MIRA
INFORM REPORT
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Report Date : |
9th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
KANEMATSU CORPORATION |
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Registered Office : |
1-2-1 Shibaura Minatoku Tokyo 106-8006 JAPAN |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
March
1918 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of
IT-related equipment, foods, machinery, energy |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 3,986.8 MILLION |
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Status : |
Moderate
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company Name
KANEMATSU CORPORATION
REGD NAME
Kanematsu KK
MAIN OFFICE
1-2-1 Shibaura Minatoku Tokyo 106-8006 JAPAN
Tel :
03-5440-8111
Fax :
03-5440-6500
URL : http://www.kanematsu.co.jp/
E-Mail address : pr@kanematsu.co.jp
ACTIVITIES
Import, export, wholesale of
IT-related equipment, foods, machinery, energy
BRANCHES
Osaka, Nagoya, Sapporo, Sendai,
Yokohama, Kobe, Fukuoka (Tot 7)
OVERSEAS
USA (9), Europe (7), Australia
(3), Mid East/Africa (3), China (6), Taiwan (2),
Vietnam (3), Korea, Singapore,
Indonesia, Philippines (Tot 37)
CHIEF EXEC
YOSHIHIRO MIWA, PRES
Yen Amount
In million Yen, unless otherwise
stated
SUMMARY
FINANCES R/WEAK A/SALES Yen 1,104,726 M
PAYMENTS REGULAR CAPITAL Yen 27,781 M
TREND UP WORTH Yen 26,004 M
STARTED 1918 EMPLOYES 4,449
COMMENT
TRADING HOUSE FOCUSING ON IT-RELATED AND FOODS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 3,986.8
MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures
for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established originally as a textile specialized trader and later has grown into one of the leading general trading houses of Japan. Traditionally strong in textiles, but financial structure deteriorated, resulting in trimming down of operations. Following debt forgive-ness by main bank, made new start, focusing operations on 4 key sectors including food and IT-related areas under supervision of Bank of Tokyo-Mitsubishi UFJ. Textiles were driven to sidelines, while IT-related business is growing, including mobile communications equipment. Steady sales maintained in the food sector.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal
term amounted to Yen 1,104,726 million, a 24.6% hike from Yen 886,786 million
in the previous term. Energy, Foodstuffs & IT divisions rose due to business
expansion as a result of soaring oil prices and the consolidation of Kanematsu
Electronics Co Ltd and Shintoa Corporation as new subsidiaries. The recurring
profit was posted at Yen 15,700 million, up from Yen 11,720 million the
previous year. The bottom line registered Yen 21,686 million net losses for the
term. The firm posted extraordinary
loss of Yen 41,500 million as carried impaired assets. This compares with Yen 2,469 million net
profit a year ago.
For the current term ending Mar 2007
the recurring profit is projected at Yen 18,500 million and the net profit at
Yen 10,000 million, on an 8.6% rise in turnover, to Yen 1,200,000 million. IT
and plants doing well. Profits will
continue grow due to full-term contribution of newly added con subsidiaries.
Half yearly results ending Sept/2006: Sales Yen 626,277 million (up 33.9%),
recurring profit Yen 9,383 million (up 59.0%), net profit Yen 6,271 million (up
from previous term’s losses). (% in
parenthesis compared with the same period the previous year)..
The financial situation is considered
maintained RATHER WEAK but should be good for MODERATE business
engagements. Max credit limit is
estimated at Yen 3,986.8 million, on 30 days normal terms.
REGISTRATION
Date Registered : Mar 1918
Legal Status : Limited Company (Kabushiki
Kaisha)
Authorized : 1,016,653,604 shares
Issued : 422,501,010 shares
Sum : Yen 27,781 million
Major shareholders (%)
Japan Trustee Services Bank T (5.4), Japan Securities Finance (4.7), Bank of Tokyo-Mitsubishi UFJ (3.1),
Norin Chukin Bank (2.9), Tokio Marine & Nichido Fire Ins (2.7), Master Trust Bank of Japan T (1.7),
Kanematsu-NNK (1.4), Mizuho Corporate Bank (1.1), Daio Paper Corp (0.9), Daifuku (0.8); foreign owners (6.5)
No. of shareholders: 33,110
Listed on the S/Exchange (s) of
Tokyo, Osaka
Managements
Tadashi Kurachi, ch; Yoshihiro Miwa,
pres; Masaharu Hamakawa, v pres; Kazuo Shigemoto, mgn dir; Takashi Nagoya, mgn
dir; Hideaki Morito, mgn dir; Takashi Kosaka, mgn dir; Yutaka Tabata, dir;
Hitomi Sato, dir; Fumihiko Nishimoto, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies
Kanematsu KGK, Kanematsu Textile Corp,
Kanematsu Communica- tions, other
(Tot 88 as of Mar/06)
OPERATION
Activities: Trading house for import,
export and wholesale of:
(Sales
breakdown by divisions):
IT Div
(27%): electronics equipment, printers, information-related
equipment, optical goods, aircraft & parts, semiconductor mfg equipment
& devices;
Foodstuffs
Div (18%): canned/bottled foods, coffee, cocoa,
sugar, wines, dried fruits, live stock products, marine products, feeds, pet
foods, barley, rice, other processed foods;
Life
Science & Energy Div (27%): functional chemicals, feed
materials, adhesive materials, solvents, health-care foods & supplements,
pharmaceuticals intermediates, gasoline, kerosene, jet fuel, lubricants, LPG,
LNG, other;
Steel
& Plant Div (21%): steel & iron products,
coax, iron ore, seamless pipes, chemical plant
machinery, ships, ship apparatus, cars, motorbikes, electric power equipment, machine
tools, textile machinery, other industrial machinery, other.
Textiles
Div (5%): textile materials, OEM business in
casual products, uniforms, other;
Others
(2%)
Overseas
sales ratio 30.7%: Asia 17.1%; N America 9.2%; Europe
1.9%; others 2.5%.
Clients
[Governments, food processors,
steelmakers, IT-related firms] Food Agency, Defense Agency, Marudai Food,
Idemitsu Kosan, Showa-Shell Sekiyu, LG Micron, Prima Meat Packers, Japan
Energy, Guangzhou Showa Autoparts, Nippon Meat Packers, other.
No. of accounts
3,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Honda Motors,
Nippon Steel, Seiko Epson, IBM Japan, Kobe Steel,
JFE Steel, Mitsubishi Heavy Ind, Kobe Steel, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ (H/O)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
FINANCES
(Consolidated in million yen)
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME STATEMENT |
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Annual Sales |
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1,104,726 |
886,876 |
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Cost of Sales |
1,022,993 |
818,734 |
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GROSS PROFIT |
81,732 |
68,142 |
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Selling & Adm Costs |
63,750 |
52,380 |
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OPERATING PROFIT |
17,982 |
15,762 |
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Non-Operating P/L |
-2,273 |
-4,042 |
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RECURRING PROFIT |
15,709 |
11,720 |
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NET PROFIT |
-21,686 |
2,469 |
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BALANCE SHEET |
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Cash |
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52,115 |
49,256 |
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Receivables |
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197,953 |
148,551 |
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Inventory |
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79,737 |
71,172 |
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Securities, Marketable |
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Other Current Assets |
51,577 |
48,967 |
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TOTAL CURRENT ASSETS |
381,382 |
317,946 |
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Property & Equipment |
51,041 |
69,395 |
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Intangibles |
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3,905 |
2,784 |
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Investments, Other Fixed Assets |
119,718 |
129,993 |
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TOTAL ASSETS |
556,046 |
520,118 |
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Payables |
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138,970 |
102,451 |
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Short-Term Bank Loans |
215,885 |
99,484 |
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Other Current Liabs |
59,538 |
50,495 |
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TOTAL CURRENT LIABS |
414,393 |
252,430 |
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Debentures |
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Long-Term Bank Loans |
82,548 |
211,332 |
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Reserve for Retirement Allw |
5,863 |
5,961 |
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Other Debts |
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12,264 |
9,992 |
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TOTAL LIABILITIES |
515,068 |
479,715 |
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MINORITY INTERESTS |
14,972 |
2,373 |
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Common stock |
27,781 |
27,501 |
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Additional paid-in capital |
27,641 |
26,037 |
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Retained earnings |
(16,294) |
5,392 |
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Evaluation p/l on investments/securities |
4,816 |
1,694 |
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Others |
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(17,940) |
(22,595) |
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Treasury stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
26,004 |
38,029 |
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TOTAL EQUITIES |
556,046 |
520,118 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Cash Flows from Operating Activities |
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19,720 |
10,122 |
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Cash Flows from Investment Activities |
7,822 |
5,382 |
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Cash Flows from Financing Activities |
-26,583 |
-2,913 |
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Cash, Bank Deposits at the Term End |
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50,934 |
48,831 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2006 |
31/03/2005 |
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Net Worth (S/Holders' Equity) |
26,004 |
38,029 |
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Current Ratio (%) |
92.03 |
125.95 |
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Net Worth Ratio (%) |
4.68 |
7.31 |
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Recurring Profit Ratio (%) |
1.42 |
1.32 |
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Net Profit Ratio (%) |
-1.96 |
0.28 |
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Return On Equity (%) |
-83.39 |
6.49 |
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RATING EXPLANATIONS
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RATING |
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 |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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