FY2027-Q1 was broadly on track against the full-year plan; H1 will confirm whether the pace of profit growth is sustained

In FY2027-Q1, revenue was ¥4.1428 billion, up 10.8% year on year; operating profit was ¥433.2 million, up 20.6%; ordinary income was ¥486.1 million, up 23.3%; and quarterly net income attributable to owners of the parent was ¥296.4 million, up 19.1%. The full-year forecasts were unchanged at revenue of ¥16.55 billion, operating profit of ¥1.63 billion, ordinary income of ¥1.72 billion and net income of ¥1.08 billion. Simple progress rates were 25.0% for revenue, 26.6% for operating profit and 27.4% for net income.

In the year-earlier quarter, revenue was ¥3.7392 billion, operating profit was ¥359.4 million and net income was ¥248.9 million. The operating margin for the current quarter was approximately 10.5%, up approximately 0.8 percentage points from approximately 9.6% in the year-earlier quarter. It also exceeded the 9.5% operating margin for FY2026 as a whole, making it important to determine whether this was a start accompanied by margin expansion rather than simply larger sales. However, quarterly seasonality and the allocation of profit between the first and second halves have not been disclosed, so the 25% and 50% levels should not be treated as mechanical targets; comparison with the previous year’s H1 progress is necessary.

Regarding earnings quality, neither extraordinary income nor extraordinary loss was recorded in FY2027-Q1, and there were no changes in accounting policies or estimates or restatements. The equity ratio rose 0.2 percentage points from 56.8% at the end of FY2026 to 57.0%; total assets were ¥17.416 billion and net assets were ¥11.251 billion. However, no consolidated cash flow statement was prepared for Q1, so it is not possible to confirm whether the increase in operating profit was accompanied by operating cash flow or investment requirements.

For FY2027-H1, we will use revenue of ¥8.255 billion, operating profit of ¥815 million and net income of ¥5.4 billion as mechanical 50% benchmarks and check whether they are exceeded. We will also assess whether the H1 operating margin can maintain FY2026’s full-year level of 9.5%, whether management’s view of the ¥16.3 billion full-year operating profit forecast has changed, and how much information is disclosed on cash flow and capital expenditure, which were not disclosed in Q1.