FY2027 full-year forecast calls for lower earnings; even with first-quarter growth, the first half needs to substantiate progress

FY2027-Q1 revenue was ¥30.985 billion, up 2.0% year on year; operating profit was ¥4.592 billion, up 9.9%; ordinary income was ¥4.867 billion, up 11.5%; and net income attributable to owners of the parent was ¥3.079 billion, up 8.8%. Operating profit grew faster than revenue, with the first-quarter operating margin improving to approximately 14.8% from approximately 13.8% a year earlier, an improvement of approximately 1.1 percentage points.

The company's FY2027 full-year forecasts are revenue of ¥142 billion, operating profit of ¥25.5 billion, ordinary income of ¥25.5 billion and net income attributable to owners of the parent of ¥17.7 billion. The respective changes from the previous fiscal year's results are forecasts of 1.6% growth, 4.2% decline, 6.7% decline and 5.8% decline. FY2026 results were revenue of ¥139.697 billion, operating profit of ¥26.608 billion, ordinary income of ¥27.341 billion and net income of ¥18.790 billion. Thus, the current-year plan calls for revenue growth while keeping earnings below the previous year's levels. First-quarter earnings growth alone does not indicate a change to the full-year earnings decline plan, and the effects of costs, product mix, foreign exchange and the external environment need to be assessed from the first half onward.

Progress against the full-year forecast in the first quarter was 21.8% for revenue and 18.0% for operating profit. With simple quarterly linearity, 25.0% would be the benchmark, but this is a comparison benchmark rather than the company plan because medical equipment is affected by the timing of business negotiations and seasonality in the rental business. In FY2027-H1, using revenue of ¥71 billion and operating profit of ¥12.75 billion as simple half-year benchmarks, we will assess how much greater the dependence on the second half becomes if actual results fall below these levels, and whether the full-year forecasts are revised.