MIRA INFORM REPORT

 

 

Report Date :

03.07.2007

 

IDENTIFICATION DETAILS

 

Name :

JALUX INC

 

 

Registered Office :

JAL Bldg, 2-4-11 Higashishinagawa Shinagawaku Tokyo 140-8838

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Mar 1962

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, supply of aircraft parts & components; management of duty-free shops

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 2735.8 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

JALUX INC

 

 

REGD NAME

 

KK Jalux

 

 

MAIN OFFICE

 

JAL Bldg, 2-4-11 Higashishinagawa Shinagawaku Tokyo 140-8838 JAPAN

Tel        : 03-5460-7200    

URL      : http://www.jalux.com/

E-Mail address: info@support.jalux.com

 

 

ACTIVITIES

 

Import, supply of aircraft parts & components; management of duty-free shops

 

 

BRANCHES

 

Sapporo, Aomori, Akita, Narita, Haneda, Hiroshima, Kansai (Osaka), Matsuyama, Oita, Kitakyushu, Kagoshima, other (Tot 98 shops in 25 airports).

 

 

OVERSEAS

 

London, Vienna, Los Angeles, Honolulu, Hong Kong, Bangkok, Shanghai

 

(-- subsidiaries).  (See REGISTRATION)

 

 

CHIEF EXEC

 

TOSHIKI OKAZAKI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 114,133 M

PAYMENTS      REGULAR                     CAPITAL           Yen 2,558 M

TREND             STEADY                       WORTH            Yen 15,515 M

STARTED         1962                             EMPLOYES      1,076

 

 

COMMENT

 

A TRADING HOUSE AFFILIATED WITH SOJITZ CORP & JAPAN AIR LINES.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 2,735.8 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established as a trading firm, named Nikko Shoji KK, by JAL, nation’s largest airline, at the caption address, Tokyo.  Renamed as captioned in Jun 2001.  Specializes in procurement of aircraft parts, sales of used aircraft and procurement of in-flight goods-for-sale for the JAL group.  Operates and manages a total of 98 duty-free & other shops in 25 domestic airports.  In Jan 2004, merged with KK JSS Trading, when JAL and JAS merged.  Main business lies in planning and sales of gift products for retail stores, including dept stores, and sales of originally developed De SKY products also for JAL group.  After the merger, the firm began selling time-shared rights to resort hotels in Hawaii, expanding the business into Asia outside Japan.  In Dec 2005, set up a subsidiary in Shanghai and started water quality testing/improvement business on rivers.  In Mar 2007 (effective 28/03/2007), JAL’s 30% share was transferred to Sojitz Corp (See REGISTRATION), who became the top shareholder. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 114,133 million, a 5.7% up from Yen 107,952 million in the previous term.  Aviation-related parts increased steadily.  Aircraft components storage & supply for domestic heavy industry and sales of aircraft to foreign airlines contributed.  Customer services also performed well, expanding in the areas of development and subleasing of real estate on the periphery of domestic airports.  The recurring profit was posted at Yen 3,516 million and the net profit at Yen 1,579 million, respectively, compared with Yen 3,212 million recurring profit and Yen 1,689 million net profit, respectively, a year ago.  Booked Yen 350 million in extraordinary losses, coming from the closure of London gift shop, and decline in inventory valuations.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 3,700 million and the net profit at Yen 1,850 million, respectively, on a 5.1% rise in turnover, to Yen 120,000 million.  Aircraft parts storage & maintenance sector will grow steadily, including selling of used aircraft, machinery and materials.  DM catalog service will continue grow.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,735.8 million, on 30 days normal 30 terms.

 

 

REGISTRATION

 

Date Registered:            Mar 1962

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    20 million shares

Issued:                          12,775,821 shares

Sum:                            Yen 2,558 million

Major shareholders (%): Sojitz Corp*(30.0), JAL (Int’l) (21.3), Tokio Marine & Nichido Fire Ins (3.5), Nissay Dowa

                                    General Ins (3.0), Mitsui Sumitomo Ins (1.9), Aioi Ins (1.4), Sompo Japan Ins (1.4),

                                    Airport Facilities (1.3), Master Trust Bank of Japan T (1.1), Employees’ S/Holding Assn

                                    (1.1); foreign owners (2.9)

No. of shareholders:       10,779

*.. Leading trading house born by the merger of Nissho-Iwai Corp & Nichimen Corp, founded 2003, capital Yen 122,790 million, listed Tokyo, Osaka S/E’s, turnover Yen 5,218,153 million, recurring profit Yen 89,535 million, net profit Yen 58,766 million, total assets Yen 2,619,507 million, net worth Yen 488,586 million, employees 18,844, pres Yutaka Kase

Listed on the S/Exchange (s) of: Tokyo

Managements:               Toshiki Okazaki, pres & CEO; Hiroshi Tomomori, ch; Toshio Sakamoto, s/mgn dir; Sumio

                                    Shionoya, s/mgn dir; Hiroshi Iijima, mgn dir; Kenji Ichikawa, mgn dir; Yasumasa Onuki,

                                    mgn dir; Toshiro Yamaguchi, dir; Kaneo Maki, dir; Tokuhisa Asayama, dir; Yoshio

                                    Matsushita, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

Related companies

 

JAL-DFS Co, JALUX Airport Inc (Airport shop management), JALUX Europe, JALUX Americas, other (Tot 9 as of Mar/07)

 

Overseas consolidated subsidiaries: JALUX Europe Ltd (London, Vienna); JALUX Americas Inc (Los Angeles); JALUX Asia Ltd (Bangkok); JALUX Asia Service Ltd (Bangkok); JALUX Hong Kong Co Ltd (Hong Kong); JALUX Shanghai Co Ltd (Shanghai)

           

 

OPERATION

 

Activities: A trading firm affiliated with Sojitz Corp & JAL.

 

(Sales breakdown by divisions):

            

Aviation-related (33%): aircraft, fuel, aircraft components, machinery, equipment & materials, cabin service supplies, in flight-sales, others;

Lifestyle-related (29%): farm/marine products, processed foods, wines & liquor, jewelry (catalog & in-flight sales), beverages, others;

Customer services (37%): printing, greeting cards, other supplies, real estate management, insurances, airport shop operation, others.

(Overseas trading ratio: less than 10%).

 

Clients: [Wholesalers, mfrs, consumers] JAL Int’l, Royal Co, JAL DFS Duty Free Shoppers, Ishikawajima-Harima Heavy Ind, Matsuzakaya, Japan Transocean Air, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] JALUX Americas, JALUX Europe, JAL Int’l, Fresh Pacific & Vegetable Inc, Showa Aircraft Ind, Japan Tobacco Inc, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent and maintained satisfactorily.

 

 

Bank References

 

SMBC (H/O)

Mizuho Corporate Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCIALS

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

114,133

107,952

 

  Cost of Sales

89,602

84,595

 

      GROSS PROFIT

24,530

23,356

 

  Selling & Adm Costs

21,284

20,911

 

      OPERATING PROFIT

3,246

2,444

 

  Non-Operating P/L

270

768

 

      RECURRING PROFIT

3,516

3,212

　

      NET PROFIT

1,579

1,689

BALANCE SHEET

 

 

 

 

  Cash

　

5,688

4,954

 

  Receivables

 

13,468

11,376

 

  Inventory

 

6,117

5,653

 

  Securities, Marketable

7

　

 

  Other Current Assets

4,278

3,319

 

      TOTAL CURRENT ASSETS

29,558

25,302

 

  Property & Equipment

5,210

5,384

 

  Intangibles

 

1,861

1,257

 

  Investments, Other Fixed Assets

5,716

5,650

 

      TOTAL ASSETS

42,345

37,593

 

  Payables

 

13,561

11,854

 

  Short-Term Bank Loans

3,826

2,999

 

　

 

　

　

 

  Other Current Liabs

5,650

5,104

 

      TOTAL CURRENT LIABS

23,037

19,957

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

112

2,549

 

  Reserve for Retirement Allw

2,963

468

 

  Other Debts

　

718

483

 

      TOTAL LIABILITIES

26,830

23,457

 

      MINORITY INTERESTS

 

881

 

Common stock

2,558

2,558

 

Additional paid-in capital

711

711

 

Retained earnings

11,289

9,992

 

Evaluation p/l on investments/securities

7

22

 

Others

 

959

(50)

 

Treasury stock, at cost

(9)

(9)

 

      TOTAL S/HOLDERS` EQUITY

15,515

13,224

　

      TOTAL EQUITIES

42,345

37,593

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

1,593

2,522

 

Cash Flows from Investment Activities

-1,823

-1,856

 

Cash Flows from Financing Activities

765

-866

　

Cash, Bank Deposits at the Term End

　

5,646

4,946

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

15,515

13,224

 

 

Current Ratio (%)

128.31

126.78

 

 

Net Worth Ratio (%)

36.64

35.18

 

 

Recurring Profit Ratio (%)

3.08

2.98

 

 

Net Profit Ratio (%)

1.38

1.56

 

 

Return On Equity (%)

10.18

12.77

 

 

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/normal.

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions