| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1124.05 | 182 |
| Intrinsic value (DCF) | 126.40 | -68 |
| Graham-Dodd Method | 1197.39 | 201 |
| Graham Formula | 781.67 | 96 |
Daisui Co., Ltd. is a leading Japanese wholesale distributor specializing in marine products, including fresh, frozen, salted, and dried fish. Established in 1939 and headquartered in Osaka, the company serves supermarkets and restaurants across Japan while also engaging in exports. Daisui operates in the food distribution sector, a critical segment of Japan's consumer defensive industry, ensuring stable demand due to the essential nature of its products. The company further enhances its value proposition with refrigeration warehousing services, ensuring product quality and supply chain efficiency. With a market capitalization of approximately ¥4.26 billion, Daisui plays a vital role in Japan's seafood supply chain, leveraging decades of industry expertise to maintain strong relationships with suppliers and customers. Its diversified product offerings and logistical capabilities position it as a resilient player in the food distribution market.
Daisui Co., Ltd. presents a stable investment opportunity within Japan's consumer defensive sector, supported by consistent demand for marine products. The company reported ¥98.46 billion in revenue and ¥1.01 billion in net income for FY 2024, with a diluted EPS of ¥74.95. Its strong operating cash flow of ¥2.65 billion and manageable total debt of ¥2.9 billion indicate financial health. A modest dividend yield of ¥6 per share adds to its appeal for income-focused investors. However, the company operates in a competitive and low-margin industry, which may limit growth potential. Additionally, its negative beta (-0.072) suggests low correlation with broader market movements, potentially offering defensive characteristics but limited upside during market rallies. Investors should weigh its stable cash flows against sector-specific risks such as fluctuating seafood prices and supply chain disruptions.
Daisui Co., Ltd. competes in Japan's fragmented seafood wholesale market, where differentiation is driven by product quality, supply chain efficiency, and customer relationships. The company's competitive advantage lies in its long-standing industry presence, diversified product portfolio, and integrated refrigeration services, which enhance its value proposition to supermarkets and restaurants. However, the wholesale seafood distribution sector is highly competitive, with low barriers to entry and thin margins. Daisui's scale is modest compared to larger conglomerates, limiting its pricing power and ability to absorb cost fluctuations. Its export operations provide some diversification but expose it to international trade risks. The company's financial stability and consistent profitability suggest effective cost management, but it may struggle to outperform in a market dominated by larger players with broader distribution networks and greater bargaining power. Daisui's niche focus on marine products could be both a strength (specialization) and a weakness (lack of diversification) depending on market conditions.