MIRA
INFORM REPORT
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Report Date : |
04.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
HITCO COMPANY |
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Registered Office : |
P.O. Box 526, Al Jaladeh Zone, Hitco Building, Hebron
Palestinian Authority |
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Country : |
Israel |
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Date of Incorporation : |
1996 |
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Com. Reg. No.: |
56-242777-3 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, marketers and retailers of stationery, paper products,
school and office supplies |
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 : |
US$ 90,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
HITCO COMPANY LTD.
(HITCO stands for HIRBAWI INVESTMENT & INT'L TRADE CO.)
P.O. Box 526
Al Jaladeh Zone
Hitco Building
HEBRON PALESTINIAN AUTHORITY
Telephone 972 2 222 67 89
Fax 972 2 222 97 70
HISTORY
A foreign private limited company, registered in the Palestinian
Authority as per file No. 56-242777-3 in 1996.
SHARE CAPITAL
Share capital data not forthcoming.
SHAREHOLDERS
Subject is owned by 8 shareholders, all brothers, 5 of them are:
1. Majed Hirbawi,
2. Nafed Hirbawi,
3. Iman Hirbawi,
4. Maruan Hirbawi,
5. Taufiq Hirbawi.
GENERAL MANAGER
Majed Hirbawi
BUSINESS
Importers, marketers and retailers of stationery, paper products, school
and office supplies.
Subject is operating a retail chain store, with 3 branches.
All sales are in the Palestinian territories
Sole local representative of (among others):
SKREBBA, SCHNEIDER, both of Germany.
Operating from premises (offices and warehouses), owned by the
shareholders, on an area of 5,000 sq. meters in the Al Jaladeh Zone, Hitco
Building, Hebron, West Bank, Palestinian Authority. Also operating from stores
in:
1. Wadi Al-Tuffah, Downtown Hebron,
2. Al-Qazzazeen, Old City, Hebron,
3. Beer Nabalah, Beer Nabalah (near Ramallah), operated mainly as show
room for customers.
Having in all 22 employees.
MEANS
Current stock is valued at US$ 1,000,000
Other financial data not forthcoming.
ANNUAL SALES
2005 sales claim to be US$ 5,000,000.
2006 sales claim to be US$ 5,000,000.
2007 sales claim to be US$ 5,500,000.
OTHER COMPANIES
Sister companies, also part of subject's Group:
PAPER INDUSTRIES CO. LTD., manufacturers, marketers and exporters of
paper products (such as ring files, notebooks, box files, etc.)
AL-AHILA CARTON BOXES INDUSTRY, manufacturers of carton boxes.
K.A.R FOR MACARONI AND FOODSTUFF MFG. CO. (KHALIL RACHMAN LTD.),
manufacturers and marketers of variant kinds of pasta.
BANKERS
Arab Bank Plc., Hebron Branch, Hebron, West Bank, Palestinian Authority.
CHARACTER AND
REPUTATION
Nothing unfavorable learned.
The Hirbawi family is well-known and wealthy family in Hebron. Besides
the above-mentioned companies and property they hold, they also own 2 more real
estate properties (buildings) in Hebron.
Subject's General Manager, Mr. Majed Hirbawi, is a member at Hebron
Businessmen Forum and the Arab Businessmen Council. He is a founding member and
a director of the Palestinian Shipper Council.
During 2004, the Palestinian economy started to recover for the first
time since the deterioration in the political situation in the region in
October 2000.
According to researches, GDP per capita in the Palestinian authority in
2004 summed at US$ 1,200, which is still lower than the GDP in 1999, which
reached US$ 1,500. GDP of the Palestinian Authority in 2004 was US$ 4.5
billion, 10% increase from 2003. Other positive figures were 27% increase
in exports and 23% increase in imports.
However, the World Bank Report from 2006 states that year 2006 has been
disastrous and one of the worst years in their economic history, following the
rising of the Hamas government. It led to the suspension of donations and
financial aid from the Western world, as well as to internal conflict,
including violence, between the Hamas supporters and those of the Phatah
movement.
According to experts reports from December 2006, total GDP of the
Palestinian Economy in 2006 was US$ 3 billion, and deteriorated to lower than
US$ 1,000 GDP per capita.
The Palestinian total annual export is evaluated at US$ 0.5 billion. The
industrial activity turnover is evaluated at US$ 1.5 billion (data source as of
July 2007), with some 80,000 employees.
SUMMARY
Good for trade engagement.
Maximum unsecured credit recommended US$ 90,000.
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%)