MIRA
INFORM REPORT
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Report Date : |
24.12.2008 |
IDENTIFICATION DETAILS
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Name : |
SUMIKIN BUSSAN CORPORATION |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
April 1941 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export and wholesale of iron & steel, textiles, foodstuffs, machinery, non-ferrous metals, others |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 12,834 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
Name
SUMIKIN BUSSAN CORPORATION
REGD NAME
Sumikin Bussan KK
MAIN OFFICE
Tel: 06-6244-8001 Fax:
06-6244-8009
URL: http://www.sumikinbussan.co.jp/
E-Mail
address: (through the URL)
ACTIVITIES
Import,
export and wholesale of iron & steel, textiles, foodstuffs, machinery,
non-ferrous metals, others
BRANCHES
OVERSEAS
(Subsidiaries/affiliated):
CHIEF EXEC
GASHUN
AMAYA, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,314,974 M
PAYMENTS REGULAR CAPITAL Yen 12,335 M
TRENDSTEADY WORT
Yen 49,831 M
STARTED 1941 EMPLOYES 4,473
COMMENT
TRADING
HOUSE AFFILIATED TO SUMITOMO METAL IND.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 12,834 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/03/2009 fiscal term
HIGHLIGHT
This is a trading firm affiliated to Sumitomo Metal Ind,
third ranking crude steel mfr,
(Recent news from Nikkei dated
09/12/2008):
Sumikin Bussan Corp has slashed the number of Chinese plants
contracted to process chicken from around 70 to less than 30, switching output
to
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 1,314,974 million, an
11.7% up from Yen 1,177,610 million in the previous term. Mainline steel products drove sales growth,
boosted by sky-high resource prices, with four of the five top steel trading
companies recording higher group pretax profits. By divisions, Steel Div was up 11.3% to Yen
481,700 million; Textiles down 0.3% to Yen 172,600 million, while operating
profits up 6.7%; Foods up 6.3% to Yen 142,300 million; Steel Materials up 16.8%
to Yen 292,600 million; Machinery up 20.5% to Yen 225,500 million. The recurring profit was posted at Yen 20,130
million and the net profit at Yen 10,930 million, respectively, compared with
Yen 17,980 million recurring profit and Yen 9,460 million net profit,
respectively, a year ago.
(Apr/Sept/2008
results): Sales Yen 708,105 million (up 6.4%), operating profit Yen 13,072
million (up 19.6%), recurring profit Yen 12,680 million (up 23.3%), net profit
Yen 7,545 million (up 32.7%). (%
compared with the same period a year ago).
Demand for steel products, steel materials and machinery rose
steadily.
For
the current term ending Mar 2009 the recurring profit is projected at Yen
20,200 million and the net profit at Yen 11,000 million, respectively, on a
6.5% rise in turnover, to Yen 1,400,000 million. Price hikes achieved in the First Half period
will compensate even decreasing demand, the firm says. The recent financials crisis may affect the
sales but the firm remained the earlier forecast unchanged.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 12,834 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), Trust & Custody Services Assn (3.6), Japan
Trustee Services T (2.9), Master Trust Bank of Japan T (2.9), Kyoei Steel
(2.1), Air Water (1.2), Chuo Denki Kogyo (1.2), JTSB (1.2), Nomura Securities
(1.0), Dai-sho-kin (0.9); foreign owners (6.1)
*.. Third
ranked crude steel producer, Osaka, founded 1949, listed Tokyo, Osaka, Nagoya
S/E’s, capital Yen 262,072 million, turnover Yen 1,744,572 million, recurring
profit Yen 298,218 million, net profit Yen 180,547 million, total assets Yen
2,418,310 million, net worth Yen 901,945 million, employees 24,925, pres
Hiroshi Tomono
No. of shareholders: 9,366
Listed on the S/Exchange (s) of:
Managements: Gashun Amaya, pres & CEO;
Katsuhiko Yagi, v pres; Kiyoshi Meguro, s/mgn dir; Osamu Numata, s/mgn dir;
Kenji Kamata, s/mgn dir; Tsuneaki Eguchi, s/mgn dir; Takashi Eifuku, mgn dir;
Shigeru Maeda, mgn dir; Toshio Nishida, mgn dir; Kouki Tahara, mgn dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies: Tsubohachi,
Igeta Sunrise Pipes, Sumikin Bussan Steel Products, First Company, 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 (22%): 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 (13%): raw
cotton, yarn, woven & knitted textiles, outerwear & innerwear 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
(17%).
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
Payment record: Regular
Location:
Business area in
Bank References
SMBC
(H/O)
Sumitomo
Trust Bank (H/O)
Relations:
Satisfactory
FINANCES
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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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1,314,974 |
1,177,610 |
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Cost of Sales |
1,242,588 |
1,108,084 |
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GROSS PROFIT |
72,385 |
69,526 |
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Selling & Adm Costs |
49,664 |
49,534 |
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OPERATING PROFIT |
22,721 |
19,991 |
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Non-Operating P/L |
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RECURRING PROFIT |
20,130 |
17,980 |
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NET PROFIT |
10,930 |
9,460 |
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BALANCE SHEET |
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Cash |
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8,569 |
12,345 |
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Receivables |
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259,126 |
268,143 |
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Inventory |
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54,618 |
50,463 |
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Securities, Marketable |
15 |
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Other Current Assets |
17,860 |
36,029 |
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TOTAL CURRENT ASSETS |
340,188 |
366,980 |
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Property & Equipment |
26,989 |
25,990 |
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Intangibles |
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1,331 |
1,451 |
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Investments, Other Fixed Assets |
33,539 |
33,544 |
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TOTAL ASSETS |
402,047 |
427,965 |
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Payables |
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241,730 |
251,307 |
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Short-Term Bank Loans |
69,898 |
68,901 |
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Other Current Liabs |
20,857 |
39,822 |
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TOTAL CURRENT LIABS |
332,485 |
360,030 |
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Debentures |
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Long-Term Bank Loans |
13,959 |
15,397 |
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Reserve for Retirement Allw |
3,039 |
2,700 |
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Other Debts |
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2,733 |
5,088 |
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TOTAL LIABILITIES |
352,216 |
383,215 |
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MINORITY INTERESTS |
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Common
stock |
12,335 |
12,335 |
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Additional
paid-in capital |
7,090 |
7,087 |
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Retained
earnings |
26,606 |
17,499 |
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Evaluation
p/l on investments/securities |
2,125 |
5,644 |
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Others |
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1,854 |
2,320 |
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Treasury
stock, at cost |
(179) |
(136) |
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TOTAL S/HOLDERS` EQUITY |
49,831 |
44,749 |
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TOTAL EQUITIES |
402,047 |
427,965 |
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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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7,715 |
6,998 |
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Cash
Flows from Investment Activities |
-9,771 |
3,972 |
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Cash
Flows from Financing Activities |
-1,683 |
-11,519 |
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Cash,
Bank Deposits at the Term End |
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8,429 |
12,140 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
49,831 |
44,749 |
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Current
Ratio (%) |
102.32 |
101.93 |
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Net
Worth Ratio (%) |
12.39 |
10.46 |
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Recurring
Profit Ratio (%) |
1.53 |
1.53 |
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Net
Profit Ratio (%) |
0.83 |
0.80 |
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Return
On Equity (%) |
21.93 |
21.14 |
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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.48.99 |
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1 |
Rs.72.49 |
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Euro |
1 |
Rs.68.44 |
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%)