MIRA
INFORM REPORT
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Report Date : |
28.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
HANWA CO LTD |
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Registered Office : |
4-3-9 Fushimimachi Chuoku Osaka 541-8585 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
April1947 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Steel Products, Nonferrous Metals,
Foods, Chemicals, Petroleum Products, Machinery, Lumber, other |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 25,416.2 Million |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
name & address
HANWA CO LTD
REGD NAME: Hanwa Kogyo KK
MAIN OFFICE: 4-3-9 Fushimimachi
Chuoku Osaka 541-8585 JAPAN
Tel:
06-6206-3233 Fax: 06-6206-3305
*.. The
given address is its Tokyo Head Office, and the registered and
main office
is as captioned.
E-Mail address:info@hanwa.co.jp
ACTIVITIES
Import, export, wholesale of steel products, nonferrous metals, foods, chemicals, petroleum products, machinery, lumber, other.
BRANCHES
Tokyo, Nagoya, Sendai, Kitakyushu, other
OVERSEAS: N America (6), Asia (22), Europe & Mid East (6)
CHIEF EXEC
SHUJI KITA, PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,507,509 M
PAYMENTS REGULAR CAPITAL Yen 45,651 M
TREND STEADY WORTH Yen 100,926 M
STARTED 1947 EMPLOYES 1,715
COMMENT
TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 25,416.2 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
This is time-honored trading house originating in Osaka specializing in steel products as mainline. Also stresses seafood imports. Advanced into electronics field with OA equipment developed in-house growing fast. Strong and active in China operations, having 11 offices in China. Expanding into general trading house operations from the original steel products business.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 1,507,509 million, a 14.2% up from Yen 1,320,021 million in the previous term. Sales boosted by sky-high resource prices. Steel trading companies pocket a set margin on the wholesale price of steel products sold by steelmakers. When prices of steel products rise so do profits at the steel traders. The recurring profit was posted at Yen 21,267 million and the net profit at Yen 13,117 million, respectively, compared with Yen 19,170 million recurring profit and Yen 11,423 million net profit, respectively, a year ago.
For the current term ending Mar 2009 the recurring profit is projected at Yen 22,900 million and the net profit at Yen 13,900 million, respectively, on a 9.8% rise in turnover, to Yen 1,655,000 million. Hikes in petroleum and other materials will contribute to sales growth.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 25,416.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr 1947
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 570 million shares
Issued: 211,663,200 shares
Sum: Yen 45,651 million
Major shareholders (%)
Japan Trustee Services Bank T (12.4), Master Trust Bank of Japan T (5.7), SMBC (2.7), Nikko Citi Trust, Trust Dept (1.6), Employees’ S/Holding Assn (1.4), Daiichi Life Ins (1.2), Japan Trustee Services T4 (1.0), Gibraltar Life General Stock D (1.0), Morgan Stanley & Co (1.0), Mitsui Sumitomo Ins (0.8); foreign owners (14.7)
No. of shareholders: 14,084
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements
Shuji Kita, pres & CEO; Hiroshige Furukawa, s/mgn dir; Tetsuro Akimoto, s/mgn dir; Yoshifumi Nishi, mgn dir; Takuji Kita, mgn dir; Hideo Kawanishi, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Hanwa Logistics, Hanwa (Hong Kong) Ltd, Halows Co, other
OPERATION
Activities: A trading house for import, export and wholesale of:
(Sales Breakdown by Divisions)
Steel Div (52%): steel bars, shapes, construction materials, wire rods, steel sheets, other; Non-Ferrous Metal Div (13%): aluminum, copper, nickel, chromium, other;
Steel Materials (13%);
Foods Div (4%): prawns, crab, other seafoods;
Petroleum & Chemicals Div (22%): fuels, petrochemicals, other; Other Div (4%): lumber, plywood, logs, building materials, other.
(Overseas sales ratio 17.1%: Asia (China, Thailand, Korea, Singapore) (15.0%), other
region (USA & Germany) (2.1%).
Clients
[Mfrs, wholesalers, general contractors] Obayashi Corp, Takenaka Corp, Shimizu Corp, Sumitomo Metal Ind, Oji Paper Mills, Osaka Uoichiba, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Nippon Steel, Sumitomo Metal Ind, Nisshin Steel, Japan
Energy, Nippon Oil, Kobe Steel, other.
Payment record: Regular
Location
Business area in Osaka. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Bingomachi)
Mizuho Corporate Bank (Osaka)
Relations: Satisfactory
FINANCIALS
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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1,507,509 |
1,320,021 |
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Cost of Sales |
1,456,627 |
1,272,532 |
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GROSS PROFIT |
50,881 |
47,489 |
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Selling & Adm Costs |
27,176 |
26,624 |
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OPERATING PROFIT |
23,704 |
20,864 |
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Non-Operating P/L |
-2,437 |
-1,694 |
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RECURRING PROFIT |
21,267 |
19,170 |
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NET PROFIT |
13,117 |
11,423 |
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BALANCE SHEET |
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Cash |
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14,191 |
10,245 |
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Receivables |
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263,192 |
259,372 |
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Inventory |
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92,982 |
88,220 |
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Securities, Marketable |
3,227 |
20,247 |
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Other Current Assets |
390,772 |
382,271 |
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TOTAL CURRENT ASSETS |
390,772 |
382,271 |
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Property & Equipment |
42,741 |
40,831 |
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Intangibles |
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808 |
701 |
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Investments, Other Fixed Assets |
47,693 |
52,375 |
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TOTAL ASSETS |
482,014 |
476,178 |
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Payables |
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168,287 |
160,429 |
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Short-Term Bank Loans |
49,738 |
43,141 |
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Other Current Liabs |
62,994 |
47,525 |
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TOTAL CURRENT LIABS |
281,019 |
251,095 |
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Debentures |
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10,000 |
10,000 |
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Long-Term Bank Loans |
79,325 |
101,950 |
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Reserve for Retirement Allw |
17,737 |
17,522 |
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Other Debts |
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(6,993) |
(2,643) |
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TOTAL LIABILITIES |
381,088 |
377,924 |
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MINORITY INTERESTS |
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Common
stock |
45,651 |
45,651 |
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Additional
paid-in capital |
4 |
3 |
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Retained
earnings |
51,028 |
40,660 |
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Evaluation
p/l on investments/securities |
5,397 |
11,280 |
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Others |
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(1,024) |
769 |
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Treasury
stock, at cost |
(130) |
(109) |
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TOTAL S/HOLDERS` EQUITY |
100,926 |
98,254 |
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TOTAL EQUITIES |
482,014 |
476,178 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash Flows
from Operating Activities |
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21,430 |
-36,192 |
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Cash
Flows from Investment Activities |
-8,443 |
-5,955 |
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Cash
Flows from Financing Activities |
-9,144 |
34,325 |
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Cash,
Bank Deposits at the Term End |
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14,178 |
10,228 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
100,926 |
98,254 |
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Current
Ratio (%) |
139.06 |
152.24 |
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Net
Worth Ratio (%) |
20.94 |
20.63 |
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Recurring
Profit Ratio (%) |
1.41 |
1.45 |
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Net
Profit Ratio (%) |
0.87 |
0.87 |
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Return
On Equity (%) |
13.00 |
11.63 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.79 |
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UK Pound |
1 |
Rs.85.04 |
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Euro |
1 |
Rs.67.39 |
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%)