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.

• Net income attributable to shareholders increased 11.1% to ¥9.5 billion.

• IT Infrastructure Distribution segment drove growth, while Industrial Machinery segment saw declines in both sales and profit.

• Textile/fiber business divested in March 2024 and excluded from current results.

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%.

• Interim dividend increased to ¥45.00 per share, with full-year forecast at ¥90.00.

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).

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

• Guidance revision announced on November 6, 2024, reflecting updated business conditions.

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