Can the company maintain its FY2027 plan after the upward revision following a strong Q1 start?

FY2027 Q1 revenue was ¥54.537 billion, up 35.2% year on year; operating profit was ¥2.323 billion, up 167.3%; and ordinary profit was ¥2.295 billion, up 219.1%. The full-year forecasts are revenue of ¥227.5 billion, operating profit of ¥9.6 billion, ordinary profit of ¥8.6 billion and net income attributable to owners of the parent of ¥6.4 billion. Progress at Q1 was 24.0% for revenue, 24.2% for operating profit, 26.7% for ordinary profit and 22.8% for net income. Revenue and operating profit were close to a simple one-quarter pace, so at least numerically the company was not significantly behind the plan after the upward revision.

The Q1 operating margin was approximately 4.26%, calculated by dividing operating profit of ¥2.323 billion by revenue of ¥54.537 billion, slightly above the approximately 4.22% implied by the full-year forecast. However, Q1 profit included a ¥1,082 million boost from factors including foreign-exchange effects, while net income included a ¥288 million gain on the sale of investment securities. In H1, it will therefore be necessary to distinguish underlying profit progress excluding foreign-exchange effects and extraordinary items, rather than looking only at the operating margin.

At the next results announcement, the first point to check will be whether H1 revenue exceeds ¥113.75 billion and operating profit exceeds ¥4.8 billion, the simple half-year benchmarks. Even if H1 operating profit falls short of this level, the assessment could change if seasonality, such as a bias toward the second half, is disclosed. The information currently available does not specify H1 progress against the full-year forecast or the revenue and profit amounts required in the second half. We will therefore examine at the same time the growth of existing businesses excluding the consolidated effect of Rabyte, Q2 standalone margin and whether the full-year forecasts are revised again.