Will Kobayashi Pharmaceutical, whose stock price fell 20%, make a big rebound? In the past 3 cases, there was also a case where it rose 60% in 2 months - 3 important points of interest in dealing with companies
$Kobayashi Pharmaceutical(4967.JP$The health hazards of consumers who have taken supplements made from “red rice malt” manufactured by are spreading, and the company is spreading todayThe press conference will be held again on the 29thDoing it. After the problem was discovered,The company's stock price fell by about 20%, including a weak stopI'm doing it,The details of the press conference will affect the future course of the company, not to mention future stock pricesIt is also expected.
Therefore, we will examine Kobayashi Pharmaceutical's stock price scenario anticipated after the press conference by referring to the cases of 3 listed companies where food-related troubles have occurred in the past.
Therefore, we will examine Kobayashi Pharmaceutical's stock price scenario anticipated after the press conference by referring to the cases of 3 listed companies where food-related troubles have occurred in the past.
First of all, it is assumed that the full extent of the damage will be grasped, but based on past cases, the most important thing at the press conference in order for the problem to calm downHow serious you can “change” your companyIt can be said that it depends on it. As a point of interest for that,
1.Can you explain why the issue occurred and why the response was delayed
2.Can you come up with concrete measures to prevent recurrence, including improving the internal structure
3.Can the top management (president) clearly disseminate information with a sincere attitude, including their own advancement and exit
There are 3 points.
1.Can you explain why the issue occurred and why the response was delayed
2.Can you come up with concrete measures to prevent recurrence, including improving the internal structure
3.Can the top management (president) clearly disseminate information with a sincere attitude, including their own advancement and exit
There are 3 points.
Delays in response have been pointed out for Kobayashi Pharmaceutical because it took about 2 months from grasping the incident to publication of the issue. There is a possibility that the wind direction against the company will change drastically depending on whether it is possible to first apologize again for the delay in response and then step in and explain the cause of the problem.
Reference Case 1: Former JT Foods Even if the parent company's stock price falls due to delays in response, the possibility that the company is not the cause increases and the stock price returns
2008/1, $Japan Tobacco(2914.JP$(JT) It was discovered that consumers (10 patients) who ate frozen gyoza imported and sold by the former JT Foods subsidiary had developed symptoms of addiction. Delays from incident occurrence to announcement, and things that were overlooked even though complaints about strange odors were received, etc. were also criticized. The food business is not JT's main business, but after the problem was reportedShares fell 5.0% in 3 business daysI did it.
However, after that, the view that Chinese manufacturers were the cause intensified,Stock prices returned early. Two years after the incident, it was discovered that pesticides were deliberately injected at the factory of the Chinese company that manufactured it. The culprit was arrested and sentenced to life imprisonment.
JT's stock price recovered early, but it was affected by the incident even after that.
Before the incident was discovered, JT was Nissin Foods (now $Nissin Foods Holdings(2897.JP$) and it was agreed to integrate the frozen food businesses of the three companies, including the former Katokichi. JT implemented TOB on the premise that 49% of the shares would be transferred to Nissin Foods for the former Katokichi and made it a subsidiary, but the Nissin Foods side resolved the integration due to the incident. It became a form where JT independently acquired the former Katokichi, and it was integrated with the former JT Foods. The former JT Foods was liquidated in '14.
Also, the Nihon Keizai Shimbun dated 10/3/28, two years after the incident was discovered, reports that “Japanese consumers' distrust of food made in China is still strong, and it is uncertain whether demand for frozen foods that rely on Chinese products will return to the level before the incident.”Since clear measures to prevent recurrence could not be set out, the effects of the incident continued for more than 2 yearsIt took shape.
2008/1, $Japan Tobacco(2914.JP$(JT) It was discovered that consumers (10 patients) who ate frozen gyoza imported and sold by the former JT Foods subsidiary had developed symptoms of addiction. Delays from incident occurrence to announcement, and things that were overlooked even though complaints about strange odors were received, etc. were also criticized. The food business is not JT's main business, but after the problem was reportedShares fell 5.0% in 3 business daysI did it.
However, after that, the view that Chinese manufacturers were the cause intensified,Stock prices returned early. Two years after the incident, it was discovered that pesticides were deliberately injected at the factory of the Chinese company that manufactured it. The culprit was arrested and sentenced to life imprisonment.
JT's stock price recovered early, but it was affected by the incident even after that.
Before the incident was discovered, JT was Nissin Foods (now $Nissin Foods Holdings(2897.JP$) and it was agreed to integrate the frozen food businesses of the three companies, including the former Katokichi. JT implemented TOB on the premise that 49% of the shares would be transferred to Nissin Foods for the former Katokichi and made it a subsidiary, but the Nissin Foods side resolved the integration due to the incident. It became a form where JT independently acquired the former Katokichi, and it was integrated with the former JT Foods. The former JT Foods was liquidated in '14.
Also, the Nihon Keizai Shimbun dated 10/3/28, two years after the incident was discovered, reports that “Japanese consumers' distrust of food made in China is still strong, and it is uncertain whether demand for frozen foods that rely on Chinese products will return to the level before the incident.”Since clear measures to prevent recurrence could not be set out, the effects of the incident continued for more than 2 yearsIt took shape.
There are also cases where stock prices recovered at an early stage and further raised stock prices by investigating the cause that went far into the internal structure and clearly showing an attitude of working to prevent recurrence. However, it seems that the fact that there were no health hazards to consumers also led to an early rise in stock prices.
Reference Case 2: Fujiya Stock prices rebounded due to early response, investigation of causes, and dissemination of measures to prevent recurrence
2007/1, $Fujiya(2211.JP$It was reported that milk that had expired was used for cream puffs manufactured by. The company held a press conference the day after the report and apologized. It is said that internal investigation results will be announced 4 days after the weekend, and the president will announce his resignationSpeed support was carried out。The stock price had fallen 18.6% compared to the day before the report, but the stock price bottomed out hereI did it.
One week after the former president announced his resignationThe new president held a press conference and set out measures to prevent recurrence, such as establishing a reform organization composed of external committees. Furthermore, the major bakery $Yamazaki Baking(2212.JP$throughIt was also decided to receive hygiene management and financial support。As receiving investment from Yamazaki Baking became concrete, the stock price surpassed even before the report, and about 2 months after the report, it rose 60.0% from the lowest price on a closing price basis。
As a result of this incident, Fuji Family became a company subject to the equity method of Yamazaki Baking, and became a subsidiary in 08/11.
2007/1, $Fujiya(2211.JP$It was reported that milk that had expired was used for cream puffs manufactured by. The company held a press conference the day after the report and apologized. It is said that internal investigation results will be announced 4 days after the weekend, and the president will announce his resignationSpeed support was carried out。The stock price had fallen 18.6% compared to the day before the report, but the stock price bottomed out hereI did it.
One week after the former president announced his resignationThe new president held a press conference and set out measures to prevent recurrence, such as establishing a reform organization composed of external committees. Furthermore, the major bakery $Yamazaki Baking(2212.JP$throughIt was also decided to receive hygiene management and financial support。As receiving investment from Yamazaki Baking became concrete, the stock price surpassed even before the report, and about 2 months after the report, it rose 60.0% from the lowest price on a closing price basis。
As a result of this incident, Fuji Family became a company subject to the equity method of Yamazaki Baking, and became a subsidiary in 08/11.
If the company mishandles it, the problem may become even more serious or protracted. particularlyThe words and actions of the top (president) are attracting attention, and in the worst case, they could pour fuel on the fire。
Reference Case 3: Former Snow Brand Milk Industry It burst into flames due to the president's gaffe, and the company later disappeared
From June to July 2000, group food poisoning caused by dairy products such as low-fat milk from the former Snow Brand Milk Industry occurred, and the number of victims rose to over 13,000. The cause was that Staphylococcus aureus toxins were contained in skimmed milk powder contaminated by factory power outages.
In addition to the fact that company support took a backward turn, such as delays in product recall and company announcements being prompted after announcements by public health centers, it was revealed at the press conference that the president had not grasped the situation, and the president's gaffe saying “I'm not sleeping even if I said that” also popped out, etc.The poor governance of the company was also the target of criticism, and the problem became serious and prolonged。
Furthermore, in 02/1, it was discovered that a subsidiary had fraudulently received grants for beef purchased by the government to prevent BSE (bovine spongiform encephalopathy) infection by replacing it with cheap imported beef. The subsidiary was dissolved in April of the same year.
After that, in 03/1, the municipal dairy business division was integrated with the 2 companies in the form of receiving relief from 2 companies, Zennoji and Zen-Dairy Cooperative, and a new brand was established. The former Snow Brand Milk Industry came under the umbrella of the new brand company and holding company, and was delisted in 09/9. It was absorbed by a holding company in 11/4.
From June to July 2000, group food poisoning caused by dairy products such as low-fat milk from the former Snow Brand Milk Industry occurred, and the number of victims rose to over 13,000. The cause was that Staphylococcus aureus toxins were contained in skimmed milk powder contaminated by factory power outages.
In addition to the fact that company support took a backward turn, such as delays in product recall and company announcements being prompted after announcements by public health centers, it was revealed at the press conference that the president had not grasped the situation, and the president's gaffe saying “I'm not sleeping even if I said that” also popped out, etc.The poor governance of the company was also the target of criticism, and the problem became serious and prolonged。
Furthermore, in 02/1, it was discovered that a subsidiary had fraudulently received grants for beef purchased by the government to prevent BSE (bovine spongiform encephalopathy) infection by replacing it with cheap imported beef. The subsidiary was dissolved in April of the same year.
After that, in 03/1, the municipal dairy business division was integrated with the 2 companies in the form of receiving relief from 2 companies, Zennoji and Zen-Dairy Cooperative, and a new brand was established. The former Snow Brand Milk Industry came under the umbrella of the new brand company and holding company, and was delisted in 09/9. It was absorbed by a holding company in 11/4.
ー MooMoo News Mark
Source: Ministry of Health, Labor and Welfare website, Asahi Shimbun, Nihon Keizai Shimbun, House of Councilors materials, Yahoo! Finance, Wikipedia
Source: Ministry of Health, Labor and Welfare website, Asahi Shimbun, Nihon Keizai Shimbun, House of Councilors materials, Yahoo! Finance, Wikipedia
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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田中一郎2 : What do you say even though the death toll hasn't been determined
182526358 : Of the stock price I'm always interested in
Thank you so much for the quick information.
Now Kobayashi Pharmaceutical and Sakura Internet