The FY2027 plan following the upward revision needs to be supported by actual results in FY2027-H1

In the first quarter of the fiscal year ending February 2027, revenue was ¥12.767 billion, operating profit was ¥799 million, ordinary profit was ¥820 million and quarterly profit attributable to owners of the parent was ¥542 million. Year on year, revenue increased 3.6%, operating profit increased 6.6% and ordinary profit increased 17.8%, while net profit decreased 2.2%. On a simple comparison assuming four equal quarters, first-quarter revenue represented 24.6% of the initial full-year forecast of ¥52.0 billion, while operating profit represented 24.5% of the ¥3.265 billion forecast, indicating no significant delay against the initial plan at least.

The full-year forecast was subsequently revised upward on 14 September, with revenue raised from ¥52.0 billion to ¥55.0 billion, operating profit from ¥3.265 billion to ¥3.874 billion, and profit attributable to owners of the parent from ¥2.183 billion to ¥2.566 billion. Compared with the pre-revision figures, the operating profit hurdle has risen by ¥619 million and the revenue hurdle by ¥3.0 billion. The upward revision was attributed to the pass-through of raw material costs, higher Top Seal sales, orders brought forward amid supply concerns, and expanding demand in the semiconductor and electronic components markets. The interim results will therefore need to distinguish between temporary order recognition and demand that will continue into the second half.

The mechanical interim benchmarks are revenue of ¥27.5 billion, operating profit of ¥1.937 billion and net profit of ¥1.283 billion, representing 50% of the revised full-year forecasts. These are merely simple benchmarks that disregard seasonality, but they provide at least a basis for assessing the gap between interim results and the company’s plan. In particular, it will be necessary to confirm whether operating profit growth is being maintained relative to revenue growth, and whether higher raw material prices are being absorbed through price pass-through and productivity improvements.

Regarding shareholder returns, the annual dividend forecast was raised from ¥74 to ¥82, an increase of ¥11 from the previous fiscal year’s actual dividend of ¥71, with ¥41 set for both the interim and year-end dividends. The dividend amount itself is clear, but the revision information does not sufficiently explain numerical targets for the payout ratio or the return policy in relation to earnings growth. The next results will need to be reviewed for additional explanation of the sustainability of the dividend increase, the dividend burden relative to revised profit, and its compatibility with strengthening the financial position.