Daiwabo Holdings (3107) Q2 2025 earnings summary

Executive summary

• Achieved record-high first-half net sales of ¥517.4 billion, up 16.0% year-over-year, driven by robust domestic IT demand and strong PC sales for Windows upgrades.

• Operating income rose 5.9% year-over-year to ¥13.5 billion, marking the third consecutive year of interim growth.

• Profit attributable to owners of parent increased 11.1% year-over-year to ¥9.5 billion.

• The Fiber Business was excluded from consolidation due to a share transfer, impacting segment reporting.

• Upward revision of full-year forecasts: net sales now expected at ¥1,123.5 billion (+16.1% YoY), operating income at ¥33.0 billion (+6.6% YoY).

Financial highlights

• Net sales for 1H FY2025: ¥517.4 billion (+16.0% YoY); operating income: ¥13.5 billion (+5.9% YoY); net profit attributable to owners: ¥9.5 billion (+11.1% YoY).

• Gross profit margin declined to 6.7% from 8.1% YoY; operating income margin at 2.6%.

• Interim EPS: ¥102.52, up from ¥91.23 YoY.

• Total assets at ¥396.9 billion, equity capital ratio 35.4%.

• Ordinary income rose 7.2% year-over-year to ¥13.8 billion.

Outlook and guidance

• Full-year net sales forecast raised to ¥1,123.5 billion (+16.1% YoY); operating income to ¥33.0 billion (+6.6% YoY); net profit to ¥23.0 billion (+437.0% YoY, reflecting prior year one-time loss).

• Net earnings per share forecast at ¥248.89.

• Dividend forecast revised to ¥90.00 per share for the full year.

• PC shipments projected to rise 31% YoY for the full year, driven by Windows 10 end-of-support and GIGA School program demand.

• Second-half net sales expected at ¥606.1 billion (+16.1% YoY); operating income at ¥19.5 billion (+7.1% YoY).