Can the first half deliver the ¥12.4 billion net profit forecast after the upward revision?

In the first quarter of the fiscal year ending March 2027, ordinary revenue was ¥52.357 billion, up 44.3% year on year, ordinary profit was ¥9.114 billion, up 117.7%, and net profit attributable to owners of the parent was ¥6.336 billion, up 96.6%. The full-year forecasts are ordinary revenue of ¥197.6 billion, ordinary profit of ¥37.5 billion and net profit attributable to owners of the parent of ¥25.5 billion, and the company had not changed its full-year forecasts as of the first quarter.

Meanwhile, reports dated 23 October said that the interim ordinary profit forecast for April–September 2026 had been raised from ¥17.5 billion to ¥18.3 billion and the net profit forecast from ¥11.8 billion to ¥12.4 billion. The upward revision reflects gains on cancellations of investment trusts arising from a review of the securities portfolio, so the interim profit upside may not have resulted solely from a recurring improvement in the operating platform. First-quarter net profit of ¥6.336 billion represents 24.8% of the full-year forecast of ¥25.5 billion. Even if the ¥12.4 billion first-half forecast is achieved, approximately ¥13.1 billion will still need to be earned in the second half.

Net profit attributable to owners of the parent for the fiscal year ended March 2026 was ¥22.698 billion, a record high for the fifth consecutive fiscal year. At the next results announcement, it will be important to determine not only the extent to which interim results were above or below ¥12.4 billion, but also whether gains on investment trust cancellations, interest on loans and discounts, fees and commissions, and credit costs can be disclosed separately. The first-quarter materials did not include a quarterly consolidated cash flow statement, so the conversion of profit into cash and cash inflows from securities sales will need to be confirmed in the first-half disclosure.