First-half revenue and profit increased, but earnings repeatability is the next focus

FY2026-H1 revenue was ¥59.772 billion, up 7.6% year on year; operating profit was ¥3.759 billion, up 40.0%; ordinary profit was ¥4.893 billion, up 33.6%; and interim net profit attributable to owners of the parent was ¥3.759 billion, up 44.7%. Operating profit grew faster than revenue, indicating that improvements in pricing, product mix and costs, rather than a simple recovery in volumes alone, lifted the margin.

In FY2025-H1, revenue was ¥55.546 billion and operating profit was ¥2.684 billion, for an operating margin of approximately 4.8%. By contrast, the FY2026-H1 operating margin rose to approximately 6.3%, making the improvement in profitability clear. However, FY2025-H1 also offset the impact of lower revenue through price pass-through, lower defect rates in ASEAN, productivity improvements and rationalization. It is therefore necessary to distinguish whether the latest improvement reflects a new, sustainable cost structure or partly a rebound from the low level of the previous year.

For the current interim period, the company cited the effect of higher revenue, increased mold sales and the foreign-exchange translation impact of the weaker yen, as well as the recovery from affiliated companies of past development costs and other items, as profit drivers. The interim disclosure did not specify the amount recovered, so it is not possible to determine how much of the ¥3.759 billion operating profit represented one-off earnings. Raw material costs also remain elevated, while the extent to which price pass-through absorbed the actual increase in costs has not been disclosed.

In FY2026-Q3, the key issue will be whether the drivers of higher operating profit can be explained separately as mold sales, price pass-through, quality improvements, productivity gains, foreign-exchange translation and one-off earnings. In particular, whether the recovery of past development costs and other items will continue in Q3, and whether the operating margin excluding one-off earnings can be maintained at around 6%, will be central to assessing the likelihood of achieving the full-year operating profit forecast of ¥5.9 billion.