MIRA INFORM REPORT

 

 

Report Date :

07.04.2014  

 

IDENTIFICATION DETAILS

 

Name :

HIBINO CORPORATION

 

 

Registered Office :

3-5-14 Konan Minatoku Tokyo 108-0075

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

November 1964

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of professional audiovisual equipment & systems

 

 

No. of Employees

649

 

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 :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

 

Source : CIA


Company name and address

 

HIBINO CORPORATION

 

REGD NAME:   Hibino KK

MAIN OFFICE:  3-5-14 Konan Minatoku Tokyo 108-0075 JAPAN

Tel: 03-3740-4391     Fax: 03-3740-4390

 

URL:                 http://www.hibino.co.jp/

E-Mail address:            info@hibino.co.jp

 

 

ACTIVITIES

 

Import, wholesale of professional audiovisual equipment & systems

 

 

BRANCHES   

 

Tokyo (2), Suita (Osaka), Sapporo, Nagoya, Fukuoka, other (Tot 8)

 

 

CHIEF EXEC

 

TERUHISA HIBINO, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 15,161 M

PAYMENTSREGULAR   CAPITAL           Yen 1,721 M

TREND STEADY           WORTH            Yen 4,049 M

STARTED         1984                 EMPLOYES      649

 

 

COMMENT

 

IMPORTER AND WHOLESALER SPECIALIZING IN PROFESSIONAL AUDIOVISUAL SYSTEMS

&EQUIPMENT. 

FINANCIAL SITUATION CONSIDRED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

14,207

-322

-150

(%)

4,693

(Consolidated)

31/03/2011

13,288

-175

-313

-6.47

4,121

 

31/03/2012

14,121

430

-13

6.27

3,903

 

31/03/2013

15,161

577

257

7.36

4,049

 

31/03/2014

17,000

1,000

550

12.13

..

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1956 by Hiroaki Hibino, on his account, for repairing TV sets and related apparatus.  Teruhisa is his son.  Incorporated in 1964, advanced into import and wholesale of professional audiovisual equipment & systems, followed by later development of designing, planning, installation, operations of various trade events, converts, etc, offering rental of the related equipment.  Has a strong foothold in the convert and trade events operating fields.  Strength in import and sale of the equipment & systems from Europe, USA, other.  Operates 6 independent intra-company Divisions: Hibino pro audio sales Div; Hibino chromatek Div; Hibino sound Div; Hibino visual Div; Hibino produce Div and Hibino GMC Hibino Group Management Center (see OPERATION).  The firm takes a pride, as advocated by the firm, in being “The sound and image specialist” in the areas of professional audiovisual & information technology.  Clients include NHK (Japan’s national broadcasting station), TV stations, AD agencies, concert operators, other.  The subject obtained a sole agency agreement for importing audiovisual equipment from Dbx (USA).  Listed on the JASDAQ in Feb 2006.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 15,161 million, a 7.4% up from Yen 14,121 million in the previous term.  This is attributed to the increased sales of high-quality LED display systems, particularly to major automakers and overseas rentals on the back of strong & solid demand for digital equipment & systems.  The recurring profit was posted at Yen 577 million and the net profit at Yen 257 million, respectively, compared with Yen 430 million recurring profit and Yen 13 million net losses, respectively, a year ago. 

 

(Apr/Dec/2013 results): Sales Yen 13,346 million (up 21.4%), operating profit Yen 1,428 million (up 85.8%), recurring profit Yen 1,282 million (up 103.7%), net profit Yen 748 million (up 153.0%).  (% compared with the corresponding period a year ago)

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 1,000 million and the net profit at Yen 550 million, respectively, on a 12.1% rise in turnover, to Yen 17,000 million.  LED displays will expand sales.  Earphones of Shure make will also continue good sales. 

 

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

 

 

 

REGISTRATION

 

Date Registered:      Nov 1964

Legal Status:            Limited Company (Kabushiki Kaisha)

Authorized:              17 million shared

Issued:               5,047,840 shares

Sum:                  Yen 1,721 million

 

Major shareholders (%): Hibino Ltd (27.5), Teruhisa Hibino (11.6), Employees’ S/Holding Assn (6.8), Company’s Treasury Stock (2.5), Hiroaki Hibino (2.4), Sumiko Hibino (2.3), Nippon Life Ins (2.0), Nomura Holdings (1.9), MUFG (1.9), Mizuho Bank (1.9); foreign owners (0.3)

 

No. of shareholders: 3,007

 

Listed on the S/Exchange (s) of: JASDAQ (listed Feb/2006)

 

Managements: Hiroaki Hibino, ch; Teruhisa Hibino, pres & CEO; Sachio Nomaki, s/mgn dir; v pres;; Ryoichi Hashimoto, s/mgn dir; Junichi Imokawa, mgn dir; Chikayuki Hisano, mgn dir; Satoshi Yoshimatsu, mgn dir; Sumio Fukazawa, mgn dir

 

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

 

Related companies: Hibino International Corp, Studer Japan – Broadcast Ltd, Hibino Media Technical Cooperation, other (Tot 8 consolidated subsidiaries)

 

           

OPERATION

 

Activities: Imports and wholesales audiovisual equipment & systems: marketing (40%): video products (6%), concerts & events (55%). 

           

(Intra-company operating divisions)

 

Pro Audio Sales Division: importing and selling audio and communication equipment for professionals from all over the world;

Chromatek Division: LED display system sales, visual equipment sales, administration, overseas sales, imports & exports, technical assistance & R&D;

Sound Division: rental and operation of audio systems for rock & pop concerts and other events,including project preparation;

Visual Division: based in Tokyo, Nagoya and Osaka, offers total support, from planning thru operation, of video & audio systems for professionals, such as presentation display systems, satellite communication systems & transportable and fixed Astrovision; post-production (providing video editing, audio sweetening & DVD authoring services); recording live performances, utilizing mobile recording studio and dubbing with Pro Tools;

Produce Division: event consulting produce, information & technology, techno-staff dispatch, other;

GMC Hibino Group Management Center: management & planning, general affairs, personal affairs, accounting & financing, import & export management, computer system, other.

 

 

Clients: [Broadcasting companies, event operators] Tokyo Media Communications, Asahi Broadcasts, Kansai TV, Fuji TV, NHK, Dentsu Tech, Ikegami Tsushinki, On The Line, Excel Video, Victor Arks, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Harman International, Hibino Inter Sound, Yamaha Music Japan, Tom Communication Ind, AKB (Austria),Amcron (USA), BSS Audio (UK), DBX (USA), JBL Professional (USA), Lexicon Pro (USA), Soundcraft (UK), other

 

Payment record: No complaints

 

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

 

Bank References:

 

                        Mizuho Bank (Shiba)

                        MUFG (Tamachi)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

15,161

14,121

 

  Cost of Sales

10,241

9,361

 

      GROSS PROFIT

4,920

4,760

 

  Selling & Adm Costs

4,164

4,244

 

      OPERATING PROFIT

755

515

 

  Non-Operating P/L

-178

-85

 

      RECURRING PROFIT

577

430

 

      NET PROFIT

257

-13

BALANCE SHEET

 

 

 

 

  Cash

 

1,442

1,844

 

  Receivables

 

3,185

2,838

 

  Inventory

 

1,746

2,430

 

  Securities, Marketable

 

 

 

  Other Current Assets

639

570

 

      TOTAL CURRENT ASSETS

7,012

7,682

 

  Property & Equipment

4,059

3,837

 

  Intangibles

 

153

115

 

  Investments, Other Fixed Assets

1,604

1,736

 

      TOTAL ASSETS

12,828

13,370

 

  Payables

 

791

797

 

  Short-Term Bank Loans

1,230

1,694

 

 

 

 

 

 

  Other Current Liabs

2,915

3,094

 

      TOTAL CURRENT LIABS

4,936

5,585

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

1,947

2,224

 

  Reserve for Retirement Allw

827

792

 

  Other Debts

 

1,069

865

 

      TOTAL LIABILITIES

8,779

9,466

 

      MINORITY INTERESTS

 

 

 

Common stock

1,721

1,721

 

Additional paid-in capital

2,074

2,074

 

Retained earnings

416

608

 

Evaluation p/l on investments/securities

10

6

 

Others

 

(96)

(140)

 

Treasury stock, at cost

(76)

(366)

 

      TOTAL S/HOLDERS` EQUITY

4,049

3,903

 

      TOTAL EQUITIES

12,828

13,370

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

1,969

1,932

 

Cash Flows from Investment Activities

-1,125

-984

 

Cash Flows from Financing Activities

-1,229

-737

 

Cash, Bank Deposits at the Term End

 

1,397

1,761

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

4,049

3,903

 

 

Current Ratio (%)

142.06

137.55

 

 

Net Worth Ratio (%)

31.56

29.19

 

 

Recurring Profit Ratio (%)

3.81

3.05

 

 

Net Profit Ratio (%)

1.70

-0.09

 

 

Return On Equity (%)

6.35

-0.33

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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.