MIRA
INFORM REPORT
|
Report Date : |
20.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
KANEMATSU CORPORATION |
|
|
|
|
Registered Office : |
1-2-1 Shibaura Minatoku Tokyo 106-8006 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
Mar 1918 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Import, export, wholesale of
IT-related equipment, foods, machinery, energy |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Maximum Credit Limit : |
Yen 8497.8 millions |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Regular |
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 1,281,331 M
PAYMENTS REGULAR CAPITAL Yen 27,781 M
TREND UP WORTH Yen 48,767 M
STARTED 1918 EMPLOYES 4,545
COMMENT
TRADING HOUSE FOCUSING ON IT-RELATED AND FOODS. FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 8,497.8 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for
31/03/2008 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 forgiveness 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 (MUFG). Sold majority of less-profitable textile sub’s shares. It-related continuing growth led by solutions, including mobile communications equipment. Foods and steel products plant expanding.
Recent
news (Nikkei Business dated 01/10/2007):
The subject will sell its entire 3.93% share in Tungguh LNG project in Indonesia to Mitsui & Co, Mitsubishi Corp, Nippon Oil Corp and Inpex Holdings Inc for about Yen 15,000 million. The move is intended to help Kanematsu focus more on its core business areas: logistics, mobile solutions, food and environment & renewable energies, according to the firm.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen
1,281,331 million, a 16.9% hike from Yen 1,096,409 million in the previous
term. Energy, Foodstuffs & IT divisions
continued rising due to business expansion as a result of soaring oil
prices. By divisions, IT-related up 15%
to Yen 357,926 million; Foodstuffs up
27% to Yen 274,162 million; Steel & Plants up 8% to Yen 247,115 million,
led by shipbuilding plant in Vietnam and robust exports of auto parts into
China. The recurring profit was posted
at Yen 17,255 million, up from Yen 15,709 million the previous year. Registered net profit of Yen 7,507 million,
compared with Yen 21,686 million net loss for the previous term. Posted Yen 8,779 million extraordinary
profits coming from the disposal of fixed assets.
(Apr/Sept/2007 results): Sales Yen 613,604 (down 0.7%), operating profit Yen 12,548 million (up 4.0%), recurring profit Yen 10,975 million (up 17.0%), net profit Yen 5,537 million (down 11.7%). (% compared with the same period a year ago). Steel & Plant continued growth. IT-related also grew thanks to favorable mobile and system solutions business.
For the current term ending Mar 2008 the recurring profit is
projected at Yen 19,000 million and the net profit at Yen 16,000 million, on a
1.5% rise in turnover, to Yen 1,300,000 million. IT-related will continue growing. Foods and steel plants will also continue expanding. Investing Yen 30,000 million in development
of new businesses, including mobile commerce.
Sale of Indonesian LNG shares will help improve profitability.
The financial situation is considered maintained RATHER WEAK
but should be good for MODERATE
business engagements. Max credit limit
is estimated at Yen 8,497.8 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 (4.6), Japan Securities Finance (3.3), MUFG (3.1), Norin
Chukin Bank (2.9), Tokio Marine & Nichido Fire Ins (2.7), Master Trust Bank of Japan T
(1.8), Kanematsu-NNK (1.4), Japan Trustee Services, T4 (1.1), Mizuho Corporate Bank
(1.1), Morgan Stanley & Co (0.9); foreign owners (10.2)
No. of shareholders: 33,184
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Masaharu Hamakawa, ch; Yoshihiro Miwa, pres; Kazuo Shigemoto, mgn dir; Hideaki
Morito, mgn dir; Takashi Kosaka, mgn dir; Hitomi Sato, mgn dir; Yutaka Tabata, dir;
Fumihiko
Nashimoto, dir; Tatsuo Suzuki, dir; Masayuki Shimojima, dir; Kenji Irie, dir.
Related companies
Kanematsu KGK, Kanematsu Communications, Kanematsu Electronics,
other
OPERATION
Activities: Trading house for import, export and wholesale of:
(Sales
breakdown by divisions):
IT Div (28%): electronics equipment, printers, information-related equipment, optical goods, aircraft & parts, semiconductor mfg equipment & devices;
Foodstuffs Div (21%): 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 (24%): functional chemicals, feed materials, adhesive materials, solvents, health-care foods & supplements, pharmaceuticals intermediates, gasoline, kerosene, jet fuel, lubricants, LPG, LNG, other;
Steel & Plant Div (19%): 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
(3%)
Overseas
sales ratio 25.9%: Asia 14.2%; N America 6.9%; Europe 1.9%; others 2.9%.
Clients: [Governments, food processors, steel makers, 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
MUFG (H/O)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
FINANCES
(Consolidated in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2007 |
31/03/2006 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
1,281,331 |
1,096,409 |
|
|
Cost of Sales |
1,177,619 |
1,014,676 |
|
|
|
GROSS PROFIT |
103,711 |
81,732 |
|
|
|
Selling & Adm Costs |
81,997 |
63,750 |
|
|
|
OPERATING PROFIT |
21,713 |
17,982 |
|
|
|
Non-Operating P/L |
-4,458 |
-2,273 |
|
|
|
RECURRING PROFIT |
17,255 |
15,709 |
|
|
|
NET PROFIT |
7,507 |
-21,686 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
65,778 |
52,115 |
|
|
Receivables |
|
205,639 |
197,953 |
|
|
Inventory |
|
84,942 |
79,737 |
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
50,231 |
51,577 |
|
|
|
TOTAL CURRENT ASSETS |
406,590 |
381,382 |
|
|
|
Property & Equipment |
40,601 |
51,041 |
|
|
|
Intangibles |
|
3,549 |
3,905 |
|
|
Investments, Other Fixed Assets |
112,436 |
119,718 |
|
|
|
TOTAL ASSETS |
563,176 |
556,046 |
|
|
|
Payables |
|
153,283 |
138,970 |
|
|
Short-Term Bank Loans |
143,527 |
215,885 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
70,683 |
59,538 |
|
|
|
TOTAL CURRENT LIABS |
367,493 |
414,393 |
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
127,151 |
82,548 |
|
|
|
Reserve for Retirement Allw |
5,441 |
5,863 |
|
|
|
Other Debts |
|
14,324 |
12,264 |
|
|
TOTAL LIABILITIES |
514,409 |
515,068 |
|
|
|
MINORITY INTERESTS |
|
14,972 |
|
|
|
Common stock |
27,781 |
27,781 |
|
|
|
Additional paid-in capital |
27,646 |
27,641 |
|
|
|
Retained earnings |
(9,496) |
(16,294) |
|
|
|
Evaluation p/l on
investments/securities |
3,853 |
4,816 |
|
|
|
Others |
|
|
|
|
|
Treasury stock, at cost |
(627) |
(600) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
48,767 |
26,004 |
|
|
|
TOTAL EQUITIES |
563,176 |
556,046 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2007 |
31/03/2006 |
|
|
Cash Flows from Operating Activities |
|
20,874 |
19,720 |
|
|
Cash Flows from Investment
Activities |
23,149 |
7,822 |
|
|
|
Cash Flows from Financing Activities |
-30,267 |
-26,583 |
|
|
|
Cash, Bank Deposits at the Term End |
|
65,471 |
50,934 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
||
|
|
|
Net Worth (S/Holders' Equity) |
48,767 |
26,004 |
|
|
|
Current Ratio (%) |
110.64 |
92.03 |
|
|
|
Net Worth Ratio (%) |
8.66 |
4.68 |
|
|
|
Recurring Profit Ratio (%) |
1.35 |
1.43 |
|
|
|
Net Profit Ratio (%) |
0.59 |
-1.98 |
|
|
|
Return On Equity (%) |
15.39 |
-83.39 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)