FY2027 fiscal year ending March 2027 earnings forecast disclosed; 1Q operating profit progress exceeds the simple run rate

The first quarter of the fiscal year ending March 2027 covered 1 April to 30 June 2026. Revenue was ¥30,585 million, operating profit ¥4,148 million, ordinary profit ¥4,125 million and net income attributable to owners of the parent ¥2,415 million. Revenue increased 9.3% year on year, operating profit rose 8.6% and ordinary profit rose 3.5%, while net income declined 22.3%, showing divergent trends at different profit levels.

The company presented full-year forecasts of revenue of ¥120,000 million, operating profit of ¥16,000 million, ordinary profit of ¥16,000 million and net income of ¥10,500 million. First-quarter progress was 25.5%, 25.9%, 25.8% and 23.0%, respectively, with revenue, operating profit and ordinary profit broadly meeting the simple one-quarter benchmark. However, the information provided does not quantitatively disclose the company’s quarterly seasonality or the allocation of profit between the first and second halves, so it is too early to assess full-year achievement based solely on simple progress.

At the next interim results, the benchmarks for simple half-year progress will be revenue of ¥60,000 million, operating profit of ¥8,000 million, ordinary profit of ¥8,000 million and net income of ¥5,250 million. Net income was only 23.0% of the full-year forecast at the end of the first quarter, so it will be necessary to determine whether operating profit growth is carrying through to the full-year plan after tax expense, non-operating income and expenses, and extraordinary income and losses. If net income progress remains below 50% at the interim stage, the company will need to explain the likelihood of achieving the ¥10,500 million full-year forecast.

By segment, first-quarter revenue was ¥6,421 million for Electronic Devices, ¥15,305 million for Precision Molded Products, ¥6,232 million for Living Environment and Lifestyle Materials, and ¥2,626 million for Other. Segment profit was ¥287 million, ¥2,838 million, ¥841 million and ¥181 million, respectively, indicating differences in the quality of progress by segment. Orders received and order backlog, regional revenue, and the first-quarter cash flow statement were not disclosed in the results summary provided, so it will also be important to see whether supplementary disclosures increase at the interim results.