H1 forecast raised, with Q1 absorbing much of the profit early, but full-year guidance unchanged

In Q1 from April to June 2026, revenue was ¥7,447 million, operating profit was ¥905 million, ordinary profit was ¥934 million, and net profit attributable to owners of the parent was ¥671 million. Year on year, revenue increased 9.0%, operating profit 72.6%, ordinary profit 75.5% and net profit 13.4%, while progress against full-year guidance was 26.6% for revenue and 34.8% for operating profit. The fact that profit is progressing ahead of revenue is the first point to confirm in the FY2027-H1 results.

Based on its Q1 results and the current operating environment, the company raised its FY2027-H1 cumulative forecast for revenue from ¥13,500 million to ¥14,000 million, by ¥500 million; operating profit from ¥1,250 million to ¥1,400 million, by ¥150 million; ordinary profit from ¥1,250 million to ¥1,400 million, by ¥150 million; and net profit from ¥800 million to ¥900 million, by ¥100 million. After deducting Q1 results, the amounts required in Q2 alone are ¥6,553 million in revenue, ¥495 million in operating profit, ¥466 million in ordinary profit and ¥229 million in net profit. Accordingly, barring an extreme deterioration in the Q2 margin, the H1 plan itself appears highly achievable.

By contrast, FY2026-H1 results were revenue of ¥14,169 million, operating profit of ¥1,070 million, ordinary profit of ¥1,151 million and net profit of ¥978 million. The FY2027-H1 forecast is ¥169 million, or approximately 1.2%, below the prior-year period for revenue, while operating profit is planned at ¥330 million, or approximately 30.8%, above the prior-year period. Ordinary profit is also ¥249 million, or approximately 21.6%, higher, but net profit is ¥78 million, or approximately 8.0%, lower. We therefore need to check whether the improvement in H1 profit flows through from operating profit to net profit with the same strength.

Full-year guidance remained unchanged at revenue of ¥28,000 million, operating profit of ¥2,600 million, ordinary profit of ¥2,600 million and net profit of ¥1,700 million. Based on the H1 forecast, H2 would need to generate revenue of ¥14,000 million, operating profit of ¥1,200 million and net profit of ¥800 million. This implies an H2 operating margin of approximately 8.6%, compared with 10.0% in H1, and a decline from Q1's operating margin of 12.2%. In the next results, we will check whether Q2 operating profit reached at least ¥495 million and whether the H2 assumptions behind unchanged full-year guidance, including geopolitical risks and foreign-exchange trends, have changed.