CHUBU SUISAN CO.,LTD. (8145) Stock Price

Chuo Suisan holds a license under the Wholesale Markets Act and specializes in seafood wholesale operations. The company receives consignments and purchases of fresh, frozen, and processed seafood products from producers nationwide, and sells them to intermediate wholesalers through auctions and other methods at the Nagoya Central Wholesale Market. The company also operates cold storage warehousing and real estate rental businesses.

The company's primary customers are intermediate wholesalers and seafood companies in the distribution sector, with wholesale market transactions forming the core of its revenue. Additionally, cold storage warehouse fees and real estate rental income provide stable revenue streams.

The business consists of three pillars: the wholesale division, the cold storage warehousing division, and the real estate rental division. The wholesale division serves as the core of distribution operations, the cold storage division handles storage of fresh, frozen, and processed products, and the real estate division supplements revenue through residential and other property rentals.

The company aims to establish "stable and sound management" by strengthening sales capabilities and improving operational efficiency, based on a reliable supply system and efficient distribution network. The company prioritizes net income as its key performance indicator. However, due to significant impacts from weather and marine conditions, it does not set fixed numerical targets for the medium to long term. Instead, it operates using the current fiscal year's target figures as its basic management indicators, focusing on securing short-term profitability.

Priority investment areas include strengthening collection and sales capabilities in the wholesale division, expanding processing and logistics functions, and growing the cold storage warehouse business. Specifically, the company is developing new production sources and discovering new products, while expanding sales channels in coordination with the sales promotion division to enhance proposal capabilities to intermediary wholesalers and shippers. In the cold storage warehouse business, it is implementing measures to strengthen its revenue base through acquiring new customers and increasing cargo inflows and outflows. Leveraging its role as a central wholesale market, the company differentiates itself through trust by enhancing safety and quality management systems.

Regarding new market development and business expansion, the company is building a framework to develop trading partners that will revitalize the wholesale market, in response to growth in off-market distribution and online sales, as well as changes in market size due to declining birth rates and an aging population. Through information sharing with producers, the company pursues rapid proposal planning and implements collection strategies by region and fish species to maintain and expand distribution volume. It aims to stabilize revenue through three pillars: wholesale operations, real estate leasing, and warehouse business.

In technological innovation, the company positions digital transformation (DX) of operations as a continuous investment area, working on automation including budget, receivables, and inventory management, as well as warehouse temperature control and traceability. The company also continuously implements training for human resource development and strengthens organizational structures responsible for compliance and quality management, aiming to enhance corporate value through achieving both efficiency and safety.