Can higher automotive-parts revenue carry through to a return to profitability in the first half?

In the first quarter from April to June 2026, revenue rose 64.8% year on year to ¥1,478 million. Progress against the full-year revenue forecast of ¥6,660 million was approximately 22.2%, about 2.8 percentage points below the simple quarterly benchmark of 25%. Operating income was a loss of ¥29 million, ordinary income was a loss of ¥11 million, and quarterly net income was a loss of ¥13 million, indicating that higher revenue alone has not yet reached the required profit level.

The company forecasts revenue of ¥6,660 million, operating profit of ¥80 million, ordinary profit of ¥80 million and net profit of ¥60 million for the fiscal year ending March 2027. Against the previous fiscal year's revenue of ¥5,141 million and operating loss of ¥111 million, the company assumes a 29.5% increase in revenue and a return from an operating loss to operating profit. Since the company has not disclosed a separate first-half revenue forecast, ¥3,330 million is merely a mechanical benchmark based on 50% of the full-year forecast. Actual performance needs to be assessed with seasonality in mind.

Automotive parts were the main driver of higher revenue. First-quarter revenue was ¥1,462.167 million, up 75.9% year on year, accounting for approximately 99% of company-wide revenue. Revenue from proprietary products was ¥15.941 million, down 57.9% year on year, while revenue from rental real estate was shown as “—” in the segment table. Accordingly, the first-half review should focus not only on company-wide revenue, but also on whether growth in automotive parts continues and offsets the decline in proprietary products.

At the next earnings announcement, we will review cumulative first-half revenue, operating income and operating margin, as well as the factors expected to improve results during the remaining period toward the full-year operating profit forecast of ¥80 million. In particular, it will be important to see whether the contributions from higher volumes driven by increased orders, the negative impact of higher raw-material prices, and improvements in capacity utilization and productivity can be shown on an amount basis. At present, the impact of each factor has not been disclosed.