MIRA
INFORM REPORT
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Report Date : |
19.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHORI CO LTD |
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Registered Office : |
2-4-7 Kawaramachi Chuoku Osaka 540-8603 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
September 1948 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Import, Export, Wholesale of
Textiles, Chemicals, Others |
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 5,505.4 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
CHORI CO LTD
REGD NAME: Chori KK
MAIN OFFICE: 2-4-7 Kawaramachi Chuoku Osaka 540-8603 JAPAN
Tel: 06-6226-5015 Fax: 06-6228-5546
Tokyo Head Office at: 2-4-3 Nihombashi-Horidomecho Chuoku Tokyo, as given
E-Mail address: info@chori.co.jp
ACTIVITIES
Import, export, wholesale of textiles,
chemicals, others
BRANCH(ES)
Tokyo, Kanazawa, Ashikaga,
Niigata, Yokohama, Osaka, Okayama
OVERSEAS
New York, Santiago, Germany,
Moscow, Teheran, Dubai, Jeddah,
China (7), Kuala Lumpur, Bangkok,
Jakarta, Taipei, Ho Chi Minh City
(-subsidiaries/branch
offices/representative offices)
CHIEF EXEC
KEISHIRO SAITOH, PRES
Yen Amount
In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 232,064 M
PAYMENTS REGULAR CAPITAL Yen 6,800 M
TREND STEADY WORTH Yen 23,567 M
STARTED 1948 EMPLOYES 1,543
COMMENT
MAJOR TEXTILE TRADING HOUSE,
AFFILIATED TO TORAY INDUSTRIES.
FINANCIAL SITUATION COSIDERED FAIR
AND GOOD FOR CREDIT ENGAGEMENTS: US$372,000 / O/A 30 DAYS.
MAX CREDIT LIMIT
YEN 5,505.4 MILLION, 30 DAYS
NORMAL TERMS.
Forecast (or estimated) figures
for 31/03/2008 fiscal term
HIGHLIGHTS
This is an old-established company
dating back to 1861 starting as a raw silk wholesaler in Kyoto, the center of Japanese kimono makers. In 1948 incorporated and moved the headquarters to Osaka in 1952. In 1987,
upgraded its Tokyo Branch to Tokyo Headquarters Office. This is a trader specializing in textiles
and chemicals, two pillars of operations, after drastic reorganizations.
In 2003, the firm lodged huge losses of Yen 4,927 million and received
rescue fund from its major shareholders.
In restructuring and pushing for improvement of earnings base with
support from Toray Industries Inc (See REGISTRATION).
Strong presence in China where
operating six subsidiaries and seven offices in China. The China business began in 1961, when the
firm was designated a “friendly trading company” by the Chinese
government. From 1970 to mid-w980s, Chori
exported chemical plant facilities, followed by establishing a series of JV factories
for textiles. In 2005, Chori (China) Co
Ltd was established in Shanghai. Chori
has strengthened ties with the Inner Mongolia Erdos Group, one of the largest
global suppliers of high-grade cashmere, and is planning a new business venture
with the group.
FINANCIAL INFORMATION
The sales volume for Mar/2007
fiscal term amounted to Yen 232,064 million, a 3.9% up from Yen 223,271 million
in the previous term. This was mainly attributable
to stronger performance in the textile products and chemicals businesses with
expansion of China business. By
divisions, Textiles down 0.3% to Yen 142,296 million; Chemicals up 8.8% to Yen
57,566 million, reflecting favorable trading transactions in China and
expansion of new product lineups. The
recurring profit was posted at Yen 4,887 million and the net profit at Yen
3,592 million, respectively, compared with Yen 4,506 million recurring profit
and Yen 3,802 million net profit, respectively, a year ago. Due to negative factors including a
provision for losses of associated companies and a decrease in income taxes
deferred, net profit decreased 0.3% from the last year.
(Apr/Sept/2007 results): Sales Yen
124,137 million (up 10.1%), operating profit Yen 2,925 million (down 6.0%),
recurring profit Yen 2,814 million (up 1.3%), net profit Yen 1,689 million
(down 23.7%). (% compared with the
corresponding period a year ago). China
business expanded with new lineups in both textiles and chemicals. Operating income decreases reflecting
increasing operating expenses. Net
profit decreased due mainly to increase in income taxes.
For the current term ending Mar
2008 the recurring profit is projected at Yen 5,100 million and the net profit
at Yen 3,000 million, on a 3.4% rise in turnover, to Yen 240,000 million. China-bound chemicals steady. Profitability of textiles improving. High-performance materials related to cars
and for use in sports & underwear holding firm.
The financial situation is considered
FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,505.4 million, on 30 days
normal terms. The proposed amount is
considered well within the firm’s financial capabilities.
REGISTRATION
Date
Registered: Sept 1948
Legal
Status: Limited Company (Kabushiki
Kaisha)
Authorized: 550 million shares
Issued: 221,191,443 shares
Sum:
Yen 6,800 million
Major shareholders (%)
Toray Industries Inc*(51.4),
Mizuho Corporate Bank (2.4), Japan Securities
Finance (1.7), Trust & Custody Services (1.5), Master Trust Bank of Japan T
(1.3), Mitsui Sumitomo Ins (1.0), Japan Trustee Services T (0.9), Nissay Dowa
General Ins (0.8), CGMLIPB Customer Collateral (0.7), Nippon Life Ins (0.7);
foreign owners (7.2)
No. of shareholders: 6,874
* Largest mfr of synthetic fibers,
Tokyo, founded 1925, listed Tokyo, Osaka, Nagoya, London, Luxemburg S/E’s,
capital Yen 96,937 million, turnover Yen 1,548,461 million, operating profit
Yen 102,423 million, recurring profit Yen 97,520 million, net profit Yen 58,577
million, total assets Yen1,674,447 million, net worth Yen 590,020 million, employees 36,553, pres Sadayuki
Sakakibara
Listed on the S/Exchange (s) of
Tokyo, Osaka
Managements
Keishiro Saitoh, pres; Jun’ichiro Kunihara,
s/mgn dir; Toshio Sakata, mgn dir; Shuji Yamazaki, mgn dir; Kimiyuki Yoshino,
dir; Seiji Yanase, dir
Nothing detrimental is known as to
the commercial morality of executives.
Related companies
Tokyo Kutsushita, Chori Gomu,
other.
OPERATION
Activities: A trading house for
import, export and wholesale of textiles, chemicals, others:
(Sales Breakdown by Divisions):
Textile Division (61.3%): raw
yarns made of chemical fibers, synthetic fibers, raw silk & other natural
fibers, non-woven textiles, woven fabrics, knit fabrics, and other products
made of chemical fibers, synthetic fibers, silk fibers & other natural
fibers, industrial materials;
Chemicals, Machinery & other Divisions (38.7%): organic & inorganic
chemicals, raw materials for pharmaceutical
products, food & feed materials, information & communication equipment,
machines, vehicles, real estate, others; Overseas Sales Ratio (38.5%): Asia
(China) 23.4%; USA, other 15.1%
Clients
[Mfrs, wholesalers] Toray Ind, Kawashima
Selkon Textiles, Itokin Inc, Fukuvi Chemical Ind, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Toray Ind,
Asahi Kasei, Teijin Ltd, Mitsui Takeda Chemical, other. .
Payment record
Regular
Location
Business area in Osaka. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (Osaka)
MUFG (Osaka)
Relations: Satisfactory
Financials
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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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232,064
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223,271
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Cost of Sales |
211,371
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203,758
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GROSS PROFIT |
20,693 |
19,512 |
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Selling & Adm Costs |
15,248 |
14,979 |
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OPERATING PROFIT |
5,444 |
4,532 |
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Non-Operating P/L |
-557 |
-26 |
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RECURRING PROFIT |
4,887 |
4,506 |
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NET PROFIT |
3,592 |
3,602 |
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BALANCE SHEET |
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Cash |
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6,723 |
6,654 |
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Receivables |
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37,710 |
31,452 |
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Inventory |
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9,695 |
9,044 |
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Securities, Marketable |
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Other Current Assets |
7,669 |
6,992 |
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TOTAL CURRENT ASSETS |
61,797 |
54,142 |
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Property & Equipment |
1,618 |
1,835 |
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Intangibles |
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112 |
194 |
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Investments, Other Fixed Assets |
11,874 |
13,202 |
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TOTAL ASSETS |
75,401 |
69,373 |
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Payables |
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44,305 |
42,514 |
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Short-Term Bank Loans |
1,595 |
1,310 |
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Other Current Liabs |
4,564 |
3,625 |
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TOTAL CURRENT LIABS |
50,464 |
47,449 |
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Debentures |
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Long-Term Bank Loans |
31 |
43 |
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Reserve for Retirement Allw |
1,338 |
1,565 |
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Other Debts |
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1 |
11 |
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TOTAL LIABILITIES |
51,834 |
49,068 |
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MINORITY INTERESTS |
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482 |
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Common
stock |
6,800 |
6,800 |
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Additional
paid-in capital |
5,000 |
5,000 |
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Retained
earnings |
11,317 |
7,980 |
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Evaluation
p/l on investments/securities |
312 |
702 |
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Others |
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168 |
(638) |
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Treasury
stock, at cost |
(30) |
(22) |
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TOTAL S/HOLDERS` EQUITY |
23,567 |
19,822 |
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TOTAL EQUITIES |
75,401 |
69,373 |
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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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549 |
7,045 |
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Cash
Flows from Investment Activities |
-808 |
-607 |
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Cash
Flows from Financing Activities |
36 |
-2,098 |
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Cash,
Bank Deposits at the Term End |
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10,976 |
11,096 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
23,567 |
19,822 |
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Current
Ratio (%) |
122.46 |
114.11 |
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Net
Worth Ratio (%) |
31.26 |
28.57 |
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Recurring
Profit Ratio (%) |
2.11 |
2.02 |
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Net Profit
Ratio (%) |
1.55 |
1.61 |
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Return
On Equity (%) |
15.24 |
18.17 |
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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%)