MIRA
INFORM REPORT
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Report Date : |
09.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
NAGAHORI
CORPORATION |
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Registered Office : |
Tenjin Bldg, 1-15-3 Ueno Taitoku Tokyo 110-8546 |
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Country : |
Japan |
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Financials (as on) : |
31/03/2006 |
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Date of Incorporation : |
June
1962 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer
and Wholesaler of diamond jewellery & fashion jewels |
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 660.7 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name
NAGAHORI
CORPORATION
REGD NAME
KK Nagahori
MAIN OFFICE
Tenjin Bldg,
1-15-3 Ueno Taitoku Tokyo 110-8546 JAPAN
Tel : 03-3836-4711
Fax : 03-3837-1389
URL : http://www.nagahori.co.jp/
E-Mail
address : info@nagahori.co.jp
ACTIVITIES
Mfg,
wholesale of diamond jewelry & fashion jewels
BRANCHES
Osaka,
Sapporo, Fukuoka
OVERSEAS
Milan,
Antwerp
FACTORY(IES)
Mobara
(Chiba)
CHIEF EXEC
MORIHITO
NAGAHORI
Yen Amount
In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 18,712 M
PAYMENTS REGULAR CAPITAL Yen 5,323 M
TREND STEADY WORTH Yen
15,063 M
STARTED 1962 EMPLOYES 453
COMMENT
MFR
& WHOLESALER SPECIALIZING DIAMOND JEWELRY & FASHION JEWELS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 660.7 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established by Nagahori originally as Nagahori Pearls KK for wholesaling pearls and pearl jewelry. In Oct 1982 renamed as captioned. In 1973, approved as official member by Antwerp Diamond Exchange and started diamonds trading, which now is its main revenue sources. Handles pearls and other precious stones, too. Consolidated subsidiary, Soma KK, serves as production arm for gold ingot processing, etc, including OEM production. Operates JV in Israel for diamond trading. Provides a broad range of jewelry brands, offering a full range of items from fashion accessories to high-end labels. Strong with sales of high margin brands through department stores nationwide (currently 31), aiming to increase 4-5 dept store customers in 2007 term. In Jul 2005, acquired 10% stake in Rosy Blue Mfg (PTY) Ltd, S Africa, and started imports of diamonds in autumn this year. Has Saitama Health Land in Saitama-Pref.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 18,712 million, a 6.5% up from Yen 17,567 million in the previous term. Sales of high-margin brand products through department stores expanded, contributing to sales growth. By divisions, jewelry division grew 6.7% to Yen 18,163 million and real estate division by 0.5% to Yen 161 million, while sports club operations down by 0.4% to Yen 387 million. The recurring profit was posted at Yen 992 million and the net profit at Yen 548 million, respectively, compared with Yen 591 million recurring profit and Yen 209 million net profit, respectively, a year ago.
For the current term ending Mar 2007 the recurring profit is projected at Yen 800 million and the net profit at Yen 460 million, respectively, on a 3.7% rise in turnover, to Yen 19,400 million. Hike in materials costs and fuels will eat into profitability. Aims to improve profitability by reducing
operation costs & expenses.
Half-yearly results ending Sept/2006: sales Yen 9,227 million (up 4.5%), recurring profit Yen 263 million (down 22.2%), net profit Yen 140 million (down 29.1%). (% in parenthesis compared with the same period the previous term). Sales through department stores grew steadily, while profits deteriorated due to hike in materials costs, interest rates and operation expenses.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 660.7 million, on 30 days normal terms.
REGISTRATION
Date
Registered : Jun 1962
Legal
Status : Limited Company
(Kabushiki Kaisha)
Authorized : 40 million shares
Issued : 16,773,376 shares
Sum : Yen 5,323 million
Major shareholders (%)
MF
Nagahori Co (12.9), Dai-ichi Life Ins (5.5), Resona bank (4.7), Morihiro
Nagahori (3.9), Trusty Bank of Japan T (3.1), Societe Generale NRANODTT (2.6),
Bank of Tokyo-Mitsubishi UFJ (2.4), Wahei Takeda (2.3), Fujiyo Nagahori (2.2);
foreign owners (7.3)
No. of
shareholders: 1,649
Listed
on the S/Exchange (s) of: Tokyo (Second Section)
Managements
Morihiro
Nagahori, pres; Shintaro Minami, v pres; Yuichi Sasaoka, mgn dir; Keita
Nagahori, mgn dir; Kunio Inui, mgn dir; Yasuaki Sakjuma, mgn dir; Ryoji Takada,
dir; Kosoh Nakashiki, dir; Kaoru Tabata, dir; Akihiro Ueno, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies
Soma
KK, KK Jewelry, Sanaco Co (Hong Kong), Brodia KK (Total 4 as of Mar/06)
OPERATION
Activities:
Manufactures, processes, imports and partially retails diamonds, pearls, other
gemstones, jewelry products (--97%), operates health land (2%), real estate
leasing (1%).
Diamonds
and other gemstones are imported.
(Handling
brands): Dal Lago, Sonia Rykiel, Yuki Torii, Hana-Kaido, arut, Pinky &
Dianne, Private Label, Annie-j, anan, Lolita Lempicka, Disney, La Germa,
Aqua-Style, Y’Sacos, WISP, other.
Clients
[Department
stores, chain stores, jewelry stores] Takashimaya, Sogo, Vendome Yamada Corp,
Marui Corp, Seibu Department Stores, other.
No. of accounts
500
Domestic areas of activities
Nationwide
Suppliers
[Mfrs,
wholesalers] Rosy Blue Mfg, Eurostar Diamond Trading, Ishifuku Metal Ind,
other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the
caption address are leased and maintained satisfactorily.
Bank References
Resona
Bank (Ueno-Chuo)
Mizuho
Bank (Marunouchi-Chuo)
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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18,712
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17,567
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Cost of Sales |
12,528
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11,884
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GROSS PROFIT |
6,184
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5,682
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Selling & Adm Costs |
5,221
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5,163
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OPERATING PROFIT |
963 |
519 |
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Non-Operating P/L |
29 |
72 |
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RECURRING PROFIT |
992 |
591 |
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NET PROFIT |
548 |
209 |
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BALANCE
SHEET |
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Cash |
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1,523
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1,455
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Receivables |
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2,685
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2,378
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Inventory |
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11,467
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11,670
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Securities, Marketable |
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Other Current Assets |
406 |
463 |
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TOTAL CURRENT ASSETS |
16,081
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15,966
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Property & Equipment |
4,700
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4,768
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Intangibles |
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121 |
79 |
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Investments, Other Fixed Assets |
2,898
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3,400
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TOTAL ASSETS |
23,800
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24,213
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Payables |
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1,368
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998 |
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Short-Term Bank Loans |
4,946
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5,272
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Other Current Liabs |
1,065
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681 |
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TOTAL CURRENT LIABS |
7,379
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6,951
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Debentures |
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200 |
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Long-Term Bank Loans |
479 |
1,257
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Reserve for Retirement Allw |
574 |
511 |
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Other Debts |
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305 |
302 |
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TOTAL LIABILITIES |
8,737
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9,221
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MINORITY INTERESTS |
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Common
stock |
5,323
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5,323
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Additional
paid-in capital |
6,275
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6,274
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Retained
earnings |
4,173
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3,842
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Evaluation
p/l on investments/securities |
324 |
159 |
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Others |
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(959) |
(558) |
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Treasury
stock, at cost |
(73) |
(48) |
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TOTAL S/HOLDERS` EQUITY |
15,063
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14,992
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TOTAL EQUITIES |
23,800
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24,213
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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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1,292
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970 |
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Cash
Flows from Investment Activities |
70 |
60 |
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Cash
Flows from Financing Activities |
-1,296
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-1,166
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Cash,
Bank Deposits at the Term End |
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1,523
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1,455
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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) |
15,063
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14,992
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Current
Ratio (%) |
217.93
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229.69
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Net
Worth Ratio (%) |
63.29
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61.92
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Recurring
Profit Ratio (%) |
5.30 |
3.36 |
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Net
Profit Ratio (%) |
2.93 |
1.19 |
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Return
On Equity (%) |
3.64 |
1.39 |
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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