HOHSUI CORPORATION (E00017) Stock Price

Housui is a food-related company with two core business pillars: refrigerated warehouse operations and seafood food products. The company provides refrigeration and freezing storage services primarily for seafood, as well as livestock and agricultural products. It also engages in wholesale operations for shrimp, crab, fish roe, and other seafood products. As a comprehensive food company, it manufactures and sells thick-layered egg omelet, red bean paste, and seafood processed products.

The company serves a diverse customer base. Its refrigerated warehouse business generates stable revenue through storage services for food-related businesses. In the seafood food products business, retail support operations—which handle everything from sourcing ingredients for retailers to processing and delivery—serve as a key revenue driver. The company provides high-value-added services that streamline customers' procurement operations.

The business is divided into two segments: refrigerated warehouse operations and seafood food products. The refrigerated warehouse business is operated by the company itself, while the seafood food products business is conducted through a group structure that includes three subsidiaries (Suisan Ryutsu, Chuo Foods, and Sennichi). This structure enables the company to build a business model that covers the entire food value chain, from storage and wholesale to manufacturing and processing.

Housui pursues a growth strategy aimed at providing comprehensive services in seafood logistics, with refrigerated logistics operations as its core revenue driver. The company prioritizes securing stable profitability and improving overall group performance, with operating profit margin improvement as a key management metric. Recent results show operating profit margin improved from 1.04% to 1.48% year-over-year, while operating profit increased from 839 million yen to 1,230 million yen, demonstrating steady progress.

In priority investment areas, the company focuses on strengthening logistics center capabilities, building efficient operations at its Atsugi, Ichikawa, and Kawashima facilities that leverage their advantageous locations adjacent to interchanges. In the seafood food business, the company mitigates inventory and price volatility through direct sourcing from overseas producers for key products such as shrimp and through developing processed products that meet consumer needs. The company also differentiates itself from competitors by consolidating functions at strategically located facilities that capitalize on both market and non-market distribution channels.

In new market development, the company expands its business through establishing new retail support facilities while promoting diverse service offerings to address growth in the e-commerce market. The company serves a broad customer base including mass retailers, restaurant chains, and e-commerce operators, providing integrated services from food sourcing through processing to delivery, while pursuing new business opportunities.

In technological innovation, the company focuses on enhancing logistics center capabilities that deliver speed and accuracy across all operations from intake to delivery of diverse product types. In the food manufacturing and sales division, the company continues product development emphasizing artisanal taste and quality despite advancing mechanization, while strengthening human resources and organizational capabilities to improve overall competitiveness. The company also realizes efficient role-sharing in seafood logistics by leveraging management resources across group companies, including parent company Chuo Gyorui.