ZACROS, which manufactures packaging materials for retort foods, is reportedly likely to be responsible for the mass production of Ajinomoto's ABF, prompting the market to view it as an AI semiconductor-related stock. It has also been suggested that the company is involved in increasing ABF production through contract coating. Attention is therefore turning to the scope of its business and its financial outlook.
ZACROS developed from technology used to make bags for Bon Curry and has worked for many years on packaging materials and coating technologies. This article focuses on the possibility that the company could support the mass production of insulating materials for AI servers through contract coating of ABF, and sets out the structure of its business and its expansion into four markets. It presents an overview of an effort to assess both ZACROS from the perspective of an AI semiconductor-related stock and its underlying strength as a long-established packaging-materials manufacturer.
Regarding its relationship with ABF, the article notes both that Ajinomoto has outsourced part of the manufacturing process and that ZACROS has indicated its intention to respond to increased ABF production through investment in its own equipment. Because ABF-related revenue and profit are not disclosed separately, it presents the view that information from inside and outside the company must be considered together to assess its true strength.
The market's assessment is said to be wavering between expectations for ZACROS as an AI-related stock and the company's practical business foundation as a packaging-materials manufacturer. It has also been noted that the shares have been trading at around 1x PBR. The article adds that Ajinomoto makes the final decisions on ABF's price movements and specifications, a point that should be kept in mind.
Against the backdrop of the company's business structure, overcoming the depreciation burden from large-scale investment is described as key to future growth. The article therefore concludes that multiple factors must be monitored together, including developments in interlayer insulating film in the Information and Electronics business, profitability in the Medical and Bio business, and demand trends in the display market.