MIRA INFORM REPORT

 

 

Report Date :

03.07.2013

 

IDENTIFICATION DETAILS

 

Name :

OKAYA & CO LTD

 

 

Registered Office :

2-4-18 Sakae Nakaku Nagoya 460-866

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2013

 

 

Date of Incorporation :

April, 1937

 

 

Com. Reg. No.:

1800-01-034964

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of steel, machinery, electronics, chemicals, tools, other

 

 

No. of Employees :

4,745

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

COMPANY NAME

 

OKAYA & CO LTD

 

 

REGD NAME:   

 

Okaya Koki KK

 

 

MAIN OFFICE: 

 

2-4-18 Sakae Nakaku Nagoya 460-866 JAPAN

Tel: 052-204-8121    

Fax: 052-204-8385

 

URL:                 Error! Hyperlink reference not valid.

E-Mail address: kikku@okaya.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of steel, machinery, electronics, chemicals, tools, other

 

 

BRANCHES

 

Tokyo, Osaka, Fukuoka, Niigata, Shizuoka, Hiroshima, other (Tot 64)

 

 

OVERSEAS     

 

USA (6), Thailand (10), Philippines (3), China (15), Vietnam (3), Indonesia, India, Korea, other

 

CHIEF EXEC

 

TOKUICHI OKAYA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 692,096 M

PAYMENTS                  REGULAR         CAPITAL           Yen 9,128 M

TREND             STEADY           WORTH            Yen 110,246 M

STARTED                     1937                 EMPLOYES      4,745

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS.FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 16,384.4 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Notes: Unit: In Million Yen

Forecast (or estimated) figures for 28/02/2014 fiscal term

 

 

HIGHLIGHTS

 

A time-honored special trading firm dating back to 1669 when Sosuke Okaya started his own firm as a hardware dealership at the caption address, Nagoya, and has been succeeded by his descendants.  Incorporated in 1937 and renamed as captioned in 1943.  Tokuichi assumed the post of pres in 1990.  This is a specialized trading house highly dependant on steel, special steel, and business linked to auto and construction industries.  Excels in transactions with power and gas utilities and public agencies.  Has a strong business connection with Toyota Motor.  Strengthening operations in China.  Actively advancing into food industry, too.  The firm plans to establish a subsidiary in Indonesia aimed at supplying machine tools to local Japanese mfrs.  The cutting & processing joint venture for construction machinery and automobile in Suzhou, China, started in May 2011.  The company will invest Yen 1 billion in expansion of the automobile parts production plant in Thailand, boosting annual sales 50% from the present level to Yen 50 billion.  Operations at the specialty steel-processing firm in Dalian, China were brought forward to December 2012. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2013 fiscal term amounted to Yen 692,096 million, a 1.8% up from Yen 680,040 million in the previous term.  Sales of steel for automobiles made steady growth in USA & S/E Asia, and domestic sales also recovered.  By divisions, Steel down 2.2% to Yen 285,966 million; Information & Electrical Equipment 3.8% to Yen 146,890 million; Industrial Materials up 13.2% to Yen 197,037 million.  The recurring profit was posted at Yen 113,408 million and the net profit at Yen 8,731 million, respectively, compared with Yen 11,210 million recurring profit and Yen 8,483 million net profit, respectively, a year ago. 

 

(Mar/May/2013 results): sales Yen 182,903 million (down 1.4%), operating profit Yen 3,411 million (down 0.8%), recurring profit Yen 3,594 million (down 5.6&), net profit Yen 1,931 million (down 20.4%).  (% compared with the corresponding period a year ago).

 

For the current term ending Feb 2014 the recurring profit is projected at Yen 15,000 million and the net profit at Yen 9,000 million, respectively, on an 8.4% rise in turnover, to Yen 750,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 16,384.4 million, on 30 days normal terms. 

 

 

REGISTRATION

           

Date Registered:           Apr 1937

Regd No.:                                 1800-01-034964 (Nagoya-Nakaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                   177,856,000 shares

Issued:                         48,600,000 shares

Sum:                            Yen 9,128 million

           

Major shareholders (%): Okaya Estate (12.4), Tokuichi Okaya (4.9), MUFG (4.7), Nippon Steel (4.3), Chuo Mitsui Trust Bank (4.1), Resona Bank (2.7), Nipponkoa Ins (2.7), Employees’ S/Holding Assn (1.7), Okuma Corp (1.5), Shinshokai Foundation (1.4); foreign   owners (0.1)

 

No. of shareholders: 3,210

 

Listed on the S/Exchange (s) of: Nagoya

 

Managements: Tokuichi Okaya, pres & CEO, Kokichi Kawamatsu, s/mgn dir; Tadahiko Katsuta, s/mgn dir; Shuji Ninomiya, mgn dir; Noriaki Baba, mgn dir; Yutaka Inao, mgn dir; Takehiro Okaya, mgn dir; Masaaki Takizawa, dir; Shin’ichi Watanabe, dir; Seiichi Hattori, dir; Kenji Iwata, dir

 

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

 

Related companies: Okaya USA Inc, Tokai Press Ind, Chubu Gosei Jushi Kogyo, other

 

 

OPERATION

 

Activities: Imports, exports and wholesales steel products & machinery:

 

(Sales breakdown by divisions);

 

Steel Div (41.3%): steel plates, tubes, bars, H-section steel, steel alloys, stainless steel, etc;       

Information & electrical equipment Div (21.2%): electrical parts & components, aluminum materials, semiconductors, software, A/V equipment, etc;

Industrial materials Div (28.5%): machine tools, industrial robots, auto parts & components, plastic materials, semiconductor & electronics equipment & facilities, etc;

Lifestyle area Div (9.0%): housing equipment, pipe fittings & materials, livestock products,            marine products, sale of housing & condominiums, etc;

Overseas Sales Ratio (20%)

 

Clients: [Mfrs, public agencies] Tokyo Gas, Tokyo-Metrop Office, Toyota Motor, Takara                  Kotsu, Nichirei Fresh, Suzuki Motor Corp, Nichicon Corp, other.

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

Suppliers: [Steel mills, wholesalers] JFE Steel, Nippon Steel, JFE Engineering Corp,Mitsubishi Electric, Daido Nachi-Fujikoshi Corp, Daido Special Steel, other.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Nagoya)

Chuo Mitsui Trust Bank (Nagoya)

Relations: Satisfactory

 

 

FINANCES (In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

28/02/2013

29/02/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

692,096

680,040

 

  Cost of Sales

646,454

636,702

 

      GROSS PROFIT

45,642

43,337

 

  Selling & Adm Costs

34,237

33,802

 

      OPERATING PROFIT

11,404

9,534

 

  Non-Operating P/L

2,004

1,676

 

      RECURRING PROFIT

13,408

11,210

　

      NET PROFIT

8,731

8,483

BALANCE SHEET

 

 

 

 

  Cash

　

10,628

8,267

 

  Receivables

 

159,627

171,260

 

  Inventory

 

39,257

30,972

 

  Securities, Marketable

　

　

 

  Other Current Assets

11,233

20,111

 

      TOTAL CURRENT ASSETS

220,745

230,610

 

  Property & Equipment

40,252

40,091

 

  Intangibles

 

976

830

 

  Investments, Other Fixed Assets

100,510

86,129

 

      TOTAL ASSETS

362,483

357,660

 

  Payables

 

93,531

103,980

 

  Short-Term Bank Loans

102,341

108,042

 

　

 

　

　

 

  Other Current Liabs

13,912

12,796

 

      TOTAL CURRENT LIABS

209,784

224,818

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

17,018

19,623

 

  Reserve for Retirement Allw

1,961

1,986

 

  Other Debts

　

23,474

19,031

 

      TOTAL LIABILITIES

252,237

265,458

 

      MINORITY INTERESTS

 

 

 

Common stock

9,128

9,128

 

Additional paid-in capital

7,798

7,798

 

Retained earnings

60,036

52,461

 

Evaluation p/l on investments/securities

29,756

21,859

 

Others

 

3,974

1,401

 

Treasury stock, at cost

(446)

(446)

 

      TOTAL S/HOLDERS` EQUITY

110,246

92,201

　

      TOTAL EQUITIES

362,483

357,660

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

28/02/2013

28/02/2012

 

Cash Flows from Operating Activities

　

16,104

1,733

 

Cash Flows from Investment Activities

-3,346

-3,753

 

Cash Flows from Financing Activities

-12,260

2,633

　

Cash, Bank Deposits at the Term End

　

8,307

6,985

ANALYTICAL RATIOS            Terms ending:

28/02/2013

29/02/2012

 

 

Net Worth (S/Holders' Equity)

110,246

92,201

 

 

Current Ratio (%)

105.22

102.58

 

 

Net Worth Ratio (%)

30.41

25.78

 

 

Recurring Profit Ratio (%)

1.94

1.65

 

 

Net Profit Ratio (%)

1.26

1.25

 

 

Return On Equity (%)

7.92

9.20

 

 

           


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.