Daiwa Communications
Basic Information
- Stock Code
- 7116
- Industry
- Wholesale
- Category Detail
- Building Materials, Electrical Equipment & Metal Wholesalers
- Prefecture
- Ishikawa Prefecture
- Establishment Year
- March 2016
- Listing Year
- December 2022
- Official Website
- https://daiwawa.com/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
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Overview
Daiwa Communications is an emerging company founded in 2016 and headquartered in Ishikawa Prefecture. It specializes in the wholesale of building materials, electrical machinery, and metals, primarily expanding wholesale operations to various industries centered on information and communications/network equipment.
Current Situation
Daiwa Communications has rapidly expanded its business since establishment, with wholesale of information and communications equipment as its core. It listed on the Tokyo Stock Exchange in December 2022 and is pursuing nationwide expansion while rooted in the region. It has entered building materials, electrical equipment materials, and real estate-related building maintenance businesses to diversify operations. Amid reports of a special investigation committee and delayed earnings announcements, it is working to strengthen its management base. It offers a broader wholesale lineup than competitors and excels in intermediate distribution of technical equipment. Collaborating with local communities, it focuses on building sustainable distribution systems. Moving forward, it aims to stabilize performance from 2025 by expanding industry networks and BtoB domains.
Trivia
Interesting Facts
- Young company that grew rapidly since establishment
- Top-class share in regional information and communications equipment wholesale
- Promoting diversified businesses in Ishikawa Prefecture
- Rapidly increased recognition shortly after TSE listing
- Gaining industry attention with AI surveillance system introduction
- Topic of special investigation committee due to delayed earnings
- Handles intermediate distribution for diverse industries single-handedly
- Local company contributing to regional economic revitalization
- Management stance emphasizing sustainability
- Corporate culture proactive in new product development
- Participates in standard formulation with industry associations
- Also operates mobile phone sales business
- Enhanced investment capacity with recent improved fundraising
- Eager to introduce latest technologies early
- Deep trust-based relationships with local community as strength
Hidden Connections
- Expanded building maintenance business through close cooperation with local construction companies
- Concluded exclusive agency contracts with several major information and communications manufacturers
- Contributes to ICT infrastructure development in collaboration with Ishikawa Prefecture administration
- Advancing logistics efficiency project in partnership with some competitors
- Highly evaluated by regional telecom carriers for mobile phone agency business
- Conducted joint development of security surveillance systems with AI companies
- Operating long-term collaborative programs with local schools for environmental education support
- Key material supplier for equipment renovations of major local companies
Future Outlook
Growth Drivers
- Expansion of digitalization demand in information and communications market
- Increased equipment demand from accelerated industrial equipment update cycles
- Growing demand for related products from AI/IoT technology proliferation
- Increased demand for building materials and equipment with regional economic revitalization
- Increased demand for environmentally responsive materials via ESG management push
- Expansion of smartphone shift in mobile phone agency
- Market expansion from advanced security and surveillance systems
- Service enhancement from rising logistics efficiency needs
- Accelerated nationwide expansion from local bases
- New customer acquisition via digital service linkages
- Shift to energy-saving and environmentally considerate products
- Advancement of next-generation network equipment development
Strategic Goals
- Enter top 5 in information and communications equipment wholesale industry
- Achieve sales over 30 billion yen
- Establish ESG governance framework
- Expand AI/IoT integrated product lineup
- Nationwide rollout of community contribution activities
- Complete digital optimization of logistics
- Invest fixed amount or more annually in new product development
- Fully implement sustainable material procurement
- Expand diversified business portfolio
- Rank in top positions of great places to work rankings
Business Segments
Information and Communications Equipment Wholesale
- Overview
- Deploys wholesale of high-performance information and communications equipment to diverse industries, supporting intermediate distribution as the core business.
- Competitiveness
- Broad product lineup and reliable support system
- Customers
-
- IT companies
- Data center operators
- Telecommunications carriers
- Government offices
- Educational institutions
- Medical institutions
- Manufacturing
- Distribution
- Financial institutions
- Public facilities
- Small and medium enterprises
- Large enterprises
- System integrators
- Products
-
- Network switches
- Servers
- Storage equipment
- Fiber optic cables
- Security systems
- Wireless LAN access points
- UPS units
- Routers
- Data center racks
- Network management software
- Firewalls
- IoT sensors
- Optical transmission equipment
Electrical Equipment Materials Wholesale
- Overview
- Supplies key materials for architectural equipment, contributing to electrical infrastructure for diverse facilities.
- Competitiveness
- Stable procurement capabilities and rapid delivery system
- Customers
-
- Construction companies
- Carpentry shops
- Equipment contractors
- Manufacturing
- Real estate management companies
- Facility management firms
- Building owners
- Local governments
- Public project operators
- Energy companies
- Products
-
- Distribution boards
- Substations
- Generators
- Commercial air conditioners
- Elevator control devices
- Electric wires
- Lighting equipment
- Instrumentation devices
- Safety devices
Building Maintenance Business
- Overview
- Provides comfortable environments through building equipment maintenance/repairs and security services.
- Competitiveness
- Highly specialized staff and rapid response capabilities
- Customers
-
- Office building owners
- Commercial facility operators
- Public facility managers
- Condominium management associations
- Hospitals
- Schools
- Factories
- Products
-
- Air conditioning maintenance
- Plumbing equipment repairs
- Security surveillance systems
- Renovation works
Mobile Phone Agency Sales Business
- Overview
- Handles mobile handset sales and agency for telecom carrier services to meet wide customer needs.
- Competitiveness
- Service expansion leveraging regional networks
- Customers
-
- General consumers
- Corporate customers
- Telecom carriers
- Products
-
- Mobile phone handsets
- Communications service contracts
- ISP service agency
Competitive Advantage
Strengths
- Expansion of wholesale to diverse industries
- Regional-focused management based in Ishikawa Prefecture
- Product lineup specialized in information and communications equipment
- Strengthened fundraising via early listing
- Broad customer base and trading network
- Highly specialized sales and technical staff
- Stable supply system
- Active service diversification
- Rapid needs response capability
- Reliability in network equipment wholesale
- Strengthened collaboration with partner companies
- Business expansion across multiple domains
- Enhanced technical support system
- Efficient logistics system
- Flexible sales strategy
Competitive Advantages
- One-stop service through extensive information and communications equipment handling
- Strong partnerships with local construction and electrical industries
- Improved transparency and trust as a listed company
- Ability to meet customer needs with broad products and services
- Competitive edge in efficient distribution management for intermediate circulation
- Risk reduction from market fluctuations via diversified businesses
- Fine-tuned customer service with regional focus
- Rapid adoption and proposal capabilities for latest technologies
- Stable management backed by solid financial base
- Enhanced technical capabilities through active hiring of young engineers
- Collaborative product development and sales promotion with partner firms
- Revenue diversification via expansion in building maintenance
- Expanded customer touchpoints through mobile phone agency sales
- Comprehensive product warranties and after-sales services
- Thorough information security measures
Threats
- Credit decline due to management risks like delayed earnings announcements
- Price competition pressure from intensifying market rivalry
- Delays in responding to rapid technological changes
- Dependency risk on key trading partners
- Demand decline from stagnant regional economy
- Supply chain instability risks
- Stricter government regulations and certification requirements
- Accelerated technological innovations by new entrants
- Logistics and equipment impacts from natural disasters
- Challenges in talent acquisition
- Rising procurement costs from exchange rate fluctuations
- Information security incident risks
Innovations
2024: Commercialization of IoT-Compatible Network Equipment
- Overview
- Completed development of high-function network equipment compatible with the IoT era and launched sales.
- Impact
- Contributes to new customer acquisition and sales expansion
2023: Refresh of Data Center Storage Products
- Overview
- Expanded lineup of large-capacity, high-speed storage products.
- Impact
- Achieved improved repeat rate among existing customers
2022: Introduction of AI Surveillance System for Building Maintenance
- Overview
- Newly introduced AI-utilizing security surveillance camera system for efficient monitoring.
- Impact
- Improved customer satisfaction and secured new contracts
2021: Promotion of Supply Chain Digitalization
- Overview
- Introduced latest cloud technology into logistics management system to achieve business efficiency.
- Impact
- Shortened delivery lead time by 20%
2020: Formulation of Sustainable Material Procurement Policy
- Overview
- Announced policy to accelerate shift to eco-materials and reduce environmental impact.
- Impact
- Contributes to improved ESG ratings
Sustainability
- Promotion of eco-material procurement
- Introduction of energy-saving logistics systems
- Implementation of waste reduction programs
- Support for environmental education in local communities
- Promotion of renewable energy utilization
- Provision of low-environmental-impact products
- ISO 14001 certification acquisition
- Regular publication of environmental reports
- In-house environmental awareness activities
- Construction of green supply chains
- Adoption of resource-saving packaging
- Promotion of employee participation in environmental initiatives