Electronics Trading Companies FY2026 Full Year: Kaga leads growth, Daiwabo tops scale

AI, PC replacement and IT investment shaped results across the five companies. Average revenue was ¥821.5 billion, while average year-on-year growth was 10.9%.

• Generative AI and data center demand: Macnica captured demand for GPUs and memory, lifting revenue 17.4% year on year. AI-related semiconductors helped drive growth among trading companies.
• Corporate PC replacement: Ahead of the end of Windows 10 support, Daiwabo's revenue rose 18.8% year on year. Kaga Electronics also increased sales of memory for AI servers.
• Growth in IT solutions: Canon MJ's revenue rose just 4.0%, but operating profit increased 9.5%. Earnings from beyond hardware sales supported profits.
• Uneven semiconductor demand: TED's revenue fell 5.8% year on year as customer inventory adjustments continued. Strength in AI-related demand did not extend across the entire semiconductor market.

*Canon MJ reports on a December 2025 year-end, while the other four companies report for the year ended March 2026. Averages and rankings should therefore be viewed as reference comparisons.*

Kaga Electronics stood out for growth. Revenue reached ¥658.9 billion, up 20.3% year on year, the fastest increase among the five. Net income rose 82.0% to ¥31.1 billion.

However, the increase in net income included one-off gains, including about ¥7.8 billion in negative goodwill from its acquisition of Kyoei Sangyo. Operating profit rose 17.9% to ¥27.8 billion, so underlying business growth should be distinguished from the sharp rise in net income.

Daiwabo led in scale and operating profit. Revenue rose 18.8% to ¥1,350.9 billion, while operating profit increased 26.6% to ¥44.2 billion. Its capture of PC replacement demand also helped it outpace Kaga Electronics in operating-profit growth.

TED had the toughest year. Revenue fell 5.8% to ¥203.7 billion and operating profit declined 17.7% to ¥10.3 billion, making it the only company among the five to post declines in both. Inventory adjustments and weak sales to industrial equipment customers weighed on results.

Kaga led in growth, while Daiwabo led in scale and profit. TED, meanwhile, was weighed down by the semiconductor market correction, leaving a clear divide in performance.

Kaga Electronics made Kyoei Sangyo a subsidiary, expanding its customer base and business scale. The next focus is how it uses sales channels and procurement networks after integration, beyond the one-off acquisition gain. Its independent procurement capabilities also supported sales of memory for AI servers.

Macnica expanded not only in generative AI semiconductors but also in cybersecurity. Revenue rose 17.4% to ¥1,214.2 billion, while operating profit increased 5.8% to ¥42.0 billion, lagging sales growth. For the year ending March 2027, the company forecasts revenue of ¥1,300 billion and operating profit of ¥52.0 billion.

Daiwabo captured PC replacement demand to take the top spot among the five in both revenue and operating profit. Its forecast for the year ending March 2027 is revenue of ¥1,189 billion and operating profit of ¥36.5 billion, about 12% and 17% below this year's results, respectively. The plan points to an expected pullback after exceptional demand.

At TED, its computer systems-related business helped offset weakness in semiconductors. That business is said to account for about two-thirds of total profit, indicating a broader earnings base. TED forecasts revenue of ¥225 billion for the year ending March 2027 but has not provided an operating-profit forecast.

Canon MJ was led by growth in IT solutions. Its operating margin was 8.6%, the highest among the five. Its results are for the year ended December 2025, a different period from the March-year companies.

Daiwabo ranked first in revenue at ¥1,350.9 billion, followed by Macnica at ¥1,214.2 billion. Canon MJ led in operating profit at ¥58.2 billion, though its December 2025 year-end makes direct comparisons with the other companies less straightforward.

Canon MJ's operating margin was 8.6%, and TED's was 5.0%. Both exceeded the five-company average of 4.9%. The gap in margins reflects not only company size but also whether businesses have higher-value operations such as IT services.

AI semiconductors and PC replacement demand lifted sales this year, but some companies are anticipating demand will run its course. Competitive advantage among trading companies increasingly depends not just on sales volumes, but on building service revenue and procurement capabilities.

Strong demand may not last. In particular, expanding revenue does not necessarily translate directly into higher profits.

• Reversal of exceptional demand: Daiwabo's forecast for the year ending March 2027 is below this year's results for both revenue and operating profit. Sales volumes could fall once PC replacement demand runs its course.
• Semiconductor inventory adjustments: TED's declines in revenue and profit show how changes in customer inventories and capital spending can directly affect sales.
• Low margins and price competition: Macnica and Daiwabo had operating margins of 3.5% and 3.3%, respectively, below the five-company average of 4.9%. Changes in purchase prices and sales terms can therefore sway profits.
• Uneven AI demand: Even when AI investment is strong, its benefits vary by product and customer. Greater reliance on specific areas could leave results exposed to shifts in demand.
• Acquisitions, foreign exchange and supply-chain changes: The durability of Kaga Electronics' acquisition benefits, as well as currency movements and geopolitical supply constraints, could affect earnings and procurement.

Even within specialty trading companies, the work varies widely. Those interested in technical proposals for semiconductors may consider Macnica or TED, while Daiwabo is an option for corporate PCs and IT infrastructure sales. Kaga Electronics offers exposure to a broad range of products and procurement networks, while Canon MJ provides opportunities in IT implementation and operational support.

The ability to identify customer needs is becoming as important as buying and selling products. Companies with recurring-revenue businesses in areas such as security, cloud services and systems integration may be better positioned to smooth out demand swings. When assessing employers, candidates should look beyond revenue growth to business mix, profit margins and plans for the period after exceptional demand.