MIRA
INFORM REPORT
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Report Date : |
29th
December, 2006 |
IDENTIFICATION
DETAILS
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Name : |
ICHINEN
CO. LTD. |
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Registered Office : |
4-10-6
Nishinakajima Yodogawaku Osaka 532-8567, Japan |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
May
1963 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Car leasing, maintenance & repairing services |
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 351.3 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name
ICHINEN
CO LTD
REGD NAME
KK
Ichinen
MAIN OFFICE
4-10-6
Nishinakajima Yodogawaku Osaka 532-8567 JAPAN
Tel :
06-6309-1800
Fax : 06-6309-8999
URL : http://www.ichinen.co.jp/
E-Mail address :
info@ichinen.co.jp
ACTIVITIES
Car leasing, maintenance & repairing services
BRANCHES
Tokyo, Sapporo, Sendai, Nagoya, Kobe, Hiroshima, Fukuoka, other
(Tot 18)
CHIEF EXEC
YUKITOSHI KURODA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 45,209 M
PAYMENTS REGULAR CAPITAL Yen 2,023 M
TREND STEADY WORTH Yen 79,653 M
STARTED 1963 EMPLOYES 631
COMMENT
CAR LEASING, MAINTENANCE & REPAIRING SERVICES. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 351.3 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
This is car lease specialty firm.
The largest consignee of maintenance and repair services of cars for
leasing. Strength in nationwide car
maintenance plant networks of 3,000 cooperative maintenance shops. Ranked 12th in car leasing,
too. Related business, including car
parts & gasoline sales are expanding, too. In Feb 2006, acquired Taiho
Industries Co, producer of Industrial chemicals, by taking 54.9% stake in the
firm, to make it the consolidated subsidiary.
The acquired firm’s product lineup includes automobile windshield
defogger & fuel additives.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 45,209
million, a 6.8% down from Yen 48,497 million in the previous term. By divisions, leasing was up by 4.9% to Yen
26,411 million; maintenance was up by 3.5% to Yen 6,565 million, thanks to the
winning of large-scale maintenance
consignments from local municipalities; while, fuel oil was down by 62.9% to
Yen 4,086 million, due to rising costs of fuels which were not passed onto the
consumers. Chemicals up by 7.5% to Yen
3,545 million. Sales decline is
referred to change of accounting method for gasoline sales. The recurring profit was posted at Yen 2,050
million and the net profit at Yen 1,113 million, respectively, compared with
Yen 1,837 million recurring profit and Yen 1,150 million net profit, respectively,
a year ago.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 2,600 million and the net profit at Yen 1,330 million,
respectively, on a 22.8% rise in turnover, to Yen 55,500 million. Newly acquired consolidated subsidiary (Feb
2006) of Taiho Industries (industrial boiler-use additives & automotive
goods) boosting sales and profits.
Profits will expand on strength of steady gasoline sales &
contribution of large-scale car maintenance consignment.
First Half results ending Sept/2006: sales Yen 27,006 million (up
23.4%), operational profit Yen 1,228 million (up 16.3%), recurring profit Yen
1,075 million (up 6.8%), net profit Yen 493 million (up 7.9%). (%
compared with the same period the previous year). Leasing was up by 8.4% to Yen 13,368 million, thanks to expansion
of business into small-medium size clients, in addition to large
commitments. Maintenance up by 21.7% to
Yen 4,467 million, while fuels down by 87.0% to Yen 1,489 million, hit by
rising costs of fuel oils. Results of
Taiho Industries, acquired Feb/2006 are consolidated into the half-yearly
financials.
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 351.3
million, on 30 days normal terms.
REGISTRATION
Date Registered :
May 1963
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
80 million shares
Issued :
21,640,998 shares
Sum :
Yen 2,023 million
Major shareholders (%)
Daiichi Nenryo (10.9), Master Trust Bank of Japan T (6.2), BBH for
Fidelity Japan Small Fund (3.9), Sumitomo Trust Bank (3.7), Masashi Kuroda
(3.3), Katsuhiko Kuroda (3.0), Kazunobu Kuroda (3.0), Company’s Treasury Stock
(2.3), Yukitoshi Kuroda (2.1), Trustee Bank of Japan T (2.1); foreign owners
(8.4)
No. of shareholders: 3,594
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements
Yasutoshi Kuroda, ch; Yukitoshi Kuroda, pres; Masashi Kuroda, v
pres; Katsuhiko Kuroda, v pres; Tadahiro Kageyama, s/mgn dir; Tomoji Okano,
dir; Eizo Haimoto, dir; Kazuo Mimura, dir; Kazuyoshi Asai, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
Taiho Ind, Arms Inc, Car Life Ichinen, Nomura Auto Lease, other
(Tot 9 as of Mar/06).
OPERATION
Activities: Auto leasing, maintenance, repairing services, fuel oil
sales & chemicals:
Sales breakdown by divisions:
Leasing Div (58%): leasing of vehicles,
machinery & equipment, buildings; disposal of leased off vehicles;
Consigned Car Maintenance Div
(18%): consigned maintenance & repairing services, including legalized
vehicle inspection, other;
Fuel Sales Div (9%): sales of fuel oils,
gasoline tickets;
Chemicals Div (8%): mfg, sales of
chemicals for cars, machinery & equipment, industrial use, other;
Other Div (8%): sales of auto parts
& components, used cars, non-life insurance broking, operation of
coil-operated garages, leasing of buildings, other.
Clients
[Leasing firms, business firms, municipalities] Yanmar Credit
Service, SekisuiLeasing, Rengo, Kanematsu Petro, Pioneer, Nissan Financial,
Duskin Kyoeki, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
Mfrs, wholesalers] ExxonMobile, Honda Motors, Pioneer, Hino
Motors, Toyota Tokyo Carola, Toyota Carola Naniwa, Tokyo Toyopet, Osaka
Toyopet, Nissan Tokuhan, other.
Payment record
Regular
Location
Business area in Osaka.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Sumitomo Trust Bank (H/O)
Resona Bank (Osaka-Nishiku)
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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45,209
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48,497
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Cost of Sales |
36,503
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39,876
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GROSS PROFIT |
8,705
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8,621
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Selling & Adm Costs |
6,455
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6,590
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OPERATING PROFIT |
2,249
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2,031
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Non-Operating P/L |
-199 |
-194 |
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RECURRING PROFIT |
2,050
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1,837
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NET PROFIT |
1,113
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1,150
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BALANCE
SHEET |
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Cash |
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5,063
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4,104
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Receivables |
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6,679
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3,369
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Inventory |
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1,191
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482 |
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Securities, Marketable |
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Other Current Assets |
4,979
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4,387
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TOTAL CURRENT ASSETS |
17,912
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12,342
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Property & Equipment |
48,731
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43,082
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Intangibles |
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6,956
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2,593
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Investments, Other Fixed Assets |
6,054
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5,288
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TOTAL ASSETS |
79,653
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63,305
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Payables |
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8,480
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6,532
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Short-Term Bank Loans |
10,655
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2,250
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Other Current Liabs |
20,141
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14,971
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TOTAL CURRENT LIABS |
39,276
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23,753
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Debentures |
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4,900
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7,040
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Long-Term Bank Loans |
24,601
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23,631
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Reserve for Retirement Allw |
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Other Debts |
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1,511
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743 |
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TOTAL LIABILITIES |
70,288
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55,167
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MINORITY INTERESTS |
163 |
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Common
stock |
2,023
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1,904
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Additional
paid-in capital |
3,049
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2,930
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Retained
earnings |
4,190
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3,364
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Evaluation
p/l on investments/securities |
94 |
93 |
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Others |
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1 |
1 |
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Treasury
stock, at cost |
(157) |
(155) |
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TOTAL S/HOLDERS` EQUITY |
9,200
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8,137
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TOTAL EQUITIES |
79,653
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63,305
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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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-891 |
-1,549
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Cash
Flows from Investment Activities |
-4,518
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-531 |
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Cash
Flows from Financing Activities |
6,320
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584 |
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Cash,
Bank Deposits at the Term End |
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4,965
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4,056
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ANALYTICAL RATIOS
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
9,200
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8,137
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Current
Ratio (%) |
45.61
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51.96
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Net
Worth Ratio (%) |
11.55
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12.85
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Recurring
Profit Ratio (%) |
4.53 |
3.79 |
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Net
Profit Ratio (%) |
2.46 |
2.37 |
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Return
On Equity (%) |
12.10
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14.13
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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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