AXYZ Co., Ltd (1381) Stock Price

Axeyz operates an integrated business across the entire chicken meat value chain, from feed manufacturing and breeding stock/chick production, through broiler raising and meat processing, to processed food manufacturing, restaurant operations, and renewable energy supply. The company focuses on "safe and fresh chicken meat," with fresh chicken for households and processed products such as fried chicken and nuggets as its main offerings.

Primary customers include individual consumers, retailers and wholesalers, and consumers of restaurant meals. Revenue is primarily generated from chicken meat production and sales, processed food sales, and restaurant operations through franchise management. By integrating production and processing in-house, the company ensures stable supply and quality control, while diversifying revenue streams through energy operations and the reuse of by-products.

The business is organized into three main segments: "Food," "Restaurants," and "Energy." The Food segment offers fresh chicken meat from antibiotic-free farming and company-operated raising, along with processed foods made from this meat. The Restaurant segment operates Kentucky Fried Chicken franchises. The Energy segment supplies renewable energy from biomass sources and also handles secondary operations including zeolite products and soil amendments.

The company aims to improve operating profit and ordinary income over the medium term. While specific numerical targets have not been disclosed, the company positions stable expansion of manufacturing and sales volume, along with human resource acquisition and development, as key pillars for the medium to long term. It plans to increase market share by strengthening production capacity through reviewing existing facilities—including breeding stock, hatchery, fattening, and processing operations—and acquiring new equipment. In particular, the company envisions regional expansion centered on feed production facilities, aiming to achieve profit improvement through volume growth while maintaining its integrated operational structure.

The company positions its integrated system—from in-house feed manufacturing through processing—as the core of its competitive differentiation, with priority investment in quality control and stable supply. Specific initiatives include investment in proprietary equipment, strengthening sanitation and quality management systems, and introducing environmental control technology in breeding operations to provide "safe, fresh chicken meat" at competitive prices. The company is also diversifying revenue streams through strengthening sales channels centered on processed foods (such as fried chicken and nuggets), and by reusing byproducts and supplying renewable energy.

For new market development and business expansion, the company plans to secure sales volume and diversify revenue sources through expanding franchise operations in the foodservice business and increasing processing capacity. In response to external risks such as rising feed prices and supply chain instability, the company will implement measures to protect margins through appropriate pricing and productivity improvements. Additionally, the company intends to broaden entry into new markets by leveraging existing secondary businesses such as renewable energy and soil amendments.

The company is also focusing on technological innovation, advancing production efficiency and quality through scientific experimentation and research, and developing breeding environment control systems. Specific measures include implementing antibiotic-free farming practices, strengthening inspection systems, establishing traceability protocols, and reducing costs through process automation and labor-saving proprietary equipment. On the human resources front, the company will simultaneously strengthen recruitment of new graduates and mid-career hires while enhancing on-site training to build operational capability following technology implementation.