MIRA
INFORM REPORT
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Report Date : |
16.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
F&A AQUA HOLDINGS INC |
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Registered Office : |
Keio Ebisu Bldg 5F, 3-22-13 Higashi Shibuyaku Tokyo 150-0011 |
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Country : |
Japan |
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Financials (as on) : |
28.02.2007 |
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Date of Incorporation : |
May 1950 |
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Legal Form : |
Limited Company (Kabushiki Kaisha |
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Line of Business : |
Import, Manufacturer, Wholesale, Retail of Jewelry,
Apparel |
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 1,699.4 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
F&A AQUA HOLDINGS INC
(BORN BY MERGER OF AS’TY INC & FDC PRODUCTS INC IN SEPT/2006)
REGD NAME: KK F&A Aqua
Holdings
MAIN OFFICE: Keio Ebisu Bldg 5F,
3-22-13 Higashi Shibuyaku Tokyo 150-0011 JAPAN
Tel:
03-5778-2225 Fax: 03-5778-2512
E-Mail address: asty-info@asty.co.jp
ACTIVITIES
Import, mfg, wholesale, retail of jewelry, apparel
BRANCH(ES)
Hiroshima, Osaka, Fukuoka
OVERSEAS
China (10), Vietnam
FACTORY(IES)
China (4), Vietnam (1)
CHIEF EXEC
SAISHI KIMURA, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 54,137 M
PAYMENTS REGULAR CAPITAL Yen 2,486 M
TREND STEADY WORTH Yen 39,877 M
STARTED 1950 EMPLOYES 1,917
COMMENT
TRADING
FIRM SPECIALIZING IN JEWELRY & APPAREL.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 1,699.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 29/02/2008 fiscal term
HIGHLIGHTS
The subject company was established
by merger of A'sty Inc and FDC Products Co Ltd in Sept 2006. This is a trading firm, with mfg division,
for import, export, wholesale & retail of jewelry, women’s apparel, fancy
goods, others.
Three major subsidiaries: As'ty
Inc (apparel mfg, wholesaling, imports);
FDC Products Co Ltd (process,
wholesale of jewelry of “4C” brand);
Age Co Ltd (retail of jewelry &
apparel).
Top shareholder in Fuji Co, biggest large-volume store in Shikoku region. Engaged in bag production in Vietnam. Has 10 sewing & cutting apparel mfg subsidiaries in China.
FINANCIAL INFORMATION
The
sales volume for Feb/2007 fiscal term amounted to Yen 54,137 million, a 14.2%
up from Yen 47,390 million in the previous term. Business became harder with competition among the trade. Sales increase is attributed to new store
openings by Age Co Ltd and the merger of two firms. The recurring profit was posted at Yen 2,858 million and the net
profit at Yen 394 million, respectively, compared with Yen 3,495 million
recurring profit and Yen 22 million net profit, respectively, a year ago. Profits deteriorated particularly at FDC
Products Co, which confronted difficult conditions from the sharp increase in
raw materials costs including platinum.
The net profit, however, increased due to the absence of extraordinary
loss incurred in fiscal 2005 in connection with early adoption of new
accounting standards relating to the impairment of fixed assets.
Mar/Nov/2007 results): Sales Yen 36,976 million (down 6.9%), operating profit Yen 925 million (down 41.7%), pre-tax profit Yen 1,130 million (down 44.3%), net loss Yen 105 million (Yen 107 million net profit last term). (% compared with corresponding period a year ago. Hikes in materials costs and operations hurt the business. Some liquidation of unprofitable operations occurred.
For the current term ending Feb 2008 the recurring profit is projected at Yen 2,900 million and the net profit at Yen 900 million, on a 4% fall in turnover, to Yen 52,000 million. Mainline jewelry continuing facing difficulty due to surge in material costs. Opened 10 new stores in fall 2007.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,699.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: May 1950
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 120
million shares
Issued: 30,631,356
shares
Sum: Yen
39,861 million
Major shareholders (%)
Fuji Co (17.0), Hiroshima Bank (4.9), Dai-ichi Life Ins (4.6),
SMBC (2.5), Tokio Marine & Nichido Fire Ins (2.4), Iyo Bank (2.4), As'ty Kyoeikai Assn (2.1), Japan Trustee Services T (1.8), Employees’ S/Holding Assn (1.6); foreign owners (11.3).
No. of shareholders
10,758
Listed on the S/Exchange (s) of
Tokyo
Managements
Nobuyuki Hosoda, ch; Saishi Kimura, pres; Keiji Haba, mgn dir; Hideki Tamura, dir; Nobumasa Yamada, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
FDC Products, As'ty Inc, other.
OPERATION
Activities: Trading firm for import, export, mfg, wholesale
and retail of jewelry & apparel:
(Sales breakdown by divisions):.
Brand Division (42%): plan, mfg & sale of jewelry (known by “4C” brand name), women’s apparel, fancy goods, bags, other, by subsidiary, FDC Products Inc, Tokyo, capital Yen 952 million, pres Hideki Tamura; Apparel Mfg Division (27%): mfg, wholesale of apparel by As'ty Inc, Hiroshima, capital Yen 400 million, pres Saishi Kimura, concurrently;
Retail Division (16%): operates retail stores of jewelry/apparel by Age Co Ltd, Hiroshima, capital Yen 312 million, pres Takeshi Ishizumi;
Wholesale Division (12%): done by As'ty Inc and FDC Products Inc;
Real Estate Division (3%): real estate management and broking
Clients
[Mfrs, wholesalers] As'ty Inc,
Age Co, FDC Products, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
Mfrs, wholesalers, other
Imports from subsidiary mfrs in China, Hong Kong and
Vietnam.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
Hiroshima Bank (Hiroshima-Nishi)
SMBC (Hiroshima)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
28/02/2007 |
28/02/2006 |
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INCOME STATEMENT |
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Annual Sales |
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54,137 |
47,390 |
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Cost of Sales |
29,387 |
28,282 |
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GROSS PROFIT |
24,750 |
19,108 |
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Selling & Adm Costs |
22,478 |
16,035 |
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OPERATING PROFIT |
2,271 |
3,072 |
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Non-Operating P/L |
587 |
423 |
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RECURRING PROFIT |
2,858 |
3,495 |
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NET PROFIT |
394 |
22 |
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BALANCE SHEET |
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Cash |
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682 |
977 |
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Receivables |
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4,313 |
4,534 |
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Inventory |
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6,977 |
5,975 |
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Securities, Marketable |
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Other Current Assets |
1,174 |
739 |
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TOTAL CURRENT ASSETS |
13,146 |
12,225 |
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Property & Equipment |
12,968 |
13,197 |
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Intangibles |
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10,645 |
741 |
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Investments, Other Fixed Assets |
20,704 |
19,946 |
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TOTAL ASSETS |
57,463 |
46,109 |
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Payables |
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5,166 |
6,204 |
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Short-Term Bank Loans |
4,600 |
2,540 |
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Other Current Liabs |
3,951 |
3,595 |
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TOTAL CURRENT LIABS |
13,717 |
12,339 |
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Debentures |
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360 |
100 |
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Long-Term Bank Loans |
110 |
272 |
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Reserve for Retirement Allw |
667 |
939 |
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Other Debts |
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2,731 |
2,358 |
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TOTAL LIABILITIES |
17,585 |
16,008 |
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MINORITY INTERESTS |
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3,043 |
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Common
stock |
2,486 |
2,486 |
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Additional
paid-in capital |
18,349 |
5,437 |
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Retained
earnings |
19,013 |
19,057 |
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Evaluation
p/l on investments/securities |
1,525 |
1,377 |
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Others |
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(612) |
(625) |
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Treasury
stock, at cost |
(884) |
(674) |
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TOTAL S/HOLDERS` EQUITY |
39,877 |
27,058 |
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TOTAL EQUITIES |
57,463 |
46,109 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
28/02/2007 |
28/02/2006 |
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Cash Flows
from Operating Activities |
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-12,891 |
1,857 |
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Cash
Flows from Investment Activities |
-1,453 |
-2,453 |
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Cash
Flows from Financing Activities |
1,156 |
-351 |
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Cash,
Bank Deposits at the Term End |
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662 |
977 |
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ANALYTICAL RATIOS Terms
ending: |
28/02/2007 |
28/02/2006 |
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Net
Worth (S/Holders' Equity) |
39,877 |
27,058 |
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Current
Ratio (%) |
95.84 |
99.08 |
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Net
Worth Ratio (%) |
69.40 |
58.68 |
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Recurring
Profit Ratio (%) |
5.28 |
7.37 |
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Net
Profit Ratio (%) |
0.73 |
0.05 |
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Return
On Equity (%) |
0.99 |
0.08 |
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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%)