MIRA
INFORM REPORT
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Report Date : |
11.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
KANEMATSU KGK CORPORATION |
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Registered Office : |
1-1-6 Sakuradai Nerimaku Tokyo 176-8510 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
May 1963 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Machine Tools |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN US$759.9 Million |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
name & address
KANEMATSU KGK CORPORATION
REGD NAME: KK Kanematsu KGK
MAIN OFFICE: 1-1-6 Sakuradai
Nerimaku Tokyo 176-8510 JAPAN
Tel:
03-3557-2161 Fax: 03-3557-2230
E-Mail address: somubu@kgk-j.co.jp
ACTIVITIES
Import, export, wholesale of machine tools
BRANCHES
Osaka, Nagoya, Yokohama, Hamamatsu, Kyoto, Fukuoka, other
(Tot 14); Shanghai, China
OVERSEAS
USA (2), Panama, Thailand, China (--subsidiaries)
OFFICER(S)
Masaharu Ishikawa, ch
IKUFUMI SAKATA, PRES
Yukio Watanabe, s/mgn dir
Yutaka Yamada, mgn dir
Sadao Fujii, mgn dir
Eiji Arai, dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 59,434 M
PAYMENTS REGULAR CAPITAL Yen 706 M
TREND STEADY WORTH Yen 4,594 M
STARTED 1963 EMPLOYES 206
COMMENT
TRADING
HOUSE SPECIALIZING IN MACHINE TOOLS.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN US$759.9 MILLION, 30 DAYS NORMAL TERMS
Forecast (or estimated) for the 31/03/2008 fiscal term.
HIGHLIGHTS
The subject company was
established on the basis of a section separated from Kanematsu Corp (see
REGISTRATION) in order to engage in trading of machining tools. In 2002 merged with two sister companies,
Kanematsu Industrial Machinery Ltd & Kanematsu Machinery Corp, to expand
business into industrial machinery dealing.
This is a trading house having two divisions: Factory solution division
(machine tools) & Product solution division (industrial machinery). Has marketing offices in Malaysia, China,
USA, other. Domestic clients are
machine tool mfrs, wholesalers, other, nationwide. The firm separated maintenance & repairing operations into an
independent entity as a round of restructuring.
FINANCIAL INFORMATION
The sales volume for Mar/2007
fiscal term amounted to Yen 59,434 million, a 6% rise from Yen 56,272 million
in the previous term. Imports/exports
of machining tools expanded on the back of brisk demand from mfrs both at home
and abroad. The recurring profit was
posted at Yen 1,842 million and the net profit at Yen 906 million,
respectively, compared with Yen 1,718 million recurring profit and Yen 973
million net profit, respectively, a year ago.
For the
term ending Mar 2008 the recurring profit was projected at Yen 1,870 million
and the net profit at Yen 910 million, respectively, on a similar turnover, at
Yen 59,700 million. Business is seen
steady.
The
financial situation is considered FAIR and good for ORDINARY business
engagement. Max credit limit is
estimated at Yen 759.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: May 1963
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 3.9
million shares
Issued: 9.85
million shares
Sum: Yen
706 million
Major shareholders (%)
Kanematsu Corp (97.8),
Employees’ S/Holding Assn (2.1), Company’s Treasury Stock (0.05)
No. of shareholders
3
*.. Trading house, once one of major general trading houses,
reduced operations to focus on IT, foodstuffs, steel & plants, textiles,
Tokyo, listed Tokyo, Osaka S/E’s, capital Yen 27,781 million, turnover Yen
1,281,331 million, recurring profit Yen 17,255 million, net profit Yen 7,507
million, total assets Yen 563,176 million, net worth Yen 32,959 million,
employees 4,545, pres Yoshihiro Miwa
Overseas subsidiaries: KGK International Corp
(Chicago/Atlanta);
Kanematsu KGK (Malaysia) Sdn Bhd (Pataling Jaya/Penang);
KGK Engineering (Thai) Co Ltd (Bangkok);
Kanematsu KGK (Shanghai) Co Ltd (Shanghai)
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities:
Import, export, wholesale of machining tools (80%), industrial machinery (20%).
(Export 14%).
Clients
[Mfrs,
wholesalers] KGK International Corp, Sumisho Lease Co, House Foods Corp,
Yamazaki Baking Co, Kaihara Sangyo, Central Lease, Uny Charm Materials, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs,
wholesalers] Okuma Corp, Makino Milling Machine, OKK Corp, Mori Seiki, Okuma & Howa Machinery, Sodik Co, Citizen
Machinery, Yamazaki Mazax Systems, other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References
Mizuho Bank (Sakuradai)
Gunma Bank (Ikebukuro)
Relations: Satisfactory
Finances
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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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59,434 |
56,272 |
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Cost of Sales |
53,202 |
50,442 |
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GROSS PROFIT |
6,232 |
5,830 |
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Selling & Adm Costs |
4,425 |
4,132 |
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OPERATING PROFIT |
1,807 |
1,698 |
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Non-Operating P/L |
35 |
20 |
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RECURRING PROFIT |
1,842 |
1,718 |
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NET PROFIT |
906 |
973 |
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BALANCE SHEET |
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Cash |
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6,427 |
4,361 |
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Receivables |
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11,045 |
10,378 |
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Inventory |
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506 |
685 |
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Securities, Marketable |
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Other Current Assets |
5,063 |
5,691 |
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TOTAL CURRENT ASSETS |
23,041 |
21,115 |
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Property & Equipment |
1,017 |
1,047 |
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Intangibles |
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21 |
21 |
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Investments, Other Fixed Assets |
2,723 |
2,859 |
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TOTAL ASSETS |
26,802 |
25,042 |
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Payables |
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15,790 |
13,399 |
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Short-Term Bank Loans |
2,700 |
3,900 |
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Other Current Liabs |
3,042 |
2,817 |
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TOTAL CURRENT LIABS |
21,532 |
20,116 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
675 |
652 |
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Other Debts |
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1 |
2 |
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TOTAL LIABILITIES |
22,208 |
20,770 |
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MINORITY INTERESTS |
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Common
stock |
706 |
706 |
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Additional
paid-in capital |
390 |
390 |
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Retained
earnings |
3,045 |
2,687 |
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Evaluation
p/l on investments/securities |
454 |
490 |
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Others |
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1 |
1 |
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Treasury
stock, at cost |
(2) |
(2) |
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TOTAL S/HOLDERS` EQUITY |
4,594 |
4,272 |
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TOTAL EQUITIES |
26,802 |
25,042 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
4,594 |
4,272 |
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Current
Ratio (%) |
107.01 |
104.97 |
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Net
Worth Ratio (%) |
17.14 |
17.06 |
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Recurring
Profit Ratio (%) |
3.10 |
3.05 |
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Net
Profit Ratio (%) |
1.52 |
1.73 |
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Return
On Equity (%) |
19.72 |
22.78 |
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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%)