Daiwabo Holdings (3107) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached a record ¥677.352bn, up 3.1% YoY; operating income fell 7.4% to ¥20.785bn as gross margin eased from the prior-year high.

• FY2027 guidance was raised on large-project wins, higher PC prices, pull-forward orders and expected strength in corporate IT demand.

Financial highlights

• H1 ordinary income fell 8.1% to ¥20.786bn; profit attributable to owners fell 7.4% to ¥14.572bn, with EPS of ¥168.95 versus ¥176.04.

• Gross profit was ¥47.034bn versus ¥47.579bn; gross margin was 6.9% versus 7.2%, while SG&A rose to ¥26.248bn from ¥25.144bn.

• Comprehensive income was ¥15.722bn, down from ¥16.485bn; profit before income taxes was ¥21.376bn versus ¥22.879bn.

• Operating cash flow was negative ¥69.541bn, primarily reflecting increased inventories.

Outlook and guidance

• FY2027 forecast raised to net sales of ¥1.369tn (+1.3%), operating income of ¥43.0bn (-2.6%), ordinary income of ¥43.05bn (-4.2%) and parent profit of ¥30.5bn (-4.8%).

• Revised FY EPS forecast is ¥355.44; H1 progress was 49.5% of sales guidance and 48.3% of operating income guidance.

• H2 sales forecast is ¥691.647bn and operating income ¥22.214bn; IT distribution sales are expected broadly in line with the prior year despite the GIGA School peak passing.

• PC prices are expected to rise further amid memory and component costs; shipments may be slightly below H1 after pull-forward demand, with higher prices and robust orders expected to limit sales declines.