MIRA
INFORM REPORT
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Report Date : |
25.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
TOKAI KAIKO CO LTD |
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Registered Office : |
Tokai Nakayama Bldg 2F, 2-16-45 Takanawa Minatoku Tokyo 107-0074 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Mar 1948 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Hotel chain operator |
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. |
Small |
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Maximum Credit Limit : |
Yen 43.3 millions |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
name
TOKAI KAIKO CO LTD
REGD NAME
Tokai Kanko KK
MAIN OFFICE
Tokai Nakayama Bldg 2F, 2-16-45 Takanawa Minatoku Tokyo 107-0074 JAPAN
Tel : 03-5488-1010
Fax : 03-3443-9550
URL : http://www.tokaikanko.co.jp/
E-Mail address: h-suzuki@tokaikanko.co.jp
ACTIVITIES
Hotel chain operator
HOTEL(S)
Izu (3)
CHIEF EXEC
JOHNSON YEUNG KONG SANG, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES R/WEAK A/SALES Yen 888 M
PAYMENTS REGULAR CAPITAL Yen 5,438 M
TREND SLOW WORTH Yen 7,914 M
STARTED 1948 EMPLOYES 32
COMMENT
HOTEL
CHAIN OPERATOR.
FINANCIAL SITUATION COSIDERED RATHER WEAK BUT SHOULD BE GOOD
FOR MODERATE BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 43.3 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/12/2007 fiscal term
HIGHLIGHTS
This is a medium-size hotel chain operator of spa resort chains based in Izu Peninsula. Until 1997, when the subject became a subsidiary of Far East Global Asia Ltd, a real estate developer, Hong Kong, the firm had been owned by Credit Saison Group, leading consumer credit firm, Tokyo. Operates Japanese-style resort inns with hot springs under the names Imiso and Nanzanso in Izu Peninsula, popular resort south of Japan. Also engaged in resort hotel operation in Bali, Indonesia, managed by a subsidiary, PT La Flore Indonesia. The real estate segment leases domestic real estate properties through its associated companies both domestically & in overseas: Malaysia & Philippines. The firm is now in second restructuring stage, including closure o hotels and other facilities in Tokyo and major personnel cuts.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 888
million, a 30.2% up from Yen 682 million in the previous term. Guests increased thanks to Internet sales
plus tie-ups with tourists bus operators of group guests. Housing & Real Estate up 2.5% to Yen 36
million, thanks to parking lots openings in Kawaguchi & Meguro
(Tokyo). The recurring profit was
posted at Yen 151 million and the net profit at Yen 279 million, respectively,
compared with Yen 366 million recurring profit and Yen 1,939 million net
losses, respectively, a year ago.
(Jan/Sept/2007 results): sales Yen 510 million (down 20.4%), operating loss Yen 181 million, recurring profit Yen 7 million (down 95%), net profit 2,709 million (up 1,768.8%). (% compared with the same period the previous term. Visitors decreased despite aggressive sales over the Internet. Cost saving efforts, including disposal of real estate held by equity-method firms, contributed to improve profits significantly. Securities investment division posted Yen 51 million net losses.
For the current term ending Dec 2007 the recurring profit is
projected at Yen 366 million and the net profit at Yen 3,058 million, on a 1.7%
rise in turnover, to Yen 903 million.
Guest room operations posting small growth. Real estate sale and cost-saving efforts, including personnel
cuts, will continue to push profits upward.
Planning to appropriate payments for cemetery management in Malaysia,
but materialization still uncertain.
The financial situation is considered RATHER WEAK but should be
good for MODERATE business engagements.
Max credit limit is estimated at Yen 43.3 million, on 30 days normal
terms.
REGISTRATION
Date Registered: Mar
1948
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,200
million shares
Issued: 307,178,060
shares
Sum: Yen
5,438 million
Major shareholders (%): Far East
Global Asia Ltd (23.0), Bank of NY Non Treaty Jasdic (5.7), Japan Securities
Finance
(2.3), A C Holdings (1.9), Masao Wakatsuchi (1.0), Master Trust Bank of Japan
T
(0.9), Michikazu Kawasaki (0.7), PNP Paribas Securities (Japan) (0.7), MUFG
(0.6),
Tsukasa
Maeda (0.6); foreign owners (30.8).
No. of shareholders: 13,318
Listed on the S/Exchange (s) of: Tokyo
Managements: David Chiu, ch; Johnson Yeung Kong
Sang, pres; Sataro Shishido, dir; Kazuo Katayama,
dir;
Dennis Chiu, dir; Craig G Williams, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Concept Asset, Centenary Independent Ltd, Pleasure Point Group
Ltd, PT La Flore Indonesia, other
OPERATION
Activities: Hotel chain operator:
(Sales
breakdown by divisions):
Guest
Rooms Division (66%): owns and operates Japanese-style
hotels, Imaiso & Nanzanso, on Izu Peninsula, popular resort south of Tokyo;
Securities
Investment Division (30%): invests in financials products such as
stocks & bonds;
Housing
& Real Estate Development Division (4%): leasing of domestic real estate
properties; through associated companies involved in real estate development
business, such as housing in Malaysia, by Karumas Ehsan Sdn Bhd, and in
Philippines, by Macaria Properties Inc, respectively;
Overseas
Sales Ratio (12.9%): Resort hotel in Bali Island, Indonesia,
operated by PT La Flore Indonesia.
Clients: [Travel agencies, visitors, business firms] JTB, Kinki
Nippon Tourist, Club Tourism, Tokyu Agency, Top Tour, JR East, JR Tokai, other.
No. of accounts: 100 (Travel agencies & tourist firms)
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Watanabe Suisan (Fishery
products), Shiotaya Honke, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Hong Shanghai Banking Corp (Tokyo)
Chuo Mitsui Trust Bank (H/O)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/12/2006 |
31/12/2005 |
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INCOME STATEMENT |
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Annual Sales |
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888 |
682 |
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Cost of Sales |
605 |
580 |
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GROSS PROFIT |
283 |
102 |
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Selling & Adm Costs |
178 |
277 |
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OPERATING PROFIT |
104 |
-175 |
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Non-Operating P/L |
47 |
541 |
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RECURRING PROFIT |
151 |
366 |
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NET PROFIT |
279 |
-1,939 |
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BALANCE SHEET |
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Cash |
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1,530 |
2,111 |
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Receivables |
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29 |
29 |
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Inventory |
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13 |
9 |
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Securities, Marketable |
1,962 |
1,047 |
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Other Current Assets |
1,118 |
313 |
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TOTAL CURRENT ASSETS |
4,652 |
3,509 |
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Property & Equipment |
2,922 |
2,959 |
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Intangibles |
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10 |
9 |
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Investments, Other Fixed Assets |
1,621 |
1,643 |
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TOTAL ASSETS |
9,205 |
8,120 |
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Payables |
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12 |
11 |
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Short-Term Bank Loans |
64 |
185 |
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Other Current Liabs |
1,135 |
404 |
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TOTAL CURRENT LIABS |
1,211 |
600 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
1 |
3 |
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Other Debts |
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79 |
79 |
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TOTAL LIABILITIES |
1,291 |
682 |
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MINORITY INTERESTS |
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Common stock |
5,438 |
5,299 |
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Additional paid-in capital |
2,250 |
4,022 |
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Retained earnings |
310 |
(1,774) |
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Evaluation p/l on
investments/securities |
40 |
33 |
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Others |
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(117) |
(136) |
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Treasury stock, at cost |
(7) |
(6) |
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TOTAL S/HOLDERS` EQUITY |
7,914 |
7,438 |
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TOTAL EQUITIES |
9,205 |
8,120 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2006 |
31/12/2005 |
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Cash Flows from Operating Activities |
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-691 |
733 |
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Cash Flows from Investment
Activities |
-37 |
80 |
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Cash Flows from Financing Activities |
148 |
511 |
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Cash, Bank Deposits at the Term End |
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1,439 |
2,019 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2006 |
31/12/2005 |
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Net Worth (S/Holders' Equity) |
7,914 |
7,438 |
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Current Ratio (%) |
384.15 |
584.83 |
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Net Worth Ratio (%) |
85.98 |
91.60 |
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Recurring Profit Ratio (%) |
17.00 |
53.67 |
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Net Profit Ratio (%) |
31.42 |
-284.31 |
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Return On Equity (%) |
3.53 |
-26.07 |
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%)