Visional (4194.T) Earnings update: FY7/27 operating profit guidance appears conservative. Monitoring progress of growth businesses following BizReach will be key; Neutral

We review 4Q7/26 results and summarize our views below. We maintain our Neutral rating. The FY7/27 guidance announced alongside the recent results was slightly below the Bloomberg consensus and our estimate. Our impression is that there was a degree of expectation ahead of the results that the company would present an outlook for improved sales growth in the BizReach business on the back of the fee hike for headhunters, and that many investors had not fully factored in the outlook for wider losses in the HRMOS business. We maintain our view that the outlook for wider losses at HRMOS is conservative, and we see room for full-year operating profits to beat guidance (guidance: ¥26.6 bn;