MIRA
INFORM REPORT
|
Report Date : |
28.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HAGOROMO FOODS CORPORATION |
|
|
|
|
Registered Office : |
151 Shimazakicho Shimizuku Shizuoka 434-8750 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31/03/2007 |
|
|
|
|
Date of Incorporation : |
Jul 1947 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturing of canned tuna &
bonito, pasta sauce, other foods |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Yen 2,043.6 Million |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
name
HAGOROMO FOODS CORPORATION
REGD NAME
Hagoromo Foods KK
MAIN OFFICE
151 Shimazakicho Shimizuku Shizuoka 434-8750 JAPAN
Tel: 054-354-5000
URL: http://www.hagoromofoods.co.jp/
E-Mail address: info@hagoromofoods.co.jp
ACTIVITIES
Mfg of canned tuna & bonito, pasta sauce, other foods
BRANCH(ES)
Tokyo Osaka, Nagoya; 36 sales offices across Japan
OVERSEAS
Bangkok, London
FACTORY(IES)
At the caption address, Yaizu (2), Himeji
PT Aneka Tuna Indonesia (subsidiary factory)
CHIEF EXEC
YASUHIRO MIZOGUCHI, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 78,401 M
PAYMENTS REGULAR CAPITAL Yen 1,441 M
TREND STEADY WORTH Yen 21,819 M
STARTED 1947 EMPLOYES 893
COMMENT
MFR
SPECIALIZING IN CANNED TUNA, OTHER FOODS. FINANCIAL SITUATION COSIDERED FAIR
AND GOOD FOR CREDIT ENGAGEMENTS: US$100,000 / D/P SIGHT
MAX CREDIT LIMIT
YEN 2,043.6 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
This is a top-ranked mfr of canned tuna and bonito. Also makes diverse lines of canned foods including fruits, pasta, pasta sauce and pet food. Has 36 sales office across the country. Operates JV mfr in Indonesia for mfg canned tuna & bonito. Has stake in fish processing firm Thai Union Frozen Products. Also manufactures commercial-use foods.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 79,401 million, a 3.1% fall from Yen 81,905 million in the previous term. Hike in fish material prices hurt the sales as could not immediately passed the increase on to consumers. Also weaker Yen adversely affected to raise sales in Yen terms. Canned tuna itself was down 6.8% to Yen 34,509 million. The recurring profit was posted at Yen 456 million and the net losses at Yen 151 million, respectively, compared with Yen 1,625 million recurring profit and Yen 1,209 million net profit, respectively, a year ago. Rising costs of materials and fuel oil prices ate into profits.
(Apr/Dec/2007 results): Sales Yen 63,085 million (up 0.8%), operating profit Yen 116 million (down 63.6%), recurring profit Yen 89 million (down 17.7%), net profit Yen 639 million (up 2.0%). (% compared with the corresponding period last term). Succeeded in raising food prices to bring the sales at normal levels. Profitability continued worsening due to the material price hikes. Net profits improved due to the decreased corporate taxes.
For the current term ending Mar 2008 the recurring profit is projected at Yen 850 million and the net profit at Yen 800 million, on a 0.4% rise in turnover, to Yen 79,700 million. Benefits will emerge from closure of Shimizu plant and production cost cuts thru integrated production at Yaizu plant. Selecting variety of tuna used in mainline canned tuna depending on prices of 3 fish types, including yellow fin tuna.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 2,043.6 million, on 30 days normal terms. The proposed amount is considered well within the firm’s financial capabilities.
REGISTRATION
Date Registered: Jul
1947
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 82.6
million shares
Issued: 20,650,731
shares
Sum: Yen
1,441 million
Major shareholders (%)
Hagoromo Kyoiku Kenkyu Shoreikai (42.5), Isokichi Goto (8.0), Yasuo Goto (6.2), Hagoromo Koshokai (3.7), Shizuoka Bank (2.6), Norin Chukin Bank (2.8), Employees’ S/Holding Assn (1.7), Kiyoo Goto (1.7), Enomoto Buhei Shoten (1.4), Kiuchi Construction (1.1); foreign owners (0.2).
No. of shareholders
2,393
Listed on the S/Exchange (s) of
Tokyo (Second Section)
Managements
Yasuo Goto, ch & CEO; Yasuhiro Mizoguchi, pres & COO; Kiyoo Goto, s/mgn dir; Koichi Sakami, mgn dir; Akiyoshi Ishigami, mgn dir; Michitaka Ohki, dir; Harutsugu Kato, dir; Takahiko Yoshioka, dir; Etsuo Matsumura, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: Central Logistics Corporation, PT Aneka
Tuna Indonesia, Maruai Corp. (Tot 3)
OPERATION
Activities: Manufactures canned tuna & bonito, other fishes (43%), desserts (7%), spaghetti, macaroni, pasta sauce (8%), delicatessen (9%), shavings of dried bonitos, laver & flavoring mixes, fish extracts, fish oils, fish meal (8%), retort pouch rice, others (7%), commercial-use foods (14%), pet foods & others (4%)..
Clients
[Food mfrs, wholesalers] Mitsui & Co, Mitsubishi Corp,
Itochu Corp, other
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Itochu Corp, Daiwa Can Co, Sanyo Foods,
other
Payment record
Regular
Location
Business
area in Shizuoka City. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References
Shizuoka Bank (Shimizu)
Norin Chukin Bank (Nagoya)
Relations: Satisfactory
Financials
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2007 |
31/03/2006 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
79,401 |
81,905 |
||
|
|
Cost of Sales |
53,922 |
54,093 |
|||
|
|
GROSS PROFIT |
25,478 |
27,812 |
|||
|
|
Selling & Adm Costs |
25,987 |
27,201 |
|||
|
|
OPERATING PROFIT |
-509 |
610 |
|||
|
|
Non-Operating P/L |
965 |
1,015 |
|||
|
|
RECURRING PROFIT |
456 |
1,625 |
|||
|
|
NET PROFIT |
-151 |
1,209 |
|||
|
BALANCE SHEET
|
|
|
|
|||
|
|
Cash |
|
1,688 |
2,841 |
||
|
|
Receivables |
|
14,239 |
13,874 |
||
|
|
Inventory |
|
9,219 |
9,399 |
||
|
|
Securities, Marketable |
|
|
|||
|
|
Other Current Assets |
2,098 |
2,060 |
|||
|
|
TOTAL CURRENT ASSETS |
27,244 |
28,174 |
|||
|
|
Property & Equipment |
11,258 |
11,999 |
|||
|
|
Intangibles |
|
343 |
332 |
||
|
|
Investments, Other Fixed Assets |
9,131 |
9,253 |
|||
|
|
TOTAL ASSETS |
47,976 |
49,758 |
|||
|
|
Payables |
|
12,706 |
12,762 |
||
|
|
Short-Term Bank Loans |
2,330 |
1,660 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
5,310 |
4,900 |
|||
|
|
TOTAL CURRENT LIABS |
20,346 |
19,322 |
|||
|
|
Debentures |
|
|
500 |
||
|
|
Long-Term Bank Loans |
1,200 |
2,330 |
|||
|
|
Reserve for Retirement Allw |
1,115 |
1,087 |
|||
|
|
Other Debts |
|
3,496 |
4,080 |
||
|
|
TOTAL LIABILITIES |
26,157 |
27,319 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
1,441 |
1,441 |
|||
|
|
Additional
paid-in capital |
942 |
942 |
|||
|
|
Retained
earnings |
16,384 |
16,992 |
|||
|
|
Evaluation
p/l on investments/securities |
3,440 |
3,489 |
|||
|
|
Others |
|
(270) |
(307) |
||
|
|
Treasury
stock, at cost |
(118) |
(118) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
21,819 |
22,439 |
|||
|
|
TOTAL EQUITIES |
47,976 |
49,758 |
|||
|
CONSOLIDATED CASH FLOWS
|
|
|
||||
|
|
|
Terms ending: |
31/03/2007 |
31/03/2006 |
||
|
|
Cash Flows
from Operating Activities |
|
261 |
-2,015 |
||
|
|
Cash
Flows from Investment Activities |
-520 |
-2,439 |
|||
|
|
Cash
Flows from Financing Activities |
-870 |
2,078 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
1,688 |
2,817 |
||
|
ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
21,819 |
22,439 |
||
|
|
|
Current
Ratio (%) |
133.90 |
145.81 |
||
|
|
|
Net
Worth Ratio (%) |
45.48 |
45.10 |
||
|
|
|
Recurring
Profit Ratio (%) |
0.57 |
1.98 |
||
|
|
|
Net
Profit Ratio (%) |
-0.19 |
1.48 |
||
|
|
|
Return
On Equity (%) |
-0.69 |
5.39 |
||
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)