MIRA
INFORM REPORT
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Report Date : |
05.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
NAGAHORI CORPORATION |
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Registered Office : |
Tenjin Bldg, 1-15-3 Ueno Taitoku Tokyo 110-8546 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
June, 1962 |
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Legal Form : |
Limited Company |
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Line of Business : |
Mfg, wholesale of diamond jewelry
& fashion jewels |
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 641.1 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name of the company
NAGAHORI CORPORATION
REGD NAME: KK Nagahori
MAIN OFFICE
Tenjin Bldg,
1-15-3 Ueno Taitoku Tokyo 110-8546 JAPAN
Tel: 03-3836-4711 Fax:
03-3837-1389
URL
E-Mail address
info@nagahori.co.jp
ACTIVITIES
Mfg, wholesale of diamond jewelry & fashion jewels
BRANCHES
Osaka, Sapporo, Chiba. Kumagaya, Fukuoka
OVERSEAS
Milan, Antwerp
SANOCO Co Ltd (Hong Kong)
(subsidiary)
FACTORY(IES)
Mobara (Chiba)
CHIEF EXEC
MORIHITO NAGAHORI
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 18,658 M
PAYMENTS REGULAR CAPITAL Yen 5,323 M
TREND STEADY WORTH Yen 15,162 M
STARTED 1962 EMPLOYES 517
COMMENT
MFR & WHOLESALER SPECIALIZING DIAMOND JEWELRY &
FASHION JEWELS.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$600,000 / O/A 120 DAYS.
MAX CREDIT LIMIT
YEN 641.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/03/2008 fiscal term
HIGHLIGHTS
The
subject company was established by Nagahori originally as Nagahori Pearls KK
for wholesaling pearls and pearl jewelry.
In Oct 1982 renamed as captioned.
In 1973, approved as official member by Antwerp Diamond Exchange and
started diamonds trading, which now is its main revenue sources. Handles pearls and other precious stones,
too. Consolidated subsidiary, Soma KK,
serves as production arm for gold ingot processing, etc, including OEM
production. Operates JV in Israel for
diamond trading. Provides a broad range
of jewelry brands, offering a full range of items from fashion accessories to
high-end labels. Strong with sales of
high margin brands through department stores nationwide (currently about
35). In Jul 2005, acquired 10% stake in
Rosy Blue Mfg (PTY) Ltd, S Africa, and started imports of diamonds. Has Saitama Health Land in Saitama-Pref. In Nov 2007 founded Royal Asscher Japan, JV
with Royal Asscher Diamond (Antwerp) for importing and mfg diamond rings,
pendant, etc. In Nov 2007, acquired the
brand name “Sweet Ten Diamond” from De Beers Group Marketing and will start
selling the products from Mar 2008.
Initial sales are targeted at Yen 2,000 million.
FINANCIAL INFORMATION:
The
sales volume for Mar/2007 fiscal term amounted to Yen 18,658 million, a 0.3%
down from Yen 18,712 million in the previous term. Sales of high-margin brand products through department stores
showed minor decline. “WISP” brand
acquired in the preceding term fell short of making full contribution. By divisions, Jewelry division down 0.1% to
Yen 18,137 million; Sports Club division down 4.0% to Yen 372 million; Real
Estate division down 8.5% to Yen 247 million.
The recurring profit was posted at Yen 479 million and the net profit at
Yen 555 million, respectively, compared with Yen 992 million recurring profit
and Yen 548 million net profit, respectively, a year ago. Rising costs of operations ate into
profits. The net profit increased thanks
to Yen 803 million extraordinary profits coming from the disposal of fixed
assets.
(Apr/Sept/2007
results): Sales Yen 8,392 million (down 9.2%), operating profit Yen 97 million
(down 79.8%), recurring profit Yen 53% (down 79.8%), net profit Yen 12% (down
90.88%). (% compared with the same
period a year ago). Higher gold prices
could not be passed onto clients.
Consumer spending remained low.
For
the current term ending Mar 2008 the recurring profit is projected at Yen 200
million and the net profit at Yen 100 million, respectively, on a 7.8% fall in
turnover, to Yen 17,200 million. Hike
in materials costs and fuels will eat into profitability. Aims to improve profitability by scaling
back reducing exhibition costs. Special
gains peaked out and net profit will slip down.
The
financial situation is considered FAIR to GOOD and responsible for ORDINARY
business engagements. Max credit limit
is estimated at Yen 641.1 million, on 30 days normal terms. The proposed amount for 120 days is
considered well within the firm’s financial capacities.
REGISTRATION
Date Registered: Jun 1962
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 40
million shares
Issued: 16,773,376
shares
Sum: Yen
5,323 million
Major shareholders (%): MF Nagahori
Co (12.9), Dai-ichi Life Ins (5.5), Resona bank (4.7), Japan Trustee Services T (4.0), Morihiro Nagahori (3.9), SIS
Segaintersettle (3.8), Joyo Bank (3.1), Societe Generale NRANODTT (3.0),
Company’s Treasury Stock (2.6), MUFG (2.4); foreign owners (9.3)
No. of shareholders
1,448
Listed on the S/Exchange (s) of
Tokyo (Second Section)
Managements: Morihiro Nagahori, pres; Shintaro Minami, v
pres; Yuichi Sasaoka, mgn dir;
Keita Nagahori, mgn dir; Kunio Inui, mgn dir;
Yasuaki Sakjuma, mgn dir; Ryoji Takada, dir;
Kosoh Nakashiki, dir; Kaoru Tabata, dir; Akihiro Ueno, dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies: Soma KK, KK Jewelry,
Sanaco Co (Hong Kong), Brodia KK, Royal Asscher Japan (Total 3 domestic; 1
overseas)
OPERATION
Activities:
Manufactures, processes, imports and partially retails diamonds, pearls, other
gemstones, jewelry products (--97%), operates health land (2%), real estate
leasing (1%).
Diamonds and other gemstones are
imported.
(Handling brands): Dal
Lago, Sonia Rykiel, Yuki Torii, Hana-Kaido, arut, Pinky & Dianne, Private
Label, Annie-j, anan,
Lolita Lempicka, Disney, La Germa, Aqua-Style, Y’Sacos, WISP, other.
Clients
[Department stores, chain stores, jewelry stores] Takashimaya,
Sogo, Vendome Yamada Corp, Marui Corp,
Seibu Department Stores, other.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Rosy Blue
Mfg, Eurostar Diamond Trading, Ishifuku Metal Ind, Dimexon, other.
Payment record: Regular
Location
Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References
Resona Bank (Ueno-Chuo)
Mizuho Bank (Marunouchi-Chuo)
Relations: Satisfactory
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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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18,658 |
18,712 |
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Cost of Sales |
12,415 |
12,528 |
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GROSS PROFIT |
6,242 |
6,184 |
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Selling & Adm Costs |
5,631 |
5,221 |
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OPERATING PROFIT |
611 |
963 |
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Non-Operating P/L |
-132 |
29 |
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RECURRING PROFIT |
479 |
992 |
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NET PROFIT |
555 |
548 |
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BALANCE SHEET
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Cash |
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1,197 |
1,523 |
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Receivables |
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2,922 |
2,685 |
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Inventory |
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11,876 |
11,467 |
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Securities, Marketable |
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Other Current Assets |
309 |
406 |
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TOTAL CURRENT ASSETS |
16,304 |
16,081 |
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Property & Equipment |
4,980 |
4,700 |
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Intangibles |
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106 |
121 |
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Investments, Other Fixed Assets |
3,077 |
2,898 |
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TOTAL ASSETS |
24,467 |
23,800 |
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Payables |
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1,296 |
1,368 |
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Short-Term Bank Loans |
5,821 |
4,169 |
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Other Current Liabs |
1,170 |
1,842 |
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TOTAL CURRENT LIABS |
8,287 |
7,379 |
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Debentures |
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Long-Term Bank Loans |
76 |
479 |
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Reserve for Retirement Allw |
640 |
574 |
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Other Debts |
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301 |
305 |
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TOTAL LIABILITIES |
9,304 |
8,737 |
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MINORITY INTERESTS |
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Common stock |
5,323 |
5,323 |
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Additional paid-in capital |
6,275 |
6,275 |
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Retained earnings |
4,581 |
4,173 |
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Evaluation p/l on
investments/securities |
172 |
324 |
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Others |
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(1,010) |
(959) |
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Treasury stock, at cost |
(179) |
(73) |
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TOTAL S/HOLDERS` EQUITY |
15,162 |
15,063 |
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TOTAL EQUITIES |
24,467 |
23,800 |
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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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-454 |
1,292 |
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Cash Flows from Investment
Activities |
-293 |
70 |
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Cash Flows from Financing Activities |
421 |
-1,296 |
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Cash, Bank Deposits at the Term End |
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1,197 |
1,523 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
15,162 |
15,063 |
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Current Ratio (%) |
196.74 |
217.93 |
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Net Worth Ratio (%) |
61.97 |
63.29 |
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Recurring Profit Ratio (%) |
2.57 |
5.30 |
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Net Profit Ratio (%) |
2.97 |
2.93 |
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Return On Equity (%) |
3.66 |
3.64 |
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%)