| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 933.12 | -26 |
| Intrinsic value (DCF) | 456.71 | -64 |
| Graham-Dodd Method | 1294.18 | 2 |
| Graham Formula | 376.86 | -70 |
Yokorei Co., Ltd. (2874.T) is a leading Japanese food distribution and refrigerated warehouse company with a diversified portfolio spanning marine, livestock, and agricultural products. Headquartered in Yokohama, the company operates domestically and internationally, supplying wholesalers, food manufacturers, retailers, and restaurants. Yokorei specializes in importing, processing, and exporting high-demand seafood such as scallops, salmon, and octopus, alongside pork, chicken, and beef products. Additionally, it offers logistics services, including cold storage, customs clearance, and freight forwarding, reinforcing its integrated supply chain capabilities. Formerly known as Yokohama Reito Co., Ltd., the company rebranded in 2021 to reflect its expanded business model. With a strong presence in Japan’s consumer defensive sector, Yokorei benefits from stable demand for frozen and refrigerated food products, supported by its vertically integrated operations. The company’s ancillary ventures in real estate leasing, ICT services, and restaurant management further diversify revenue streams, positioning it as a resilient player in the agricultural farm products industry.
Yokorei presents a stable investment opportunity within Japan’s consumer defensive sector, supported by consistent demand for frozen and refrigerated food products. The company’s vertically integrated model—spanning import, processing, and logistics—enhances margin stability, though its high debt-to-equity ratio (total debt: ¥101.2 billion vs. cash: ¥3.5 billion) warrants caution. Revenue of ¥122.3 billion and net income of ¥3.9 billion in FY2023 reflect steady profitability, while a low beta (0.199) suggests lower volatility relative to the market. However, significant capital expenditures (¥-20.5 billion) indicate ongoing infrastructure investments, which may pressure short-term cash flows. The dividend yield (~1.5% based on a ¥24/share payout) is modest but sustainable. Investors should monitor debt management and global supply chain risks, particularly given Yokorei’s reliance on imported marine products.
Yokorei’s competitive advantage lies in its integrated supply chain, combining food distribution with refrigerated logistics—a critical edge in Japan’s perishable goods market. Its expertise in marine product processing (e.g., scallops, salmon) differentiates it from generalist distributors, while long-standing relationships with wholesalers and manufacturers ensure steady demand. The company’s logistics outsourcing services, including cold storage and customs clearance, add sticky revenue streams. However, Yokorei faces pricing pressure from commoditized agricultural products and relies heavily on imports, exposing it to currency and trade policy risks. Competitors with larger scales (e.g., Nippon Suisan Kaisha) benefit from global sourcing networks, while regional players like Hohsui Corp. compete on localized distribution efficiency. Yokorei’s niche in mid-tier frozen seafood and meat processing helps it avoid direct competition with premium or discount players, but its debt-heavy balance sheet limits agility compared to leaner rivals. The 2021 rebranding signals strategic modernization, but execution risks remain in balancing legacy operations with new ventures like ICT services.