FY2027-H1 plan nearly halfway achieved in Q1, with additional operating profit confirmed

In Q1 of the fiscal year ending March 2027, net sales were ¥8,199 million, operating profit was ¥236 million, ordinary profit was ¥281 million, and quarterly net income attributable to owners of the parent was ¥500 million. Year on year, net sales increased 3.9%, operating profit increased 23.8%, and ordinary profit increased 29.4%, securing profit growth above the rate of net sales growth at the operating level.

The revised first-half forecasts are net sales of ¥16,800 million, operating profit of ¥490 million, ordinary profit of ¥508 million, and net income of ¥651 million. Q1 progress was 48.8% for net sales and 48.2% for operating profit, close to 50% if the first half is divided evenly between the two quarters. Against the full-year forecasts of ¥36,000 million in net sales and ¥1,630 million in operating profit, progress was only 22.8% for net sales and 14.5% for operating profit, indicating that the plan relies on operating profit accumulating mainly from Q2 onward.

To meet the first-half targets, Q2 alone must generate net sales of ¥8,601 million and operating profit of ¥254 million. Based on Q1 results alone, the company appears to be on track, while the first-half operating margin forecast of approximately 2.92% is achievable if the Q1 operating margin of approximately 2.88% is largely maintained. At the next results announcement, the focus will be on Q2 standalone net sales and operating profit, as well as cumulative first-half profit margins by segment.

The reasons for revising the full-year forecasts include Q1 business trends, the consolidation of 大英エレクトロニクス, and extraordinary gains from the sale of cross-held shares and other assets. Accordingly, in addition to whether first-half operating profit reaches ¥490 million, it will be important to determine how much was contributed by the core businesses, such as semiconductor-related masks and solution sales, and whether there is a clear basis for margins to improve toward full-year operating profit of ¥1,630 million.