MIRA
INFORM REPORT
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Report Date : |
30.10.2007 |
IDENTIFICATION
DETAILS
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Name : |
KYOWA SHIPPING CO LTD |
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Registered Office : |
Resona Shimbashi Bldg, 1-16-4 Shimbashi Minatoku Tokyo 105-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.01.2007 |
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Date of Incorporation : |
Jun 1974 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Shipping, shipping agency |
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 272.6 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name
KYOWA SHIPPING CO LTD
REGD NAME
Kyowa Kaiun KK
MAIN OFFICE
Resona Shimbashi Bldg, 1-16-4 Shimbashi Minatoku Tokyo 105-0004 JAPAN
Tel : 03-5510-1991
Fax : 03-5510-2002
URL : http://www.kyowa-line.co.jp
E-Mail address: inquiry@kyowa-line.co.jp
ACTIVITIES
Shipping, shipping agency
BRANCHES
Osaka
AGENTS
Moji, Kobe, Nagoya, Yokohama (-- CY, CFS, stevedoring, etc)
OVERSEAS
Shanghai, Jakarta, Seoul, Port Kelang, Manila, Singapore,
Taipei, Ho Chiminh City, Sydney, Townsville, Pohnpei, Yap, Guam, Saipan, Suva,
Lautoka, Noumea, Santo, Port Moresby, Wellington, Pago Pago, other in Samoa, Tahiti
& Tonga (Tot 36)
OFFICERS
HIROMITSU TAKAMATSU, PRES
Hiroshi Kondo, s/mgn dir
Kazunari Uede, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 12,467 M
PAYMENTS REGULAR CAPITAL Yen 99 M
TREND STEADY WORTH Yen 1,304 M
STARTED 1974 EMPLOYES 33
COMMENT
SHIPPING FIRM SPECIALIZING IN SOUTH PACIFIC ISLANDS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 272.6 MILLION, 30 DAYS NORMAL
TERMS.
HIGHLIGHTS
The subject company was established as a shipping firm,
starting with the shipment of canned goods outbound and copra inbound between
Japan and Fiji on the first vessel M/V St Sultana. The same year, launched liner service between Japan and South
Pacific Islands with two 6,000 dwt class vessels. Specialized shipping company offering liner and tramper services
between Japan/Far East Asia and South Pacific Islands. A full member of Japan/South Pacific Freight
Conference. Has 4 overseas subsidiaries
(including JV’s) in the shipping, shipping agency and ship owner
businesses. Operates 7 ships of about
8,000 DWT of 260/410 TEU’s capacity.
FINANCIAL INFORMATION
The sales volume for Jan/2007 fiscal term amounted to Yen 12,467 million, a 12% up from Yen 11,106 million in the previous term. This is thanks to the hike of freights rates for liners and trampers in the operating region. The profits, on the other hand, worsened due to the hike in fuel oil prices and operating expenses; recurring profit was posted at Yen 408 million and the net profit at Yen 217 million, respectively, compared with Yen 543 million recurring profit and Yen 279 million, respectively, a year ago.
For the current term ending Jan 2008 the recurring profit is
projected at Yen 420 million and the net profit at Yen 230 million,
respectively, on a 12% rise in turnover, to Yen 14,000 million. Freight rates continue rising, while
profitability will deteriorate due to the hike in fuel oil prices &
materials costs.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 272.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun
1974
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 400,000
shares
Issued: 199,000
shares
Sum: Yen 99.5 million
Major shareholders (%): Hiromitsu Takamatsu (22), Sankyu Inc*(20), Masami Kimbara (12), Hiroshi Kondo (10),
Naotake Kondo (6)
No. of shareholders: 33
*.. Major transport company, grown big with Nippon Steel’s support, founded 1917, listed Tokyo S/E, capital Yen 26,117 million, sales Yen 407,370 million, operating profit Yen 20,731 million, recurring profit Yen 20,235 million, net profit Yen 10,600 million, total assets Yen 305,187 million, net worth Yen 77,343 million, employees 25,523, pres Kimikazu Nakamura
Consolidated Financials are as attached (See SUPPLEMENTS).
Nothing detrimental is known as to the commercial morality
of executives.
Related companies (subsidiaries /
affiliates)
Toritec, Tokyo,
founded 1991, ship management, mfg & sales of photocatalystic systems;
FSM
Line Ltd, Micronesia, founded 1994, joint operator of Micronesia
services;
Maritime Steamship Agencies Inc, Guam, JV with Saipan Shipping Inc, covering liner Services in almost all South Pacific Islands;
Western Pacific Shipping Co, Koror (Palau), founded 1998, jointly operating Palau services;
Pacific Line Trading Inc,
Panama, ship owner & manager of all the fleet operated by the subject firm,
all of Panamanian flag registered.
OPERATION
Activities: Ship owner & operator of liner & tramper
services between Japan/South East Asia & South Pacific Islands, operating 7
ships of around 8,000 DWT with 260/410 TEU’s capacity, all of Panamanian flag (--100%).
(Services
offered):
Liner
Services: Weekly services for:
Asia, Australia & New Zealand/Micronesia service;
Far East Asia/South Pacific service;
Far East Asia/Panama New Guinea Service (called Paradise
Service);
Far East Asia/Australia service;
Far East Asia/East Timor Service.
Tramper
Services: Operates 15 sailings per month in the region, transporting:
Copra, illuminate sand, copper cathode, cement, asphalt,
nickel, logs, timber, plywood, steel bars, steel structures, plant facilities,
construction materials, vehicles, others.
Clients: [Cargo owners, wholesalers] Sojitz Corp, Itochu Corp, Nissan Motors, Maruha Group Inc, Bridgestone Corp, Mitsui & Co, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Ship owners, oil companies, transportation firms]
Toritec, Pacific Line Trading Co (--subsidiaries), Sankyu Inc, Sinanen Co,
other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
MUFG (Shimbashi-Ekimae)
Resona Bank (Shiba)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/01/2008 |
31/01/2007 |
31/01/2006 |
31/01/2005 |
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Annual
Sales |
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14,000 |
12,467 |
11,106 |
9,722 |
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Recur.
Profit |
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420 |
408 |
543 |
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Net
Profit |
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230 |
217 |
279 |
106 |
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Total
Assets |
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5,198 |
5,239 |
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Current
Assets |
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2,061 |
1,585 |
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Current
Liabs |
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1,272 |
1,070 |
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Net
Worth |
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1,304 |
1,128 |
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Capital,
Paid-Up |
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99 |
99 |
99 |
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Div.P.Share(¥) |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
12.30 |
12.25 |
14.24 |
16.91 |
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Current Ratio |
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162.03 |
148.13 |
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N.Worth Ratio |
.. |
25.09 |
21.53 |
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R.Profit/Sales |
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3.00 |
3.27 |
4.89 |
.. |
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N.Profit/Sales |
1.64 |
1.74 |
2.51 |
1.09 |
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Return On Equity |
.. |
16.64 |
24.73 |
.. |
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Notes: Forecast (or estimated) for the 31/01/2008 fiscal
term.
SUPPLEMENTS
Consolidated Financials of the second major shareholder,
Sankyu Inc.
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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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407,370 |
364,118 |
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Cost of Sales |
375,359 |
336,525 |
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GROSS PROFIT |
32,011 |
27,592 |
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Selling & Adm Costs |
11,280 |
10,668 |
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OPERATING PROFIT |
20,731 |
16,924 |
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Non-Operating P/L |
-496 |
-797 |
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RECURRING PROFIT |
20,235 |
16,127 |
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NET PROFIT |
10,600 |
8,456 |
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BALANCE SHEET |
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Cash |
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29,379 |
24,360 |
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Receivables |
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94,106 |
85,586 |
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Inventory |
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20,938 |
20,242 |
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Securities, Marketable |
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9 |
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Other Current Assets |
10,063 |
7,277 |
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TOTAL CURRENT ASSETS |
154,486 |
137,474 |
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Property & Equipment |
93,966 |
88,476 |
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Intangibles |
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4,755 |
5,168 |
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Investments, Other Fixed Assets |
51,980 |
50,299 |
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TOTAL ASSETS |
305,187 |
281,417 |
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Payables |
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59,621 |
54,058 |
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Short-Term Bank Loans |
37,220 |
45,672 |
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Other Current Liabs |
38,227 |
27,767 |
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TOTAL CURRENT LIABS |
135,068 |
127,497 |
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Debentures |
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5,015 |
8,600 |
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Long-Term Bank Loans |
32,205 |
36,015 |
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Reserve for Retirement Allw |
45,642 |
46,646 |
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Other Debts |
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7,852 |
8,456 |
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TOTAL LIABILITIES |
225,782 |
227,214 |
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MINORITY INTERESTS |
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2,127 |
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Common
stock |
26,117 |
19,018 |
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Additional
paid-in capital |
9,439 |
2,338 |
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Retained
earnings |
36,997 |
27,981 |
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Evaluation
p/l on investments/securities |
8,351 |
7,409 |
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Others |
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(919) |
(4,276) |
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Treasury
stock, at cost |
(580) |
(395) |
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TOTAL S/HOLDERS` EQUITY |
79,405 |
52,075 |
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TOTAL EQUITIES |
305,187 |
281,417 |
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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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19,769 |
17,730 |
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Cash
Flows from Investment Activities |
-12,640 |
-3,327 |
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Cash
Flows from Financing Activities |
-2,331 |
-12,781 |
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Cash,
Bank Deposits at the Term End |
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29,337 |
24,340 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
79,405 |
52,075 |
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Current
Ratio (%) |
114.38 |
107.83 |
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Net
Worth Ratio (%) |
26.02 |
18.50 |
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Recurring
Profit Ratio (%) |
4.97 |
4.43 |
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Net
Profit Ratio (%) |
2.60 |
2.32 |
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Return
On Equity (%) |
13.35 |
16.24 |
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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%)