MIRA INFORM REPORT

 

 

Report Date :

18.09.2007

 

IDENTIFICATION DETAILS

 

Name :

RIKEI CORPORATION

 

 

Registered Office :

Shinjuku Nomura Bldg, 1-26-2 Nishi Shinjuku Shinjukuku Tokyo 163-0535

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Jun 1957

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of data-processing equipment, electronics products

 

 

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 754.4 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

RIKEI CORPORATION

 

 

REGD NAME

 

KK Rikei

 

 

MAIN OFFICE

 

Shinjuku Nomura Bldg, 1-26-2 Nishi Shinjuku Shinjukuku Tokyo 163-0535 JAPAN

Tel        : 03-3345-2150

Fax       : 03-3344-3949

URL      : http://rikei.co.jp/

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, wholesale of data-processing equipment, electronics products

 

 

BRANCH(ES)

 

Osaka, Sendai, Tsukuba, Nagoya, Fukuoka; China (R&D Center)

 

 

OVERSEAS

 

Rikei Corp of America; Rikei Corp (HK) Ltd; Rikei Corp (Singapore) Pte Ltd; Rikei Shenzhen Office

 

 

CHIEF EXEC

 

KATSUEI AOYAGI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 22,329 M

PAYMENTS      REGULAR                     CAPITAL           Yen 3,426 M

TREND             STEADY                       WORTH            Yen 7,530 M

STARTED         1957                             EMPLOYES      225

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN ELECTRONICS PRODUCTS.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 754.4 MILLION, 30 DAYS NORMAL TERMS.

 

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

 

 

HIGHLIGHTS

 

This is a technology firm specializing in importing US-made computers and information & electronic equipment.  80% of the sales represent foreign products.  Excels in technologies for Internet and satellite communications.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 22,329 million, an 8.5% down from Yen 24,406 million in the previous term.  The decline is referred to harsher competition among the trade over prices.  The recurring profit was posted at Yen 246 million and the net profit at Yen 113 million, respectively, compared with Yen 31 million recurring profit and Yen 24 million net profit, respectively, a year ago.  Booked Yen 73 million extraordinary income for the term.

 

(Apr/Jun/2007 results): Sales Yen 3,896 million (down 20.8%), operating loss Yen 303 million, recurring loss Yen 333 million, net loss Yen 199 million.  (% compared with last period).  Measures preventing information leaks and system backups were being more focused.  The losses will be compensated by increased sales in the remaining period.

           

For the current term ending Mar 2008 the recurring profit is projected at Yen 450 million and the net profit at Yen 250 million, on a 12% rise in turnover, to Yen 25,000 million.  Formed domestic agency contract with Oki Electric Industry following capital increase and starting sales of Oki-made semiconductors.  Targeting sales tie-ups with Canon MJ and Casio.

 

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements.    Max credit limit is estimated at Yen 754.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Jun 1957

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    55 million shares

Issued:                          15,514,721 shares

Sum:                            Yen 3,426 million

Major shareholders (%): Chuzo Ishikawa (11.4), MUFG (4.2), Michiko Ishikawa (3.4), Rika Ishikawa (3.2), Meiji

                                    Yasuda Life Ins (3.0), Canon Marketing Japan (2.7), Casio Computer (2.7), Oki Electric

                                    Ind (2.7), Kei Ishikawa (2.6), Company’s Treasury Stock (2.4); foreign owners (2.0)

No. of shareholders:       2,773

Listed on the S/Exchange (s) of: Tokyo (Second Section)

Managements:               Katsuei Aoyagi, pres & CEO; Tetsuo Kuroda, mgn dir; Naoki Furuhata, dir; Koji Furuta,

                                    dir; Rika Ishikawa, dir; Takeshi Kaneda, dir

           

 

Related Companies

 

Japan Log Force Corp, Rikei America, Rikei HK, Rikei Singapore, etc

 

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

 

           

OPERATION

           

Activities: Imports and wholesales data processing equipment, electronics / telecommunications equipment & microchips, .electronics products, others (--100%).

 

Clients: [Governments, telecommunications carriers, electronics mfrs] Ministry of National Self Defense, IBM Japan, Rikei America, HK, Singapore, Fuji Soft ABC, other

 

No. of accounts: 800

 

Domestic areas of activities: Nationwide

           

Suppliers: [Mfrs, wholesalers] Japan HP, PTC Japan, Casio Electronics Device, IBM Japan, other.  Goods are imported.

 

Payment record: Regular

 

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

 

 

Bank References

 

MUFG (Shinjuku-Shintoshin)

Resona Bank (Shinjuku-Shintoshin)

 

Relations: Satisfactory

 

 

Financials

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

22,329

24,406

 

  Cost of Sales

19,183

21,556

 

      GROSS PROFIT

3,146

2,850

 

  Selling & Adm Costs

2,781

2,718

 

      OPERATING PROFIT

364

131

 

  Non-Operating P/L

-118

-100

 

      RECURRING PROFIT

246

31

　

      NET PROFIT

113

24

BALANCE SHEET

 

 

 

 

  Cash

　

2,587

2,762

 

  Receivables

 

6,120

4,173

 

  Inventory

 

867

1,392

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,822

3,128

 

      TOTAL CURRENT ASSETS

13,396

11,455

 

  Property & Equipment

1,094

1,127

 

  Intangibles

 

74

112

 

  Investments, Other Fixed Assets

1,393

1,230

 

      TOTAL ASSETS

15,957

13,924

 

  Payables

 

5,096

3,399

 

  Short-Term Bank Loans

2,453

2,600

 

　

 

　

　

 

  Other Current Liabs

538

438

 

      TOTAL CURRENT LIABS

8,087

6,437

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

331

311

 

  Other Debts

　

9

9

 

      TOTAL LIABILITIES

8,427

6,757

 

      MINORITY INTERESTS

 

 

 

Common stock

3,426

3,241

 

Additional paid-in capital

3,240

3,053

 

Retained earnings

1,343

1,367

 

Evaluation p/l on investments/securities

87

123

 

Others

 

(458)

(463)

 

Treasury stock, at cost

(108)

(154)

 

      TOTAL S/HOLDERS` EQUITY

7,530

7,167

　

      TOTAL EQUITIES

15,957

13,924

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

-130

-1,503

 

Cash Flows from Investment Activities

-164

141

 

Cash Flows from Financing Activities

131

1,885

　

Cash, Bank Deposits at the Term End

　

2,027

2,202

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

7,530

7,167

 

 

Current Ratio (%)

165.65

177.96

 

 

Net Worth Ratio (%)

47.19

51.47

 

 

Recurring Profit Ratio (%)

1.10

0.13

 

 

Net Profit Ratio (%)

0.51

0.10

 

 

Return On Equity (%)

1.50

0.33

 

 

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