MIRA
INFORM REPORT
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Report Date : |
28.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
ONWARD HOLDINGS CO LTD |
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Registered Office : |
3-10-5 Nihombashi Chuoku Tokyo 103-8239 |
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Country : |
Japan |
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Financials (as on) : |
28.02.2007 |
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Date of Incorporation : |
September 1947 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Apparel Manufacturer |
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 8,357.3 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
ONWARD HOLDINGS CO LTD (Renamed from Sept/2007)
REGD NAME: KK Onward Kashiyama
MAIN OFFICE: 3-10-5 Nihombashi
Chuoku Tokyo 103-8239 JAPAN
Tel:
03-3272-2312
E-Mail address:info@onward.co.jp
ACTIVITIES
Apparel mfr
BRANCHES
Tokyo (6), Atsugi, Sapporo, Sendai, Nagoya, Osaka (2),
Hiroshima, Fukuoka, Yokohama
OVERSEAS
(Subsidiaries): Onward Kashiyama France SA; GIBo Co Spa (Italy); Onward
Kashiyama USA Inc; Onward Kashiyama UK Ltd; Shanghai Onward Fashion Co Ltd, Onward Fashion Korea Co Ltd; Showa Vietnam Co Ltd;
FACTORY(IES)
(subsidiaries)
CHIEF EXEC
SHIGERU UEMURA, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 287,032 M
PAYMENTS REGULAR CAPITAL Yen 30,079 M
TREND SLOW WORTH Yen 197,635 M
STARTED 1947 EMPLOYES 2,614
COMMENT
APPAREL MFR.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR CREDIT
ENGAGEMENTS: EUROS 100,000.
MAX CREDIT LIMIT
YEN 8,357.3 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 28/02/2009 fiscal term
HIGHLIGHTS
The subject company was established originally in 1927 as importer of sporting goods.. This is the largest company in fashion industry with men’s and women’s suits as mainline. Well-known as “Onward” brand. Handles overseas brands thru subsidiaries. Strong in sales to department stores. Reportedly, the firm will take the British brand Joseph to China. The firm’s Chinese subsidiary will open three shops in department stores in Beijing & Shanghai in the first year. The firm plans to boost shops in China and other Asian markets to 400 in the next three years from around 220 at present. Onward will also actively engage in mergers & acquisitions in Europe. Through these measures, the firm aims to double foreign sales to Yen 100 billion, bringing them close to 30% of total group sales, up from 15% currently.
FINANCIAL INFORMATION
The sales volume for Feb.2008 fiscal term amounted to Yen 287,032 million, a 10% down from Yen 318,690 million in the previous term. Sales of women’s apparel have been sluggish due toweak consumer spending and bad weather, and delayed launches of new brands have also taken a toll. The sale of Impact 21, a licensee mfr of Ralph Lauren brand, to the original owner Polo Ralph Lauren Japan also hurt the sales. The recurring profit was posted at Yen 24,128 million and the net profit at Yen 12,213 million, respectively, compared with Yen 27,407 million recurring profit and Yen 11,438 million net profit, respectively, a year ago.
For the current term ending Feb 2009 the recurring profit is projected at Yen 24,200 million and the net profit at Yen 12,400 million, on a 1.4% rise in turnover, to Yen 291,000 million. Lauren Japan.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 8,357.3 million, on 30 days normal terms.
REGISTRATION
Date Registered: Sept 1947
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 400 million shares
Issued: 172,921,669 shares
Sum: Yen 30,079 million
Major shareholders (%)
Japan Trustee Services Bank T (6.5), Company’s Treadury Stock (6.2), Kashiyama Shogaku Zaidan (5.0), Master Trust Bank of Japan T (4.0), Nippon Life Ins (3.6), Isetan Co (2.8), Daiichi Life Ins (2.4), SMBC (1.6), JB Morgan Chase Bank (1.6), Zenkyoren (1.6); foreign owners (30.5)
No. of shareholders: 6,055
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya
Managements
Takeshi Hirouchi, ch; Shigeru Uemura, pres; Kazuya Baba, v presr; Tsutomu Ohnuma, s/mgn dir; Masaaki Yoshizawa, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Chacott Co Ltd, Oak Co Ltd, other (Tot 52 as of Aug/06)
OPERATION
Activities: Manufactures clothing and other textile products (95%), others (5%).
Clients
[Department stores, chain stores, apparel stores] Takashimaya, Isetan, Seibu
Department Stores, Sogo, Daimaru, Kinki Department Stores, Mitsukoshi, Tenmaya, Tobu Department Stores, other.
No. of accounts
800
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Mitsubishi Corp, Takisada Osaka, Mitsui & Co, Sumikin Bussan Corp, Marubeni Corp, Yagi Corp, Itochu Corp, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Ningyocho)
MUFG (Kyobashi-Chuo)
Relations: Satisfactory
FINANCES
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
29/02/2008 |
28/02/2007 |
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INCOME STATEMENT |
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Annual Sales |
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287,032 |
318,690 |
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Cost of Sales |
156,842 |
175,795 |
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GROSS PROFIT |
130,190 |
142,895 |
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Selling & Adm Costs |
111,562 |
117,464 |
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OPERATING PROFIT |
18,628 |
25,431 |
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Non-Operating P/L |
5,500 |
1,977 |
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RECURRING PROFIT |
24,128 |
27,407 |
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NET PROFIT |
12,213 |
11,438 |
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BALANCE SHEET |
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Cash |
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36,849 |
57,390 |
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Receivables |
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28,323 |
32,307 |
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Inventory |
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33,233 |
37,097 |
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Securities, Marketable |
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Other Current Assets |
14,114 |
8,402 |
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TOTAL CURRENT ASSETS |
112,519 |
135,196 |
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Property & Equipment |
95,008 |
94,850 |
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Intangibles |
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25,943 |
27,094 |
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Investments, Other Fixed Assets |
75,622 |
90,796 |
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TOTAL ASSETS |
309,092 |
347,936 |
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Payables |
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42,074 |
51,692 |
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Short-Term Bank Loans |
25,677 |
26,916 |
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Other Current Liabs |
25,569 |
24,885 |
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TOTAL CURRENT LIABS |
93,320 |
103,493 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
3,638 |
5,223 |
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Other Debts |
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14,495 |
14,082 |
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TOTAL LIABILITIES |
111,453 |
122,798 |
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MINORITY INTERESTS |
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Common
stock |
30,079 |
30,079 |
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Additional
paid-in capital |
50,044 |
50,045 |
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Retained
earnings |
157,015 |
148,953 |
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Evaluation
p/l on investments/securities |
(5,887) |
3,813 |
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Others |
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(10,098) |
8,726 |
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Treasury
stock, at cost |
(23,514) |
(16,478) |
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TOTAL S/HOLDERS` EQUITY |
197,639 |
225,138 |
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TOTAL EQUITIES |
309,092 |
347,936 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
29/02/2008 |
29/02/2007 |
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Cash
Flows from Operating Activities |
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12,503 |
17,362 |
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Cash
Flows from Investment Activities |
-20,610 |
-13,849 |
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Cash
Flows from Financing Activities |
-12,583 |
-5,837 |
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Cash,
Bank Deposits at the Term End |
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36,775 |
364 |
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ANALYTICAL RATIOS Terms
ending: |
29/02/2008 |
28/02/2007 |
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Net Worth
(S/Holders' Equity) |
197,639 |
225,138 |
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Current
Ratio (%) |
120.57 |
130.63 |
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Net
Worth Ratio (%) |
63.94 |
64.71 |
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Recurring
Profit Ratio (%) |
8.41 |
8.60 |
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Net
Profit Ratio (%) |
4.25 |
3.59 |
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Return
On Equity (%) |
6.18 |
5.08 |
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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%)