MIRA
INFORM REPORT
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Report Date : |
09.06.2007 |
IDENTIFICATION DETAILS
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Name : |
KING METALS LTD. |
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Registered Office : |
P. O. Box 207,
10, Haavatz Street, Industrial Zone, Kiryat Gat 82101 |
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Country : |
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Date of Incorporation : |
20.1.2000 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufacturers and marketers of multi-layers
metal films for the engine bearings production. |
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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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
KING METALS LTD.
P.O. Box 207
10, Haavatz Street
Industrial Zone
KIRYAT GAT 82101
ISRAEL
Telephone 972 8 688 85 50
Fax 972
8 681 18 81
HISTORY
A private limited company, incorporated as per file No. 51-289068-2 on the 20.1.2000.
Originally established under the name KING ENGINE BEARINGS LTD., which changed to the present name on 7.11.2005.
SHARE CAPITAL
Authorized share capital
SHAREHOLDERS
Subject is fully owned by KING BEARINGS INDUSTRY HOLDING LTD, itself a wholly owned subsidiary of KING LTD., a public limited liability company, shares of which are traded on the Tel Aviv Stock Exchange the Saslavsky family (57%).
DIRECTORS
1. Shmuel Saslavsky - Chairman,
2. Gideon Saslavsky - General Manager,
3. Yoram Baum - CFO,
4. Zeev Zur,
5. Avi Zigelman.
BUSINESS
Developers, manufacturers and marketers of multi-layers metal films for the engine bearings production, mainly for manufacturing by the Group.
Subject imports raw materials
for production, mainly from
Operating from premises owned by
the KING Group, on an area of 10,000 sq. meters (of which 5,000 sq. meters are
built), in
Having 122 employees serving the KING Group.
MEANS
Financial data is included in the consolidated statements of parent company, KINGLTD., which shows:
31.12.2006 31.03.2007
ASSETS
Current Assets
Cash and cash equivalents 745,957 864,456
Deposits and securities 63,525 62,473
Customers 9,791,559 9,106,431
Other debtors 1,108,465 883,326
Stock 19,406,389 18,033,019
31,115,895 28,949,705
Long term debits 165,754 172,823
Fixed assets (net) 22,022,976 22,709,743
53,304,625 51,832,271
========= =========
LIABILITIES
Current liabilities 27,093,579 22,386,114
Long term liabilities 5,770,260 9,302,886
Equity 20,440,786 20,143,271
53,304,625 51,832,271
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KING LTD’s current market value US$ 5.1 million.
KING is an “Approved Enterprise”
and as such enjoys tax benefits and State incentives.
Parent company invested
There are 4 charges for unlimited amounts, as well as 1 charge on the sum of US$ 174,000.00, registered on the subject's assets in favor of local banks and the State of Israel.
ANNUAL SALES
KING
LTD
Consolidated Statement of Income
Year
ended 31.12
2004 2005 2006
Sales 43,321,332 47,691,291 44,675,101
Gross profit 19,626,826 22,422,146 22,275,873
Operating income 4,018,500 6,291,513 5,606,577
Profit before taxes on income 1,912,290 4,206,692 4,086,038
Net income 2,491,505 3,167,708 3,128,286
========= ========= =========
Parent's consolidated
first quarter of 2007 sales NIS 10,950,540 (9% decrease compared to the parallel
period in 2006), making a gross profit of NIS 3,896,541, an operating income of
NIS 97,667 and a net loss of NIS 307,697 (compared to a NIS 800,000
profit in the parallel period in 2006).
Subject ended 2005 with a net
profit of
Subject ended 2006 with a net
profit of
OTHER COMPANIES
KING LTD., controlled by the Saslavsky family (57%) and the Katzman family (12%), a holding and
management company of the KING Group, who through its subsidiaries manufactures, exportes and marketes engine bearings
for automobiles, light and heavy duty trucks, boats, standby power and other
types of internal combustion engines. Its fully owned subsidiaries:
KING BEARINGS INDUSTRY
HOLDING LTD., a holding company,
KING ENGINE BEARINGS MANUFACTURING
AND MARKETING LTD., manufacturers, exporters and marketers of engine bearings.
KING ENGINE BEARINGS
INC.,
KING REAL ESTATE BLUE -
WHITE LTD., a real estate company.
BANKERS
Main account: Bank Hapoalim Ltd.,
Also working with Bank Leumi LeIsrael Ltd.
CHARACTER AND
REPUTATION
Nothing unfavorable learned.
Parent company, KING LTD., is a veteran company (incorporated in 1960), well known and leading in its branch. 90% of sales are for export, worldwide.
Metal prices in
According to the Chairman of the
Metal and Electricity sectors at the Manufacturers’ Association, overall sales
of the various metal related sectors in 2005 increased by 13% in real terms
comparing to 2004, reaching
Total sales (export and to the
local market) grew futher in 2006. Industrial exports in 2006 totaled over US$
5 billion (metal sector accounted for US$ 1.75 billion).
Investment in machinery and
equipment rose by 15% comparing to 2005.
The Metal and Electricity
sectors forecasted sales in 2007 are
The recovery contributed to the growth in the manufacturing activity and the number of employees in those sectors after several years of downsizing. After the increase in 2004, 2,100 new employees were added to the branches in 2006, bringing the total number of employees in these industries to over 100,000.
SUMMARY
Good for trade engagements.
Maximum unsecured credit recommended US$ 300,000.
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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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%)