1. What Happened in H1 2025?

Sajo Industries achieved substantial growth in consolidated revenue and improved operating profit in the first half of 2025. Net income increased significantly, driven by gains on investments in associates. Stock prices surged after May, reaching new highs.

2. The Good and the Bad?

  • Positive Factors:
    • Diversified business portfolio (food, livestock)
    • Strong brand recognition and market share
    • Stable management
    • ESG management efforts
  • Negative Factors:
    • Declining deep-sea fishing conditions
    • Rising raw material costs and cost pressures
    • High net debt ratio and liquidity risks
    • Low R&D investment
    • Exposure to exchange rate and interest rate fluctuations

3. The Investment Strategy?

Sajo Industries has a solid business foundation, but investors should consider the risks. Key focus areas are strengthening core business competitiveness, cost management, improving financial soundness, increasing R&D investment, and managing exchange rate and interest rate volatility. The current stock price seems reasonable, but given growth momentum and financial risks, a cautious approach with a wait-and-see or dollar-cost averaging strategy may be appropriate.

4. Investor Action Plan

Before making investment decisions, consider the following:

  • Sajo’s future business strategies and implementation plans
  • Changes in the deep-sea fishing environment and mitigation strategies
  • Financial restructuring plans and liquidity securing measures
  • Plans to increase R&D investment and new growth engine development status