The focus is on the repeatability of market-related revenue and fee recovery after the sharp Q1 profit increase

FY2027-Q1 operating revenue was ¥4.375 billion, up ¥1.559 billion from ¥2.816 billion a year earlier. Operating profit increased from ¥0.143 billion to ¥1.548 billion, and the operating margin rose from approximately 5.1% to approximately 35.4%. Profit expanded more rapidly than revenue, making this a quarter in which the composition of fee income and the ability to absorb costs improved substantially, rather than merely one of revenue growth.

The main contributors to the increase in revenue were brokerage commissions on Japanese, Chinese, and U.S. stocks. Japanese stock brokerage trading value was ¥3.602 billion, overseas stock brokerage trading value was ¥0.249 billion, and the amount raised through equity investment trusts was ¥0.247 billion. Brokerage commissions were ¥2.874 billion, up 228.3% year on year. Meanwhile, sales commissions on investment trusts, underwriting and related commissions, and trading income declined or deteriorated, so not all revenue items improved.

Year on year, the ¥1.559 billion increase in operating revenue was accompanied by a ¥1.405 billion increase in operating profit. Accordingly, the points to monitor in FY2027-H1 are whether trading value in Japanese and overseas stocks remains high, whether the increase in brokerage commissions continues into Q2, and whether balance-based revenue such as investment trust agency fees provides a supporting contribution.

Quarterly net income attributable to owners of the parent was ¥1.511 billion, while ordinary profit was ¥1.660 billion. Net income included a ¥0.3 billion gain on sales of investment securities, so in H1 the contribution from gains on sales should be assessed separately from ordinary profit, operating profit, and the breakdown of fees received. As the company has not disclosed a full-year earnings forecast, the criteria for assessing H1 will be whether year-on-year revenue growth continues, whether the operating margin remains clearly above the year-earlier level, and whether profit excluding non-recurring items expands, rather than progress against a forecast.