MIRA
INFORM REPORT
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Report Date : |
14.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SOJITZ
CORPORATION |
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Registered Office : |
Kokusai Shin-Akasaka Bldg West, 6-1-20 Akasaka Minatoku
Tokyo 107-0052, Japan |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
April 2003 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of chemicals, textiles, foods,
metals, other |
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 66735.4 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name
SOJITZ CORPORATION
REGD NAME
Sojitz KK
MAIN OFFICE
Kokusai Shin-Akasaka Bldg West, 6-1-20 Akasaka Minatoku Tokyo 107-0052 JAPAN
Tel :
03-5520-5000
Fax :
03-5520-2390
URL : http://www.sojitz.com/
E-Mail address :
info@sojitz.com
ACTIVITIES
Import, export, wholesale of chemicals, textiles, foods,
metals, other
BRANCHES
8 domestic; 64 overseas
SUBSIDIARIES
188 domestic; 409 overseas
CHIEF EXEC
AKIO DOBASHI, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 4,972,059 M
PAYMENTS REGULAR CAPITAL Yen 130,549 M
TREND STEADY WORTH Yen 426,949 M
STARTED 2003 EMPLOYES 17,213
COMMENT
GENERAL TRADING HOUSE, BORN BY THE MERGER OF FORMER NISSHO
IWAI CORP & NICHIMENT CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 66,735.4 MILLION, 30 DAYS NORMAL
TERMS.
Forecast (or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established in Apr 2003 by forming a
joint holding company named Nissho Iwai-Nichimen Holdings Company, and subsequently
the two merged in Apr 2004 into Sojitz Corp as captioned. The holding company, at the same time,
renamed Sojitz Holdings Corporation. The merger was formed in order to
restructure the two firms through supports from financial institutions including
the then UFJ Bank (now Bank of Tokyo-Mitsubishi UFJ), the main bank of the two
firms. On 01/Oct/2005, in order to
further streamline the group’s management framework, Sojitz Holdings merged
with its principal operating arm and wholly owned subsidiary, Sojitz
Corporation. The company name changed
to Sojitz Corporation. This is a
general trading house succeeding the business rights & operations of the
said two firms, excluding liquidation or separation of unprofitable divisions
& operations. Major handling items
are machinery, energy & resources, which
former Nissho Iwai Corp was the strongest, and textiles, etc, which the former
Nichimen Corp was stronger.
The sales volume for Mar/2006 fiscal term amounted to Yen
4,972,059 million, a 6.3% up from Yen 4,675,059 million in the previous
term. Energy, metals & machinery on
upswing backed by hike in energy prices.
The recurring profit was posted at Yen 78,773 million and the net profit
at Yen 43,706 million, respectively, compared with Yen 58,088 million recurring
profit and Yen 412,475 million net losses, respectively, a year ago. Term’s start cumulative losses of about Yen
55,800 million cleared by drawing on reserves.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 89,000 million and the net profit at Yen 56,000 million,
respectively, on a 6.6% rise in turnover, to Yen 5,300,000 million. Growth of
energy and metals may slow down, but machinery, aerospace, chemicals and
synthetic resins leading steady expansion.
Half-yearly results ending Sept 2006: sales Yen 2,529,244
million (up 7.4%), recurring profit Yen 46,394 million (up 8.8%), net profit
Yen 31,356 million (up 21%) (% in
parenthesis compared with the same period the year ago.
The financial situation is considered maintained FAIR and
good for ORDINARY business engagements. Max credit limit is estimated at Yen
66,735.4 million, on 30 days normal terms.
REGISTRATION
Date Registered : Apr
2003
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
1,179,000,000 shares
Issued :
550,022,889 shares
Sum :
Yen 130,549 million
Major shareholders (%)
UBS (London) Asia Equities (6.5), Trustee Bank of Japan T
(3.6), Master Trust Bank of Japan T (3.3), Morgan Stanley Securities (2.7),
Leeman Brothers Asia Capital (1.9), State Street Bank & Trust (1.9), Isao
Nasu (1.8), Bank of Tokyo-Mitsubishi UFJ (1.7), JP Morgan Chase (1.5), E-Trade
Securities (1.5); foreign owners (27.2)
No. of shareholders: 104,053
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements
Akio Dobashi, pres & CEO; Yutaka Kase, v pres; Masaki
Hashikawa, v pres; Yasuyuki Fujishima, s/mgn dir; Katsuhiko Kobayashi, s/mgn
dir; Keisuke Ishihara, mgn dir; Yoji Sato, mgn dir; Shigeo Muraoka, dir;
Yoshihiko Miyauchi, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
NI Electronics, Sojitz Machinery, Sojitz Marine &
Engineering, Nissin Gas Engineering, other (Tot 321 as of Mar/06)
OPERATION
Activities: General trading house (sales breakdown by
divisions):
Machinery, aircraft, aerospace (19%), Energy, metals,
resources (24%), chemicals, synthetic resins (13%), building materials,
construction materials, lumber (8%),textiles, household, lifestyle essentials
(17%), others (18%).
Overseas trading ratio
35.2%: N America
6.5%, Europe
3.3%, Asia
20.3% Oceania
5.0% Others
Clients
[Mfrs, wholesalers] Kobe Steel, NM Life, First Retailing,
Varig SA, other.
No. of accounts
4,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Hitachi Zosen, Hitachi Ltd, Toyo Rubber,
Yamazaki Nabisco, Sun Building Materials, other.
Payment record
Regular
Location
Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ (H/O)
Mizuho Corporate Bank (H/O)
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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4,972,059
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4,675,903
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Cost of Sales |
4,729,892
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4,431,656
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GROSS PROFIT |
242,166
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244,247
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Selling & Adm Costs |
165,964
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178,725
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OPERATING PROFIT |
76,202
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65,521
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Non-Operating P/L |
2,571
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-7,433
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RECURRING PROFIT |
78,773
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58,088
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NET PROFIT |
43,706
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-412,475
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BALANCE
SHEET |
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Cash |
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521,937
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426,082
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Receivables |
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613,513
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618,086
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Inventory |
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214,163
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194,694
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Securities, Marketable |
6,471
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7,150
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Other Current Assets |
154,370
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177,137
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TOTAL CURRENT ASSETS |
1,510,454
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1,423,149
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Property & Equipment |
246,665
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246,652
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Intangibles |
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100,131
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103,850
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Investments, Other Fixed Assets |
664,429
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674,827
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TOTAL ASSETS |
2,521,679
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2,448,478
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Payables |
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451,438
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472,513
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Short-Term Bank Loans |
775,555
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933,100
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Other Current Liabs |
830,610
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349,068
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TOTAL CURRENT LIABS |
2,057,603
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1,754,681
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Debentures |
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99,036
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16,048
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Long-Term Bank Loans |
473,109
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296,927
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Reserve for Retirement Allw |
25,558
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29,046
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Other Debts |
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(597,703) |
38,185
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TOTAL LIABILITIES |
2,057,603
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2,134,887
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MINORITY INTERESTS |
37,125
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33,349
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Common stock |
130,549
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336,122
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Additional paid-in capital |
166,754
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487,686
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Retained earnings |
92,487
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(492,048) |
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Evaluation p/l on
investments/securities |
90,547
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32,629
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Others |
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(53,275) |
(84,062) |
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Treasury stock, at cost |
(113) |
(86) |
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TOTAL S/HOLDERS` EQUITY |
426,949
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280,241
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TOTAL EQUITIES |
2,521,679
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2,448,478
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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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43,155
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-19,774
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Cash Flows from Investment
Activities |
99,155
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238,410
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Cash Flows from Financing Activities |
-55,805
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-212,264
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Cash, Bank Deposits at the Term End |
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506,254
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406,566
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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) |
426,949
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280,241
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Current Ratio (%) |
73.41
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81.11
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Net Worth Ratio (%) |
16.93
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11.45
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Recurring Profit Ratio (%) |
1.58 |
1.24 |
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Net Profit Ratio (%) |
0.88 |
-8.82
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Return On Equity (%) |
10.24
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-147.19
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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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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%)