FY2027 H1 is broadly on track against the full-year plan, with Q2 serving as the point at which progress toward the half-year target will be confirmed.

FY2027 Q1 operating revenue was ¥4,827 million and operating profit was ¥267 million, up 7.6% and 5.6%, respectively, year on year. These figures were not materially below FY2026 full-year operating revenue of ¥18,132 million and operating profit of ¥1,095 million, and the full-year forecasts were set at ¥18,200 million in operating revenue and ¥1,100 million in operating profit, both up 0.4% from the previous year's results. Although the company secured higher revenue and profit at the Q1 stage, its plan does not assume substantial profit growth and appears to emphasize stable operations during the remainder of the year.

As a percentage of the full-year forecasts, Q1 progress was 26.5% for operating revenue and 24.3% for operating profit. Ordinary profit was ¥348 million, or 29.0%, and net income attributable to owners of the parent was ¥222 million, or 27.8%. On a simple 50% basis without adjusting for quarterly seasonality, the H1 benchmarks are ¥9,100 million for operating revenue, ¥550 million for operating profit, ¥600 million for ordinary profit and ¥400 million for net income. At the next results announcement, it will be important to assess not only year-on-year changes but also the extent to which results are tracking this mechanical half-year benchmark.

Based on a simple calculation from Q1 results, reaching ¥9,100 million in operating revenue in H1 would require ¥4,273 million in Q2 alone, while reaching ¥550 million in operating profit would require ¥283 million in Q2 alone. These are verification benchmarks based on an even allocation of the full-year plan, not quarterly forecasts provided by the company, so seasonal fluctuations and the timing of project recognition also need to be considered. However, if cumulative Q2 results fall materially below these benchmarks, an explanation of the second-half weighting and the assumptions underpinning achievement of the plan will be necessary.

Growth in ordinary profit and net income was 34.4% and 36.2%, respectively, exceeding the 5.6% increase in operating profit. The improvement in Q1 profit may have been supported not only by operating profit from the core business but also by changes in non-operating income and expenses and the tax burden, although the financial summary provided does not show a detailed breakdown of non-operating income and expenses. In H1, it will be necessary to confirm whether operating profit growth is continuing and whether the company discloses items such as dividend income, equity-method gains or losses and foreign-exchange gains or losses that account for the difference from ordinary profit.