MIRA INFORM REPORT

 

 

Report Date :

11.06.2007

 

IDENTIFICATION DETAILS

 

Name :

SAKAI TRADING CO LTD

 

 

Registered Office :

2-4-11 Kyutaromachi Chuoku Osaka 541-0056

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Feb 1936

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of chemicals, including synthetic resins

 

 

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 892.3 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

SAKAI TRADING CO LTD

 

 

REGD NAME

 

Sakai Shoji KK

 

 

MAIN OFFICE

 

2-4-11 Kyutaromachi Chuoku Osaka 541-0056 JAPAN

Tel        : 06-6271-9700    

Fax       : 06-6271-9300

* The given address is its Tokyo Branch Office

URL      : http://www.sakaitrading.co.jp/

E-Mail address: info@sakaitrading.co.Jp

 

 

ACTIVITIES

 

Import, export, wholesale of chemicals, including synthetic resins

 

 

BRANCHES

 

Tokyo, Chitose (Hokkaido), Nagoya, Fukuoka

 

 

OVERSEAS

 

New York, Sydney, Düsseldorf, Seoul, Shanghai (--subsidiaries); ISTANBUL (rep office)

 

 

CHIEF EXEC

 

SHOICHIRO HARIMOTO, PRES            

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 34,762 M

PAYMENTS      REGULAR                     CAPITAL           Yen 820 M

TREND             STEADY                       WORTH            Yen 4,269 M

STARTED         1936                             EMPLOYES      89

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN CHEMICALS.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 892.3 MILLION, 30 DAYS NORMAL terms

 

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

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a trading division separated from Sakai Chemical Ind Co Ltd, mfr of inorganic chemicals, Sakai, in order to focus on import, export and wholesale of chemicals centrally synthetic resins.  Deals mostly in chemical products, including pigments, dyestuffs and PVC stabilizers.  Goods are imported from and exported to China, Korea, Taiwan, other S/E Asian countries.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 34,762 million, a 6.8% up from Yen 32,557 million in the previous term.  Synthetic resins and chemical products inched up including in S/E Asia.  Drop in electronic materials halted.  Focusing on functional chemical products including disposal diapers.  Overseas, expanding sanitary materials to near/Mid East on strong demand.  The recurring profit was posted at Yen 536 million and the net profit at Yen 293 million, respectively, compared with Yen 704 million recurring profit and Yen307 million net profit, respectively, a year ago.

           

For the current term ending Mar 2008 the recurring profit is projected at Yen 570 million and the net profit at Yen 330 million, on a 6.4% rise in turnover, to Yen 37,000 million.

 

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements. Max credit limit is estimated at Yen 892.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Feb 1936

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    40 million shares

Issued:                          10 million shares

Sum:                            Yen 820 million

Major shareholders (%): Sakai Chemical Ind (58.0), Company’s Treasury Stock (7.2), Daido Life Ins (2.0), Kiwa

                                     Chemical Ind (1.1), Japan Stone Center (1.1), Shuwa Kaiun (1.0), Hiroaki Ito (0.8),

                                     Employees’ S/Holding Assn (0.6), Sun Ocean Corp (0.6), Japan Express (0.6)

No. of shareholders:        648

Listed on the S/Exchange (s) of: Osaka (Second Section)

Managements: Shoichiro Harimoto, pres; Tadashi Horimoto, mgn dir; Yoshiaki Shoda, dir    Hiroshi Aburae, dir; Senkichiro Ichigaya, dir; Takeshi Yoshizumi, dir

 

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

 

 

Related companies

 

Sakai New York, Sakai Australia, other (tot 3 as of Sept/06)

           

 

OPERATION

           

Activities: Import, export and wholesales inorganic chemicals (35%), synthetic resins (34%), electronic materials, others (31%).

 

Overseas sales ratio 37.5%: S/E Asia 20%; N America 3.9%; Europe 2.8%; Near/Mid East 7.6%; others 3.2%

 

Clients: [Mfrs, wholesalers] Kyocera Corp, Sakai Chemical Ind, Matsushita Electric Ind, Tokyo Printing Ink Mfg, other.

 

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sakai Chemical Ind, Kiwa Chemical Ind, Nippon Shokubai,    other.

 

Payment record: Regular

 

Location: Business area in Osaka.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

MUFG (Kawaramachi)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

34,762

32,557

 

  Cost of Sales

32,597

30,372

 

      GROSS PROFIT

2,164

2,184

 

  Selling & Adm Costs

1,632

1,659

 

      OPERATING PROFIT

532

525

 

  Non-Operating P/L

4

179

 

      RECURRING PROFIT

536

704

　

      NET PROFIT

293

307

BALANCE SHEET

 

 

 

 

  Cash

　

1,424

1,041

 

  Receivables

 

9,751

8,515

 

  Inventory

 

838

709

 

  Securities, Marketable

　

　

 

  Other Current Assets

193

230

 

      TOTAL CURRENT ASSETS

12,206

10,495

 

  Property & Equipment

164

172

 

  Intangibles

 

52

70

 

  Investments, Other Fixed Assets

574

567

 

      TOTAL ASSETS

12,996

11,304

 

  Payables

 

2,908

6,324

 

  Short-Term Bank Loans

300

300

 

　

 

　

　

 

  Other Current Liabs

5,349

459

 

      TOTAL CURRENT LIABS

8,557

7,083

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

141

139

 

  Other Debts

　

29

27

 

      TOTAL LIABILITIES

8,727

7,249

 

      MINORITY INTERESTS

 

 

 

Common stock

820

820

 

Additional paid-in capital

697

697

 

Retained earnings

2,797

2,599

 

Evaluation p/l on investments/securities

107

103

 

Others

 

(2)

(14)

 

Treasury stock, at cost

(150)

(150)

 

      TOTAL S/HOLDERS` EQUITY

4,269

4,055

　

      TOTAL EQUITIES

12,996

11,304

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

495

427

 

Cash Flows from Investment Activities

-56

310

 

Cash Flows from Financing Activities

-74

-373

　

Cash, Bank Deposits at the Term End

　

1,424

1,041

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

4,269

4,055

 

 

Current Ratio (%)

142.64

148.17

 

 

Net Worth Ratio (%)

32.85

35.87

 

 

Recurring Profit Ratio (%)

1.54

2.16

 

 

Net Profit Ratio (%)

0.84

0.94

 

 

Return On Equity (%)

6.86

7.57

 

 

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