BAKU, Azerbaijan, November 13. In recent years, ITOCHU Corporation has strategically focused its investments on key business partners and Group companies with established commercial relationships and personnel exchanges, Trend reports.
The remarks were made during an investor briefing.
Notable entities in this portfolio include ITOCHU Techno-Solutions Corporation (CTC), DAIKEN CORPORATION (DAIKEN), DESCENTE, and Hitachi Construction Machinery.
Emphasizing a commitment to synergy and steady profits, particularly in the non-resource sector, ITOCHU remains vigilant in navigating the current highly uncertain business environment marked by rapid geopolitical shifts. The company diligently selects investment opportunities that align with its forward-looking vision.
Adhering to a steadfast investment policy outlined in the "Four Lessons for Investments," ITOCHU continues to prioritize sound decision-making, avoiding pitfalls such as overpaying for investments, pursuing profit at the expense of investees, overdependence on partners, and a lack of hands-on management.
On the business front, ITOCHU demonstrates a proactive stance toward investments despite the emergence of numerous candidates and seemingly high stock prices in the current economic climate. Anticipating a potential decline in stock prices from the next fiscal year onward, the company underscores the importance of judiciously timing its investments.
To ensure a rigorous examination process, ITOCHU has implemented stringent measures across the organization, carefully evaluating potential investments through the Investment Consultative Committee. While the investment pipeline is robust, the company exercises prudence, rejecting opportunities that may not align with its strategic goal of effectively deploying finite funds.
ITOCHU's investment strategy prioritizes the expansion of related businesses, as evidenced by additional stakes in CTC and DAIKEN. Hitachi Construction Machinery, initially a business partner in North America, is expected to play a more extensive role in business expansion beyond North America. Tokyo Century Corporation, reinforcing its partnership with Hitachi Construction Machinery, has invested in a North American construction machinery financing company alongside ITOCHU.
Looking ahead, the Machinery Company is poised for business expansion, centered on Tokyo Century Corporation and Hitachi Construction Machinery. ITOCHU, across its Division Companies, refines strategies to expand business, with a focus on core Group companies. While new investments and additional stakes remain integral to this strategy, the company underscores the critical need for careful timing in executing these financial moves.
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