ¥1.3 billion, and net profit attributable to owners of the parent of ¥750 million. The presentation materials do not explicitly explain Q1 progress toward the full-year forecast, the level required in H1, or seasonality. In the next results, we will use segment profit and a factor-based bridge to determine whether the H1 results improved solely because of foreign exchange or temporary cost factors, or whether the underlying operating margin has risen.