Why is Nissui (1332) so strong? Reasons why seafood stocks have evolved into “winners” and high value-added scenario in 2027

[Summary]

Even within the same fisheries sector, Nissui (1332) is starting to be seen on a different evaluation scale than Kyokuyo (1301) and Maruha Nichiro (1333).

The reason is that Nissui is not just a company that catches and sells fish.

• Frozen food
• Chilled food
• Aquaculture
• Fine chemicals
• Functional materials such as EPA and DHA

This is because we are transforming into a high value-added food and health infrastructure company that combines the following:

In the fiscal year ending March 2026, sales were 931.2 billion yen, operating income was 40.4 billion yen, and net income attributable to parent company shareholders was 27.5 billion yen, setting new record highs for sales and profits at each stage.

In this article, we will explain why Nissui is easily evaluated as a solid fishery stock, from the perspective of its differences from Kyokuyo, segment structure, and aquaculture/fine chemical strategies.

Key points of financial results for the fiscal year ending March 2026

First, let's check the full-year financial results announced on May 14, 2026.

What is noteworthy is that despite headwinds such as high fish prices, fuel costs, personnel costs, and logistics costs, operating income from the main business grew significantly.

In the revised disclosure dated May 19, 2026, the scope of consolidation and the description of specified subsidiaries have been revised. However, it does not significantly change the way we read major performance figures such as sales, operating income, ordinary income, and net income.

The main source of profit is the “food business”

To understand Nissui's strength, we need to look at operating income by segment.

The largest source of profit for the fiscal year ending March 2026 will be the food business.

In other words, the current Nissui is

We are not a seafood trading company that is influenced by fish prices, but a food manufacturer that makes profits through processing, freezing, and chilling.

We are strengthening our character as a.

This is the big difference from Kyokuyo.

Definitive difference from Kyokuyo

Even though they are the same seafood stocks, the points that investors should look at are different between Kyokuyo and Nissui.

Kyokuyo is a company that procures marine products from all over the world and distributes them to restaurants, commercial use, and wholesale.

On the other hand, Nissui is not only selling marine resources as is, but also processing them into frozen foods, chilled foods, surimi products, and health ingredients, moving toward increasing profit margins.

In other words, Nissui's strengths are

It's not about the fish itself, but how to process it, brand it, and turn it into functional value.

It is located in

Strength of domestic demand supported by frozen foods and chilled foods

Nissui's food business spans a wide range of products, including frozen foods for home and commercial use, room-temperature foods, surimi products, and ready-to-eat meals for convenience stores.

The reason this business is strong is because it fits with the social structure.

In Japan,

• Increase in dual-income households
• Increase in single-person households
• Aging
• Movement to choose eating in or ready-made meals over eating out
• Demand for reducing cooking time

continues.

Although fish has a strong image of being healthy, it is also a difficult ingredient to prepare at home.

There is scope to offer them as frozen foods or chilled side dishes.

Nissui is in a position to capture this demand for people who want to eat fish, but without the hassle.

Aquaculture is a growth axis to break away from “dependence on wild fish”

In the seafood industry as a whole, the model that relies on wild fish is reaching its limits.

In the background,

• Seawater temperature rise
• Fishing regulations
• Resource protection
• Growing global demand for seafood
• Increased protein demand

There is.

Nissui is strengthening its aquaculture business, including salmon farming in Chile and domestic yellowtail, salmon, bluefin tuna, and amberjack.

In January 2026, we made Chile's Pesquera Jadran a wholly owned subsidiary, and announced our policy to expand our South American salmon farming business to over 80,000 tons per year by 2030.

This is more than just scaling up.

As concerns about the supply of wild fish increase,

Stably grow, process, and sell to the world

This is a strategy to take advantage of this supply capacity.

“Redefining fish” with fine chemicals

Another reason why Nissui is different from other seafood stocks is its fine products business.

The company has been engaged in research, production, and commercialization of EPA since the late 1970s, and has expanded into pharmaceutical raw materials, functional raw materials, and functional foods.

EPA and DHA are components contained in fish oil, but for Nissui they are not just by-products.

This is

A business that transforms fish from “ingredients” to “healthy ingredients”

It is.

The scale of the fine products business is still small compared to the marine products and food products business.

However, the forecast for the fiscal year ending March 2027 is for operating income to increase significantly from 830 million yen to 1.85 billion yen.

As the aging of society and extension of healthy life expectancy become a theme, functional materials such as EPA and DHA become an area where investors are more likely to re-evaluate.

Re-evaluation scenario towards 2027

Nissui's plan for the fiscal year ending March 2027 is sales of 980 billion yen, operating income of 42.5 billion yen, and net income of 29 billion yen.

There are three points to consider when reevaluating:

1. Recovery of seafood business

In the fiscal year ending March 2027, we plan to increase operating income from the marine products business from 17.7 billion yen to 21.6 billion yen.

If we expand aquaculture and make use of our global sales network, there is a possibility that our business will change from one that is solely influenced by fish prices to one that can generate profits.

2. Maintaining the profit level of the food business

In the food business, operating income is expected to decline in the fiscal year ending March 2027, but we still expect operating income to be 27.8 billion yen.

Unless there is a major collapse in this area, Nissui's overall profit stability will be likely to be maintained.

3. High growth in fine products business

Although the fine arts business is small, it is important in terms of profit margins and growth story.

The market sees Nissui as more than just a food stock.

Food company with health, functionality, and bio-based ingredients

If it comes to be seen as such, the valuation multiple may change.

There are risks too.

Nissui also has risks.

I would like to pay particular attention to the following:

• Increase in raw material prices
• Increase in fuel and logistics costs
• Currency fluctuations
• Disease and red tide risks in aquaculture
• Delay in recovery of overseas investments
• Limit of price transfer in food business

It is.

While aquaculture in particular is a growing area, it cannot completely avoid the natural environment and disease risks.

Furthermore, although we plan to increase operating income for the fiscal year ending March 2027, ordinary income is expected to be nearly flat due to the interest burden.

Therefore, when evaluating stock prices, it is necessary to look at "operating profit growth" and "financial costs" separately.

Check items that investors should look at

The following are important points when looking at Nissui's future.

In the short term, stock prices may fluctuate due to fish prices and exchange rates.

However, in the medium term, the biggest focus will be how far the three pillars of food, aquaculture, and fine chemicals can boost profit margins.

Summary

The essence of Nissui is no longer just a company that catches and sells fish.

The current Nissui is

• Procurement ability to access marine resources
• Manufacturer's ability to process frozen and chilled foods
• Technological capabilities to stabilize supply through aquaculture
• Fine chemical power to transform EPA/DHA into healthy ingredients

A company that combines

The market recognizes this company,

Economically sensitive seafood stocks

rather than

High value-added food, health and sustainable brands

whether to redefine it as

2026-2027 is likely to be a turning point.

Source/Reference

• [Nissui “Fiscal Year Ending March 2026 Summary of Financial Results [Japanese Standards] (Consolidated)”](https://www2.jpx.co.jp/disc/13320/140120260513530432.pdf)
• Nissui “(Correction/Numerical data correction) Partial correction of financial results summary for the fiscal year ending March 31, 2026”, disclosed on May 19, 2026
• Nissui Fisheries Business
• Nissui Fine Chemicals Business
• [Nissui "expands South American salmon farming business by 2.5 times"] (https://www.nissui.co.jp/news/20260116.html)