MIRA INFORM REPORT

 

 

Report Date :

03.10.2007

 

IDENTIFICATION DETAILS

 

Name :

SUMIKIN BUSSAN CORPORATION

 

 

Registered Office :

Nakanoshima Central Tower, 3-6-2 Honmachi Chuoku Osaka 541-8544

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Apr 1941

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export and wholesale of iron & steel, textiles, foodstuffs, machinery, non-ferrous metals, others.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 9655.3 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

name

 

SUMIKIN BUSSAN CORPORATION

 

 

REGD NAME

 

Sumikin Bussan KK

 

 

MAIN OFFICE

 

Nakanoshima Central Tower, 3-6-2 Honmachi Chuoku Osaka 541-8544 JAPAN

Tel        : 06-6244-8001

Fax       : 06-6244-8009

URL      : http://www.sumikinbussan.co.jp/

E-Mail address: (through the URL)

                        

*.. The given address is its Tokyo Head Office at: 8-5-27 Akasaka Minatoku Tokyo 107-8527; Tel: 03-5412-5001; Fax: 03-5412-5101

 

 

ACTIVITIES

 

Import, export and wholesale of iron & steel, textiles, foodstuffs, machinery, non-ferrous metals, others

 

 

BRANCHES

 

Tokyo, Nagoya, Sapporo, Osaka, Shizuoka, Fukuoka other (Tot 39)

 

 

OVERSEAS

 

China (5), Taipei, Ho Chi Minh, Milan, Paris

(Subsidiaries/affiliated): USA (5), China (2), Thailand (2), Korea, Hong Kong, Australia, Singapore

 

 

CHIEF EXEC

 

GASHUN AMAYA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 1,177,610 M

PAYMENTS      REGULAR                     CAPITAL           Yen 12,335 M

TREND             STEADY                       WORTH            Yen 44,749 M

STARTED         1941                             EMPLOYES      4,272

 

 

COMMENT

 

TRADING HOUSE AFFILIATED TO SUMITOMO METAL IND.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 9,655.3 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHT

 

This is a trading firm affiliated to Sumitomo Metal Ind, third ranking crude steel mfr, Osaka (see REGISTRATION).  Specializes in import, export and wholesale of iron & steel, textiles, foodstuffs as 3 mainline, and machinery, nonferrous metals, etc.  Originated as a specialist trader of steel products and has expanded into other commodities following the takeover of Itoman Co, a textile specialist trader, in 1993.  Employs internal company system: Steel Company, Machinery & Metals Company, Textile Company and Foodstuffs Company.  Has a coil center subsidiary in US.  In textile division, has strength in apparel and 5 production centers in China. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 1,177,610 million, a 5.7% up from Yen 1,114,282 million in the previous term.  Mainline steel products drove sales growth.  The Steel Div was up 5.9% to Yen 432,900 million, while Textiles down 1.9% to Yen 173,000 million due to harsh price competition at downstream markets.  Steel materials up 12.6& to Yen 250,400 million.  Foods down 0.5% to Yen 133,900 million, still not recovered from downturn in broiler market.  The recurring profit was posted at Yen 17,980 million and the net profit at Yen 9,460 million, respectively, compared with Yen 14,004 million recurring profit and Yen 6,040 million net profit, respectively, a year ago.

 

(Apr/Jun/2007 results): Sales Yen 342,759 million (up 27.5%), operating profit Yen 5,089 million (up 24.5%), recurring profit Yen 5,297 million (up 34.2%), net profit Yen 2,855 million (up 13.1%).  (% compared with the same period a year ago).  Demand for steel products, steel materials and machinery rose steadily.  Textiles and Foodstuffs showing recovery.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 18,500 million and the net profit at Yen 10,000 million, respectively, on a 7.9% rise in turnover, to Yen 1,270,000 million.  Newly acquired high-quality women’s wear business from Fujii Corporation, time-honored woolen fabrics mfr, which started supply to leading apparel makers, will contribute to sales growth.  .Steel & iron continues in robust demand, with prices raised. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 9,655.3 million, on 30 days normal terms.

 

REGISTRATION

           

Date Registered:            Apr 1941

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    400 million shares

Issued:                          164,534,094 shares

Sum:                            Yen 12,335 million

Major shareholders (%): Sumitomo Metal Ind*(38.1), Sumitomo Corp (3.3), Trust & Custody Services Assn (3.2),

                                    Stracks Co (2.8), Kyoei Steel (2.1), Dai-sho-kin (1.9), Air Water (1.2), Chuo Denki Kogyo

                                    (1.2), JTSB (Chuo Denki Kogyo (1.2), BNP Paribas Sec Service (Lux) (0.8); foreign

                                    owners (6.4)

*.. Third ranked crude steel producer, Osaka, founded 1949, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 262,072 million, turnover Yen 1,602,720 million, recurring profit Yen 327,676 million, net profit Yen 226,725 million, total assets Yen 2,301,556 million, net worth Yen 880,806 million, employees 24,982, pres Hiroshi Tomono

No. of shareholders:       10,390

Listed on the S/Exchange (s) of: Osaka

Managements:               Gashun Amaya, pres & CEO; Ryuhei Otsuka, v pres; Takashi Miyazaki, v pres; Masahiro

                                    Shindo, s/mgn dir; Kiyoshi Meguro, s/mgn dir; Osamu Numata, s/mgn dir; Kenji Kamata,

                                    s/mgn dir; Tsuneaki Eguchi, s/mgn dir; Eiji Tanaka, mgn dir; Shigeru Maeda, mgn dir;

                                    Toshio Nishida, mgn dir

           

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

 

 

Related companies

 

Tsubohachi, Igeta Sunrise Pipes, Sumikin Bussan Steel Products, Ist Co, other

           

 

OPERATION

 

Activities: Imports, exports and wholesales iron & steel, textiles, foodstuffs, machinery, nonferrous metals, others:

 

(Sales breakdown by intra-company units):

 

Steel Company (37%): seamless pipes/tubes, welded pipes/tubes, large-diameter pipes, fittings, hot-rolled coils, cold-rolled coils, coated sheets, plates, electrical sheets, H-shaped lightweight H-sheets, sheet piles, stainless steel, titanium, other steel products, pig iron, scrap, direct-reduced iron, ferroalloys, petrochemical products, coal, sand;

Machinery & Metals Company (21%): all types of machinery for steel production, general industrial machinery, environmental-related equipment, electric power business, bars, wire rods, bar in coils, wire products, cold finished steel bars, cast steel products, forged steel products, rolling stock parts, automobile parts, sintered products, nonferrous raw materials, nonferrous ingots, nonferrous mill products, raw materials for synthetic plastics & molded products, urethane system liquid raw materials and products, packaging materials and products, plastic pallets, construction materials;

Textiles Company (15%): raw cotton, yarn, woven & knitted textiles, outerwear & inner wear for men, women & children, infants’ wear, school uniform, sportswear, working wear, sleepwear, interior goods;

Foodstuffs Company (11%): meat (beef, pork, chicken, etc) including processed products, fishery products (shrimp, crab, squid, sardine, etc) including processed products, grain (rice, wheat, beans, etc), agricultural products (pumpkins, tomatoes, carrots, melons, etc), others.

Others (16%).

 

Clients: [Mfrs, wholesalers] Sumitomo Metal Ind, Onward Kashiyama, Marudai Food, Isuzu Motors, Itoham Foods, Shimizu Corp, Obayashi Corp, Sumitomo Metal Steel Products,             Toyoda Iron Works, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Metal Ind, Sumitomo Metal Steel Products, Sumitomo Light Metal Ind, Tokyo Steel Mfg, Mitsuboshi Diamond Ind, other.

 

Payment record: Regular

 

Location: Business area in Osaka.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

SMBC (H/O)

Sumitomo Trust Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,177,610

1,114,282

 

  Cost of Sales

1,108,084

1,046,224

 

      GROSS PROFIT

69,526

68,057

 

  Selling & Adm Costs

49,534

52,783

 

      OPERATING PROFIT

19,991

15,274

 

  Non-Operating P/L

-2,011

-1,270

 

      RECURRING PROFIT

17,980

14,004

　

      NET PROFIT

9,460

6,040

BALANCE SHEET

 

 

 

 

  Cash

　

12,345

12,583

 

  Receivables

 

268,143

241,327

 

  Inventory

 

50,463

50,898

 

  Securities, Marketable

　

　

 

  Other Current Assets

36,029

33,129

 

      TOTAL CURRENT ASSETS

366,980

337,937

 

  Property & Equipment

25,990

23,235

 

  Intangibles

 

1,451

930

 

  Investments, Other Fixed Assets

33,544

40,082

 

      TOTAL ASSETS

427,965

402,184

 

  Payables

 

251,307

236,200

 

  Short-Term Bank Loans

68,901

83,588

 

　

 

　

　

 

  Other Current Liabs

39,822

31,616

 

      TOTAL CURRENT LIABS

360,030

351,404

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,884

1,033

 

  Reserve for Retirement Allw

2,700

2,902

 

  Other Debts

　

17,601

20,280

 

      TOTAL LIABILITIES

383,215

375,619

 

      MINORITY INTERESTS

 

1,515

 

Common stock

12,335

8,077

 

Additional paid-in capital

7,087

2,826

 

Retained earnings

17,499

9,302

 

Evaluation p/l on investments/securities

5,644

4,595

 

Others

 

2,320

320

 

Treasury stock, at cost

(136)

(71)

 

      TOTAL S/HOLDERS` EQUITY

44,749

25,049

　

      TOTAL EQUITIES

427,965

402,184

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

6,998

9,370

 

Cash Flows from Investment Activities

3,972

1,107

 

Cash Flows from Financing Activities

-11,519

-12,072

　

Cash, Bank Deposits at the Term End

　

12,140

12,421

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

44,749

25,049

 

 

Current Ratio (%)

101.93

96.17

 

 

Net Worth Ratio (%)

10.46

6.23

 

 

Recurring Profit Ratio (%)

1.53

1.26

 

 

Net Profit Ratio (%)

0.80

0.54

 

 

Return On Equity (%)

21.14

24.11

 

 

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