Daiwabo Holdings Co., Ltd.
3107・Prime Market・Wholesale Trade
Business
Daiwabo Holdings is a pure holding company composed of two segments: the IT infrastructure distribution business, centered on subsidiary Daiwabo Information System, and the industrial machinery business, operated by OM Manufacturing Co., Ltd. and others. In the IT infrastructure distribution business, the company distributes PCs, servers, cloud services, and software nationwide through sales partners, serving a wide range of customers including education, government, corporate, and individual sectors. In the industrial machinery business, the company manufactures and sells machine tools and automated machinery, with the aviation, shipbuilding, and energy industries as its main customers. In March 2024, the company transferred 85.0% of the shares of its textile business (Daiwabo Co., Ltd.), and is pursuing a business portfolio transformation to concentrate management resources on IT infrastructure distribution.
Business Model
The IT infrastructure distribution business is fundamentally a distributor-type business, under which the company has concluded dealership agreements with major vendors such as NEC and IBM, purchasing PCs, servers, cloud services and software in bulk and wholesaling them to sales partners nationwide. In addition, it has a composite revenue structure that builds up recurring revenue from cloud/SaaS subscriptions managed through the subscription management portal "iKAZUCHI (雷)", as well as service revenue from logistics, installation, maintenance, and system development. The industrial machinery business is fundamentally build-to-order, supplemented by service and overhaul revenue.
Company Strengths
Based on long-term dealership agreements with NEC, IBM, and others, the company has built a robust collaborative framework with sales partners nationwide. In the GIGA School Program Phase 2 joint procurement projects, meticulous nationwide sales activities proved successful, achieving substantial revenue growth in the education sector. In FY2026 (ending March 2026), IT infrastructure distribution business sales reached ¥1,336,479 million, accounting for approximately 99% of group sales, demonstrating an overwhelming scale of distribution.
The company owns "iKAZUCHI," a proprietary subscription management portal that builds a mechanism for accumulating recurring revenue from cloud and SaaS products. Having established a stable recurring revenue base internally that does not depend on one-off hardware sales, this serves as a differentiating factor that is difficult for competitors to replicate in the short term.
In FY2026 (ending March 2026), ROE reached 19.9% and ROIC reached 16.9%, substantially exceeding the target levels set out in the medium-term management plan (ROE of 14% or higher, ROIC of 12% or higher). Against interest-bearing debt of ¥19,074 million, the company held cash and cash equivalents of ¥43,852 million, achieving high capital efficiency while maintaining financial soundness.
ENVALITH's Perspective
Performance Trend
Revenue expanded approximately 1.77-fold over five fiscal years, from ¥763,838 million in FY2022 (ended March 2022) to ¥1,350,879 million in FY2026 (ending March 2026). Growth accelerated in FY2026, up 18.8% year on year. Operating profit reached ¥44,169 million (up 26.6% year on year) and profit attributable to owners of parent reached ¥32,030 million (up 29.4% year on year), both record highs. External factors—demand related to Windows 10 end-of-support, the second phase of the GIGA School Program, and AI-related server demand—significantly drove performance. Return on equity (ROE) improved to 19.9% from 16.8% in the previous period. However, for FY2027 (ending March 2027), the company forecasts a substantial decline in earnings, with revenue of ¥1,189,000 million and operating profit of ¥36,500 million, as special demand fades, entering a phase where the sustainability of growth will be tested.
Growth Strategy
Under the '2030 VISION,' the company continues its transformation of the business portfolio centered on IT and its ongoing challenge to achieve record-high profits.
Promoting expansion of recurring revenue from cloud/SaaS products through the subscription management portal "iKAZUCHI" (Thunder). Combined with market penetration of new tech vendors and original services, the company aims to shift its revenue structure away from hardware dependence.
Deploying bundled proposals combining PCs, cloud, networks, and software to corporations, government agencies, and educational institutions, accelerating the shift from single-product sales to solution provision. In FY2026 (ending March 2026), the company captured demand and built track record in the enterprise services, retail, manufacturing, and healthcare industries.
Annual dividends have increased consecutively from ¥90 in FY2025 (ending March 2025) to ¥105 in FY2026 (ending March 2026), with a forecast of ¥110 for FY2027 (ending March 2027). In FY2026 (ending March 2026), the company retired 7,877,432 treasury shares (¥19,253 million). In May 2026, the company resolved to conduct additional acquisitions (up to 2,400,000 shares / ¥6,000 million) and retirement, continuing to promote capital efficiency and enhance shareholder value.
Continuing to expand orders for machine tools for the shipbuilding, energy, and aircraft industries, and to win large-scale projects in the automatic machinery division. In FY2026 (ending March 2026), net sales were ¥14,400 million (+11.7% year on year) and operating profit was ¥1,127 million (+32.3% year on year), showing a recovery trend. The segment continues to serve as the group's second pillar of earnings, maintaining stable profit contribution.
Last updated: July 19, 2026