MIRA INFORM REPORT

 

 

Report Date :

11.10.2007

 

IDENTIFICATION DETAILS

 

Name :

HOSHIAI CO LTD

 

 

Registered Office :

3010 Honami Bizen City Okayama-Pref 705-0033

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

Jan 1952

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of refractory materials

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 41.7 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

HOSHIAI CO LTD

 

 

REGD NAME

 

KK Hoshiai

 

 

MAIN OFFICE

 

3010 Honami Bizen City Okayama-Pref 705-0033 JAPAN

Tel        : 0869-67-0730   

Fax       : 0869-67-3383

URL      : N/A

 

 

ACTIVITIES

 

Import, wholesale of refractory materials

 

 

BRANCHES

 

Nil

 

 

FACTORY(IES)

 

Bizen, adjacent to the caption address

 

 

OFFICERS

 

Tsumoru Hoshiai, rep ch            

GOKI HOSHIAI, PRES

Kanako Hoshiai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 2,528 M

PAYMENTS      REGULAR         CAPITAL           Yen 10 M

TREND             STEADY           WORTH            Yen 364 M

STARTED         1952                 EMPLOYES      10

COMMENT

 

IMPORTER AND WHOLESALER SPECIALIZING IN REFRACTORY MATERIALS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 41.7 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1905 by a certain Hoshiai for selling refractory materials, on his account.  Incorporated in 1952, the firm has been succeeded by his descendants.  Tsumoru Hoshiai, now rep ch, is the third generation master and Goki the fourth, who took the pres post in Apr 1989.  This is a trading house, wholly owned by the Hoshiai family, specializing in import and wholesale of magnesium clinkers, zircon, graphite, other refractory materials.  Goods are imported from China, Australia, Korea, USA, etc.  Goods are partially processed at its own yard.  Clients are firebricks mfrs, refractory materials wholesalers, other, nationwide.

           

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2006 fiscal term amounted to Yen 2,528 million, a slight down from Yen 2,538 in the previous term.  Trading volume remained steady.  The recurring profit was posted at Yen 26 million and the net profit at Yen 15 million, respectively, compared with Yen 12 million recurring profit and Yen 7 million net profit, respectively, a year ago.  Profits improved due to the hike in materials cost prices.

 

For the current term ending Dec 2007 the net profit is projected at Yen 15 million, on a 3% rise in turnover, to Yen 2,600 million.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 41.7 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Jan 1952

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    80,000 shares

Issued:                          20,000 shares

Sum:                           Yen 10 million

Major shareholders (%): Goki Hoshiai (40), Tsumoru Hoshiai (25), Kanako Hoshiai (10), Seiki Hoshiai (10), Midori

                                    Hoshiai (5)

No. of shareholders:       7

 

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

 

 

OPERATION

 

Activities: Imports and wholesales magnesium clinkers, chamotte, zircon, graphite, aluminum, silicon carbide, and other refractory materials (--95%), processed re-           fractory materials, others (--5%). 

 

Products are imported through general trading houses from China, Australia, Korea, USA, etc.

 

Clients: [Refractory mfrs, wholesalers] Shinagawa Refractories, Krosaki Harima Corp, Sojitz Chemical Corp, Cera Techno, Taiko Refractories, Teikoku Yozai Co, Torada Kogyo, Toko Corp, Koa Refractories, other.

 

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sojitz Chemical, Nippon Light Metal, Itochu Ceramic, Fuji Kozai, other. 

 

Imports through general traders from China, Australia, Korea, USA, etc.

 

Payment record: Regular

 

Location: Business area in Bizen City, Okayama-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Bizen Shinkin Bank (Isato)

Chugoku Bank (Katagami)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2007

31/12/2006

31/12/2005

31/12/2004

Annual Sales

　

2,600

2,528

2,538

2,427

Recur. Profit

　

　

26

12

　

Net Profit

　

15

15

7

　

Total Assets

　

　

1,723

1,852

　

Current Assets

　

　

1,192

1,205

　

Current Liabs

　

　

938

906

　

Net Worth

　

　

364

349

　

Capital, Paid-Up

　

　

10

10

10

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

2.85

-0.39

4.57

11.95

       Current Ratio

 

..

127.08

133.00

..

       N.Worth Ratio

..

21.13

18.84

..

       R.Profit/Sales

 

..

1.03

0.47

..

       N.Profit/Sales

0.58

0.59

0.28

0.00

       Return On Equity

..

4.12

2.01

..

 

Notes: Forecast (or estimated) figures for 31/12/2007 fiscal term.

 

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