MIRA
INFORM REPORT
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Report Date : |
31.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
NIKKO BOEKI COMPANY - DIVISION COMPANY OF KANEMATSU TRADING CORPORATION |
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Registered Office : |
Kanda Chuo Bldg 5F, 3-20 Kanda-Nishikicho Chiyodaku Tokyo 101-0054 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Dec 1970 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of steel products, steel raw materials, stainless steel products, steel structures |
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 217.3 millions |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
NIKKO BOEKI COMPANY
DIVISION COMPANY OF KANEMATSU TRADING CORPORATION
REGD NAME
Kanematsu Trading KK
MAIN OFFICE
Kanda Chuo Bldg 5F, 3-20 Kanda-Nishikicho Chiyodaku Tokyo 101-0054 JAPAN
Tel : 03-5283-3630
Fax : 03-5281-1500
URL : http://www.e-kgt.com
E-Mail address: info@e-kgt.com
ACTIVITIES
Import, export, wholesale of steel products, steel raw materials, stainless steel products, steel structures
BRANCHES
Osaka, Nagoya, Sapporo, Fukuoka
OFFICERS
KENJI MATSUMOTO, PRES Masami Senoh, v pres
Hedeaki Sutoh, mgn dir (pres of Nikko Boeki Company)
Kazuhiro Yamamoto, dir Yasumi Suzuki, dir
Yuichi Kowata, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 56,008 M
PAYMENTS REGULAR CAPITAL Yen 200 M*
TREND STEADY WORTH Yen 650 M
STARTED 1970 EMPLOYES 84**
*.. Capital was increased to Yen 260 million in Oct 2006.
**.. 17 staff from the former Nikko Boeki Kaisha Ltd.
COMMENT
TRADING HOUSE FOR IMPORT, EXPORT AND WHOLESALE OF STEEL &
STAINLESS STEEL PRODUCTS, WHOLLY OWNED BY KANEMATSU CORPORATION. FINANCIAL SITUATION CONSIDERED FAIR AND
GOOD FOR ORDIANRY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 217.3 MILLION, 30 DAYS NORMAL
TERMS. .
HIGHLIGHTS
The subject company (Nikko Boeki Company) was established
originally in 1960 and was in Oct 2006 merged into Kanematsu Trading
Corporation to exist as its intra-company division company as Nikko Boeki
Company. This company handles export
business of stainless steel & products belong to the Steel Products (Second
Section), with Hideaki Sutoh as its intra-company president. The Kanematsu Trading Corporation is a
trading house, wholly owned by Kanematsu Corp, specializing in import, export
and wholesale of steel products, stainless steel products, construction
materials, others.
(Brief
History of Nikko Boeki Company):
Founded in 1960 by Shingo Mochizuki for exporting stainless
steel to India, USA, Brazil, Hong Kong and Pakistan. In 1995, was taken over by Kanematsu Corp to become wholly owned
subsidiary, managed by Hideaki Sutoh.
Exports to Asian countries accounted for about 65% of total sales.
And was absorbed by Kanematsu Trading Corporation in Oct 2006. The Nikko reported for the 31/03/2006 fiscal
term: sales Yen 4,529 million, net losses Yen 119 million. (Its
abstract financials are attached)
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 56,008 million, a 2% down from Yen 57,209 million in the previous term. The recurring profit was posted at Yen 255 million and the net profit at Yen 6 million, respectively, compared with Yen 237 million recurring profit and Yen 83 million net profit, respectively, a year ago. The net profit deterioration is said referred to extraordinary losses coming from some NC’s.
For the current term ending Mar 2007 the net profit is
projected at Yen 90 million, on a 7% rise in turnover, to Yen 60,000
million. Sales of Nikko Boeki Company
(about Yen 4,000 million) will contribute to the growth.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 217.3 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec
1970
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1.6
million shares
Issued: 400,000
shares
Sum: Yen
200 million
*.. Capital was increased to Yen 260 million in Oct/2006. This will be reflected in the financials of
Mar/2007 fiscal term.
Major shareholders (%): Kanematsu Corporation*(100)
*..Specialized trading house of foods & IT-related
business, Tokyo, founded 1918 (originally as textile merchant in Osaka), listed
Tokyo, Osaka S/E’s, capital Yen 27,781 million, turnover Yen 1,104,726 million,
recurring profit Yen 15,709 million, net losses Yen 21,686 million, total
assets Yen 556,046 million, net worth Yen 16,004 million, employees 4,449, pres
Yoshihiro Miwa
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities: Imports, exports and wholesales steel products,
steel raw materials, stainless steel products, construction materials, others
(--100%).
The Nikko Boeki Company handles: stainless steel sheets, coils,
plates, pipes, tubes, other specialty steel products, as brought from
previously. Exports are centrally to
Asian countries.
Clients: [Mfrs, wholesalers] Exports are to India, USA,
Australia, Peru, Pakistan, Thailand,
Taiwan, Indonesia, Egypt, Russia as main markets, including other worldwide destinations
in over 27 countries.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Nippon Steel, Sumitomo Metal
Ind, Kanematsu Corp, Nisshin Steel, Sangyo Metal Ind, Aichi Steel, Kobe Steel,
Nippon Metal Ind, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Mizuho Corporate Bank (Nihombashi)
MUFG (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2007 |
31/03/2006 |
31/03/2005 |
31/03/2004 |
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Annual
Sales |
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60,000 |
56,008 |
57,209 |
48,466 |
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Recur.
Profit |
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255 |
237 |
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Net
Profit |
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90 |
6 |
83 |
96 |
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Total
Assets |
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14,634 |
16,053 |
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Current
Assets |
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10,529 |
12,191 |
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Current
Liabs |
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9,672 |
11,059 |
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Net
Worth |
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650 |
657 |
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Capital,
Paid-Up |
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200 |
200 |
200 |
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Div.P.Share(¥) |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
7.13 |
-2.10 |
18.04 |
26.65 |
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Current Ratio |
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108.86 |
110.24 |
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N.Worth Ratio |
.. |
4.44 |
4.09 |
.. |
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R.Profit/Sales |
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.. |
0.46 |
0.41 |
.. |
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N.Profit/Sales |
0.15 |
0.01 |
0.15 |
0.20 |
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Return On Equity |
.. |
0.92 |
12.63 |
.. |
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Note: Forecast (or estimated) for the 31/03/2007 fiscal
term.
FINANCES (NIKKO BOEKI
KAISHA LTD)
(In million Yen)
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Terms Ending: |
31/03/2006 |
31/03/2005 |
31/03/2004 |
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Annual
Sales |
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4,529 |
3,657 |
2,953 |
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Recur.
Profit |
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38 |
16 |
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Net
Profit |
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-119 |
16 |
1 |
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Total
Assets |
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1,001 |
1,033 |
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Current
Assets |
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548 |
587 |
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Current
Liabs |
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522 |
592 |
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Net
Worth |
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307 |
426 |
400 |
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Capital,
Paid-Up |
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60 |
60 |
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Div.P.Share(¥) |
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<Analytical Data> |
(%) |
(%) |
(%) |
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S.Growth Rate |
23.84 |
23.84 |
-30.37 |
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Current Ratio |
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104.98 |
99.16 |
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N.Worth Ratio |
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42.56 |
38.72 |
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R.Profit/Sales |
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1.04 |
0.54 |
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N.Profit/Sales |
-2.63 |
0.44 |
0.03 |
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Return On Equity |
.. |
3.76 |
0.25 |
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CONSOLIDATED
FINANCIALS (KANEMATSU CORP)
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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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1,104,726 |
886,876 |
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Cost of Sales |
1,022,993 |
818,734 |
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GROSS PROFIT |
81,732 |
68,142 |
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Selling & Adm Costs |
63,750 |
52,380 |
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OPERATING PROFIT |
17,982 |
15,762 |
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Non-Operating P/L |
-2,273 |
-4,042 |
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RECURRING PROFIT |
15,709 |
11,720 |
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NET PROFIT |
-21,686 |
2,469 |
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BALANCE SHEET |
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Cash |
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52,115 |
49,256 |
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Receivables |
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197,953 |
148,551 |
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Inventory |
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79,737 |
71,172 |
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Securities, Marketable |
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Other Current Assets |
51,577 |
48,967 |
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TOTAL CURRENT ASSETS |
381,382 |
317,946 |
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Property & Equipment |
51,041 |
69,395 |
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Intangibles |
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3,905 |
2,784 |
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Investments, Other Fixed Assets |
119,718 |
129,993 |
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TOTAL ASSETS |
556,046 |
520,118 |
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Payables |
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138,970 |
102,451 |
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Short-Term Bank Loans |
215,885 |
99,484 |
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Other Current Liabs |
59,538 |
50,495 |
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TOTAL CURRENT LIABS |
414,393 |
252,430 |
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Debentures |
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Long-Term Bank Loans |
82,548 |
211,332 |
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Reserve for Retirement Allw |
5,863 |
5,961 |
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Other Debts |
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12,264 |
9,992 |
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TOTAL LIABILITIES |
515,068 |
479,715 |
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MINORITY INTERESTS |
14,972 |
2,373 |
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Common
stock |
27,781 |
27,501 |
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Additional
paid-in capital |
27,641 |
26,037 |
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Retained
earnings |
(16,294) |
5,392 |
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Evaluation
p/l on investments/securities |
4,816 |
1,694 |
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Others |
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(17,940) |
(22,595) |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
26,004 |
38,029 |
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TOTAL EQUITIES |
556,046 |
520,118 |
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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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19,720 |
10,122 |
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Cash
Flows from Investment Activities |
7,822 |
5,382 |
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Cash
Flows from Financing Activities |
-26,583 |
-2,913 |
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Cash,
Bank Deposits at the Term End |
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50,934 |
48,831 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
26,004 |
38,029 |
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Current
Ratio (%) |
92.03 |
125.95 |
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Net
Worth Ratio (%) |
4.68 |
7.31 |
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Recurring
Profit Ratio (%) |
1.42 |
1.32 |
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Net
Profit Ratio (%) |
-1.96 |
0.28 |
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Return
On Equity (%) |
-83.39 |
6.49 |
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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%)