ENVALITH
株式会社ヨンキュウ logo

THE YONKYU CO.,LTD.

9955・Standard Market・Wholesale Trade

Official website
株式会社ヨンキュウ logo
THE YONKYU CO.,LTD.9955

Business

Yonkyu Co., Ltd. is a marine products trading company headquartered in Uwajima City, Ehime Prefecture, founded in 1963. The group comprises 4 consolidated subsidiaries and 1 equity-method affiliate. In its core "fresh fish sales business," the company procures farmed and wild fish from fishery cooperatives and aquaculture operators in Shikoku and Kyushu, and sells them to wholesale intermediaries at central wholesale markets nationwide. It also handles processed products such as yellowtail (hamachi) fillets, as well as the production and sale of artificially hatched sea bream (tai) fry. In its "feed sales business," the company supplies live bait, compound feed, and moist pellets to aquaculture operators. It also operates tuna and eel aquaculture businesses, providing total support to the aquaculture industry. Listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The company combines a "fresh fish sales business" (approximately 66% of net sales), which purchases fish from aquaculture farmers and sells them to markets, mass retailers, and food service operators, with a "feed/bait sales business" (approximately 34%), which supplies live bait and formulated feed to the same aquaculture farmers, creating a structure that deepens bidirectional trading relationships with aquaculture farmers. The feed/bait business is highly profitable, with a segment profit margin of 10.5%, complementing the thin margins of the fresh fish business. Through the acquisition of HACCP, FSSC22000, and EU HACCP certifications at the Misaki processing plant, the export of value-added processed products is also being cultivated as a revenue source.

Company Strengths

The feed and fish feed sales business achieved net sales of ¥16,205 million and segment profit of ¥1,694 million in FY2026 (ending March 2026), representing a profit margin of 10.5%. An increase in sales volume of raw feed was the main driver of profit growth, resulting in a 13.8% year-on-year increase in profit. With the fresh fish business showing a lower profit margin, the high-profitability segment forms the structure underpinning the group's overall earnings base.

Following the construction and relocation of the Misaki processing plant (May 2022), the company sequentially obtained HACCP certification, ISO 22000, and FSSC 22000, and acquired FSSC 22000, a GFSI-recognized standard, in October 2023. It further obtained EU HACCP certification at its head office and the Misaki processing plant, opening up new export channels to the EU in addition to the US. The accumulation of food safety certifications provides a substantive foundation for expanding export channels.

Since its founding in 1963, the company has built trading relationships with fishery cooperatives and aquaculture operators in Shikoku and Kyushu. Through bidirectional transactions involving the procurement of fresh fish and the supply of feed and fish feed to the same customers, the company has developed deep relationships with its business partners, and consolidated net sales reached ¥47,676 million in FY2026 (ending March 2026). Capital and business alliances with Maruha Nichiro (now Umios), Feed One, Sakamoto Feed, Nishimoto Wismettac Group, and others also reinforce sales channels and procurement capabilities.

ENVALITH's Perspective

Profit attributable to owners of parent for FY2026 (ending March 2026) rose sharply to ¥3,784 million (up 167.4% year-on-year), but this was the result of recording a ¥3,489 million gain on sale of investment securities as extraordinary income; ordinary income was limited to ¥2,195 million (up 4.3% year-on-year). Operating income recovered to ¥1,869 million (up 20.9% year-on-year), but a decrease in dividend income received and an equity-method investment loss (¥50 million) held back the increase in ordinary income. As a result of the sale of investment securities, the balance at fiscal year-end declined to ¥8,324 million (from ¥11,903 million in the previous fiscal year), raising concerns about a future reduction in dividend income and unrealized gains.

Segment profit for the Fresh Fish Sales Business recovered to ¥220 million (improved from ¥75 million in the previous fiscal year), but the profit margin remained low at 0.7%. In the Eel Farming and Sales business, sales prices have fallen due to sluggish domestic demand, oversupply of domestically produced eel, and imports of cheap live eel from China and other countries, and the operating loss has continued. As an external factor, the generally high level of fish prices has supported sales in the fresh fish business, but the structural deterioration in profitability of the eel farming segment is difficult to resolve through the company's own efforts alone, and improvement in the profit margin of the segment as a whole is likely to take time.

The company has withheld disclosure of its consolidated earnings forecast for FY2027 (ending March 2027), citing "many uncertain factors." It has explicitly noted risks that could worsen the business environment, including stagnation in crude oil supply, rising logistics costs, and a decline in personal consumption stemming from the military conflict involving Iran, and the dividend forecast for the next fiscal period is also undecided. For investors, the lack of visibility into earnings could be a discounting factor in valuation. On the other hand, cash on hand of ¥22,517 million and a low level of borrowings provide resilience against downside risks.

Growth Strategy

Rebuilding the profit base through expanded processing and exports and total support for the aquaculture industry

The company is promoting enhanced operations at the Misaki processing plant and developing new EU-bound export channels leveraging EU-HACCP certification. While fresh fish business sales are expanding against a backdrop of high fish prices, segment profit margin remains low at 0.7%, making value-added improvement through processing and exports the key to profitability improvement.

An increase in sales volume of live bait was the main driver of increased profit in FY2026 (ending March 2026), with segment profit reaching ¥1,694 million (up 13.8% year on year). The company continues its policy of expanding sales channels while supporting aquaculture operators' business stability through reduced fish meal content and diversified raw materials in compound feed.

The eel farming business continues to post an operating loss due to sluggish domestic demand and inflows of cheap live eels from China. Resolving the sense of oversupply in domestically farmed eels and recovering sales prices are challenges, and fundamental profitability improvement measures are urgently needed. At present, no specific improvement measures have been disclosed, and the situation remains one of waiting for external conditions to improve.

The company continues efforts to improve the productivity and profitability of artificially hatched juvenile fish. It aims to contribute to strengthening the group's overall aquaculture value chain by meeting the aquaculture industry's need for a stable supply of juvenile fish.

Last updated: July 19, 2026