FY2027-H1 after the upward revision: focus on achieving the first-half plan and the sustainability of ¥10,000 million in full-year operating profit

Revenue in the first quarter of the fiscal year ending March 2027 was ¥17,883 million, up 12.6% year on year. Operating profit was ¥2,042 million, up 51.6%, ordinary profit was ¥2,141 million, up 64.3%, and net profit attributable to owners of the parent was ¥1,478 million, up 41.2%. Against the full-year revenue forecast of ¥67,500 million as of Q1, revenue progress was approximately 26.5%, while progress against the ¥6,800 million operating profit forecast was approximately 30.0%, indicating that profit was progressing faster than revenue.

Subsequently, on 23 October, the full-year forecasts were raised to revenue of ¥74,600 million, operating profit of ¥10,000 million, net profit attributable to owners of the parent of ¥7,100 million and EPS of ¥375.81. Revenue was increased by ¥7,100 million from the previous forecast, operating profit by ¥3,200 million and net profit by ¥2,800 million, making this more than a minor revision. News reports stated that the ordinary profit forecast was also raised from ¥6.4 billion to ¥10.2 billion, and the ordinary profit forecast for the April-September period from ¥2.9 billion to ¥4.6 billion.

The upward revision was attributed to improving demand for industrial machinery and process applications in the pressure gauge business, demand for pneumatic equipment accompanying stronger semiconductor-related investment, and expanding pressure sensor applications in facilities. Accordingly, at the next results announcement it will be necessary to check not only whether first-half ordinary profit reaches ¥4.6 billion, but also whether the increase in profit was concentrated in certain semiconductor-related projects or spread across multiple applications, including industrial machinery, process and facilities.

As of Q1, the company had not revised its forecasts and had not disclosed order intake or order backlog. Based on the upwardly revised full-year operating profit forecast of ¥10,000 million, progress of at least approximately 50% by the end of the first half is one benchmark to monitor. Even if this level is secured at the interim stage, the likelihood of achieving the full-year target could change if demand weakens or foreign exchange and raw material costs have an impact in the second half. At the next results announcement, it will therefore be necessary to check the demand assumptions for the second half, order backlog and whether the full-year forecasts are maintained or revised again.