MIRA
INFORM REPORT
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Report Date : |
19.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SOJITZ CORPORATION |
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Registered Office : |
6-1-20 Akasaka Minatoku Tokyo 107-8655 |
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Country : |
Japan |
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Date of Incorporation : |
Dec 1982 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
A general trading house |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 83949.3 millions |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
name
SOJITZ CORPORATION
REGD NAME
Sojitz KK
MAIN OFFICE
6-1-20 Akasaka Minatoku Tokyo 107-8655 JAPAN
Tel : 03-5520-5000
Fax : 03-5520-2390
URL : http://www.sojitz.com/
E-Mail address: info@sojitz.com
ACTIVITIES
Trading house born by the merger of former Nissho-Iwai Corp
& Nichimen Corp
BRANCHES
12 domestic, 92 overseas
(Subsidiaries/affiliates): 202 domestic, 437 overseas (as of
Jun/2007)
CHIEF EXECS
YUTAKA KASE, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 5,218,153 M
PAYMENTS REGULAR CAPITAL Yen 122,790 M
TREND STEADY WORTH Yen 531,635 M
STARTED 2003 EMPLOYES 18,844 M
COMMENT
GENERAL TRADING HOUSE. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 83,949.3 MILLION, 30 DAYS NORMAL TERMS
Forecast figures for the 31/03/2008 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 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 MUFG),
the main bank for 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’s 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.
(Recent news from Nikkei Shimbun):
Sojitz has bought the rights to natural gas field in Texas, USA, for Yen 9,500 million. The firm plans to spend a total Yen 13 – 15 billion, including development costs, to double output to 2,000 barrels/day by 2011. It intends to boost production capacity by 150% from current levels to 40,000 barrels/day. Sojitz already acquired rights to Carthage gas field.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 5,218,153 million, a 4.9% up from Yen 4,972,059 million in the previous term. Sales increased at all divisions thanks to increased trading, both for imports & exports, and materials/oil prices hike contributed to the growth. By divisions, Machinery & Aerospace up 16.7% to Yen 1,118,192 million, thanks to robust automobile exports to Latin America, Russia and Mid/Near East, and increased sales achieved in aircraft businesses; Energy & Metals up 6.6% to Yen 1,286,934 million; Chemicals & Synthetic Resin up 5.7% to Yen 668,737 million The recurring profit was posted at Yen 89,535 million and the net profit at Yen 58,766 million, respectively, compared with Yen 78,773 million recurring profit and Yen 43,706 million net profit, respectively, a year ago. Drastic cost reductions contributed to the sales growth.
(Apr/June/2007 results): sales Yen 1,377,294 million (up 12.2%), operating profit Yen 21,874 million (up 23.1%), recurring profit Yen 28,370 million (up 30.4%), net profit Yen 27,068 million. (% compared with the same period last year). Steady sales from Machinery & Aerospace, Energy & Mineral Resources and increased sales from Consumer Lifestyle Div on account of expansion of commercial rights contributed. Chemicals & automobiles for the oversea market were also robust.
For the current term ending Mar 2008 the recurring profit is
projected at Yen 92,000 million and net profit at Yen 60,000 million, on a 6.9%
rise in turnover, to Yen 5,580,000 million.
Machinery & aerospace showing profit growth, driven by automobiles
& plants.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 83,949.3 million, on 30 days normal
terms.
REGISTRATION
Date Registered: Dec
1982
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,488,525,000
shares
Issued: 1,169,269,149
shares
Sum: Yen
122,790 million
Major shareholders (%): Master Trust Bank of Japan T (8.0), Japan Trustee Services Bank T (7.3), Japan
Securities Finance (3.9), Bank of NY GCM Client EISG (3.4), UBS AG (London) Asia
Equities (1.8), Morgan Stanley & Co (1.5), Trust & Custody Services Inv T (1.4), Japan
Trustee Services T4 (1.4), Nomura Trust Inv T (1.2), Goldman Sachs Int’l (1.2); foreign
owners
(30.9)
No. of shareholders: 148,060
(as of Mar/2007)
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Akio Dobashi, ch; Yutaka Kase, pres; Masaki Hashikawa, v pres; Yasuyuki Fujishima,
s/mgn dir; Yoji Sato, s/mgn dir; Shigeo Muraoka, dir; Yoshihiko Miyauchi, dir
Nothing detrimental is knows as to the commercial morality
of executives.
OPERATION
Activities: A general trading house:
(Sales breakdown by divisions):
Synthetic resins, Chemicals Div (13.0%): synthetic resin materials, organic & inorganic Industrial chemicals, electronic materials, pulp & paper, agrochemicals, pharmaceuticals, fine chemicals;
Textiles Div (18.0%): clothing, beddings, furs, textile machinery;
Construction & Lumber Div (7.0%): condominium construction, building materials, real estate, logs, sawn timber, laminated woods
Machinery/Aerospace & Metals Div (21.0%): power plants, petrochemical plants, telecommunications facilities, construction machinery & vehicles, aircrafts, ships, automobiles, steel & iron products, nonferrous metals, precious stones;
Energy/Metals (25%);
Others (16%): foodstuffs, others.
(Overseas trading 36.1%:
N America 5.6%, Europe 3.6%, Asia/Oceania 20.6%, other 6.3%).
Clients: [Mfrs, wholesalers] Kobe Steel, NM Life, First Retailing, Varig S.A., 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 Corp, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
MUFG (Tokyo)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
Consolidated Finances
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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5,218,153 |
4,972,059 |
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Cost of Sales |
4,963,686 |
4,729,892 |
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GROSS PROFIT |
254,466 |
242,166 |
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Selling & Adm Costs |
176,533 |
165,964 |
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OPERATING PROFIT |
77,932 |
76,202 |
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Non-Operating P/L |
11,603 |
2,571 |
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RECURRING PROFIT |
89,535 |
78,773 |
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NET PROFIT |
58,766 |
43,706 |
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BALANCE SHEET |
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Cash |
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471,570 |
521,937 |
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Receivables |
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672,658 |
613,513 |
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Inventory |
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315,885 |
214,163 |
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Securities, Marketable |
7,251 |
6,471 |
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Other Current Assets |
147,717 |
154,370 |
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TOTAL CURRENT ASSETS |
1,615,081 |
1,510,454 |
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Property & Equipment |
229,966 |
246,665 |
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Intangibles |
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99,127 |
100,131 |
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Investments, Other Fixed Assets |
675,333 |
664,429 |
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TOTAL ASSETS |
2,619,507 |
2,521,679 |
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Payables |
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531,508 |
451,438 |
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Short-Term Bank Loans |
501,055 |
775,555 |
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Other Current Liabs |
186,934 |
189,723 |
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TOTAL CURRENT LIABS |
1,219,497 |
1,416,716 |
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Debentures |
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245,540 |
99,036 |
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Long-Term Bank Loans |
560,187 |
473,109 |
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Reserve for Retirement Allw |
23,920 |
25,558 |
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Other Debts |
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38,728 |
43,184 |
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TOTAL LIABILITIES |
2,087,872 |
2,057,603 |
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MINORITY INTERESTS |
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37,125 |
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Common
stock |
122,790 |
130,549 |
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Additional
paid-in capital |
158,593 |
166,754 |
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Retained
earnings |
147,206 |
92,487 |
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Evaluation
p/l on investments/securities |
94,316 |
90,547 |
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Others |
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8,856 |
(53,275) |
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Treasury
stock, at cost |
(126) |
(113) |
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TOTAL S/HOLDERS` EQUITY |
531,635 |
426,949 |
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TOTAL EQUITIES |
2,619,507 |
2,521,679 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash
Flows from Operating Activities |
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7,040 |
43,155 |
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Cash
Flows from Investment Activities |
42,706 |
99,155 |
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Cash
Flows from Financing Activities |
-95,476 |
-55,805 |
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Cash,
Bank Deposits at the Term End |
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464,273 |
506,254 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net Worth
(S/Holders' Equity) |
531,635 |
426,949 |
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Current
Ratio (%) |
132.44 |
106.62 |
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Net
Worth Ratio (%) |
20.30 |
16.93 |
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Recurring
Profit Ratio (%) |
1.72 |
1.58 |
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Net
Profit Ratio (%) |
1.13 |
0.88 |
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Return
On Equity (%) |
11.05 |
10.24 |
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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%)