MIRA INFORM REPORT

 

 

Report Date :

08.11.2007

 

IDENTIFICATION DETAILS

 

Name :

TOKUSUI CORPORATION

 

 

Registered Office :

2-2-21 Minato Chuoku Fukuoka 810-0075

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Aug 1947

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of marine products; fishery

 

 

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 254.7 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

name

 

TOKUSUI CORPORATION

 

 

REGD NAME

 

KK Tokusui Corporation

 

 

MAIN OFFICE

 

2-2-21 Minato Chuoku Fukuoka 810-0075 JAPAN

Tel        : 092-721-0931

Fax       : 092-712-0407

URL      : http://www.tokusui.co.jp

E-Mail address: info@tokusui.co.jp

 

 

ACTIVITIES

 

Import, wholesale of marine products; fishery

 

 

BRANCHES

 

Tokyo, Osaka

 

 

OVERSEAS

 

USA (2), Indonesia (2) (--subsidiaries) (See REGISTRATION)

 

 

FACTORY(IES)

 

Fukuoka (2) (Food processing & cold storage warehousing)

 

 

OFFICERS

 

CHIHIRO TOKUSHIMA, PRES                Takemasa Tokushima, mgn dir

Hirotake Tokushima, rep dir                    Nobuo Abe, mgn dir

Shinzo Ishiguro, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 39,270 M

PAYMENTS      REGULAR                     CAPITAL           Yen 400 M

TREND             STEADY                       WORTH            Yen 2,165 M

STARTED         1947                             EMPLOYES      588

 

 

COMMENT

 

FISHERY; IMPORTER & WHOLESALER OF FISHERY PRODUCTS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 254.7 MILLION, 30 DAYS NORMAL TERMS. 

 

                        Notes: Forecast figures for the 31/03/2008 fiscal term

 

 

HIGHLIGHTS

           

The subject company was established originally in 1924 by Iwakichi Tokushima, on his account, for trawling net fishing in Nagasaki.  Incorporated in 1947 the firm has been succeeded by his descendants.  Chihiro is the third generation master, who took the pres office in 1997.  This is a trading firm with fishing operations: imports and wholesales shrimps, prawns (trawled in Indonesia), other fishes, processed seafoods, other foods, for commercial use centrally.  In 2005, went into business tie-up with Maruha Group Inc, nation’s leading food processor, Tokyo, in the area of USA business operations.  The Tokusui Group firms consist of 14 consolidated subsidiaries and 7 affiliates, each engaged in food          mfg, processing, marketing, trading, etc.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2007 fiscal term amounted to Yen 39,270 million, a 10.9% up from Yen 35,418 million in the previous term.  Food division was up 11.2% to Yen 38,306 million, thanks to robust demand for processed foods commercial-use in USA.  Sales in USA alone up 36.8% to Yen 18,155 million.  The recurring profit was posted at Yen 612 million and the net profit at Yen 308 million, respectively, compared with Yen 587 million recurring profit and Yen 498 million net profit, respectively, a year ago.  Net profit eroded due to the rising cost of operations, particularly fuel oil prices for operating trawl-boats (prawn/shrimp) in Indonesia.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 615 million and the net profit at Yen 305 million, respectively, on a 4.4% rise in turnover, to Yen 41,000 million.  Commercial use processed foods for restaurants, hotels, hospitals, schools, etc continue expanding.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 254.7 million, on 30 days normal terms. 

 

 

 

REGISTRATION

 

Date Registered:            Aug 1947

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    20 million shares

Issued:                          8 million shares

Sum:                            Yen 400 million

Major shareholders (%): Chihiro Tokushima (25.3), KK Tokusui Asset Management*(7.7), OUG Holdings KK

                                    (5.0), Mizuho Bank (4.9), Maruha Group Inc (4.5), Bank of Fukuoka (4.5)

*.. Holding company owned by the Tokushima families.

No. of shareholders:       187

Overseas subsidiaries: Tokusui Corp of America (USA), founded 1990, marketing, importing and exporting of

                                    fishery products, processed foods for commercial-use in hotels, restaurants, schools,

                                    hospitals, other; Orca Bay Sea Foods Inc (USA), processing of seafoods, other; PT Dwi

                                    Bina Utama (Indonesia), founded 1974, trawling of prawns, shrimps; PT Toxindo Prima

                                    (Indonesia), founded 1979, mfg of frozen foods, prepared foods

           

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

 

 

OPERATION

 

Activities: Manufactures, imports and wholesales marine products, processed foods, prepared foods, real estate management, cold storage operations, others:

 

(Sales Breakdown by Divisions):     

 

Food Business Division (97%): trawling of prawns/shrimps, import of other fishes, mfg of processed foods, prepared foods for commercial use in hotels, restaurants, etc;

Real Estate Management Division (2%): manages owning commercial buildings, etc;

Consulting Division (2%): includes cold storage operations, other.

Overseas Sales Ratio (46.3%): USA 46.2%, other region 0.1%

 

Clients: [Fish markets, consumers’ coops, local federations] Chuo Gyorui, Kita-Kanto Kyodo Center, Coop Tokyo, Federation of Pal System Consumers’ Coops (Nationwide), Toto Consumers Coop, other. 

 

No. of accounts: 300

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sojitz Corp, Tohoku Tokusui, Kamei Bussan, other. 

 

Imports from Indonesia, USA, Canada, Chile, Korea, China, other.

 

Payment record: Regular

 

Location: Business area in Fukuoka City.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Bank of Fukuoka (H/O)

Mizuho Bank (Fukuoka)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

39,270

35,418

 

  Cost of Sales

34,684

31,019

 

      GROSS PROFIT

4,585

4,399

 

  Selling & Adm Costs

3,707

3,650

 

      OPERATING PROFIT

877

749

 

  Non-Operating P/L

-265

-162

 

      RECURRING PROFIT

612

587

　

      NET PROFIT

308

498

BALANCE SHEET

 

 

 

 

  Cash

　

1,629

2,453

 

  Receivables

 

5,610

4,411

 

  Inventory

 

6,803

5,045

 

  Securities, Marketable

　

　

 

  Other Current Assets

857

985

 

      TOTAL CURRENT ASSETS

14,899

12,894

 

  Property & Equipment

6,937

6,936

 

  Intangibles

 

238

240

 

  Investments, Other Fixed Assets

2,491

2,421

 

      TOTAL ASSETS

24,565

22,491

 

  Payables

 

3,359

2,641

 

  Short-Term Bank Loans

11,372

9,924

 

　

 

　

　

 

  Other Current Liabs

2,057

2,120

 

      TOTAL CURRENT LIABS

16,788

14,685

 

  Debentures

 

700

500

 

  Long-Term Bank Loans

3,482

4,164

 

  Reserve for Retirement Allw

5

6

 

  Other Debts

　

1,425

1,325

 

      TOTAL LIABILITIES

22,400

20,680

 

      MINORITY INTERESTS

 

410

 

Common stock

400

400

 

Additional paid-in capital

29

29

 

Retained earnings

216

(69)

 

Evaluation p/l on investments/securities

22

52

 

Others

 

1,542

1,033

 

Treasury stock, at cost

(44)

(44)

 

      TOTAL S/HOLDERS` EQUITY

2,165

1,401

　

      TOTAL EQUITIES

24,565

22,491

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

-1,405

864

 

Cash Flows from Investment Activities

-59

760

 

Cash Flows from Financing Activities

591

-922

　

Cash, Bank Deposits at the Term End

　

1,564

2,413

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

2,165

1,401

 

 

Current Ratio (%)

88.75

87.80

 

 

Net Worth Ratio (%)

8.81

6.23

 

 

Recurring Profit Ratio (%)

1.56

1.66

 

 

Net Profit Ratio (%)

0.78

1.41

 

 

Return On Equity (%)

14.23

35.55

 

 

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.

 

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