First-half profit is on track for substantial growth; revenue breakdown to be confirmed in the official disclosure

In Q1 of the fiscal year ending March 2027, operating revenue was ¥7.607 billion, operating income was ¥2.482 billion, ordinary income was ¥2.502 billion and net income attributable to owners of the parent was ¥1.683 billion. Year on year, operating revenue rose 64.4%, operating income 553.3%, ordinary income 523.5% and net income 644.5%. The operating margin on a simple calculation also rose 24.4 percentage points, from approximately 8.2% in the same period a year earlier to approximately 32.6%.

The largest contributor to the increase in profit was the ¥3.036 billion year-on-year increase in commissions received. Trading income fell by ¥44 million and other operating income and expenses fell by ¥24 million. SG&A expenses rose by ¥864 million, including an increase of ¥704 million in personnel expenses. In FY2027-H1, it will therefore be necessary to assess how much the increase in commission income absorbed the increase in fixed costs, mainly personnel expenses, and whether the operating margin fell materially from 32.6% in Q1.

Preliminary first-half figures announced on 19 October indicated ordinary income of ¥4.016 billion and interim net income attributable to owners of the parent of ¥2.678 billion. Deducting Q1 ordinary income of ¥2.502 billion gives standalone Q2 ordinary income of approximately ¥1.514 billion on a preliminary basis. The official summary report can verify whether the company remained profitable even if it slowed from the high level in Q1. Since these are preliminary figures, attention should also be paid to differences from the official breakdown of commissions received, trading income, SG&A expenses and taxes.

The company has not disclosed a full-year earnings forecast, citing substantial volatility in securities markets, and its reporting consists of a single segment, investment and financial services. Accordingly, the official FY2027-H1 disclosure should be reviewed for the consolidated breakdown of operating revenue and profit, as well as line-item details for brokerage commissions, other commissions received related to mutual funds and fund wraps, trading income and SG&A expenses.