MIRA
INFORM REPORT
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Report Date : |
07.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
KYOKUYO CO LTD |
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Registered Office : |
Kokusai Sanno Bldg, 3-3-5 Akasaka Minatoku Tokyo 107-0052 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Sept 1937 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing, processing of marine
products, processed foods |
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 3311.8 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name
KYOKUYO CO LTD
REGD NAME
KK Kyokuyo
MAIN OFFICE
Kokusai Sanno Bldg, 3-3-5 Akasaka Minatoku Tokyo 107-0052 JAPAN
Tel : 03-5545-0701
Fax : 03-5545-0751
URL : http://www.kyokuyo.co.jp/
E-Mail address: info@kyokuyo.co.jp
ACTIVITIES
Mfg, processing of marine products, processed foods
BRANCHES
Osaka, Nagoya, Sendai, Yokohama, Niigata, Hiroshima,
Fukuoka, other (Tot 24)
OVERSEAS
Seattle, Qingdao, Bangkok, Ho Chi Minh, Surabaya, Amsterdam
(Affiliates) Kyokuyo America Corp (Seattle), Kyokuyo Shipping
Panama SA (Panama), K&U Enterprise Co Ltd (Thailand), Qingdao Kyokuyo
International Co Ltd (China), Kyokuyo Europe BV (Netherlands)
FACTORY(IES)
(subsidiaries & affiliates)
CHIEF EXEC
KIYOKAZU FUKUI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 157,088 M
PAYMENTS REGULAR CAPITAL Yen 5,664 M
TREND STEADY WORTH Yen 18,887 M
STARTED 1937 EMPLOYES 1,006
COMMENT
MFR SPECIALIZING IN SEA FOODS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$1,200,000 / O/A 7 DAYS.
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MAX CREDIT LIMIT: YEN 3,311.8 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/208 fiscal term
HIGHLIGHTS
The subject company was established originally as a whaling
company, but later in 1992 withdrew from the whaling operations, with fishing
activity centering only in round haul netting, which accounts for 2% of total
sales. After the switch the firm has
grown into comprehensive seafood firm, specializing in mfg, import, export and
wholesale of fresh & frozen fish, fishery products, processed & frozen
sea foods, etc. Also advanced into
marine transport & distribution areas equipped with cold storage
facilities. Seafood processing is
handled by subsidiaries and affiliates of about 220 factories, both at home and
abroad. Overseas processing is about 25%, with offices in Seattle, Bangkok,
China, Amsterdam, etc. In Apr 2005, founded K&U Enterprise Co Ltd
(Thailand) jointly with Union Frozen Products Co Ltd (Thailand) for mfg frozen
sushi products for export to Europe, USA, Japan, etc. Started importing cultured shrimp from Madagascar in Dec
2005. In 2005, founded Qingdao Kyokuyo
Int’l Co Ltd (China) and in 2006 Kyokuyo Europe BV (Netherlands). Started farming of blue-fin tuna, making
contribution to earnings in 3 years.
Also planning exports of products produced at plant in China. Active in overseas operations.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 157,088 million, a 2.7% up from Yen 152,899 million in the previous term. By divisions, Marine Products Purchasing Div up 8.6% to Yen 71,900 million, thanks to risen demand for fish roes & shrimps for sushi dishes; Processed Food Div down 1.7% to Yen 75,700 million, due to difficulty of shifting price hikes; Logistics Div down 14.9% to Yen 5,400 million; Fishery Div up 24% to Yen 3,800 million, thanks to good harvest of tuna & mackerel, where the firm concentrated fishery operations, the prices of which stayed stable. The refrigerated storage ship operation hit by surging fuel oil prices. The recurring profit was posted at Yen 2,853 million and the net profit at Yen 2,000 million, respectively, compared with Yen 3,035 million recurring profit and Yen 2,007 million net profit, respectively, a year ago.
(Apr/Sept/2007 results): Sales Yen 74,544 million (down 4.8%),
operating profit Yen 1,122 million (down 17.6%), recurring profit Yen 1,106
million (down 17.7%), net profit Yen 591 million (down 51.1%). (% compared with the same period the last
year). Fish harvest was down. Cost hikes in fuel oil and materials hit
hard ship operations and packaging materials (processed foods), other. Due to sudden drop in market prices,
inventory adjustment downward occurred.
For the current term ending Mar 2008 the recurring profit is
projected at Yen 2,700 million and the net profit at Yen 1,500 million,
respectively, on a 4.5% fall in turnover, to Yen 150,000 million.
International price hikes of fishes plus competition among the trade
will depress sales turnover, while rising costs will ate into profits.
The financial situation is considered maintained FAIR and good
for ORDINARY business engagements. Max
credit limit is estimated at Yen 3,311.8 million, on 30 days normal terms. The proposed amount for O/A 7 days terms is
considered within the firm’s financial capacities.
REGISTRATION
Date Registered: Sept
1937
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 437
million shares
Issued: 109,282,837
shares
Sum: Yen
5,664 million
Major shareholders (%): Mitsui Sumitomo Ins (5.6), Resona Bank (4.7), Norin Chukin Bank (4.0), Nikko Citi Trust,
Trust Dept (3.1), Toyo Seikan (2.8), Master Trust Bank of Japan (2.0),, Tokio Marine &
Nichido Fire Ins (2.0), JTSB (CMTB Equity Investments (1.5), Company’s Treasury
Stock (1.3), Chuo Gyorui (1.2); foreign
owners (4.2)
No. of shareholders:
12,196
Listed on the S/Exchange (s) of: Tokyo
Managements: Kiyokazu Fukui, pres; Yasuhisa Ishikawa, s/mgn dir; Hisaki Tada, s/mgn dir; Ken’ichi
Kadota, mgn dir; Kotaro Kubo, mgn dir; Motoo Tamura, dir; Tokihiro Sudoh, dir; Yoshio
Murakami,
dir; Makoto Arato, dir; Kenji Imai, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Kyokuyo Suisan, Kyokuyo Shoji, Kyokuyo Shipping, Kyokuyo Foods,
other
OPERATION
Activities: Imports, exports, processes and wholesales sea
foods, preserved & convenience foods:
(Sales breakdown by divisions):
Marine Products Purchasing Div (46%): trading division for import, export and wholesale of fishes, shrimps, crabs, shellfishes, processed seafoods, other;
Processed Foods Div (48%): fish & cuttlefish slices or materials for sushi topping, cooked frozen sea foods including frozen fish fries, canned sea foods such as salmon, mackerel, etc; seafoods are processed at subsidiaries and affiliated factories of about 220 domestic & abroad,
Logistics Div (3%): operates cold storage warehouses in Tokyo, Osaka and Fukuoka, also a cold storage ship in the sea of the world carrying marine products, fruits, vegetables and livestock meats;
Fishery Div (2%): operates 4 tuna purse seiners for fishing oceanic bonitos & tunas in the Pacific Ocean.
Processed foods at overseas subcontracted factories account for
25% of total processed foods sales.
Clients: [Fishery dealers, wholesalers, food processors] Chuo Gyorui, Kyokuyo Shoji, Daisui, Mitsubishi Corp, Mitsui & Co, Ito-Yokado, Daiei Taigen Co, RY Food Service, other.
Exports to Europe, USA, China, other S/E Asian countries.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Chuo Gyorui, Kyokuyo Foods,
Daisui, Kyokuyo Shoji, Kyokuyo Shokuhin, other. Imports from Kyokuyo America, Union Frozen Products, Sirena,
other from USA, Thailand, China, etc.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Resona Bank (Ohtemachi)
Norin Chukin Bank (H/O)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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157,088 |
152,899 |
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Cost of Sales |
139,842 |
135,913 |
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GROSS PROFIT |
17,245 |
16,986 |
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Selling & Adm Costs |
14,455 |
13,702 |
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OPERATING PROFIT |
2,790 |
3,283 |
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Non-Operating P/L |
63 |
-248 |
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RECURRING PROFIT |
2,853 |
3,035 |
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NET PROFIT |
2,000 |
2,007 |
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BALANCE SHEET |
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Cash |
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3,141 |
3,089 |
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Receivables |
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19,733 |
17,887 |
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Inventory |
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24,162 |
22,088 |
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Securities, Marketable |
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Other Current Assets |
1,327 |
1,931 |
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TOTAL CURRENT ASSETS |
48,363 |
44,995 |
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Property & Equipment |
9,209 |
8,774 |
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Intangibles |
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449 |
445 |
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Investments, Other Fixed Assets |
8,438 |
10,835 |
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TOTAL ASSETS |
66,459 |
65,049 |
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Payables |
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7,131 |
8,742 |
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Short-Term Bank Loans |
28,805 |
24,963 |
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Other Current Liabs |
5,990 |
5,297 |
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TOTAL CURRENT LIABS |
41,926 |
39,002 |
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Debentures |
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Long-Term Bank Loans |
1,692 |
2,597 |
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Reserve for Retirement Allw |
1,604 |
1,612 |
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Other Debts |
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2,349 |
3,360 |
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TOTAL LIABILITIES |
47,571 |
46,571 |
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MINORITY INTERESTS |
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106 |
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Common stock |
5,664 |
5,664 |
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Additional paid-in capital |
749 |
743 |
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Retained earnings |
10,132 |
8,712 |
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Evaluation p/l on
investments/securities |
2,266 |
3,509 |
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Others |
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282 |
9 |
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Treasury stock, at cost |
(206) |
(267) |
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TOTAL S/HOLDERS` EQUITY |
18,887 |
18,370 |
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TOTAL EQUITIES |
66,459 |
65,049 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash Flows from Operating Activities |
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-1,816 |
1,226 |
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Cash Flows from Investment
Activities |
-662 |
-1,213 |
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Cash Flows from Financing Activities |
2,514 |
265 |
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Cash, Bank Deposits at the Term End |
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3,090 |
3,029 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
18,887 |
18,370 |
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Current Ratio (%) |
115.35 |
115.37 |
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Net Worth Ratio (%) |
28.42 |
28.24 |
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Recurring Profit Ratio (%) |
1.82 |
1.98 |
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Net Profit Ratio (%) |
1.27 |
1.31 |
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Return On Equity (%) |
10.59 |
10.93 |
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. |
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%)