MIRA
INFORM REPORT
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Report Date : |
12.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
HANITA COATINGS RCA LTD. |
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Registered Office : |
Hanita 22885 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
14.2.1982 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Manufacturers, Marketers and Exporters of a
Complete Line of Aluminum and Chemical Coated Plastic Products |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 1,250,000. |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Correct Name: HANITA
COATINGS RCA LTD.
(Also
known and trading as: HANITA COATLAV COATINGS)
Telephone 972 4 985 99 19
Fax
972 4 985 99 20
HANITA
22885 ISRAEL
HISTORY
Originally established as a limited partnership,
registered as per file No. 55-000616-7 on 14.2.1982, under the name of HANITA
COATLAV - COATINGS.
Converted into an
Agricultural Cooperative Society (ACS) and registered as such as per file No.
57-003863-8, assuming as of 1.1.2005 all assets (besides real estate) and
business activities of HANITA COATLAV – COATINGS, which became a holding
company.
Note:
Subject's official Latin name, as provided to us
by its officials is as in caption: HANITA COATINGS RCA LTD., where RCA stands
for Rural Cooperative Society. This name was advised by
subject's legal counselor (although in all other agricultural cooperative
societies we encountered, the term used is ACS).
OWNERSHIP
1. Kibbutz Hanita, 75%, a cooperative society,
operating a communal agricultural settlement,
2. TENE Fund, 18.5%, a local investment
fund,
3. LEUMI & CO. INVESTMENT HOUSE LTD., 6.25%, of
the BANK LEUMI Group.
In July 2004, the TENE Fund and LEUMI
& CO., local investment companies, signed a deal to acquire 25% of subject’s
shares, for a sum of US$ 8 million.
The deal was finalized in March 2005.
DIRECTORS
1. Shaul Ashkenazi, Chairman,
2.
Sason Fluxman, General Manager,
3.
Ilan Levin,
4.
Sivan Tovim,
5.
Dani Eisenstadt.
BUSINESS
Manufacturers,
marketers and exporters of a complete line of aluminum and chemical coated
plastic products (e.g. stain resistant polyester film, label coating,
multi-layered security films that coat windows, anti static bags used to store
modems and other electronic equipment etc.).
97% of sales are for export.
Subject imports raw materials for production.
Among local
suppliers: GADOT CHEMICALS, JOLIBAR FILMTECHNICS PRODUCTS, etc.
Operating from
premises (offices and a plant, owned by sister company) on an area of 10,000
sq. meters in Kibbutz Hanita (a village in the north of the country, in the
Upper Galilee Region).
Having 145 employees (had 125 employees in mid 2007, 120 employees in the
end of 2006, and 105 employees in 2005).
MEANS
Consolidated B/S
shows:
NIS
(thousands)
31.12.2005 31.12.2006
ASSETS
Current assets:
Cash and cash equivalents 2,028 3,533
Customers 24,862 29,984
Other debtors 7,211 5,258
Related parties in current account - 312
Stock 39,819 46,469
73,920 85,556
Investments, long-term loans 10,970 13,153
Fixed assets (net) 28,662 34,543
Other assets __7,276 __6,593
120,828 139,845
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LIABILITIES
Current liabilities 57,031 49,173
Long term liabilities 25,919 22,352
Equity _37,878 _68,320
120,828 139,845
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Current stock is
valued at NIS 50,000,000 (was NIS 46,000,000 in mid 2007).
According to analysts' reports from March
2007, subject may offer its shares to the public through the Tel Aviv Stock
Exchange in order to raise capital for its expansion plans. The analysts
estimated the company value at US$50 - US$60 million (before the money).
Subject is an
“Approved Enterprise” and as such enjoys tax benefits and state incentives.
In March 1998
Israeli Investment Centre approved a US$ 6 million investment plan for the
expansion of HANITA COATLAV’s plant.
In June 2004,
Israeli Investment Centre approved a further US$ 8.3 million investment plan
for the expansion of the plant.
ANNUAL
SALES
2004 sales were NIS
119,000,000, 97% of which for export.
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2005 2006
Revenues 131,210 155,870
Gross profit 60,174 61,635
Operating income 32,621 29,572
Profit for the year before taxes on income 28,909 28,414
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Note: The bottom line in the above Statement
of Income reflects subject's profit for the year before taxes on income, not
the net profit. This is due to the custom in many of the Kibbutzim
(agricultural cooperative societies), according to which the profits from all
the kibbutz activities and revenues (industrial, services and agriculture) are
gathered under one file for the Tax Authorities and then tax is calculated and
deducted (if need to) on accumulative basis.
2007 sales were NIS 172,650,000, 97% of
which were for export.
OTHER
COMPANIES
HANITA COATLAV
U.S.A., 100%.
ERFLEX ADVANCED COATINGS LTD., 50%, coated copper antennas manufacturing
for the RFID area.
Kibbutz Hanita also controls:
HANITA COATLAV –
COATINGS, a holding partnership, owners of real estate property, namely the
Group’s plant (plot and facilities) on an area of 10,000 sq. meters in Kibbutz
Hanita.
CONTACT LENSES HANITA, optical lenses manufacturers,
TUSH A-TU, furniture painting,
The Kibbutz also operates a pub and a museum.
The TENE FUND is a
local investment company, controlled by Dr. Ariel Halperin, which invests
chiefly in Kibbutz industries. Main institutional investors in TENE are BANK
LEUMI, PHOENIX INSURANCE, MENORAH INSURANCE Group and pension funds. So far it
invested in several plants, with investments between
US$ 5 to US$ 30 million in each. Among other investments are CAESAR-STONE
SDOT-YAM LTD., NETAFIM LTD., EYAL MICROWAVES LTD., BLUE I WATER TECHNOLOGIES
LTD.
BANKERS
Bank Hapoalim Ltd.,
Nahariya Branch (No. 716), Nahariya, account No. 101432 – this is subject's
main account.
A check with the Central Banks’ database did
not reveal negative information on subject’s above mentioned account.
Israel Discount Bank
Ltd., Nahariya Branch (No. 962), Nahariya.
Mizrahi Tefahot Bank
Ltd., Haifa Business Center Branch (No. 444), Haifa.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Kibbutz Hanita, a
locality in Western Galilee, founded in 1938, has 209 members, and a total
population of 500, also cultivating large areas of agricultural land (including
bananas, avocado, citrus fruits and olives), livestock, etc., and operate
countryside guesthouse.
The TENE FUND was established in 2004. In 2005 it raised US$ 25 million
and in September 2006 it was reported that its 2nd fund raised US$
90 million. The Fund is presently completing the raise of capital for its 2nd
fund in volume of
US$ 250 million.
In 1997, subject won
the "Outstanding Exporter" award from the Ministry of Commerce and
Industry.
In 2001, subject won
the award again, following a 34% increase in its exports to France since 1999.
In October 2006 it
was reported that subject's new 50% subsidiary ERFLEX (other 50% owned by
CIDEV), received initial orders for the supply of RFID antennas in volume of
US$ 300,000 for a US client. This comes on top of
US$ 200,000 which has already been ordered by other clients.
SUMMARY
Good for trade engagements.
Maximum unsecured
credit recommended US$ 1,250,000.
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%)