MIRA
INFORM REPORT
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Report Date : |
19.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
JFE SHOJI TRADE CORPORTION |
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Registered Office : |
2-7-1 Ohtemachi Chiyodaku Tokyo 100-8070 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
August 2004 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Steel, Iron Ore, Chemicals,
Machinery, Other |
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 15,229.8 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
JFE SHOJI TRADE CORPORTION
REGD NAME: JFE Shoji KK
MAIN OFFICE: 2-7-1 Ohtemachi
Chiyodaku Tokyo 100-8070 JAPAN
Tel:
03-5203-5510 Fax: 03-5203-5289
URL: http://www.jfe-shoji-hd.co.jp/
E-Mail address: (through
the URL)
* Registered at: 1-6-20 Dojima Kitaku Osaka
.
ACTIVITIES
Import, export, wholesale of steel, iron ore, chemicals,
machinery, other
BRANCHES
(Domestic) 18 locations
OVERSEAS
Korea (3), China (4), Taiwan (2), Vietnam (2), India (3),
Australia (2), USA (8), other (Total 31 in 41 countries)
CHIEF EXEC
MIKIO FUKUSHIMA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,709,043 M
PAYMENTS REGULAR CAPITAL Yen 14,539 M
TREND STEADY WORTH Yen 43,306 M
STARTED 1948 EMPLOYES 1,241
*.. Financials are consolidated
by the parent, JFE Shoji Holdings Inc, as attached.
COMMENT
TRADING
HOUSE OWNED BY JFE SHOJI HOLDINGS INC.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 15,229.8 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
This is a trading company belonging to JFE Shoji Holdings
Inc, which was creased on 01/Aug/2004 by Kawasho Corp, Kawasaki Steel group
trading house. On 01/Oct/2004, Kawasho
Corp and NKK Trading Inc, NKK group trading house, merged when the two parents,
Kawasaki Steel and NKK merged to become JFE Holdings Inc. At the same time, the group reorganized into
four individual companies under the control of JFE Shoji Holdings Inc: JFE
Shoji Trade Corporation (consolidated steel business), Kawasho Foods
Corporation (foods business), Kawasho Semiconductor Corporation (semiconductor
business) and Kawasho Real Estate Corporation (real estate business). 96% of sales are generated by the subject
firm and is the core of the group firms. Has a 5% interest in Australian Coal
mine.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal
term amounted to Yen 1,709,043 million, a 10% rise from Yen 1,550,101 million
in the previous term. Higher prices of
steel, iron ore, chemicals & fuels boosted the sales coupled with robust
demand for the products, particularly from China. The recurring profit was posted at Yen 20,750 million and the net
profit at Yen 12,900million, respectively, compared with Yen 18,768 million
recurring profit and Yen 11,884 million net profit, respectively, a year ago.
(Apr/Dec/2007 results of the
parent, JFE Shoji Holdings Inc):
Sales Yen 1,794,376 (up 9.4%), operating profit Yen 26,992 million (up 9.6%),
recurring profit Yen 30,134 million (up 11.8%), net profit Yen 17,850 million
(up 31.9%). (% compared with the
corresponding period a year ago). This
beat the earlier forecasts thanks to strong demand and higher product
prices. Particularly demand from China
was robust.
For the current term ending Mar
2008 the recurring profit is projected at Yen 21,000 million and the net profit
at Yen 13,000 million, respectively, on a 6% rise in turnover, to Yen 1,820,000
million. Steel materials sales mainly
for automobiles staying high in global markets and selling prices
improving. Iron scraps will go steady
under short supply caused by high demand for environmental measures for blast
furnaces. Handling volume will increase
by 1 million tons. Set up office in
Chennai (India) to cope with plant building by Japanese-affiliated automakers.
The
financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen
15,229.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Aug 2004
Legal
Status: Limited Company (Kabushiki
Kaisha)
Authorized: 1,000 million shares
Issued: 295,365,187
shares
Sum: Yen
14,539 million
Major shareholders
JFE Shoji Holdings Inc*(100)
*..Holding
company created by Kawasho Corp & NKK Trading on 01/Aug/2004 following Apr/04 merger between their parent firms,
Kawasaki Steel & NKK Corp (now JFE Holdings Inc); Listed Tokyo, Osaka
S/E’s, capital Yen 20,000 million (38% owned by JFE Steel under JFE Holdings Inc), financials as
attached, employees 4,958, pres Mikio Fukushima
Consolidated Financials are as attached (See SUPPLEMENTS)
Listed on the S/Exchange (s) of
Tokyo, Osaka (JFE Holdings Inc, top parent)
Managements
Osamu
Sato, ch; Mikio Fukushima, pres & CEO; Yuji Imataka, v pres; Yoshihiko
Nakamura, s/mg dir; Hisao Osato, s/mgn dir; Nobuo Yoshida, s/mgn dir; Kohei
Yoshioka, s/mgn dir; Shigeki Yamamoto, mgn dir; Todomu Kobayashi, mgn dir;
Tatsuo Iwasaki, mgn dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies
Four
companies under JFE Shoji Holdings Inc: JFE Shoji Trade Corp (the subject
firm), Kawasho Foods Corporation, Kawasho Semiconductor Corporation, Kawasho
Real estate Corporation.
OPERATION
Activities:
The subject is a trading house owned by JFE Shoji Holdings Inc and we here give
here breakdown of operations/sales
of the 4 group firms:
JFE Shoji Trade Corp (96%): steel, coal, iron ore, chemicals
& fuels, steelworks machinery, engineering works:
Kawasho Foods Corp (2%):
foodstuffs;
Kawasho Semiconductor Corp (1%): semiconductor equipment & supplies;
Kawasho Real Estate (1%): real estate/office building
leasing/management, other.
(Overseas sales ratio 31.2%:
Asia (China, Korea, Thailand) 24.0%, USA, Liberia, Panama, other 7.2%)
(Major
Handling Items by JFE Shoji Trade Corp):
Steel: shipbuilding steel, thick steel plate, processed
steel for ships & bridges, hot-rolled sheet, cold-rolled sheet, electrical steel sheet, coated steel sheet,
steel plate, stainless steel, special steel, galvanized sheet, tin plate, steel
pipes, special steel pipes, treated steel pipes, iron powder, hot charge, steel
piles, wire, H-beam, lightweight shaped steel plate, regular shaped steel plate,
reinforced products, columns, semi-finished steel products (slabs, etc), civil
engineering products, construction materials, housing materials, other
products, civil engineering, construction;
Raw Materials: iron ore, sintering ore, coal for coke making, dolomite & other steel making materials, cokes & coal products, nickel, chromium, zinc, alloy iron, scrap iron & other metal raw materials,aluminum, scrap aluminum, deoxidized aluminum, aluminum products;
Machinery: blast furnaces, coke ovens, oxygen facilities, continuous slab casting machines, hot rolling mills, galvanizing equipment & steel mfg machinery, roll, lubricating oil, bearing, electric cable & steel mfg materials, metal processing machinery, boilers, turbines, electrical equipment, amusement part equipment, hospital facilities, building facilities, factory facilities, various new ship building, sale & purchase of used ships, scrapping ships, ship repairs, ship equipment, other products;
Chemicals & Fuels: coal tar, coal tar pitch, creosote oil & other chemical coal products, magnesium chloride, nitric acid & other inorganic chemicals, ferrite core, molding materials, iron oxide, fertilizers, general use plastic, engineering plastics & other plastic raw materials & compound products, fine ceramics, ultra-fine nickel powder & other functional chemical products, industrial gases, crude oil, gasoline, LPG, lubricating oil & other petroleum products.
Clients
[Mfrs, wholesalers] JFE Steel
(50%), Nissan Motor, Mitsubishi Motors, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] JFE Steel, JFE Chemical, JFE Steel
Plate, other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (H/O)
SMBC (H/O)
Relations: Satisfactory
Finances
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Terms Ending: |
31/03/2008 |
31/03/2007 |
31/03/2006 |
31/03/2005 |
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Annual
Sales |
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1,820,000 |
1,709,043 |
1,550,101 |
1,222,910 |
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Recur.
Profit |
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21,000 |
20,750 |
18,768 |
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Net
Profit |
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13,000 |
12,900 |
11,884 |
7,790 |
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Total
Assets |
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421,244 |
384,834 |
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Current
Assets |
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321,056 |
290,721 |
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Current
Liabs |
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248,449 |
321,854 |
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Net
Worth |
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43,306 |
39,713 |
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Capital,
Paid-Up |
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14,539 |
14,539 |
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Div.P.Share(¥) |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
6.49 |
10.25 |
26.76 |
21.52 |
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Current Ratio |
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129.22 |
90.33 |
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N.Worth Ratio |
.. |
10.28 |
10.32 |
.. |
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R.Profit/Sales |
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1.15 |
1.21 |
1.21 |
.. |
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N.Profit/Sales |
0.71 |
0.75 |
0.77 |
0.64 |
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Return On Equity |
.. |
29.79 |
29.92 |
.. |
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Notes: Forecast figures for the 31/03/2008 fiscal term
SUPPLEMENTS:
FINANCES of JFE Shoji Holdings Inc, the parent: (In Million
Yen)
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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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2,215,349 |
2,041,097 |
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Cost of Sales |
2,131,290 |
1,960,281 |
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GROSS PROFIT |
84,058 |
80,816 |
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Selling & Adm Costs |
51,571 |
49,652 |
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OPERATING PROFIT |
32,486 |
31,163 |
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Non-Operating P/L |
2,707 |
2,189 |
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RECURRING PROFIT |
35,193 |
33,352 |
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NET PROFIT |
17,495 |
18,285 |
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BALANCE SHEET |
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Cash |
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30,346 |
27,588 |
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Receivables |
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368,155 |
344,229 |
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Inventory |
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82,480 |
88,522 |
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Securities, Marketable |
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Other Current Assets |
34,445 |
32,296 |
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TOTAL CURRENT ASSETS |
515,426 |
492,635 |
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Property & Equipment |
36,866 |
37,537 |
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Intangibles |
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7,008 |
5,940 |
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Investments, Other Fixed Assets |
67,485 |
61,871 |
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TOTAL ASSETS |
626,785 |
597,983 |
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Payables |
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388,893 |
353,979 |
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Short-Term Bank Loans |
75,660 |
103,740 |
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Other Current Liabs |
25,444 |
20,044 |
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TOTAL CURRENT LIABS |
489,997 |
477,763 |
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Debentures |
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Long-Term Bank Loans |
22,205 |
23,763 |
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Reserve for Retirement Allw |
3,694 |
3,329 |
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Other Debts |
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5,414 |
4,807 |
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TOTAL LIABILITIES |
521,310 |
509,662 |
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MINORITY INTERESTS |
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4,629 |
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Common
stock |
20,000 |
20,000 |
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Additional
paid-in capital |
17,428 |
17,454 |
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Retained
earnings |
54,961 |
42,097 |
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Evaluation
p/l on investments/securities |
11,787 |
9,156 |
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Others |
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1,585 |
(4,963) |
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Treasury
stock, at cost |
(286) |
(53) |
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TOTAL S/HOLDERS` EQUITY |
105,475 |
83,691 |
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TOTAL EQUITIES |
626,785 |
597,983 |
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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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39,864 |
24,370 |
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Cash
Flows from Investment Activities |
-2,745 |
-685 |
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Cash
Flows from Financing Activities |
-34,304 |
-27,426 |
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Cash,
Bank Deposits at the Term End |
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30,003 |
27,322 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
105,475 |
83,691 |
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Current
Ratio (%) |
105.19 |
103.11 |
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Net
Worth Ratio (%) |
16.83 |
14.00 |
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Recurring
Profit Ratio (%) |
1.59 |
1.63 |
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Net
Profit Ratio (%) |
0.79 |
0.90 |
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Return
On Equity (%) |
16.59 |
21.85 |
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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%)