FY2027 plan strongly favors profit growth over revenue growth

FY2026 ended with consolidated revenue of ¥8,289 million, operating profit of ¥492 million and an operating margin of 5.9%. For FY2027, the company forecasts revenue of ¥9,600 million, operating profit of ¥800 million, ordinary profit of ¥780 million and net income attributable to owners of the parent of ¥500 million. Against revenue growth of 15.8%, operating profit is expected to grow 62.4% and net income 73.3%, indicating a plan that assumes not only revenue expansion but also margin improvement.

The FY2027 operating margin is approximately 8.3%, calculated by dividing ¥800 million by ¥9,600 million, representing an increase of approximately 2.4 percentage points from 5.9% in FY2026. However, FY2026 was the first year in which 株式会社サン・システムプランニング was consolidated, while the previous fiscal year was unconsolidated, so differences in the scope of consolidation remain in a simple year-on-year comparison. In Q1, in addition to consolidated revenue growth, it will be necessary to assess the growth of the existing business excluding the contribution from the consolidated subsidiary, as well as the drivers of margin improvement, including gross margin and the ratio of selling, general and administrative expenses to revenue.

The company explains that it continued to invest in human capital, advertising and promotion, and DX and IT during FY2026, while operating profit exceeded its most recent earnings forecast as the effects of those investments became apparent. In FY2027-Q1, we will use revenue of ¥2,400 million and operating profit of ¥200 million, equivalent to one-quarter of the simple annual plan, as mechanical progress benchmarks, while comparing them with the company’s explanations regarding seasonality and the timing of revenue recognition by consolidated subsidiaries. Of particular focus will be any additional disclosure on whether margin improvement is due to slower growth in advertising and personnel expenses or improvements in pricing and project mix.