MIRA
INFORM REPORT
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Report Date : |
28.11.2008 |
IDENTIFICATION DETAILS
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Name : |
MELCO HOLDINGS INC |
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Registered Office : |
Kamiya Bldg, 4-11-50 Ohsu Nakaku |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
October 1999 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Holding Company of Buffalo Inc, Manufacturer of PC
Peripheral Equipment |
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 : |
YEN 5,000.5 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
MELCO HOLDINGS INC
REGD NAME: Melco
Holdings KK
MAIN OFFICE: Kamiya
Bldg, 4-11-50 Ohsu Nakaku
Tel: 052-251-6891
Fax: 052-241-7979
E-Mail address: info@melco-hd.jp
ACTIVITIES
Holding
Company of Buffalo Inc, mfr of PC peripheral equipment
BRANCHES
9
domestic; 4 overseas (--subsidiaries)
FACTORY (IES)
(Subcontracted)
CHIEF EXEC
MAKOTO
MAKI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 139,571 M
PAYMENTS REGULAR CAPITAL Yen 1,000 M
TREND STEADY WORTH Yen
29,464 M
STARTED 1999 EMPLOYES 979
COMMENT
HOLDING COMPANY OF BUFFALO INC, MFR OF PC PERIPHERALS.
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN
5,000.5 MILLION, 30 DAYS NORMAL TERMS
Forecast (or estimated)
figures for 31/03/2009 fiscal term
HIGHLIGHTS
This
is a holding company of Melco Group with Buffalo Inc (formerly Melco Inc) as
major subsidiary. Buffalo Inc is a
leading domestic maker of PC peripherals, engaged primarily in memory business,
including expansion DRAMs. Top class
maker of external HDDs. The group has a
total 13 affiliates: 9 domestic & 4 overseas. Overseas affiliates are engaged in mfg,
too. Focusing on wireless LAN servers,
enabling to access from plural PCs, targeting not only from corporate clients
but also from plural individuals. Low
cost tuners for terrestrial digital broadcasting now under way.
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 139,571 million, a 3.7%
up from Yen 134,547 million in the previous term. HDDs increased rapidly on back of market
expansion. New model for terrestrial TV
broadcasting systems buoyant. By
divisions, Memory down 12.1% to Yen 35,850 million, hurt by market price drop
of DRAM, its main item, despite increased volume of shipment; Storage up 19.6% to
Yen 59,168 million as demand for external hard disk rapidly expanded; Network
down 0.1% to Yen 22,982 million. The
recurring profit was posted at Yen 5,439 million and the net profit at Yen
3,615 million, respectively, compared with Yen 5,446 million recurring profit
and Yen 2,728 million net profit, respectively, a year ago.
(Apr/Sept/2008
results): Sales Yen 62,883 million (down 5.9%), operating profit Yen 2,305
million (up 64.0%), recurring profit Yen 2,345 million (up 46.8%), net profit
Yen 1,230 million (up 33.2%). (%
compared with the corresponding period a year ago). Unit prices of storage fell rapidly, faster
than expected. Growth in sales volume of
mainline memories in first half and drop in parts material prices contributed
to profit growth. Distribution inventory
adjustment is gone.
For
the current term ending Mar 2009 the recurring profit is projected at Yen 5,000
million and the net profit at Yen 2,700 million, on a 0.3% rise in turnover, to
Yen 140,000 million. The firm revised
earnings forecast to above from the earlier projections of: sales Yen 150,000
million, recurring profit Yen 6,900 million and net profit Yen 4,000 million,
due to events which occurred after announcement of previous forecast, says the
firm
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,000.5 million, on 30 days normal terms.
REGISTRATION
Date Registered:
Oct 1999
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 97 million shares
Issued:
23,125,773 shares
Sum: Yen 1,000 million
Major shareholders (%)
Makis Holding BV (38.2),
Japan Trustee Services T (6.1), Makoto Maki (4.8), Nomura Trust, Trust Acct
(3.2), Zenkyoren (3.2), Bank of Nagoya (2.9), Trust & Custody Services (2.7),
MELCO Foundation (2.1), Master Trust Bank of Japan T (1.8), Nikko Citi Trust
(1.6); foreign owners (42.9)
No. of shareholders: 9,905
Listed on the S/Exchange (s) of:
Managements
Makoto Maki, pres & CEO;
Kuniaki Saiki, s/mgn dir; Hidetoshi Yamaguchi, dir; Tamio Matsuo, dir; Hiromi
Maki, dir; Iwao Tsusaka, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies
Buffalo Inc, other
OPERATION
Activities: Manufactures PC peripherals:
(Sales Breakdown by Divisions):
Memory Div (26%): memory modules, USB flash memory, micro
SD card;
Storage Div (42%): external hard drive, portable hard
drive, network storage;
Network/Broadband Div (16%): wireless networking broadband
router, wireless networking adapter, switch hub;
Others (15%): PC mouse, LCD, one segment tuner.
Overseas Sales Ratio (18.8%): Asia/Oceania 3.4%, N Americas
6.7%,
Clients
[Mfrs, wholesalers] Buffalo Inc, Buffalo
Logistics Inc, other, for nationwide distribution
No. of
accounts: 1,000 (thru
Domestic
areas of activities: Nationwide
Suppliers
Mfrs,
wholesalers, other
Payment record:
Regular
Location:
Business area in
Bank References
MUFG (
Bank
of
Relations:
Satisfactory
FINANCES: (In Million Yen)
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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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139,571 |
134,547 |
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Cost of Sales |
117,646 |
116,369 |
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GROSS PROFIT |
21,925 |
18,177 |
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Selling & Adm Costs |
16,693 |
13,029 |
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OPERATING PROFIT |
5,232 |
5,148 |
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Non-Operating P/L |
207 |
298 |
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RECURRING PROFIT |
5,439 |
5,446 |
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NET PROFIT |
3,615 |
2,728 |
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BALANCE SHEET |
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Cash |
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12,438 |
7,979 |
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Receivables |
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24,529 |
30,418 |
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Inventory |
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11,002 |
10,728 |
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Securities, Marketable |
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Other Current Assets |
4,071 |
6,370 |
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TOTAL CURRENT ASSETS |
52,040 |
55,495 |
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Property & Equipment |
1,846 |
1,796 |
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Intangibles |
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2,204 |
502 |
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Investments, Other Fixed Assets |
1,676 |
4,782 |
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TOTAL ASSETS |
57,766 |
62,575 |
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Payables |
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19,087 |
26,843 |
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Short-Term Bank Loans |
93 |
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Other Current Liabs |
6,388 |
7,702 |
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TOTAL CURRENT LIABS |
25,568 |
34,545 |
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Debentures |
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Long-Term Bank Loans |
45 |
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Reserve for Retirement Allw |
1,033 |
948 |
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Other Debts |
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1,655 |
119 |
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TOTAL LIABILITIES |
28,301 |
35,612 |
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MINORITY INTERESTS |
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Common
stock |
1,000 |
1,000 |
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Additional
paid-in capital |
1,927 |
1,927 |
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Retained
earnings |
26,881 |
23,959 |
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Evaluation
p/l on investments/securities |
275 |
259 |
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Others |
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18 |
(162) |
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Treasury
stock, at cost |
(637) |
(21) |
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TOTAL S/HOLDERS` EQUITY |
29,464 |
26,962 |
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TOTAL EQUITIES |
57,766 |
62,575 |
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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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3,520 |
1,379 |
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Cash
Flows from Investment Activities |
2,072 |
-710 |
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Cash Flows
from Financing Activities |
-1,114 |
-2,993 |
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Cash,
Bank Deposits at the Term End |
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12,428 |
7,979 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
29,464 |
26,962 |
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Current
Ratio (%) |
203.54 |
160.65 |
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Net
Worth Ratio (%) |
51.01 |
43.09 |
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Recurring
Profit Ratio (%) |
3.90 |
4.05 |
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Net
Profit Ratio (%) |
2.59 |
2.03 |
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Return
On Equity (%) |
12.27 |
10.12 |
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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.49.84 |
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1 |
Rs.76.81 |
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Euro |
1 |
Rs.64.38 |
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%)