Data-center deals and inventory build
Daiwabo Holdings Co., Ltd. (TSE: 3107) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 11, 2026. IT Infrastructure Distribution sales rose 3.1% to ¥669,980 million, but operating profit fell 8.5% to ¥19,985 million. Client-PC shipments fell after the Windows 10 end-of-support refresh ran its course, while the company built inventory strategically ahead of price rises amid a prolonged surge in memory prices driven by AI demand. It won large infrastructure deals including data centers and used its iKAZUCHI subscription portal to sell cloud and security; corporate demand from manufacturing, telecoms and finance was firm. Education sales fell from last year's peak of the second phase of the GIGA School programme. Margins narrowed because price pass-through lagged and large deals carried lower profitability.
Industrial Machinery sales rose 3.3% to ¥7,372 million and operating profit 35.4% to ¥792 million, as machine-tool orders from shipbuilding, energy and a recovering aircraft industry rose sharply and short-lead-time sales from stock clustered in the second quarter. Total assets rose 18.1% to ¥545,556 million, mainly on higher inventories, and the equity ratio fell to 32.1% from 36.8%.
Forecast revised, dividend held at ¥110
Daiwabo now expects FY3/2027 net sales of ¥1,369,000 million (+1.3%), operating profit of ¥43,000 million (-2.6%), ordinary profit of ¥43,050 million (-4.2%) and net profit attributable to owners of ¥30,500 million (-4.8%), revised in a separate notice released the same day. It paid an interim dividend of ¥55, up from ¥50, and plans ¥55 at year-end for ¥110, against ¥105.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 677,352 | 656,830 | +3.1% |
| Operating profit (¥ million) | 20,785 | 22,435 | -7.4% |
| Ordinary profit (¥ million) | 20,786 | 22,608 | -8.1% |
| Net profit attrib. to owners of parent (¥ million) | 14,572 | 15,736 | -7.4% |
| Comprehensive income (¥ million) | 15,722 | 16,485 | -4.6% |
| EPS (¥) | 168.95 | 176.04 | -4.0% |
| IT Infrastructure Distribution — revenue (¥ million) | 669,980 | — | +3.1% |
| IT Infrastructure Distribution — segment profit (¥ million) | 19,985 | — | -8.5% |
| Industrial Machinery — revenue (¥ million) | 7,372 | — | +3.3% |
| Industrial Machinery — segment profit (¥ million) | 792 | — | +35.4% |
| Total assets (¥ million) | 545,556 | 462,072 | +18.1% |
| Net assets (¥ million) | 175,239 | 169,829 | +3.2% |
| Equity ratio | 32.1% | 36.8% | -4.7 pt |
| FY3/2027 guidance — revenue (¥ million) | 1,369,000 | — | +1.3% |
| FY3/2027 guidance — operating profit (¥ million) | 43,000 | — | -2.6% |
| FY3/2027 guidance — ordinary profit (¥ million) | 43,050 | — | -4.2% |
| FY3/2027 guidance — net profit (¥ million) | 30,500 | — | -4.8% |
| Annual dividend per share (¥) | 110.00 | 105.00 | +4.8% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.