Open Up Group (2154) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue rose 2.6% YoY to ¥42.23bn; operating profit fell 11.3% to ¥3.655bn and profit attributable to owners fell 10.9% to ¥2.474bn.

• A new management structure launched a transformation prioritizing value creation over workforce growth; management expects benefits from Q2, particularly in H2.

Financial highlights

• Gross profit rose 1.0% YoY to ¥11.263bn, while SG&A increased 8.2% to ¥7.688bn.

• Profit before tax declined 11.8% YoY to ¥3.683bn; basic EPS was ¥29.11 versus ¥32.40 a year earlier.

• Revenue growth reflected M&E and Overseas gains, partly offset by declines in IT, Construction and Others.

Outlook and guidance

• FY2027 guidance unchanged: revenue ¥175.0bn, operating profit ¥17.7bn, profit before tax ¥17.7bn and owners’ profit ¥12.3bn; Q1 progress was 24.1%, 20.7% and 20.1% for revenue, operating profit and net income.

• Transformation investment includes IT infrastructure, portfolio restructuring and stronger corporate functions; benefits are expected to become more apparent from Q2, especially in H2.

• FY2027 dividend forecast remains ¥90 per share, split ¥40 at the second-quarter end and ¥50 at year-end; progressive dividend policy targets a 60% payout ratio.