MIRA
INFORM REPORT
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Report Date : |
14.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
SPARX ASSET MANAGEMENT CO LTD |
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Registered Office : |
Gate City Osaki East Tower 16F, 1-11-2 Osaki Shinagawaku Tokyo
141-0032 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
October 2006 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Provides investment advisory service, discretionary investment
management busi-ness and investment trust management business |
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 278.1 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
SPARX ASSET MANAGEMENT CO LTD
REGD NAME: Sparx Asset Management
KK
MAIN OFFICE: Gate City Osaki East
Tower 16F, 1-11-2 Osaki Shinagawaku Tokyo 141-0032 JAPAN
Tel :
03-5434-8200
Fax :
03-5435-8201
URL : http://www.sparx.co.jp/
E-Mail address : finance@sparx.co.jp/webmaster@sparx.co.jp
ACTIVITIES
Investment fund advisor; asset management
LICENSE
Kanto FSA #363
BRANCHES
Nil
OFFICER(S)
SHUHEI ABE, PRES Shinji
Naito, dir
Itsuro Shimizu, dir Shigeru
Tamaki, dir
Akihito Akashi, dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 5,661 M
PAYMENTS REGULAR CAPITAL Yen 2,500 M
TREND STEADY WORTH Yen 15,828 M
STARTED 2006 EMPLOYES 87
COMMENT
INVESTMENT FUND ADVISOR, WHOLLY OWNED BY SPARX GROUP CO
LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR PROPER
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 278.1 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company was established originally in 1989 as
asset management firm by Shuhei Abe in order to make most of his experience at
Abe Capital Research Inc, which he had founded in 1985. Before that, he had worked in Japanese
equity sales for Nomura Securities Int’l (New York) from 1982. This is
independent investment advisory firm offering asset management service,
too. The firm listed on the JASDAQ in
2001. In Oct 2006, the subject changed
the name to Sparx Group Co Ltd to become a holding company. The same year, Sparx Spin-off Preparation Co
Ltd was established, and the
firm succeeded the investment advisory services, etc from the Sparx Asset
Management Co Ltd, then it changed the
name to new Sparx Asset Management Co Ltd.
FINANCIAL INFORMATION
The sales volume for the initial fiscal term ended Mar/2007
amounted to Yen 5,661 million, posted Yen 2,061 million recurring profit and
Yen 1,188 million net profit.
For the current term ending Mar 2008 the net profit is
projected at Yen 1,200 million, on a 4% rise in turnover, to Yen 5,900
million. Sales will be subject to stock
market fluctuations.
The financial situation is considered maintained FAIR and
good for PROPER business en-gagements.
Max credit limit is estimated at Yen 278.1 million, on 30 days normal
terms.
REGISTRATION
Date Registered : Oct
2006
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
50,000 shares
Issued :
50,000 shares
Sum :
Yen 2,500 million
Major shareholders (%) :
Sparx Group Co Ltd*(100)
Independent fund management firm, listed on JASDAQ, first
outfit, engaged in investment trust & investment advisor to go public,
founded 1988 by Shuhei Abe, capital Yen 11,806 million, turnover Yen 27,504
million, operating profit Yen 9,650 million, recurring profit Yen 10,119
million, net profit Yen 3,779 million, total assets Yen 81,215 million, net
worth Yen 49,355 million, employees 303, pres Shuhei Abe, concurrently
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities: Provides investment advisory service,
discretionary investment management busi-ness and investment trust management
business; licensed by Kanto FSA #364 (--100%)
Clients: Investors, business firms, pension funds, other.
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: Investors, business firms, pension funds,
financial institutions, other
Payment record
Regular
Location
Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Mizuho Bank (Shiba)
Chuo Mitsui Trust Bank (H/O)
Relations: Satisfactory
FINANCES: (In Million
Yen)
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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Annual Sales |
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5,900
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5,661
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Recur. Profit |
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2,061
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Net Profit |
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1,200
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1,188
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Total Assets |
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19,587
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Current Assets |
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13,477
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Current Liabs |
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3,287
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Net Worth |
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15,828
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Capital, Paid-Up |
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2,500
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Div.P.Share(¥) |
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<Analytical Data> |
(%) |
(%) |
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S.Growth Rate |
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4.22 |
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Current Ratio |
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410.01
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N.Worth Ratio |
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80.81
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R.Profit/Sales |
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.. |
36.41
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N.Profit/Sales |
20.34
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20.99
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Return On Equity |
.. |
7.51 |
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Notes: The 31/03/2007 fiscal term is the first accounting term
from the new Sparx Asset Management Co was reorganized and established.
Forecast (or estimated) figures for the 31/03/2008 fiscal
term.
SUPPLEMENTS:
CONSOLIDATED FINANCIALS OF THE PARENT, SPARX GROUP CO 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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27,504
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26,863
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Cost of Sales |
3,969
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3,486
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GROSS PROFIT |
23,535
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23,377
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Selling & Adm Costs |
13,884
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6,975
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OPERATING PROFIT |
9,650
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16,401
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Non-Operating P/L |
469 |
-121 |
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RECURRING PROFIT |
10,119
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16,280
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NET PROFIT |
3,779
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8,894
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BALANCE SHEET |
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Cash |
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14,914
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22,113
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Receivables |
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5,693
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6,235
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Inventory |
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Securities, Marketable |
3,623
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3,499
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Other Current Assets |
13,015
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6,890
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TOTAL CURRENT ASSETS |
37,245
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38,737
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Property & Equipment |
836 |
686 |
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Intangibles |
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15,154
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402 |
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Investments, Other Fixed Assets |
27,980
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17,612
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TOTAL ASSETS |
81,215
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57,437
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Payables |
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1,991
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3,332
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Short-Term Bank Loans |
4,000
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Other Current Liabs |
4,222
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6,158
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TOTAL CURRENT LIABS |
10,213
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9,490
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Debentures |
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5,000
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5,000
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Long-Term Bank Loans |
12,000
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Reserve for Retirement Allw |
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Other Debts |
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1,404
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1,210
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TOTAL LIABILITIES |
28,617
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15,700
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MINORITY INTERESTS |
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748 |
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Common stock |
11,806
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11,619
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Additional paid-in capital |
13,692
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11,232
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Retained earnings |
20,996
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19,369
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Evaluation p/l on
investments/securities |
2,390
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1,797
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Others |
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1,276
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(6,031) |
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Treasury stock, at cost |
2,438
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3,003
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TOTAL S/HOLDERS` EQUITY |
52,598
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40,989
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TOTAL EQUITIES |
81,215
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57,437
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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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-2,881
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6,958
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Cash Flows from Investment
Activities |
-18,886
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-14,560
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Cash Flows from Financing Activities |
13,626
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2,552
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Cash, Bank Deposits at the Term End |
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14,914
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22,113
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
52,598
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40,989
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Current Ratio (%) |
364.68
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408.19
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Net Worth Ratio (%) |
64.76
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71.36
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Recurring Profit Ratio (%) |
36.79
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60.60
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Net Profit Ratio (%) |
13.74
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33.11
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Return On Equity (%) |
7.18 |
21.70
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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%)