MIRA
INFORM REPORT
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Report Date : |
13.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
NISSEN CO LTD |
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Registered Office : |
79 Nishinochayamachi Kisshoin Minamiku Kyoto 601-8381 |
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Country : |
Japan |
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Financials (as on) : |
20.12.2006 |
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Date of Incorporation : |
Jun 2007 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Mail order non-store operator |
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 2453.1 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name
NISSEN CO LTD
REGD NAME
KK Nissen
MAIN OFFICE
79 Nishinochayamachi Kisshoin Minamiku Kyoto 601-8381 JAPAN
Tel : 075-682-2000
URL : http://www.nissen.co.jp
E-Mail address: info@nissen.co.jp
D M Division
18 Hainobori-Nakamachi Kisshoin Minamiku Kyoto, as given
ACTIVITIES
Mail order non-store operator
BRANCHES
Sapporo, Sendai, Chiba, Toyama, Kanazawa, Nagoya, Kyoto,
Hiroshima, Fukuoka,
Hiroshima, Tokyo, other (Tot 12)
OVERSEAS
China (3), Hong Kong, Taiwan, Jakarta, Bangkok
FACTORY(IES)
China (3) (Commodity inspection center)
OFFICERS
TOSHIO KATAYAMA, PRES Nobuya
Samura, s/mgn dir
Hiroshi Fujii, mgn dir Nobuyuki
Ichiba, mgn dir
Naoki Sasao, dir Takahiro
Moroe, dir
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 154,871 M*
PAYMENTS REGULAR CAPITAL Yen 7,665 M*
TREND STEADY WORTH Yen 33,837 M*
STARTED 2007 EMPLOYES 1,302
*.. All figures as of the 20/12/2006 fiscal term.
COMMENT
MAIL-ORDER
RETAILER. FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$600,000 / O/A 120 DAYS.
MAX CREDIT LIMIT: YEN 2,453.1 MILLION, 30 DAYS NORMAL
TERMS.
Notes:
Forecast for the 20/12/2007 fiscal term.
HIGHLIGHTS
The subject company was established originally in 1970 as
non-store catalog sales of clothing; in Jun/2007 reorganized to split the firm
into two group firm: Nissen Holdings Co Ltd & Nissen Co Ltd, as given. This is a mid-size non-store retailer with
catalog sales, Net/TV sales as mainline.
Handles men’s/women’s clothing, cosmetics, toiletries, furniture,
upholstery, gardening tools, other.
Maintains over 12 mail-order sales bases nationwide targeting women in
their late 25(s and 50’s. Also conducts
door-to-door sales thru home parties.
Has 7 overseas purchasing offices, including 4 in China.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 154,871 million, a 7% down from Yen 166,423 million in the previous term. This is referred to the overall price revisions to meet harsher competition. harsher competition among the trade over retail prices. Lower priced imports are coming into Japan. The recurring profit was posted at Yen 5,228 million and the net profit at Yen 777 million, respectively, compared with Yen 8,414 million recurring profit and Yen 5,479 million net profit, respectively, a year ago. The sharp decline in the net profit is referred to the extraordinary losses coming from the reorganization and integration of the group firms.
For the current term ending Dec 2007 the recurring profit is
projected at Yen 4,100 million and the net profit at Yen 2,700 million,
respectively, on 1.8% rise in turnover, to Yen 152,400 million. Business is seen recovering with expanded
sales via Internet Net and TV’s. Japan
Direct Marketing Association expects total domestic sales via catalogs and DM
marketing will grow 9.5% on the year to Yen 3.68 trillion in fiscal 2006. The sales of the subject firm will be around
Yen 3,500 million, about 85% of the total group sales.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 2,453 million, on 30 days normal terms. The proposed amount is considered well
within the firm’s financial capabilities.
REGISTRATION
Date Registered: Jun
2007
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 8,000
shares
Issued: 2,000
shares
Sum: Yen
100 million
Major shareholders (%): Nissen Holdings Co
Ltd*(100)
*..Holding company established Jun 2007, to succeed the old Nissen Co Ltd (founded 1970), capital Yen 7,665 million, listed Tokyo & Osaka S/E’s, sales Yen 154,871 million, recurring profit Yen 5,228 million, net profit Yen 777 million, total assets Yen 77,038 million, net worth Yen 33,800 million, employees 1,302, pres Toshio Katayama, concurrently
Consolidated financials are as attached.
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Mail-order and direct marketing business via
Internet/TV’s, including door-to-door sales (--100%).
(Handling items): men’s & women’s outer & inner
clothing, clothing accessories, kimono, cosmetics, toiletries, furniture,
kitchen systems, kitchenware, curtains, rugs & carpets, other upholstery
items, gardening tools & supplies, outdoor goods, sports goods, pet
supplies, others.
Clients: Consumers
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumikin Bussan, Yamazen Corp,
Urai Co, Trimp International, etc.
Payment record: Regular
Location: Business area in Kyoto. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Resona Bank (Kyoto)
Bank of Kyoto (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
20/12/2006 |
20/12/2005 |
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INCOME STATEMENT |
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Annual Sales |
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154,871 |
166,423 |
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Cost of Sales |
67,002 |
73,755 |
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GROSS PROFIT |
87,869 |
92,667 |
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Selling & Adm Costs |
83,236 |
85,340 |
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OPERATING PROFIT |
4,632 |
7,327 |
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Non-Operating P/L |
596 |
1,087 |
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RECURRING PROFIT |
5,228 |
8,414 |
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NET PROFIT |
777 |
5,479 |
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BALANCE SHEET |
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Cash |
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12,602 |
6,436 |
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Receivables |
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10,462 |
10,338 |
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Inventory |
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13,629 |
11,967 |
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Securities, Marketable |
35 |
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Other Current Assets |
25,012 |
24,799 |
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TOTAL CURRENT ASSETS |
61,740 |
53,540 |
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Property & Equipment |
4,390 |
20,599 |
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Intangibles |
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531 |
609 |
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Investments, Other Fixed Assets |
10,377 |
9,115 |
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TOTAL ASSETS |
77,038 |
83,863 |
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Payables |
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22,724 |
22,975 |
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Short-Term Bank Loans |
1,130 |
5,379 |
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Other Current Liabs |
14,458 |
16,788 |
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TOTAL CURRENT LIABS |
38,312 |
45,142 |
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Debentures |
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500 |
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Long-Term Bank Loans |
4,175 |
3,300 |
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Reserve for Retirement Allw |
159 |
154 |
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Other Debts |
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545 |
47 |
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TOTAL LIABILITIES |
43,191 |
49,143 |
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MINORITY INTERESTS |
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22 |
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Common
stock |
7,665 |
7,665 |
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Additional
paid-in capital |
7,687 |
7,687 |
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Retained
earnings |
20,784 |
21,561 |
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Evaluation
p/l on investments/securities |
448 |
586 |
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Others |
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553 |
5 |
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Treasury
stock, at cost |
(3,290) |
(2,807) |
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TOTAL S/HOLDERS` EQUITY |
33,847 |
34,697 |
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TOTAL EQUITIES |
77,038 |
83,863 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
20/12/2006 |
20/12/2005 |
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Cash
Flows from Operating Activities |
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14 |
831 |
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Cash
Flows from Investment Activities |
11,819 |
-1,022 |
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Cash
Flows from Financing Activities |
-5,765 |
-709 |
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Cash,
Bank Deposits at the Term End |
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12,592 |
6,426 |
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ANALYTICAL RATIOS Terms
ending: |
20/12/2006 |
20/12/2005 |
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Net
Worth (S/Holders' Equity) |
33,847 |
34,697 |
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Current
Ratio (%) |
161.15 |
118.60 |
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Net
Worth Ratio (%) |
43.94 |
41.37 |
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Recurring
Profit Ratio (%) |
3.38 |
5.06 |
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Net
Profit Ratio (%) |
0.50 |
3.29 |
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Return
On Equity (%) |
2.30 |
15.79 |
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Notes: Financials before the integration of the group firm in Jun/2007.
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. |
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%)