MIRA
INFORM REPORT
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Report Date : |
29.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZAOH CO LTD |
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Registered Office : |
1-19-5 Mouri Kotoku Tokyo 135-0001 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
April 1956 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Wholesale of Cleaning/Washing Equipment |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 222.4 Million |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
name & address
ZAOH CO LTD
REGD NAME: Zaoh Sangyo KK
MAIN OFFICE: 1-19-5 Mouri Kotoku
Tokyo 135-0001 JAPAN
Tel:
03-5600-0311 Fax: 03-5600-0516
URL: http://www.zaohnet.co.jp/
E-Mail address: info@zaohnet.co.jp
ACTIVITIES
Import, wholesale of cleaning/washing equipment
BRANCH(ES)
Sapporo, Sendai, Osaka, Yokohama, Shizuoka, Fukuoka, other
(Tot 19)
FACTORY(IES)
(subcontracted overseas)
CHIEF EXEC
TAKAYOSHI HIJIKATA, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 6,874 M
PAYMENTS REGULAR CAPITAL Yen 1,797 M
TREND STEADY WORTH Yen 8,069 M
STARTED 1956 EMPLOYES 195
COMMENT
IMPORTER
OF CLEANING/WASHING EQUIPMENT.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 222.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
This is an independent trading firm specializing in sale of imported cleaning/washing machines & equipment for use in buildings and factories. Specializes in importing floor sweepers, vacuum cleaners, floor washing machines, high-pressure cleaners, steam cleaners, carpet maintenance equipment, other. Goods are subcontracted mfg to overseas factories. Boasts strong earning structure by securing demand in niche market. Financial positions are good. Main customers include building maintenance/leasing companies.
FINANCIAL INFORMATION
The sales
volume for Mar/2007 fiscal term amounted to Yen 6,874 million, an 11% up from
Yen 6,191 million in the previous term.
Stressed on after-sales maintenance business and sales increased. The recurring profit was posted at Yen 1,109
million and the net profit at Yen 592 million, respectively, compared with Yen
1,043 million recurring profit and Yen 643 million net profit, respectively, a
year ago.
(Apr/Dec/2007 results): Sales Yen 4,793 million (down 6.9%), operating profit Yen 608 million (down 23.2%), recurring profit Yen 644 million (20.4%), net profit Yen 339 million (down 17.6%). (%compared with the corresponding period a year ago). Materials & fuel oil prices hikes hit hard with overseas makers requesting for price hikes. Domestic demand could not catch up with the increased price hikes. High-priced boarding cleaning machines were suspended. Demand from industries was seen decreasing.
For the current term ending Mar 2008 the recurring profit is projected at Yen 930 million and the net profit at Yen 510 million, on a 4.7% fall in turnover, to Yen 6,550 million. After reviewing the Apr/Dec/2007 results the firm revised down the forecast from the earlier projections of sales Yen 7,600 million, operating profit Yen 1,180 million, recurring pro9fit Yen 1,200 million, net profit Yen 650 million.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 222.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr 1956
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 22
million shares
Issued: 5,840,000
shares
Sum: Yen
1,797 million
Major shareholders (%)
Kenji Sasaki (25.8), Goldman Sachs International (12.1), Master Trust Bank of Japan (7.4), SMBC (4.7), Mizuho Bank (3.9), Chiba Bank (3.9), Employees’ S/Holding Assn (3.1), Japan Trustee Services T (2.5), Takayoshi Hijikata (2.2), Tokio Marine & Nichido Fire Ins (2.0); foreign owners (12.9).
No. of shareholders: 1,856
Listed on the S/Exchange (s) of
Tokyo (Second Section), listed in May/2007
Managements
Takayoshi Hijikata, pres & CEO, Yuji Takada, mgn dir; Akira Shinohara, mgn dir; Hiroshi Kobayashi, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Etani Sangyo Co
OPERATION
Activities: Imports and wholesales cleaning machines (27%), washing machines (39%) for use in buildings/factories, cleaning/washing chemicals, others (34%).
Machines & equipment are OEM manufactured by overseas factories in USA, Europe, etc.
(Handling Items): floor sweepers, vacuum sweepers, floor washing machines, high-pressure washing machines, steam cleaners, carpet maintenance equipment, cleaning chemicals, other.
Clients
[Mfrs, wholesalers] Hanwa Corp, Komatsu Forklift, Toyota L&F Chubu, Daiichi Sangyo, other.
No. of accounts
500
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Imports from OEM subcontracted makers in
USA, Europe, other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References
SMBC (Kanda)
Chiba Bank (Kinshicho)
Relations: Satisfactory
Financials
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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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6,874 |
6,191 |
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Cost of Sales |
3,197 |
2,788 |
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GROSS PROFIT |
3,676 |
3,403 |
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Selling & Adm Costs |
2,584 |
2,371 |
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OPERATING PROFIT |
1,091 |
1,031 |
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Non-Operating P/L |
17 |
12 |
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RECURRING PROFIT |
1,108 |
1,043 |
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NET PROFIT |
592 |
643 |
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BALANCE SHEET |
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Cash |
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1,328 |
1,525 |
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Receivables |
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2,209 |
2,073 |
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Inventory |
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758 |
574 |
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Securities, Marketable |
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Other Current Assets |
139 |
165 |
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TOTAL CURRENT ASSETS |
4,434 |
4,337 |
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Property & Equipment |
4,831 |
4,579 |
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Intangibles |
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92 |
112 |
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Investments, Other Fixed Assets |
308 |
301 |
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TOTAL ASSETS |
9,665 |
9,329 |
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Payables |
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363 |
282 |
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Short-Term Bank Loans |
100 |
60 |
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Other Current Liabs |
670 |
708 |
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TOTAL CURRENT LIABS |
1,133 |
1,050 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
454 |
452 |
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Other Debts |
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9 |
21 |
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TOTAL LIABILITIES |
1,596 |
1,523 |
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MINORITY INTERESTS |
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Common
stock |
1,797 |
1,797 |
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Additional
paid-in capital |
2,122 |
2,122 |
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Retained
earnings |
6,125 |
5,877 |
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Evaluation
p/l on investments/securities |
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Others |
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(1,974) |
(1,989) |
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Treasury
stock, at cost |
(1) |
(1) |
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TOTAL S/HOLDERS` EQUITY |
8,069 |
7,806 |
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TOTAL EQUITIES |
9,665 |
9,329 |
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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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402 |
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Cash
Flows from Investment Activities |
-329 |
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Cash
Flows from Financing Activities |
-269 |
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Cash,
Bank Deposits at the Term End |
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1,328 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
8,069 |
7,806 |
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Current
Ratio (%) |
391.35 |
413.05 |
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Net
Worth Ratio (%) |
83.49 |
83.67 |
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Recurring
Profit Ratio (%) |
16.12 |
16.85 |
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Net
Profit Ratio (%) |
8.61 |
10.39 |
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Return
On Equity (%) |
7.34 |
8.24 |
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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%)