Daiwabo Holdings (3107) Q1 2027 earnings summary

Executive summary

• Net sales for 1Q FY2027 reached a record-high 313.1 billion yen, up 7.8% year-over-year, driven by strong demand in data center and AI projects despite market uncertainty.

• Operating income declined 22.0% year-over-year to 7.7 billion yen due to lower gross profit margin and increased SG&A expenses, with profit improvement expected from 2Q onward.

• Profit attributable to owners fell 19.5% year-over-year to 5.8 billion yen.

• Comprehensive income decreased 3.0% year-over-year to 6.7 billion yen.

• The company remains on track to achieve its full-year targets and has begun formulating its next medium-term management plan toward its 2030 vision.

Financial highlights

• Net sales: 313.1 billion yen (+7.8% YoY); progress rate to full-year forecast: 26.3%.

• Operating income: 7.7 billion yen (-22.0% YoY); progress rate to full-year forecast: 21.1%.

• Profit attributable to owners: 5.8 billion yen (-19.5% YoY); EPS: 66.82 yen (-16.7% YoY).

• Gross profit margin decreased from 7.6% to 6.6% year-over-year; gross profit for the quarter was 20.68 billion yen, down from 22.10 billion yen.

• Extraordinary income included a gain on sales of noncurrent assets related to distribution centers.

Outlook and guidance

• Full-year forecast unchanged: net sales 1,189.0 billion yen (-12.0% YoY), operating income 36.5 billion yen (-17.4% YoY), EPS 291.09 yen (-19.6% YoY), net profit attributable to owners expected to fall 21.0% to 25.3 billion yen.

• 2Q net sales expected to exceed plan due to rising PC prices; operating profit to track in line with plan.

• Market uncertainty from 2H onward is being closely monitored, with performance forecasts maintained.

• No revisions to previously announced earnings or dividend forecasts.