Nichimo

Basic Information

Stock Code
8091
Industry
Wholesale
Category Detail
Food Manufacturing
Prefecture
Tokyo
Establishment Year
August 1919
Listing Year
May 1962
Official Website
https://www.nichimo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Overview

Nichimo is a seafood specialist trading company founded in 1919, having established a solid position in the Japanese market with importing and selling aquatic products and providing fishing gear and materials as its main pillars.

Current Situation

Nichimo recorded consolidated sales of approximately 117.9 billion yen and operating profit of approximately 1.9 billion yen in the fiscal year ended March 2020, maintaining a stable revenue base. In the food business, it manufactures and sells processed seafood products and frozen foods, boasting a high market share in Japan. In the marine business, it develops and supplies fishing nets and fishing gear materials, providing advanced technologies to the industry. The machinery business offers a diverse range of products including food processing machines and is renowned for its technological capabilities. The materials business provides construction materials, packaging materials, and agricultural/livestock materials to secure revenue sources through diversification. The Biotix business's health foods are also a growth area, with development strength as a key advantage. In logistics, it streamlines warehouse management and delivery operations through subsidiaries. In recent years, it has strengthened ESG initiatives through development of labor-saving fishing net equipment and promotion of resource-saving packaging materials. Toward 2030, its strategic goals include bio-plastic conversion of marine materials, dissemination of labor-saving equipment, and expansion of sales in the health food sector. It also maintains strong collaboration with Japan's largest player, Nippon Suisan, supported by a stable customer base.

Trivia

Interesting Facts

  • Originated as a fisheries division in Shimonoseki, Yamaguchi Prefecture in 1910.
  • Developed UC Net adopted as protective netting in 20 MLB stadiums.
  • Changed company name to Nichimo in 1972, positioning as a fisheries specialist trading company.
  • Knotless fishing net technology highly evaluated both domestically and internationally.
  • Biotix business for health food materials operated through subsidiaries.
  • Jointly developed labor-saving medium purse seine hauling system with Nordic company.
  • Partners with Fukuoka-based traditional mentaiko brand Chika E for production.
  • Started in 1919 as Takatsu Shokai Co., Ltd.
  • Designated as petroleum wholesaler in 1949, once with investment from Cyguns Petro.
  • Provides wide range of materials for fishing and aquaculture through R&D.

Hidden Connections

  • Long-term transaction relationship with Nippon Suisan, key partner in seafood industry.
  • Partners with Nordic fishing net technology company for innovative hauling system development.
  • Expands widely from seafood processing to food machinery manufacturing through multiple subsidiaries.
  • Takes over manufacturing of Fukuoka's longstanding mentaiko brand Chika E through subsidiary.
  • Rare example of direct transactions with MLB by U.S. subsidiary NET Systems.
  • Previously spun off petroleum sales division, related to ENEOS-affiliated Cyguns Petro.
  • Participates in Ministry of the Environment's decarbonization demonstration project, cooperating with national environmental policies.
  • Combines traditional fishing net manufacturing technology with latest bio technology.

Future Outlook

Growth Drivers

  • Expansion of health food market due to rising health consciousness
  • Increasing demand for labor-saving and environmentally friendly seafood materials
  • Stable growth in domestic and international demand for seafood processed products
  • Efficiency improvements in fishing and aquaculture industries through technological innovation
  • Acquisition of new customer segments through strengthened ESG compliance

Strategic Goals

  • Achieve 50% bio-plastic conversion ratio for marine materials
  • Triple sales in health food business
  • Expand market share for labor-saving fishing net equipment domestically and internationally
  • Promote decarbonization society initiatives across the group
  • Strengthen profitability in each business segment through subsidiary collaboration

Business Segments

Seafood Materials Supply

Overview
Supplies high-quality fishing nets and gear materials to fishing sites, supporting improved operational efficiency and profitability.
Competitiveness
Differentiation through high durability and labor-saving technology with proprietary UC Net.
Customers
  • Fishermen
  • Aquaculture Operators
  • Fishing Net Manufacturers
  • Seafood Processors
  • Port Managers
Products
  • Fishing Nets
  • Knotless Nets (UC Net)
  • Aquaculture Materials
  • Fishing Vessel Equipment
  • Ship Fittings Materials

Food Processing Machinery Manufacturing

Overview
Provides various food processing machinery to support manufacturing efficiency and product quality improvement.
Competitiveness
Development of highly reliable equipment based on long years of seafood processing expertise.
Customers
  • Food Manufacturers
  • Seafood Processors
  • Frozen Food Factories
  • Restaurant Chains
Products
  • Gyoza Forming Machines
  • Crepe Forming Machines
  • Fully Automatic Nori Manufacturing Equipment
  • Tunnel Freezers
  • Food Slicers

Packaging and Construction Materials Supply

Overview
Contributes to maintaining freshness of processed products and improving production efficiency through supply of various packaging and agricultural building materials.
Competitiveness
Differentiation through water-resistant and environmentally compatible products.
Customers
  • Processed Food Processors
  • Distributors
  • Building Materials Companies
  • Agricultural Producers
Products
  • Water-Resistant Corrugated Cardboard
  • Packaging Materials
  • Agricultural and Livestock Supplies
  • Soil Improvers
  • Packaging-Related Materials

Health Food Materials and Processing

Overview
Promotes supply of materials for health-oriented products using Biotix technology.
Competitiveness
Provision of high-function materials through proprietary fermentation technology.
Customers
  • Health Food Manufacturers
  • Bio-Related Companies
  • Supplement Companies
Products
  • Soy Isoflavones
  • Fermented Powders
  • Health Food Raw Materials

Logistics and Warehouse Management

Overview
Realizes freshness preservation and efficient transportation for seafood-related products through high-quality logistics services.
Competitiveness
Specialized know-how in seafood logistics.
Customers
  • Food Manufacturers
  • Seafood Companies
  • Distribution Companies
Products
  • Refrigerated Warehouse Management
  • Delivery Operations
  • Logistics Optimization Services

Competitive Advantage

Strengths

  • Long history and track record since founding in 1919
  • Specialist trading company focused on the seafood industry
  • Proprietary knotless fishing net technology (UC Net)
  • Revenue stabilization through diverse business segments
  • Collaboration with Nippon Suisan with close transaction relationships
  • Business diversification through extensive group of subsidiaries
  • High technological capabilities in food processing machinery development
  • Proprietary technology in health foods
  • Value chain enhancement through logistics business
  • Active initiatives in ESG measures

Competitive Advantages

  • Solid position in the domestic seafood materials industry
  • Technological prowess where UC Net is used in MLB stadiums
  • Consistent product lineup from seafood to health foods
  • Risk dispersion from market fluctuations through diversified businesses
  • Creditworthiness from listing on Tokyo Stock Exchange Prime Market
  • Expansion into other industries with specialized agricultural and livestock materials
  • High customer loyalty due to proprietary food processing machinery
  • Differentiation through labor-saving and efficiency technologies in marine materials
  • Improved customer satisfaction through regionally rooted logistics services
  • Capable of responding to health food market with bio technology applications

Threats

  • Impact from environmental changes in fishing resources
  • Increase in import costs due to exchange rate fluctuations
  • Intensified price competition from new market entrants
  • Increased business costs from stricter environmental regulations
  • Increased compliance burden from strengthened food safety regulations
  • Uncertainty in logistics and demand due to COVID-19
  • Intensified competition in health food market
  • Disruption to production and distribution networks from natural disasters
  • Strengthened import restrictions from international trade disputes
  • Risk of failing to keep up with the pace of technological innovation

Innovations

2021: Joint Investment Consideration for Land-Based Aquaculture Business on Idle Land at Buzen Power Plant

Overview
Began considering joint land-based salmon aquaculture business with Kyushu Electric Power.
Impact
Expansion of production capacity and promotion of practical sustainable aquaculture technology

2020: Selection for Demonstration Project on Bio-Plastic Conversion of Marine Materials

Overview
Participated in Ministry of the Environment-led plastic resource circulation promotion project and conducted demonstration experiments.
Impact
Reduction in environmental impact and improved market competitiveness

2020: Reorganization of Spicy Mentaiko Factory and Launch of New Brand

Overview
Began manufacturing Chika E brand spicy mentaiko at subsidiary 'Chika E Foods'.
Impact
Strengthening of brand power and market expansion

2020: Introduction of Labor-Saving Technology and Jointly Developed Nets for Fishing Net Manufacturing

Overview
Developed and commercialized Nordic-style labor-saving medium purse seine hauling system.
Impact
Improved work efficiency and reduced operating costs

2020: UC Net Adopted for Protective Netting at U.S. Major League Baseball Stadiums

Overview
Demonstrates the track record and high quality of knotless net technology to the world.
Impact
Enhancement of international brand value

Sustainability

  • Promotion of bio-plastic conversion and dissemination of marine materials
  • Development and practical application of labor-saving fishing net systems
  • Reduction of fresh fish transport losses through water-resistant packaging materials
  • Enhancement of safety and functionality in health foods
  • Reduction of environmental impact in regionally rooted logistics services