HIGASHIMARU CO., LTD. (2058) Stock Price

Higashimaru operates primarily through the manufacturing and sales of aquaculture feed, as well as the production and sales of dried noodles, instant noodles, seasoning products, and frozen prepared foods. The company handles the entire value chain—from raw material procurement through production to sales—via its own manufacturing facilities and consolidated subsidiaries.

The company's main customers include aquaculture operators, seafood processors, wholesalers and retailers, foodservice and institutional catering providers, and consumers. Revenue is driven by two pillars: B2B sales of aquaculture feed and B2C/B2B sales of food products through retail and wholesale channels, with both segments supporting overall sales.

The business consists of two main divisions: aquaculture and food. The aquaculture division supplies compound feed, fish fry, nutritional supplements, and handles aquaculture production (shrimp and fish) across the group. The food division offers a broad product range including noodles, seasonings, jams, grain flour and spices, and frozen foods and prepared dishes.

The company has set sustained growth in sales revenue and operating profit as its management targets, and aims to strengthen its product and business portfolio with a long-term perspective of 5 to 10 years ahead. Through two core pillars—aquaculture feed operations centered on compound feed for fish farming, and food operations including dried noodles, seasoning products, and frozen prepared meals—the company pursues stable earnings through an integrated system spanning raw material procurement, production, and sales. To reinforce its earnings base, the company prioritizes enhancing the added value of existing products and developing high-margin products, with the goal of improving corporate value over the medium to long term.

Priority investment areas are research and development, and quality and safety. As a "specialized niche company," the company continues research and development to create competitive, high-margin products. On quality and safety, the food operations division obtained ISO 22000 international certification in May 2019, and the aquaculture operations division in July 2020. The company continues to invest in improving product reliability and compliance with international standards. Regarding environmental and resource challenges, the company is advancing technology investments that consider sustainability, such as developing feed that does not rely excessively on fish meal, to differentiate itself in the market.

Developing overseas markets is a critical growth pillar, and the company is actively pursuing this to prepare for potential future contraction in the domestic market. In the aquaculture feed division, the company targets expanded sales and profits in Asia and North, Central, and South America. In the food division, it plans to strengthen overseas sales activities at each sales office. Leveraging its group-wide capabilities in supplying seed stock and nutritional supplements through to aquaculture production, the company aims to capture new markets by supplying products tailored to regional demand and building sales networks.

Regarding technological innovation, the company emphasizes collaboration with external partners, including public-private-academic partnerships, and focuses on innovative research with a 5 to 10-year outlook. Specifically, the company continuously invests in areas such as feed formulation improvements, seed stock enhancement, and manufacturing process efficiency, creating high-value-added products that meet customer needs to strengthen competitiveness. Additionally, the company positions compliance-based management at the core of its operations, balancing legal compliance and responsiveness to social demands to achieve sustainable business growth.