• Strong order visibility – The key takeaway for Q1-2 FY3/25 results is that Macnica demonstrated stronger-than-expected sales growth, which was a positive surprise. We believe a gradual expansion in operating margin will continue in H2 FY3/26, underpinned by improved earnings visibility in the Semiconductor Business, as order volumes remain elevated. The high-margin Cybersecurity business continues to demonstrate stable and sustained growth, with structural growth themes intact both domestically and overseas. The company has maintained FY3/26 guidance, but we believe YoY sales growth will be more pronounced, given the steady start to the FY and healthy order momentum.
