MIRA
INFORM REPORT
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Report Date : |
24.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
NICHIREI FRESH INC |
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Registered Office : |
Nichirei Higashi-Ginza Bldg, 6-19-20 Tsukiji
Chuoku Tokyo 104-8402 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
January, 2005 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, processing, wholesale of
marine products, livestock products |
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 3,621.7 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name of the company
NICHIREI FRESH INC
REGD NAME: KK Nichirei Fresh
MAIN OFFICE
Nichirei Higashi-Ginza Bldg, 6-19-20 Tsukiji Chuoku Tokyo 104-8402
JAPAN
Tel: 03-3248-2101 Fax:
03-3248-2119
URL
http://www.nichirei.co.jp/fresh
E-Mail address
ACTIVITIES
Import, processing, wholesale of marine products, livestock
products
BRANCHES
Tokyo, Osaka, Nagoya, Sapporo, Sendai, Fukuoka
OVERSEAS
Ho Chi Minh, Shanghai, Dalian, Bangkok, Amsterdam
OVERSEAS SUBSIDIARIES
USA (2), Netherlands (5), Brazil (2), Germany, Thailand,
China (2), Australia
FACTORY(IES)
Kawagoe, Yokohama (--food processing centers)
CHIEF EXEC
HISASHI HASEGAWA, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 155,548 M
PAYMENTS REGULAR CAPITAL Yen 8,000 M
TREND STEADY WORTH Yen 11,882 M
STARTED 2005 EMPLOYES 259
COMMENT
IMPORTER AND WHOLESALER OF MARINE & LIVESTOCK PRODUCTS, WHOLLY
OWNED BY NICHIREI CORPORATION.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT
ENGAGEMENTS: US$2,500,000 / O/A 30 DAYS TERMS.
MAX CREDIT LIMIT
YEN 3,621.7 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was
established in 2005 on the basis of marine/livestock separated from Nichirei Corporation (See REGISTRATION). Nichirei Corporation, then, separated
effective 01/Apr/2005 its operations into five independent consolidated
subsidiaries and became the holding company.
Five companies are: Nichirei Foods, Nichirei Logistics, Nichirei Fresh
Inc, Nichirei Bioscience and Nichirei Proserve Inc. The subject imports, processes and wholesales marine &
livestock products. The sales of the
subject account for 34% of the total group sales.
FINANCIAL INFORMATION
The sales volume for Mar/2006
fiscal term amounted to Yen 155,548 million, a 6% down from Yen 165,709 million
in the previous term. Shrimp/prawns
down by 5% due to lower prices quoted for Mid East & S/E Asian catches. Fishery products, such as octopus, fish
roes, crabs, shellfishes, etc, were in strong demand from sushi restaurants, up
7.8% from the previous term. Chicken
was up 9.5% thanks to the recovery of import prices; beef was down 5.4% owing
to price hikes of Australian beef; pork was down 2.3% due to rising prices of
frozen pork imports. The operations
continued in the red to post Yen 52 million recurring loss and Yen 138 million
net loss, respectively, compared with Yen 2,392 net losses a year ago. New company startup costs & expenses ate
into profits.
For
the current term ending Mar 2008 the operations are expected to come back to
profitability but still limited to a minimum amount post-taxes, on a 3% rise in
turnover, to Yen 160,000 million.
The financial situation is considered
FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,621.7 million,
on 30 days normal terms. The proposed amount is considered well within
the firm’s financial capabilities.
REGISTRATION
Date Registered: Jan 2005
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 640,ooo
shares
Issued: 160,000
shares
Sum: Yen
8,000 million
Major shareholders (%)
Nichirei Corporation*(100)
Nothing detrimental is known as
to the commercial morality of executives.
Nichirei Corporation: Major refrigerated-warehouse
operator, owning 22 distribution centers & 79 warehouses in Japan. Also holding company of five
subsidiaries. Founded 1942, listed
Tokyo, Osaka S/E’s, capital Yen 30,307 million, turnover Yen 457,655 million,
operating profit Yen 18,148 million, recurring profit Yen 17,388 million, net
profit Yen 10,845 million, total assets Yen 269,166 million, net worth Yen
111,034 million, employees 5,711, pres Toshiaki Murai.
Consolidated Financials are as
attached (See SUPPLEMENTS)
OPERATION
Activities: Imports, exports and wholesales fish products,
meat & poultry products:
(Sales
Breakdown by divisions):
Marine Products Div (47% accounting for 17.3% of total group
sales): fresh & frozen fish, pink shrimp, black tiger shrimps,
Norwegian salmon, octopus, including seafood processing;
Meat & Poultry Products Div 53% accounting for 16.8% of total
group sales): poultry, pork, beef, other meat products;
Clients
[Fishery markets, wholesalers, chain stores] Marubeni Corp,
Itochu Corp, Mitsui & Co, other.
No. of accounts: 1,500
Domestic areas of activities: Nationwide
Suppliers
[Fishery firms, food processors,
wholesalers] Sumikin Bussan Corp, Meisei Trading, Three Star International,
Nisshin Suisan, Marui Kako, Amazonas Foods, other
Payment record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned by the parent and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (Ohtemachi)
MUFG (Tokyo)
Relations: Satisfactory
FINANCE:
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Terms Ending: |
31/03/2008 |
31/03/2007 |
31/03/2006 |
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Annual Sales |
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160,000 |
155,548 |
165,709 |
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Recur. Profit |
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-52 |
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Net Profit |
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0 |
-138 |
-2,392 |
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Total Assets |
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41,063 |
38,638 |
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Current Assets |
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36,764 |
34,623 |
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Current Liabs |
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28,603 |
25,890 |
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Net Worth |
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11,882 |
12,110 |
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Capital, Paid-Up |
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8,000 |
8,000 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
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S.Growth Rate |
2.86 |
-6.13 |
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Current Ratio |
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128.53 |
133.73 |
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N.Worth Ratio |
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28.94 |
31.34 |
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R.Profit/Sales |
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.. |
-0.03 |
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N.Profit/Sales |
0.00 |
-0.09 |
-1.44 |
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Return On Equity |
.. |
-1.16 |
-19.75 |
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Notes: The
31/03/2006 is the initial accounting term from the inception.
Forecast figures for the 31/03/2008 fiscal term.
SUPPLEMENTS:
Consolidated
Financials of the parent, Nichirei Corporation
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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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457,655 |
469,411 |
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Cost of Sales |
368,855 |
377,834 |
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GROSS PROFIT |
88,799 |
91,577 |
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Selling & Adm Costs |
70,651 |
75,563 |
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OPERATING PROFIT |
18,148 |
16,014 |
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Non-Operating P/L |
-760 |
-354 |
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RECURRING PROFIT |
17,388 |
15,660 |
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NET PROFIT |
10,845 |
6,293 |
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BALANCE SHEET |
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Cash |
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3,514 |
3,290 |
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Receivables |
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66,615 |
64,315 |
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Inventory |
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32,601 |
31,037 |
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Securities, Marketable |
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Other Current Assets |
4,930 |
9,543 |
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TOTAL CURRENT ASSETS |
107,660 |
108,185 |
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Property & Equipment |
109,534 |
108,041 |
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Intangibles |
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3,620 |
3,718 |
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Investments, Other Fixed Assets |
48,352 |
48,557 |
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TOTAL ASSETS |
269,166 |
268,501 |
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Payables |
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29,046 |
25,991 |
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Short-Term Bank Loans |
10,123 |
13,001 |
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Other Current Liabs |
47,120 |
44,072 |
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TOTAL CURRENT LIABS |
86,289 |
83,064 |
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Debentures |
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15,000 |
25,000 |
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Long-Term Bank Loans |
34,291 |
36,562 |
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Reserve for Retirement Allw |
3,258 |
3,779 |
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Other Debts |
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17,256 |
16,841 |
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TOTAL LIABILITIES |
156,094 |
165,246 |
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MINORITY INTERESTS |
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630 |
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Common stock |
30,307 |
30,307 |
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Additional paid-in capital |
23,709 |
23,706 |
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Retained earnings |
46,847 |
39,627 |
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Evaluation p/l on investments/securities |
8,203 |
8,353 |
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Others |
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4,326 |
892 |
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Treasury stock, at cost |
(321) |
(261) |
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TOTAL S/HOLDERS` EQUITY |
113,071 |
102,624 |
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TOTAL EQUITIES |
269,166 |
268,501 |
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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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22,431 |
23,883 |
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Cash Flows from Investment
Activities |
-5,861 |
3,663 |
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Cash Flows from Financing Activities |
-16,567 |
-27,559 |
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Cash, Bank Deposits at the Term End |
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3,514 |
3,290 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
113,071 |
102,624 |
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Current Ratio (%) |
124.77 |
130.24 |
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Net Worth Ratio (%) |
42.01 |
38.22 |
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Recurring Profit Ratio (%) |
3.80 |
3.34 |
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Net Profit Ratio (%) |
2.37 |
1.34 |
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Return On Equity (%) |
9.59 |
6.13 |
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%)