MIRA INFORM REPORT
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Report Date : |
8th May 2006 |
IDENTIFICATION DETAILS
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Name : |
HOHSUI
CORPORATION |
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Registered Office : |
Kyoei
Bldg 7F, 1-6-1 Hatchobori Chuoku Tokyo 104-0032 Japan |
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Date of Incorporation : |
Aug 1945 |
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Legal Form : |
Limited Company |
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Line of Business : |
Importers, wholesalers of seafood |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 888.7
MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
HOHSUI CORPORATION
REGD NAME
KK Hohsui
MAIN OFFICE
Kyoei Bldg 7F, 1-6-1 Hatchobori Chuoku Tokyo 104-0032 JAPAN
Tel: 03-3297-8200
Fax: 03-8297-3207
E-Mail address: info@housui.co.jp
ACTIVITIES
Import, wholesale of seafood
BRANCHES
Sendai, Fukuoka, Ashikaga
OVERSEAS
PT Irian Marine Product
Development, Indonesia (JV firm)
FACTORY(IES)
(subcontracted)
CHIEF EXEC
IKUO MATSUOKA, PRES & CEO
Yen Amount
In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen
20,554 M
PAYMENTS REGULAR CAPITAL Yen 2,005 M
TREND STEADY WORTH Yen 3,659 M
STARTED 1945 EMPLOYES 79
COMMENT
SEAFOOD PROCESSOR &
WHOLESALER, AFFILIATED WITH NIPPON KAISHA LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 888.7
MILLION, NORMAL 30 DAYS TERMS
Forecast (or estimated) figures
for 31/03/2006 fiscal term
HIGHLIGHTS
The subject company was
established as a fishery company in 1945, affiliated with Nippon Suisan Kaisha
Ltd (see REGISTRATION). In May 1955,
launched into trawling operations of salmon & trout, extending into Alaska,
Indonesia, Papua New Guinea, etc areas but completely withdrew from the
operations around 1985. Now specializes
in seafood processing & seafood trading.
Shifted into trading mainly of shrimps (40% of total sales) from
Indonesia, where the firm operates a JV, PT Irian Marine Product Development,
founded 1960. Also launched fish
retailing operations in Apr 1996, running 13 stores operated by the subsidiary
Keiko Suisan KK. Clients in the
wholesale div are fishery processors, food mfrs, wholesalers, fishery markets,
nationwide. Spurring sales of cod roes,
mackerel, etc. Also precooked fishes at
the retail stores.
The sales volume for Mar/2005
fiscal term amounted to Yen 20,554 million, an 18.8% up from Yen 17,295 million
in the previous term. The price
declines in shrimps, crabs, squids were compensated by the expanded client
networks and focusing on profitable operations. Seafood wholesales div was up by 29.1% to Yen 18,104
million. Seafood sales at stores div
was down by 19.8% to Yen 1,771 million, due to slumping consumer spending and
liquidation of some retail stores. The
total fishery stores are reduced to 8 from the previous 10, with 5 new stores
opening (raw fish & precooked fishes), totaling 13 stores, operated by wholly-owned
subsidiary, Keiko Suisan KK. Overseas
div was up by 17.3% to Yen 677 million, thanks to the expanded imports of
shrimps and other fishes from PT Irian Marine Product Development,
Indonesia. The recurring profit was
posted at Yen 102 million and the net profit at Yen 47 million, respectively,
compared with Yen 181 million recurring losses and Yen 263 million net losses,
respectively, a year ago. The firm
wrote-off extraordinary losses of Yen 49 million due from the
liquidation/closure of some stores.
For the term ended Mar/2006 the
recurring profit was projected at Yen 75 million and the net loss at Yen 55
million, respectively, on a 7% rise in turnover, to Yen 22,000 million. The firm revised earlier projections on
29/03/2006 as above from: sales 22,000 million, recurring profit Yen 130 million
and the net profit Yen 55 million. The
firm cites two major factors for the downward profit revisions: First,
inventory evaluation losses of some fishes to be Yen 25 million (downward
revision of recurring profit), and extraordinary losses of Yen 57 million NC’s
from the bankruptcy of one of its clients, in addition to assets impairment
losses of Yen 67 million.
The financial situation is
considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 888.7
million, on normal 30 days terms.
REGISTRATION
Date Registered: Aug 1945
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 160 million shares
Issued: 40,110,000 shares
Sum: Yen
2,005 million
Major shareholders (%): Nippon
Suisan Kaisha Ltd*(63), Yamaoka Co (2.4), Japan Securities Finance (1.8),
Nichirei Corp (1.2), Sompo Japan Ins (1.2), Master Trust Bank of Japan T (1.2),
Tokyo Marine & Nichido Fire Ins (0.6), Japan Trustee Services Bank T (0.5),
Chiyo Saimaru (0.5), Deutsche Bank (0.4); foreign owners (1.2)
*.. Second largest in seafood
industry, Tokyo, founded 1943, listed Tokyo, Osaka S/E’s, capital Yen 23,729
million, turnover Yen 510,889 million, recurring profit Yen 12,615 million, net
profit Yen 6,138 million, total assets Yen 353,086 million, net worth Yen
95,093 million, employees 1,195, pres Naoya Kakizoe
No. of shareholders: 3,105 (as of
Sept/05)
Listed on the S/Exchange (s) of:
Tokyo
Managements: Ikuo Matsuoka, pres
& CEO; Takehiko Yokota, dir; Shuichi Omata, dir; Tadashi Tanaka, dir;
Makoto Sugawara, dir; Yasuhisa Satoh, dir
Nothing detrimental is known as to
the commercial morality of executives.
Related companies: Keiko Suisan KK
(Tot 1 as of Sept/05)
OPERATION
Activities: Marine products
trading firm (sales breakdown by divisions): Seafood Wholesale Div (88%):
shrimp, cod roe, mackerel, crabs, squids, other, shipping to seafood & food
processors, supermarkets, other; Seafood Sales at stores (9%): operates a total
13 stores, managed by subsidiary, Keiko Suisan KK, handling fresh/raw fish
& precooked fishes; Overseas Div (3%): manages JV, PT Irian Marine Product
Development, Indonesia, for trawling shrimps centrally.
Clients: [Fishery processors,
fishery markets, fishery stores] Fukuoka-Pref Uoichiba, Matsuda Sangyo, Toyo
Reizo, Nishihara Shokai, other.
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers]
Benirei Co, American Seafoods, Nippon Suisan, Maruha Corp, Toyo Marine, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References
Mizuho Bank (Marunouchi)
Norin Chukin Bank (H/O)
Relations: Satisfactory
FINANCES
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(Consolidated in million yen) |
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Terms
Ending: |
31/03/2005 |
31/03/2004 |
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INCOME
STATEMENT |
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Annual Sales |
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20,554
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17,295
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Cost of Sales |
18,863
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15,670
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GROSS PROFIT |
1,690 |
1,624 |
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Selling & Adm Costs |
1,616 |
1,828 |
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OPERATING PROFIT |
74 |
-203 |
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Non-Operating P/L |
28 |
22 |
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RECURRING PROFIT |
102 |
-181 |
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NET PROFIT |
47 |
-263 |
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BALANCE
SHEET |
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Cash |
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154 |
161 |
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Receivables |
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2,575 |
2,334 |
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Inventory |
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2,680 |
1,804 |
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Securities, Marketable |
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Other Current Assets |
767 |
1,645 |
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TOTAL CURRENT ASSETS |
6,176 |
5,944 |
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Property & Equipment |
142 |
161 |
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Intangibles |
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4 |
6 |
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Investments, Other Fixed Assets |
150 |
172 |
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TOTAL ASSETS |
6,472 |
6,283 |
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Payables |
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1,955 |
1,826 |
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Short-Term Bank Loans |
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Other Current Liabs |
386 |
389 |
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TOTAL CURRENT LIABS |
2,341 |
2,215 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
464 |
438 |
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Other Debts |
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8 |
13 |
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TOTAL LIABILITIES |
2,813 |
2,666 |
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MINORITY INTERESTS |
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Common
stock |
2,005 |
2,005 |
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Additional
paid-in capital |
878 |
878 |
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Retained
earnings |
776 |
729 |
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Evaluation
p/l on investments/securities |
0 |
4 |
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Others |
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2 |
1 |
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Treasury
stock, at cost |
(2) |
(1) |
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TOTAL S/HOLDERS` EQUITY |
3,659 |
3,616 |
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TOTAL EQUITIES |
6,472 |
6,283 |
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CONSOLIDATED CASH FLOWS |
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Terms
ending: |
31/03/2005 |
31/03/2004 |
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Cash
Flows from Operating Activities |
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-873 |
-431 |
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Cash
Flows from Investment Activities |
456 |
145 |
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Cash
Flows from Financing Activities |
0 |
0 |
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Cash,
Bank Deposits at the Term End |
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849 |
1,266 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2005 |
31/03/2004 |
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Net
Worth (S/Holders' Equity) |
3,659 |
3,616 |
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Current
Ratio (%) |
263.82
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268.35
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Net
Worth Ratio (%) |
56.54 |
57.55 |
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Recurring
Profit Ratio (%) |
0.50 |
-1.05 |
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Net
Profit Ratio (%) |
0.23 |
-1.52 |
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Return
On Equity (%) |
1.28 |
-7.27 |
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RATING EXPLANATIONS
RATING
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STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |