• FY3/27 expected to be a transitional year – AS ONE delivered full year operating profit growth ahead of revenue growth in FY3/26, demonstrating the operating leverage in its model. The FY3/27 financial guidance points to a year of growth investments, which should translate to profitability improvement in future years. We note that AS ONE has maintained a strong track record of cost discipline, which makes us believe the elevated SG&A spend in FY3/27 is expected to generate meaningful returns. Further, top line growth outlook is positive and shows signs of increasing wallet share. Although ROE reached a record 13.3% and exceeded the FY3/28 MTP target ahead of schedule, we believe AS ONE will continue to incrementally improve its ROE and ROA.
