MIRA
INFORM REPORT
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Report Date : |
08.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHUO GYORUI CO LTD |
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Registered Office : |
Tokyo Central Wholesale Market, 5-2-1 Tsukiji Chuoku Tokyo 104-8445 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
July 1947 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Wholesale of Fish and Fishery Products |
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 7,492.2 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
CHUO GYORUI CO LTD
REGD NAME: Chuo Gyorui KK
MAIN OFFICE: Tokyo Central Wholesale Market, 5-2-1 Tsukiji
Chuoku Tokyo 104-8445 JAPAN
Tel:
03-3541-2500 Fax: 03-3248-0690
URL: http://www.marunaka-net.co.jp/
E-Mail address: kaigaishitu@marunaka-net.co.jp
ACTIVITIES
Import, wholesale of fish & fishery products
BRANCHES
Senju (Fish Market) (Tokyo)
FACTORY(IES)
(subcontracted)
CHIEF EXEC
HIROYASU ITOH, PRES & CEO
Yen
Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 172,709 M
PAYMENTS REGULAR CAPITAL Yen 2,995 M
TREND STEADY WORTH Yen 20,224 M
STARTED 1947 EMPLOYES 608
COMMENT
WHOLESALER
OF FISH & FISH PRODUCTS.
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 7,492.2 MILLION, 30 DAYS NORMAL
TERMS
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company is the
largest independent wholesaler of seafood in terms of transactions volume in
Tsukiji market in Tokyo*. Specializes
in wholesaling in the Tsukiji market, including Senju market, fresh coastal
fish, frozen pelagic fish, and dried & salted fishery products. Tuna is mainline: blue fin tuna from
Atlantic Ocean & Mediterranean Sea.
Also imports farmed prawns from Australian Sea. Nippon Suisan and Kyokuyo Co are leading
suppliers. The firm is also engaged in
cold storage warehouse operations.
In Apr 2008, Nippon Suisan’s
seafood wholesaling subsidiary, Hohsui Corp, merged with the subject’s freezer
warehouse subsidiary, Chuo Reito Co, with Hohsui as the surviving entity. The merged company became a consolidated
subsidiary of the subject firm. The
deal was intended to bolster procurement strength as supplies became more
difficult to get and seafood prices soar on the back of growing global
demand. (Cited from the Nikkei).
* Central Wholesale Market,
established by local governments under Wholesale Market Law, sell fresh foods
such as fish, vegetables, fruit, meat & flowers. Wholesale markets, standing between producers & consumers,
promote the smooth distribution of perishables. There are 88 central wholesale markets in 56 cities in Japan: 54
markets for fruits & vegetables, 19 for fish, 10 for flower and 5 for meat.
Tsukiji Central Wholesale Market
is a large market for fish, fruit & vegetables in central Tokyo. The Market is best known as one of the
world’s largest fish markets, handling over 2,000 tons of marine products per
day. It handles more than 400 different
types of seafood from tiny sardine to 300kg tuna, from cheap seaweed to the
most expensive caviar. Overall, more
than 700,000 metric tons of seafood is handled every year at three seafood
markets in Tokyo. There are 7 fish
wholesalers, including the subject, registered in the Market. The number of registered employees varies
from 60,000 to 65,000, including wholesalers, accountants, auctioneers, company
officials and distribution.
FINANCIAL INFORMATION
The sales volume for Mar/2008
fiscal term amounted to Yen 172,709 million, a 2.7% down from Yen 177,449
million in the previous term. Fresh
fish was affected by decreasing fishery resources and decline of catches by
changeable weather conditions; frozen fish costs went up by price competition
resulting from globally spreading frozen fish markets; salted fish costs also
rose from hike in material prices. By
divisions, seafood wholesale was down 2.6% to Yen 168,439 million; cold-storage
operation up 2.5% to Yen 3,508 million.
The recurring profit was posted at Yen 290 million and the net loss at
Yen 82 million, respectively, compared with Yen 238 million and Yen 1,176
million, respectively, a year ago.
Profit decline is referred to extraordinary losses: Yen 140 million
written off as the revaluation loss of securities holdings and Yen 138 million
losses from corporate tax adjustments.
(Apr/Sept/2008 results): Sales
95,642 million (up 16.3%), operating profit Yen 167 million (up 67%), recurring
profit Yen 333 million (up 25%), net profit Yen 87 million (down 53%). (% compared with the corresponding period a
year ago). The sales growth owes to the
said addition of new consolidated subsidiary, Hohsui Corp, joining in Apr 2008,
by merging with the subject’s subsidiary, Chuo Reito Co, cold storage warehouse
operator. The merger contributed fully. The net profit deteriorated by posting extraordinary
loss of Yen 104 million after taking a charge for loan-loss reserves, and
relocation charges of the subsidiary.
For the current term ending Mar
2009 the recurring profit is projected at Yen 800 million and the net profit at
Yen 250 million, respectively, on a 17.5% rise in turnover, to Yen 203,000
million. Newly-joined consolidated
subsidiary, Hohsui will contribute in full term. In mainline seafood wholesaling, sales volume may grow, led by
salmon & other frozen fish, but unit prices tending to drop. The firm revised its forecast after
reviewing the half-yearly results from the earlier projections as: Sales Yen
208,000 million, operating profit Yen 890 million, recurring profit Yen 1,100
million, net profit Yen 570 million.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 7,492.2
million, on 30 days normal terms.
REGISTRATION
Date Registered: July 1947
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
62.4 million shares
Issued:
43,153,000 shares
Sum: Yen 2,995 million
Major shareholders (%)
Nippon Suisan (11.1), Ashikaga
Honten (6.5), MUFG (4.7), Mizuho Bank (4.7), Goldman Sachs Int’l (3.2),
Company’s Treasury Stock (3.2), JTSB (CMTB Equity Investment) (3.1), Kyokuyo Co
(2.3), Employees’ S/Holding Assn (2.1), Toyo Suisan (1.8); foreign owners (5.3)
No. of shareholders: 3,526
Listed
on the S/Exchange (s) of: Tokyo (Second Section)
Managements
Hiroyasu Itoh, pres; Yoshihiko Ohtaki,
v pres; Masaaki Takahashi, s/mgn dir; Masahide Ogawa, mgn dir; Hiroyuki
Nakamura, dir; Noriyuki Suzuki, dir; Makoto Suzuki, dir; Kuniaki Koga, dir;
Kaoru Mita, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Kashiwa Uoichiba, Hohsui Corp,
Chiba Chuo Gyorui, Funabashi Chuo Gyorui
OPERATION
Activities: Imports and wholesales marine products
(98%), cold-storage warehouse operation (2%).
(Handling Items):
Fresh Fish Product Line: sardines, horse mackerel,
mackerel pike, yellowtail, bonito, sea bream, flounder, octopus, squid, young
yellowtail, Spanish mackerel, other;
Frozen Fish Product Line: frozen salmon, frozen trout,
frozen crab, frozen octopus, frozen black cod, salted salmon, salted herring
roe, salted salmon roe, other;
Restaurant Fish Product Line: live fish, globefish, ark
shells, scallops, abalone, oysters, eels, Dungeness crabs, king crabs, snow
crabs, freshwater fish, other;
Tuna Product Line: Southern bluefin tuna, bluefin tuna,
big-eye tuna, yellowfin tuna, striped marlin swordfish, other.
Clients
[Wholesalers, fish traders, fish
markets] Mitsubishi Corp, Hanwa Corp, Sudoh Company Ltd, Chuo Foods, Nippon
Suisan Kaisha, Kyokuyo Co, Toyo Reizo, Uoriki, other.
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers
[Fisheries, wholesalers] Nippon
Suisan Kaisha, Marine Harvest Japan, Toho Bussan Kaisha, Nichirei Fresh,
Kyokuyo Co, Tokusui Corp, Toyo Reizo, other.
Payment
record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References
MUFG (Tsukiji)
Mizuho Bank (Tsukiji)
Relations: Satisfactory
FINANCES: (In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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172,709 |
177,449 |
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Cost of Sales |
165,254 |
169,570 |
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GROSS PROFIT |
7,454 |
7,879 |
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Selling & Adm Costs |
7,102 |
7,119 |
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OPERATING PROFIT |
351 |
759 |
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Non-Operating P/L |
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RECURRING PROFIT |
298 |
238 |
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NET PROFIT |
-82 |
1,176 |
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BALANCE SHEET |
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Cash |
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3,557 |
3,955 |
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Receivables |
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11,106 |
9,196 |
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Inventory |
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4,895 |
4,845 |
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Securities, Marketable |
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Other Current Assets |
418 |
291 |
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TOTAL CURRENT ASSETS |
19,976 |
18,287 |
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Property & Equipment |
8,071 |
6,739 |
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Intangibles |
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1,316 |
1,329 |
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Investments, Other Fixed Assets |
7,810 |
11,535 |
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TOTAL ASSETS |
37,173 |
37,890 |
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Payables |
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5,059 |
6,228 |
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Short-Term Bank Loans |
5,341 |
2,975 |
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Other Current Liabs |
1,152 |
1,186 |
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TOTAL CURRENT LIABS |
11,552 |
10,389 |
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Debentures |
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Long-Term Bank Loans |
2,367 |
872 |
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Reserve for Retirement Allw |
212 |
258 |
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Other Debts |
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2,818 |
3,790 |
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TOTAL LIABILITIES |
16,949 |
15,309 |
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MINORITY INTERESTS |
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Common
stock |
2,995 |
2,995 |
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Additional
paid-in capital |
1,342 |
1,342 |
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Retained
earnings |
15,004 |
16,470 |
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Evaluation
p/l on investments/securities |
141 |
2,030 |
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Others |
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1,001 |
1 |
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Treasury
stock, at cost |
(259) |
(258) |
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TOTAL S/HOLDERS` EQUITY |
20,224 |
22,580 |
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TOTAL EQUITIES |
37,173 |
37,890 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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-2,403 |
-842 |
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Cash Flows
from Investment Activities |
-1,597 |
-1,051 |
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Cash
Flows from Financing Activities |
3,566 |
699 |
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Cash,
Bank Deposits at the Term End |
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3,521 |
3,955 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
20,224 |
22,580 |
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Current
Ratio (%) |
172.92 |
176.02 |
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Net
Worth Ratio (%) |
54.41 |
59.59 |
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Recurring
Profit Ratio (%) |
0.17 |
0.13 |
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Net
Profit Ratio (%) |
-0.05 |
0.66 |
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Return
On Equity (%) |
-0.41 |
5.21 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.22 |
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UK Pound |
1 |
Rs.73.03 |
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Euro |
1 |
Rs.63.14 |
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%)