| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1986.64 | 10 |
| Intrinsic value (DCF) | 603.42 | -67 |
| Graham-Dodd Method | 2152.64 | 19 |
| Graham Formula | n/a |
Chubu Shiryo Co., Ltd. (2053.T) is a leading Japanese manufacturer and supplier of mixed feed for livestock and fisheries, serving poultry, pigs, cattle, and fish farming industries. Founded in 1949 and headquartered in Nagoya, the company plays a crucial role in Japan's agricultural supply chain by providing high-quality feed products to supermarkets, department stores, and the restaurant industry. Beyond feed production, Chubu Shiryo diversifies its operations with organic compound fertilizers, livestock equipment sales and maintenance, and livestock non-life insurance. Additionally, the company offers medical support services, including hygiene management and breeding technical guidance, reinforcing its integrated approach to livestock health and productivity. Operating in the Consumer Defensive sector under Packaged Foods, Chubu Shiryo benefits from stable demand driven by Japan's food security needs and agricultural sustainability trends. With a market cap of ¥44 billion, the company maintains a resilient business model supported by diversified revenue streams and a strong regional presence.
Chubu Shiryo presents a stable investment opportunity within Japan's defensive agricultural sector, supported by consistent demand for livestock feed and ancillary services. The company's low beta (0.198) indicates lower volatility relative to the market, appealing to risk-averse investors. Financials reveal steady revenue (¥234.2 billion) and net income (¥3.3 billion), though modest EPS (¥112.56) and operating cash flow (¥10.4 billion) suggest moderate growth potential. A dividend yield of ~1.1% (¥50 per share) adds income appeal. Risks include exposure to fluctuating feed ingredient costs and Japan's aging agricultural workforce. Capital expenditures (¥-3.8 billion) signal ongoing investments, but high total debt (¥7.6 billion) against cash reserves (¥3.0 billion) warrants monitoring. The stock suits investors seeking exposure to Japan's food security infrastructure with moderate returns.
Chubu Shiryo competes in Japan's fragmented animal feed market, where regional presence and vertical integration are key differentiators. The company's strength lies in its diversified product portfolio, spanning feed, fertilizers, equipment, and insurance, which fosters customer loyalty and cross-selling opportunities. Its focus on technical support (e.g., breeding guidance) adds value beyond commoditized feed products. However, the industry faces pricing pressure from global agribusiness giants and volatile raw material costs. Chubu Shiryo's regional concentration in Chubu limits national scalability compared to peers with broader distribution. Competitively, it lacks the R&D scale of multinational players like Zen-Noh but benefits from localized customer relationships and Japan's import-reliant feed market (enhancing domestic demand). The shift toward sustainable and traceable feed sources presents both a challenge (cost inflation) and opportunity (premiumization). The company's mid-tier size may hinder economies of scale but allows agility in serving niche livestock segments.