• Constructive outcome – Q1-4 FY3/26 results were a positive surprise, with OP ahead of guidance, and AI-related and overseas demand driving earnings. With FY3/27 guidance pointing to high single-digit topline growth and OPM expansion YoY, the outlook is for steady incremental gains, with expectations of domestic demand recovering, particularly from the Industrial Equipment sector, and narrowing losses YoY at the smart mobility initiative. We view the company as being well-positioned to continue benefitting from structural themes in data center build-outs and IT security. However, we expect the outlook for margin expansion to be more measured than previously estimated, given rising overseas exposure and a more gradual growth profile in the high-margin Solutions and Services Model business.