FY2027 Q1 is ahead of the pace implied by the full-year operating profit forecast, but sustainability will be assessed in H1

In Q1 of the fiscal year ending March 2027, revenue was ¥9,867 million, operating profit was ¥2,279 million, ordinary profit was ¥2,236 million and net profit attributable to owners of the parent was ¥1,576 million. Year on year, revenue increased 31.8%, operating profit 54.5%, ordinary profit 47.5% and net profit 29.6%, with profit growth outpacing revenue growth.

The full-year forecasts are ¥6,200 million for operating profit, ¥6,100 million for ordinary profit and ¥4,200 million for net profit. Q1 results represented 36.8%, 36.7% and 37.5% of the respective full-year forecasts, exceeding the 25% implied by a simple quarterly split. However, quarterly profit may fluctuate depending on the timing of gains from sales of leased assets and real estate sales, so it is too early to judge whether the full-year forecasts will be exceeded based solely on these progress rates. For FY2027-H1, operating profit of at least ¥3,100 million, ordinary profit of at least ¥3,050 million and net profit of at least ¥2,100 million will serve as reference thresholds.

In the previous fiscal year ending March 2026, revenue fell 8.9% year on year to ¥35,838 million, while operating profit rose 7.6% to ¥6,083 million. Against this base, the FY2027 operating profit forecast of ¥6,200 million represents growth of only 1.9%, a substantial gap from Q1 growth of 54.5%. From FY2027, the company has excluded revenue from the items for which it publishes earnings forecasts, and no full-year revenue forecast is currently provided. Accordingly, the H1 results should assess the basis for the full-year forecast through operating asset balances, new transaction volume, segment profit and the effects of interest-rate setting, rather than through the absolute level of revenue.

The Q1 earnings summary attributed the increase in profit to corporate capital investment demand, strong real estate market conditions, appropriate interest-rate setting, growth in average balances during the period and sales of real estate for sale. However, the contribution of each factor and the profit from sales of real estate for sale have not been broken out. In FY2027-H1, it will be necessary to determine whether the increase in operating profit came from recurring income such as interest and fees or from the recognition of individual transactions such as real estate sales, and to assess the likelihood of achieving the ¥6,200 million full-year forecast.