MIRA
INFORM REPORT
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Report Date : |
26.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
IWATANI INTERNATIONAL CORPORATION |
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Registered Office : |
3-4-8 Honmachi
Chuoku Osaka 541-0053 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Feb 1945 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Wholesale, import, export of gases for industrial &
household use |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 6010.4 millions |
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Status : |
Fair |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name
IWATANI INTERNATIONAL CORPORATION
REGD NAME
Iwatani Sangyo KK
MAIN OFFICE
3-4-8 Honmachi Chuoku Osaka 541-0053 JAPAN
Tel :
06-6267-3355
Fax : 06-6267-3350
URL : http://www.iwatani.co.jp/
E-Mail address :
iicworld@iwatani.co.jp
ACTIVITIES
Wholesale, import, export of gases for industrial &
household use
BRANCHES
Tokyo (address as given), Sapporo, Sendai, Nagoya,
Hiroshima, Fukuoka, other (Tot 92): 62
Branch Offices, 28 Sales Offices, 2 Training Centers
OVERSEAS
China (30), Hong Kong (3), Taiwan, Korea, Singapore (5),
Thailand (5),
Malaysia (2), Indonesia (2), Philippines, Australia (5), USA
(2), Europe (2)
(--branch offices, subsidiaries, JV & affiliates)
CHIEF EXEC
AKIJI MAKINO, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 640,073 M
PAYMENTS REGULAR CAPITAL Yen 20,096 M
TREND STEADY WORTH Yen 56,257 M
STARTED 1945 EMPLOYES 7,144
COMMENT
TRADING COMPANY SPECIALIZING IN GASES FOR INDUSTRIAL & HOUSE HOLD USE. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$500,000 / OVER 45 DAYS FROM
B/L
MAX CREDIT LIMIT: YEN 6,010.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The
subject company was established originally in 1930 by Naoji Iwatani, on his account,
for selling oxygen, carbide and solvents, and has been succeeded by his
descendants. The founder’s name is
retained in “Iwatani Naoji Memorial
Foundation”, holding 8.1% of the firm’s share.
This is a trading company specializing in gases for industrial &
household use. Largest in LPG
trading. Has many JV’s set up with
overseas firms, including Union Carbide (USA) in China, Indonesia, etc. JV’s & affiliates in China total 34
including Hong Kong & Taiwan.
Jointly with Mitsubishi Heavy Ind, involved in production (thru
affiliate) of liquid hydrogen.The firm has withdrawn from unprofitable
single-family housing business.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 640,073 million, a 9.7% hike from Yen 583,575 million in the previous term. By divisions, Energy & Lifestyle Div rose 13.3% to Yen 362,190 million, boosted by the hike in LPG imports prices; Industrial Gases Div was up 13.1% to Yen 151,396 million, demand sharply rising from automakers, digital home electronics, IT industries; Materials & Electronics Div up 3.4% to Yen 113,049 million, thanks to the expanded demand for synthetic resins. The recurring profit was posted at Yen 11,768 million and the net profit at Yen 2,340 million, respectively, compared with Yen 9,692 million recurring profit and Yen 4,145 million net profit, respectively, a year ago. The decrease in net profits refers to asset impairment losses.
For the
current term ending Mar 2007 the recurring profit is projected at Yen 12,000 million
and the net profit at Yen 4,700 million, respectively, on a 5.5% rise in
turnover, to Yen 675,000 million. Half-yearly business estimates ending
Sept/2006: sales Yen 319,000 million, recurring profit Yen 2,640 million, net
profit Yen 840 million. Industrial
gases & solvents are steady and fared well, added to rising prices of
imports. Operation costs reduction
contributed to the profits growth. For the full year, industrial gas & LPG
showing steady sales expansion on back of increased customers. Special asset
impairment losses gone. Planning LNG
supply to 1,700 general households and plants in Koka, Shiga-Pref jointly with
Kansai Electric Power.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is estimated at Yen 6,010.4 million, on 30 days
normal terms.The proposed amount is considered well within the firm’s financial
capacities.
REGISTRATION
Date Registered : Feb
1945
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
400 shares
Issued :
251,365,028 shares
Sum :
Yen 20,096 million
Major shareholders (%) : Iwatani Naoji Memorial Foundation (8.1), Bank of Tokyo-Mitsubishi UFJ (4.4), Dresdner
Bank Frankfurt Equities C (3.1), Morgan Stanley Int’l (3.0), Tetsuro Iwatani (2.7),
Resona Bank (2.3), Iwatani Enyukai (2.2), Nippon Life Ins (2.2), Employees’ S/Holding
Assn (1.9), Mizuho Corporate Bank (1.8); foreign owners (10.1)
No. of shareholders :
21,292
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya
Managements : Akiji Makino, pres; Toshio Watanabe, v pres; Seiichi Mori, s/mgn dir; Kazu-hiko
Minamimoto, s/mgn dir; Tadashi Danhara, s/mgn dir; Takashi Miyagawa, s/mgn dir;
Daizaburo Sasaki, s/mgn dir; Eisuke Takeda, s/mgn dir; Toyofumi Obaman, mgn dir;
Kyohei Nishida, mgn dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Iwatani Industrial Gases Corp, Central Sekiyu Gas Co,
Iwatani Materials Corp, other (Tot 88 as of Mar/06).
OPERATION
Activities:
Leading trading house specializing in energy & gases: Sales breakdown by
divisions:
Energy & Lifestyle-related
Div (57%): LPG,
LNG, kerosene, LPG supply equipment, gas heat pumps, wind power generation
systems, housing equipment, bathroom units, inte-grated kitchen systems, foods,
livestock animal feeds, fertilizer, agricultural equipment, horticultural
equipment & supplies, seeds & seedlings, other;
Industrial Gas Div (24%): welding gases, gas equipment,
solvents, cleaning equipment, jigs
& robots, other;
Materials & Electronics Div
(18%):
semiconductor mfg equipment, communication devices, synthetic resin materials,
ceramics, iron & metals, building materials, other;
Others (2%).
Overseas
trading ratio 8.9%: East Asia (China & Taiwan) (4.4%); S/E Asia (Singapore
& Thailand) (1.3%); other region (USA, Australia ) (3.2%)
Clients
[Mfrs,
wholesalers] Matsushita Electric Ind, Sharp Corp, Nippon Oil Corp, Furukawa Electric,
Murata Mfg, Marubeni Gas Energy, Yasukawa Electric Corp, Marubeni Gas Energy,
Zen-Noh, Iwatani Industrial Gases, Nippon Gas, Taiyo Nippon-Sanso Corp, Cosmo
Petro-leum Gas, Japan Air Gases, ^, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Oil refiners, mfrs, wholesalers] Iwatani Industrial Gases,
Nippon Oil Corp, Cosmo Petroleum Gas, Kobe Steel, Marubeni Gas Energy,
Mitsubishi Electric, Nippon Air Liquid, Yasukawa Electric Corp, other.
Payment record
Regular
Location
Business area in Osaka.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ (Osaka)
Mizuho Corporate Bank (Osaka)
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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640,073 |
583,575 |
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Cost of Sales |
515,227 |
465,603 |
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GROSS PROFIT |
124,846 |
117,972 |
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Selling & Adm Costs |
111,970 |
107,594 |
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OPERATING PROFIT |
12,875 |
10,377 |
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Non-Operating P/L |
-1,107 |
-685 |
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RECURRING PROFIT |
11,768 |
9,692 |
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NET PROFIT |
2,340 |
4,145 |
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BALANCE
SHEET |
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Cash |
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20,658 |
22,359 |
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Receivables |
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124,827 |
119,373 |
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Inventory |
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40,389 |
32,913 |
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Securities, Marketable |
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Other Current Assets |
10,714 |
13,804 |
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TOTAL CURRENT ASSETS |
196,588 |
188,449 |
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Property & Equipment |
116,738 |
129,578 |
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Intangibles |
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11,503 |
11,319 |
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Investments, Other Fixed Assets |
77,044 |
52,844 |
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TOTAL ASSETS |
401,873 |
382,190 |
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Payables |
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118,012 |
109,568 |
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Short-Term Bank Loans |
75,931 |
79,340 |
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Other Current Liabs |
32,921 |
25,001 |
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TOTAL CURRENT LIABS |
226,864 |
213,909 |
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Debentures |
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23,370 |
28,680 |
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Long-Term Bank Loans |
82,160 |
77,893 |
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Reserve for Retirement Allw |
3,236 |
2,816 |
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Other Debts |
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5,336 |
5,738 |
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TOTAL LIABILITIES |
340,966 |
329,036 |
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MINORITY INTERESTS |
4,648 |
5,067 |
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Common stock |
20,096 |
20,096 |
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Additional paid-in capital |
17,908 |
17,908 |
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Retained earnings |
10,661 |
10,044 |
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Evaluation p/l on
investments/securities |
8,948 |
3,214 |
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Others |
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(1,192) |
(3,039) |
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Treasury stock, at cost |
(164) |
(136) |
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TOTAL S/HOLDERS` EQUITY |
56,257 |
48,087 |
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TOTAL EQUITIES |
401,873 |
382,190 |
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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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17,550 |
19,919 |
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Cash Flows from Investment
Activities |
-19,364 |
-21,887 |
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Cash Flows from Financing Activities |
-332 |
-603 |
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Cash, Bank Deposits at the Term End |
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20,444 |
22,066 |
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ANALYTICAL
RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net Worth (S/Holders' Equity) |
56,257 |
48,087 |
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Current Ratio (%) |
86.65 |
88.10 |
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Net Worth Ratio (%) |
14.00 |
12.58 |
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Recurring Profit Ratio (%) |
1.84 |
1.66 |
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Net Profit Ratio (%) |
0.37 |
0.71 |
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Return On Equity (%) |
4.16 |
8.62 |
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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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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)