MIRA
INFORM REPORT
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Report Date : |
22.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
NISSHO ELECTRONICS CORPORATION |
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Registered Office : |
7-3-1 Tsukiji Chuoku Tokyo 104-8444 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Feb 1969 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of
electronic products, computer systems |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 2796.5 millions |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
name
NISSHO ELECTRONICS CORPORATION
REGD NAME
Nissho Electronics KK
MAIN OFFICE
7-3-1 Tsukiji Chuoku Tokyo 104-8444 JAPAN
Tel : 03-3544-8311
Fax : 03-3542-3335
URL : http://www.nissho-ele.co.jp/
E-Mail address: info@nissho-ele.co.jp
ACTIVITIES
Import, export, wholesale of electronic products, computer
systems
BRANCH(ES)
Osaka, Nagoya, Sapporo, Sendai, Toyota, Shizuoka, Hiroshima,
Fukuoka
OVERSEAS
(Subsidiaries): Nissho Electronics (USA) Corp; Nissho
Electronics (Asia) Co Ltd (Hong Kong); Nissho Electronics (Guangdong) Co Ltd
(China)
CHIEF EXEC
TAKAO TSUJI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 62,142 M
PAYMENTS REGULAR CAPITAL Yen 14,336 M
TREND SLOW WORTH Yen 38,822 M
STARTED 1969 EMPLOYES 971
COMMENT
DEVELOPER OF COMPUTER SYSTEMS; WHOLESALE OF ELECTRONIC
PRODUCTS. FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,796.5 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company was established originally on the basis of
Electronics Div separated from Nissho Iwai Corp, which later in 2003 merged
with Nichimen Corp to become Sojitz Corp, and the subject became the subsidiary
of the group. This is a specialized
trader of electronic products, core firm of Sojitz’s IT business. Mainly engaged in import and marketing of
computers and peripherals. Offers IT
solution services, too. Actively
advancing into software development. Strong in network equipment. In 2005, succeeded the network business of
Kanematsu Communications Ltd.
Broadening new materials, mainly produced by foreign firms. Reinforcing
data management-related staff training following customer information leak in
preceding term.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 62,142 million, a 3.5% down from Yen 64,365 million in the previous term. Business was slow to expand. New business development remained rather sluggish. Demand is seen decreasing. By divisions, Solution Services up 2.5% to Yen 42,600 million; Electronics down 14.3% to Yen 19,542 million, due largely to decline of shipment of hard disk drives to electronics appliances wholesalers, contrary to steady CPU business, optical networking devices, high-quality image devices, etc. The recurring profit was posted at Yen 2,030 million and the net profit at Yen 3,451 million, respectively, compared with Yen 1,550 million recurring profit and Yen 1,020 million net profit, respectively, a year ago. The net profit improvement is attributed in part to sale of investments/securities amounting to Yen 1,123 million.
(Apr/Sept/2007 results): Sales Yen 25,312 million (down 13.8%),
operating profit Yen 618 million (up 32.3%), recurring profit Yen 615 million
(up 6.7%), net profit Yen 485 million (up 71.2%). (% compared with the same
period the last year). Electronics Div
was down 48.2% to Yen 5,541 million, hit by sluggish sales of hard disk drives
to volume discount stores, PC makers, etc.
Solutions Services up by 6.0% to Yen 19,771 million, thanks to increased
sales of communications infrastructure-related products and solution management
and maintenance services.
For the current term ending Mar 2008 the recurring profit is
projected at Yen 3,000 million and the net profit at Yen 1,700 million, on a
6/7% fall in turnover, to Yen 58,000 million.
Equipment sales will be hit by sharp price cuts on hard disks. But AMD (US)-made CPU may contribute on high
profit margin. Overall business will
decrease.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 2,796.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: Feb
1969
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 100
million shares
Issued: 29,551,000
shares
Sum: Yen
14,336 million
Major shareholders (%): Sojitz Corp*(35.5), Sumitomo Corp (20.1), Sojitz Corp (America)(3.0), Mitsui Asset Trust,
Money T.1 (2.6), Company’s Treasury Stock (2.5), Japan Trustee Services T1 (2.2),
Entrepia Solutions Inc (1.7), Anritsu Corp (1.7), Japan Trustee Services, T4.(1.7), Master
Trust
Bank of Japan T (1.6); foreign owners (11.0)
No. of shareholders: 4,235
*.. Trading firm, core of Sojitz Holdings group, founded 2003,
listed Tokyo, Osaka S/E’s, turnover Yen 5,218,153 million, recurring profit Yen
89,535 million, net profit Yen 58,766 million, total assets Yen 2,619,507
million, net worth Yen 488,586 million, employees 18,844, pres Yutaka Kase
Listed on the S/Exchange (s) of: Tokyo
Managements: Takao Tsuji, pres; Katsuhiko Masada, v pres; Takashi Fukuda, s/mgn dir; Norio Nakai,
mgn dir; Takafumi Wada, mgn dir; Fumio Ohashi, mgn dir; Katsumi Yokoyama, dir; Hisao
Sakino,
dir; Norio Fujimaki, dir; Toshinobu Horie, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Next Gen Inc, IP City Corp, NGC Corp, Net Move Corp, Tech
Matrix Corp, other.
OPERATION
Activities: Imports, exports and wholesales electronic products: solution services (69%), Electronics products, others (31%).
Overseas sales ratio 11.8%: Asia (Hong Kong, China,
Singapore, etc) 9.9%; UK, others 1.9%.
(Outline
of business operations):
Enterprise Business: computing, storage, solution (network, security, server), visual (graphic systems), IA server business assumed HP Blade server as core, HP Storage Works EVA/NetValut for Enterprise storage, IP Network optimization, network security, internal security of information leakage measures, security solution for IT governance;
Financial Institutions & BPM (Business process management): BPM, ECM (Enterprise Content Management), EIM (Enterprise Information Management), ERP (Enterprise Resources Management), outsourcing business;
Service Providers Business: next generation carrier network solutions, VolP networks solutions, access network solutions, VolP by wireless LAN, DSL/PoDSL for industrial Private DSL system;
Innovative Electronics
Business: digital consumer electronic solutions, digital camera solutions,
PC/Server, information processing solutions, optical communication solutions,
nanofilm solutions, others.
Clients: Business firms, electronics products stores, wholesalers, tele-communications firms, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: Telecommunications carriers, makers, wholesalers,
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 Bank (Ginzadori)
Relations: Satisfactory
Financials
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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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62,142 |
64,365 |
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Cost of Sales |
49,339 |
52,441 |
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GROSS PROFIT |
12,803 |
11,924 |
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Selling & Adm Costs |
10,579 |
10,688 |
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OPERATING PROFIT |
2,223 |
1,236 |
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Non-Operating P/L |
-193 |
314 |
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RECURRING PROFIT |
2,030 |
1,550 |
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NET PROFIT |
3,451 |
1,020 |
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BALANCE SHEET |
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Cash |
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11,418 |
9,278 |
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Receivables |
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16,789 |
19,741 |
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Inventory |
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3,419 |
3,882 |
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Securities, Marketable |
3,030 |
3,505 |
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Other Current Assets |
4,725 |
2,883 |
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TOTAL CURRENT ASSETS |
39,381 |
39,289 |
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Property & Equipment |
3,744 |
5,058 |
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Intangibles |
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963 |
1,207 |
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Investments, Other Fixed Assets |
12,990 |
10,005 |
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TOTAL ASSETS |
57,078 |
55,559 |
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Payables |
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7,787 |
8,855 |
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Short-Term Bank Loans |
1,336 |
1,456 |
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Other Current Liabs |
9,133 |
8,889 |
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TOTAL CURRENT LIABS |
18,256 |
19,200 |
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Debentures |
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Long-Term Bank Loans |
3,350 |
10,010 |
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Reserve for Retirement Allw |
3,104 |
3,147 |
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Other Debts |
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(6,454) |
(13,157) |
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TOTAL LIABILITIES |
18,256 |
19,200 |
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MINORITY INTERESTS |
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259 |
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Common
stock |
14,336 |
14,336 |
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Additional
paid-in capital |
16,936 |
16,936 |
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Retained
earnings |
7,528 |
4,264 |
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Evaluation
p/l on investments/securities |
(109) |
688 |
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Others |
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831 |
(107) |
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Treasury
stock, at cost |
(700) |
(19) |
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TOTAL S/HOLDERS` EQUITY |
38,822 |
36,098 |
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TOTAL EQUITIES |
57,078 |
55,559 |
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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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5,414 |
-780 |
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Cash
Flows from Investment Activities |
-3,299 |
884 |
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Cash
Flows from Financing Activities |
-761 |
-875 |
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Cash,
Bank Deposits at the Term End |
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14,148 |
12,784 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
38,822 |
36,098 |
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Current
Ratio (%) |
215.72 |
204.63 |
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Net
Worth Ratio (%) |
68.02 |
64.97 |
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Recurring
Profit Ratio (%) |
3.27 |
2.41 |
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Net
Profit Ratio (%) |
5.55 |
1.58 |
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Return
On Equity (%) |
8.89 |
2.83 |
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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%)