H1 preliminary results show sharply higher profit, but full-year sustainability depends on market conditions

In the first quarter of the fiscal year ending March 2027, operating revenue was ¥5.686 billion, operating profit was ¥1.984 billion, ordinary income was ¥2.234 billion, and quarterly net income was ¥1.508 billion. Compared with the same period of the previous year, operating revenue increased 71.3%, operating profit 730.1%, ordinary income 398.7%, and net income 347.5%, indicating strong profit growth from the beginning of the fiscal year. Preliminary results for the six months ended September 2026 are operating revenue of approximately ¥9.798 billion, operating profit of approximately ¥2.651 billion, ordinary income of approximately ¥2.936 billion, and net income of approximately ¥1.923 billion.

In the same period of the previous year, six-month operating revenue was ¥7.344 billion, operating profit was ¥1.145 billion, ordinary income was ¥1.351 billion, and net income was ¥942 million. On a preliminary basis, this implies increases of approximately 33.4% in operating revenue, 131.5% in operating profit, 117.3% in ordinary income, and 104.1% in net income. Simply calculating the differences from the first-quarter results gives second-quarter standalone operating revenue of approximately ¥4.112 billion, operating profit of approximately ¥667 million, ordinary income of approximately ¥702 million, and net income of approximately ¥415 million. The formal results should therefore also be checked to verify this standalone quarterly earnings level.

The profit increase reflects higher brokerage commissions and trading gains, driven by rising stock markets and increased trading volume in U.S. equities. However, the company has not disclosed a full-year earnings forecast, citing the possibility of substantial fluctuations depending on stock market conditions and other factors. Full-year profit cannot be extrapolated from the H1 preliminary results alone. In the next formal disclosure, it will be necessary to confirm the breakdown of brokerage commissions, trading gains, selling, general and administrative expenses, and the market assumptions for the second half.