MIRA
INFORM REPORT
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Report Date : |
19.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
DAVINCI ADVISORS, KK |
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Registered Office : |
DaVinci Ginza Bldg 9F, 6-2-1 Ginza Chuoku Tokyo 104-0001 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Aug 1998 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Real estate investment fund manager |
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 1304 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name
DAVINCI ADVISORS, KK
REGD NAME
KK DaVinci Advisors
MAIN OFFICE
DaVinci Ginza Bldg 9F, 6-2-1 Ginza Chuoku Tokyo 104-0001JAPAN
Tel : 03-6215-9740
Fax : 03-6215-9701
URL : http://www.davinci-advisors.com/
E-Mail address: ir@davinci-advisors.com
ACTIVITIES
Real estate investment fund manager
LICENSES
Kanto FSA #1189 (Fund Management)
Tokyo-Metrop Governor (2) #78437 (Real Estate Dealership)
Kanto FSA #181 (Trust Beneficiary Rights)
Tokyo-Metrop Governor (1) #30600 (Money Lender)
BRANCH(ES)
Nil
CHIEF EXEC
OSAMU KANEKO, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 136,021 M
PAYMENTS REGULAR CAPITAL Yen 2,385 M
TREND STEADY WORTH Yen 152,777 M
STARTED 1998 EMPLOYES 101
COMMENT
REAL
ESTATE INVESTMENT FUND MANAGER. FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$79.
MAX CREDIT LIMIT: YEN 1,304 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/12/2007 fiscal term
HIGHLIGHTS
The subject company is major real estate investment fund
manager. Income is generated from
commissions on sales of real estate thru establishment of real estate
investment funds, mainly from foreign investors. The operation divisions are: real estate investment fund
management & consulting; real estate investment and sale; other
divisions. The firm launched resort
business by building time-share condominiums at country golf clubs. It will spend about Yen 40,000 million in
this project, aiming to generate investment return of 6-7% from the membership
income. The first condominium is at
Sunny Country Club in Nagano-Pref. It
plans to build 50 such facilities nationwide in the next three years.
(Recent news from the Nikkei)
Dated 25/Jul/2007:
The firm’s unsolicited tender offer for TOC Co Ltd, real estate
owner & manager, Tokyo, Affiliated with the New Hotel Otani Group, failed
after offers by stockholders amounted to only about 34.6% of the outstanding
shares, failing short of the 50% or more the firm had targeted..
Dated 03/Sept/2007:
With prices of existing buildings, real estate fund managers are diversifying their investments, acquiring properties undergoing or even before development.
The subject is signing purchases agreements with condominium and office building developers for properties still being built or for which construction has not even begun. Acquisition costs can be kept lower than finished buildings.
The firm’s assets under management totaled Yen 1,1 trillion as
of June 30, with properties under development accounting for Yen 164.4 billion.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen
13,021 million, a 1331.5% up from Yen 9,502 million in the previous term. The steep rise is the results of making
equity-method accounting system subsidiaries into fully consolidated
subsidiaries. The recurring profit was
posted at Yen 30,501 million and the net profit at Yen 9,124 million,
respectively, compared with Yen 6,973 million recurring profit and Yen 4,481
million net profit, respectively, a year ago.
(Jan/Sept/2007 results): Sales Yen 167,421 million, operating
profit Yen 67,138 million (574.8%), recurring profit Yen 50,014 million (up
406.0%), net profit Yen 9,230 million (up 64.2%). (% compared with the same period a year ago.) The steep sales hike is the change in
accounting method, wherein those funds which were treated under equity method
accounting system have become consolidated subsidiaries. Management fees rose by improved turnover of
three funds. Sale of Opportunity Fund
and Core Fund also contributed, turning investment fees of Yen 7,871 million.
For the current term ending Dec 2007 the recurring profit is
projected at Yen 68,000 million and the net profit at Yen 11,200 million, on a
83.8% rise in turnover, to Yen 250,000 million. Business is seen steadily
rising.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 1,304.0 million, on 30 days normal terms. The proposed amount, US$79, is considered
well within the firm’s financial capabilities.
REGISTRATION
Date Registered: Aug
1998
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 4.7
million shares
Issued: 1,566,174
shares
Sum: Yen
2,385 million
Major shareholders (%): Osamu Kaneko (26.6), Bank of NY GCM Client EISG (4.8), Goldman Sachs Investment
(4.8), Investors Bank (1.9), Company’s Treasury Stock (1.9), Bank of New York Treaty
Jasdac
(1.7), Japan Trustee Services, T (1.5), Morgan Stanley International (1.3),
Morgan
Stanley & Co (1.2); foreign owners (33.3).
No. of shareholders: 44,051
Listed on the S/Exchange (s) of: Hercules
Managements: Osamu
Kaneko, pres; Takatsugu Arakawa, dir; Yukihiro Yoshida, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
DaVinci Select, other
OPERATION
Activities: Real estate investment fund management, including
real estate investment and sale (100%).
Clients: [Investment funds] DaVinci Office Fund One, Leonard DaVinci OF4, Moon Coin, other.
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: Investment funds, investors, individuals.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Mizuho Bank (Kabutocho)
SMBC (Ginza)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2006 |
31/12/2005 |
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INCOME STATEMENT |
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Annual Sales |
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136,021 |
9,502 |
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Cost of Sales |
89,962 |
1,666 |
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GROSS PROFIT |
46,059 |
7,836 |
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Selling & Adm Costs |
2,015 |
811 |
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OPERATING PROFIT |
44,043 |
7,025 |
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Non-Operating P/L |
-13,542 |
-52 |
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RECURRING PROFIT |
30,501 |
6,973 |
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NET PROFIT |
9,124 |
4,481 |
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BALANCE SHEET |
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Cash |
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28,236 |
6,120 |
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Receivables |
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708 |
558 |
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Inventory |
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738,603 |
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Securities, Marketable |
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Other Current Assets |
54,207 |
1,540 |
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TOTAL CURRENT ASSETS |
821,754 |
8,218 |
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Property & Equipment |
132 |
108 |
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Intangibles |
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44 |
26 |
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Investments, Other Fixed Assets |
56,403 |
25,537 |
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TOTAL ASSETS |
878,333 |
33,889 |
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Payables |
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Short-Term Bank Loans |
25,809 |
6,645 |
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Other Current Liabs |
18,949 |
5,571 |
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TOTAL CURRENT LIABS |
44,758 |
12,216 |
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Debentures |
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28,911 |
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Long-Term Bank Loans |
615,045 |
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Reserve for Retirement Allw |
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Other Debts |
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36,842 |
10,101 |
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TOTAL LIABILITIES |
725,556 |
22,317 |
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MINORITY INTERESTS |
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86 |
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Common
stock |
2,385 |
2,385 |
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Additional
paid-in capital |
2,516 |
2,516 |
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Retained
earnings |
17,134 |
8,009 |
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Evaluation
p/l on investments/securities |
256 |
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Others |
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131,878 |
(33) |
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Treasury
stock, at cost |
(1,392) |
(1,392) |
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TOTAL S/HOLDERS` EQUITY |
152,777 |
11,485 |
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TOTAL EQUITIES |
878,333 |
33,889 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2006 |
31/12/2005 |
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Cash
Flows from Operating Activities |
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-410,274 |
-5,882 |
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Cash
Flows from Investment Activities |
-784 |
2,911 |
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Cash
Flows from Financing Activities |
424,039 |
7,087 |
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Cash,
Bank Deposits at the Term End |
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28,236 |
6,120 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2006 |
31/12/2005 |
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Net
Worth (S/Holders' Equity) |
152,777 |
11,485 |
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Current
Ratio (%) |
1835.99 |
67.27 |
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Net Worth
Ratio (%) |
17.39 |
33.89 |
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Recurring
Profit Ratio (%) |
22.42 |
73.38 |
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Net
Profit Ratio (%) |
6.71 |
47.16 |
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Return
On Equity (%) |
5.97 |
39.02 |
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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. |
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%)