MIRA INFORM REPORT

 

 

Report Date :

19.11.2012

 

IDENTIFICATION DETAILS

 

Name :

HANWA CO LTD

 

 

Registered Office :

4-3-9 Fushimimachi Chuoku Osaka 541-8585

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

April 1947

 

 

Com. Reg. No.:

1200-01-077530 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of steel products, nonferrous metals, foods, chemicals, petroleum products, machinery, lumber, other.

 

 

No. of Employees :

2,217

 

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

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

--

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

 

Source : CIA

 

 

 

Company name

 

HANWA CO LTD

 

 

REGD NAME 

 

Hanwa Kogyo KK

 

 

MAIN OFFICE

 

4-3-9 Fushimimachi Chuoku Osaka 541-8585 JAPAN

Tel: 06-6206-3233    

Fax: 06-6206-3305

 

*.. The

ACTIVITIES

 

Import, export, wholesale of steel products, nonferrous metals, foods, chemicals, petroleum products, machinery, lumber, other.

 

 

BRANCHES   

 

Tokyo, Nagoya, Sendai, Kitakyushu, Sapporo, Sendai, Fukuoka, other (Tot 12)

 

 

OVERSEAS   

 

N America (6), Asia (13), China (10), Europe & Mid East (8)

 

 

CHIEF EXEC 

 

HIRONARI FURUKAWA, PRES & CEO

 

Yen Amount    

 

In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 1,396,103 M

PAYMENTS      REGULAR         CAPITAL           Yen 45,651 M

TREND SLOW              WORTH            Yen 110,458 M

STARTED         1947                 EMPLOYES      2,217

 

 

COMMENT

           

TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

 

Forecast (or estimated) figures for 31/03/2012 fiscal term

 

 

HIGHLIGHTS

 

This is a time-honored trading house originating in Osaka specializing in steel products as mainline.  Aiming to become general trading firm by boosting seafood imports.  Advanced into electronics field.  OA equipment developed in-house is growing rapidly.  Strong and active in China operations, having 9 offices in China.  Expanding into general trading house operations from the original steel products business.  Coil center in San Diego (US), acquired in Sept 2009, expanding sales of products for microwave ovens and flat-screen, TVs in Mexico, thanks to customs-free advantage.  In China, developing new markets thru units in inland provinces, including Chorigging.  In Apr 2008, established Hanwa India Private Ltd in Mumbai, with office in New Delhi to focus in automobiles, shipbuilding, gas & petroleum, energy markets in India. . It will increase steel materials in Thailand 50% by Sept 2011 in view of continued sales growth, and plans sales expansion for the automobile and consumer electronics.  The company plans to upgrade the Beijing office to a subsidiary and develop sales activities.  It acquired Osaka-based Subaru Steel, aiming at developing multi-variety, small-lot, short lead-time business.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 1,396,103 million, a 25.0% up from Yen 1,116,628 million in the previous term.  Transportation volume increased, because the operational status of users had improved.  Orders for plywood and construction materials doubled in Mar from Feb as affected by the North Japan Earthquake and are still climbing, as the surge in demand continues to outpace shipments.  The quake & tsunami affected at least five plywood factories in eastern Japan, including facilities operated by Tokyo-based Seihoku Corp.  Hanwa responded to the shortage of materials by expanding Malaysian plywood imports.  The recurring profit was posted at Yen 13,490 million and the net profit at Yen 5,793 million, respectively, compared with Yen 9,412 million recurring profit and Yen 11,579 million net profit, respectively, a year ago. 

 

(Apr/Dec/2011 results): Sales Yen 1,172,635 million (up 15.8%), operating profit Yen 12,634 million (up 37.1%), recurring profit Yen 11,608 million (up 16.8%), net profit Yen 2,491 million (down 53.8%).  (% compared with the corresponding period a year ago).  Sales of steel, petroleum and chemicals were solid and expanded.

 

For the term that ended Mar 2012 the recurring profit was projected at Yen 15,000 million and the net profit at Yen 5,000 million, respectively, on a 6.4% rise in turnover, to Yen 1,485,000 million.  The firm revised its forecast for net profits to Yen 5,000 million from the previous forecast of Yen 9,000 million, due to impairment losses on investment securities as of Dec 31, 2011.  Other figures remain unchanged.  Power generation-use petroleum sales are rising steadily.  Operating profit will grow.  Sales to emerging nations will grow.  Steel prices should rise, reflecting soaring material steel prices.  Fish demand will be solid. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:            Apr 1947

Regd No.:                      1200-01-077530 (Osaka-Chuoku)

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    570 million shares

Issued:                          211,663,200 shares

Sum:                            Yen 45,651 million

           

Major shareholders (%): Japan Trustee Services T (8.5), Master Trust Bank of Japan T (4.9), SMBC (3.6), Customers’ S/Holding Assn (2.5), Japan Trustee Services T9 (2.2), Employees’ S/Holding Assn (2.1), Company’s Treasury Stock (2.0), Trust & Custody Services Inv T (2.0), BBH for Fidelity Low Price Stock (1.6), Chase London SL Omnibus Acct (1.6); foreign owners (17.0)

           

No. of shareholders: 12,238

 

Listed on the S/Exchange (s) of: Tokyo, Osaka

 

Managements: Shuji Kita, ch; Hironari Furukawa, pres; Tetsuro Akimoto, s/mgn dir; Yoshifumi Nishi, mgn dir; Takuji Kita, mgn dir; Hideo Kawanishi, mgn dir; Hiroshi Serizawa, mgn dir; Hiroshi Ebihara, mgn dir; Akihiko Ogasawara, mgn dir; Osamu Seki, dir; Kazuhisa Majime, dir; Masataka Toyoda, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Hanwa Logistics, Hanwa (Hong Kong) Ltd, Halows Co, other

           

 

OPERATION

 

Activities: A trading house for import, export and wholesale of:

 

(Sales Breakdown by Divisions)

 

Steel Div (48%): steel bars, shapes, construction materials, wire rods, steel sheets, other;  Steel Materials Div (9%); forged iron, cast iron, special steel wires, screws;

Non-Ferrous Metal Div (4%): aluminum, copper, nickel, chromium, other;

Foods Div (6%): prawns, crab, other seafoods;

Petroleum & Chemicals Div (26%): fuels, petrochemicals, other;

Other Div (7%): lumber, plywood, logs, building materials, other.

Overseas sales ratio (25.3%): Asia (China, Thailand, Korea, Singapore) (22.7%), other

Region (USA & Germany) (2.6%).

 

Clients: [Mfrs, wholesalers, general contractors] Obayashi Corp, Takenaka Corp, Shimizu Corp, Sumitomo Metal Ind, Oji Paper Mills, Osaka Uoichiba, NYK Lines, K Lines, Daewoo Shipbuilding & Marine Engineering, Seojoo Global Corporation, Mitsui-OSK Lines, Nippon Metal Ind, Idemitsu Kosan, other.   No. of accounts: 1,000   Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nippon Steel, Sumitomo Metal Ind, Nisshin Steel, Japan

Energy, Nippon Oil, Kobe Steel, JFE Steel, China Marine Bunker, Yamato Steel, Nisshin Steel, Kobe Steel, Nakayama Steel Works, Double Rich Ltd, Aegean Marine Petroleum, other.

Imports from; USA, Canada, Chile, Finland, Sweden, Norway, Russia, China, Indonesia, other

 

Payment record: Regular

 

Location: Business area in Osaka.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

 

SMBC (Tokyo-Chuo)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,396,103

1,116,628

 

  Cost of Sales

1,352,359

1,076,039

 

      GROSS PROFIT

43,744

40,589

 

  Selling & Adm Costs

29,890

29,169

 

      OPERATING PROFIT

13,853

11,420

 

  Non-Operating P/L

-363

-2,008

 

      RECURRING PROFIT

13,490

9,412

　

      NET PROFIT

5,793

11,579

BALANCE SHEET

 

 

 

 

  Cash

　

20,707

24,669

 

  Receivables

 

274,348

214,416

 

  Inventory

 

101,350

72,352

 

  Securities, Marketable

　

　

 

  Other Current Assets

26,799

21,729

 

      TOTAL CURRENT ASSETS

423,204

333,166

 

  Property & Equipment

47,041

46,299

 

  Intangibles

 

684

753

 

  Investments, Other Fixed Assets

61,868

63,226

 

      TOTAL ASSETS

532,797

443,444

 

  Payables

 

156,546

134,800

 

  Short-Term Bank Loans

90,942

49,725

 

　

 

　

　

 

  Other Current Liabs

40,585

30,564

 

      TOTAL CURRENT LIABS

288,073

215,089

 

  Debentures

 

10,000

　

 

  Long-Term Bank Loans

115,075

114,355

 

  Reserve for Retirement Allw

133

18

 

  Other Debts

　

9,057

7,127

 

      TOTAL LIABILITIES

422,338

336,589

 

      MINORITY INTERESTS

 

 

 

Common stock

45,651

45,651

 

Additional paid-in capital

4

4

 

Retained earnings

67,608

64,301

 

Evaluation p/l on investments/securities

952

889

 

Others

 

(2,334)

(2,575)

 

Treasury stock, at cost

(1,423)

(1,415)

 

      TOTAL S/HOLDERS` EQUITY

110,458

106,855

　

      TOTAL EQUITIES

532,797

443,444

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

-46,948

46,250

 

Cash Flows from Investment Activities

-7,610

-12,991

 

Cash Flows from Financing Activities

51,271

-43,669

　

Cash, Bank Deposits at the Term End

　

20,586

24,514

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

110,458

106,855

 

 

Current Ratio (%)

146.91

154.90

 

 

Net Worth Ratio (%)

20.73

24.10

 

 

Recurring Profit Ratio (%)

0.97

0.84

 

 

Net Profit Ratio (%)

0.41

1.04

 

 

Return On Equity (%)

5.24

10.84

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.99

UK Pound

1

Rs.87.21

Euro

1

Rs.70.22

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

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

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

----

NB

New Business

----

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.