MIRA INFORM REPORT

 

 

Report Date :

10.02.2014

 

IDENTIFICATION DETAILS

 

Name :

SHOEI FOODS CORPORATION

 

 

Registered Office :

5-7 Akihabara Taitoku Tokyo 110-8723

 

 

Country :

Japan

 

 

Financials (as on) :

31.10.2013

 

 

Date of Incorporation :

November 1947

 

 

Com. Reg. No.:

0100-01-139914

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Wholesale of foodstuff materials

 

 

No. of Employees :

1,187

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 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 and address

 

SHOEI FOODS CORPORATION

 

REGD NAME:    Shoei Shokuhin Kogyo KK

MAIN OFFICE:  5-7 Akihabara Taitoku Tokyo 110-8723 JAPAN

Tel: 03-3253-1211     Fax: 03-3253-0063

 

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

E-Mail address: soumu@shoeifoods.co.jp

 

 

ACTIVITIES  

 

Wholesale of foodstuff materials

 

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Sendai, Niigata, Hiroshima, Fukuoka

 

 

FACTORIES

 

4 subsidiary makers with 6 factories

 

 

OVERSEAS   

 

Shoei Foods (USA) Inc, Calif (USA) (prune processing factory); China (4)

 

 

CHIEF EXEC 

 

ICHIRO HONDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 


 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 87,945 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 3,379 M

TREND STEADY                       WORTH            Yen 27,754 M

STARTED         1947                             EMPLOYES      1,187

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN FOODSTUFFS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/10/2010

71,414

2,542

1,412

(%)

22,036

(Consolidated)

31/10/2011

75,161

2,355

1,118

5.25

22,722

 

31/10/2012

81,334

2,796

1,714

8.21

24,286

 

31/10/2013

87,945

3,039

2,075

8.13

27,754

 

31/10/2014

90,000

2,700

1,800

2.34

..

            Unit: In Million Yen

            Forecast (or estimated) figures for 31/10/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1904 by Tasuke Honda as a milk merchant, on his account.  Incorporated in 1947 the firm has been succeeded by his descendants.  This is comprehensive, independent foodstuff trading house, with mfg division.  Handles 30,000 different items such as dried fruits, nuts, dairy products and cake making food materials.  Also sells original foods produced by domestic and overseas subsidiaries and outside plants.  Runs processing plants in US and China.  The company plans to upgrade its marketing structure in the US and expand the walnut business.  The prune business will benefit from the tie-up with Sun East US.  

 

 

FINANCIAL INFORMATION

 

The sales volume for Oct/2013 fiscal term amounted to Yen 87,945 million, an 8.1% up from Yen 81,334 million in the previous term.  The recurring profit was posted at Yen 3,039 million and the net profit at Yen 2,075 million, respectively, compared with Yen 2,796 million recurring profit and Yen1,714 million net profit, respectively, a year ago.

 

For the current term ending Oct 2014 the recurring profit is projected at Yen 2,700 million and the net profit at Yen 1,800 million, respectively, on a 2.3% rise in turnover, to Yen 90,000 million.  Mainline domestic demand will fare well.  Sales will grow, mainly in raisins and walnuts, but with imports at a high level, the weaker Yen will squeeze domestic profits.  But the weaker Yen will drive up earnings overseas, including in the US and China.  Operating profits will rise. 

 

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

 

 

REGISTRATION

 

Date Registered:       Nov 1947

Regd No.:                  0100-01-139914 (Tokyo-Taitoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         48,585,000 shares

Issued:                21,159,914 shares

Sum:                   Yen 3,379 million

 

Major shareholders (%): Shoei Plaza*(17.2), Company’s Treasury Stock (8.0), Honda Kosan*(6.2), Customers’ S/Holding Assn (3.1), Hidemitsu Honda (2.9), Mizuho Bank (2.5), Group Employees’ S/Holding Assn (2.5), Ichiro Honda (2.2), MUFG (2.1), Meiji Co (2.0); foreign owners (0.2)

*.. Holding companies owned by the Honda family

 

No. of shareholders: 11,699

 

Listed on the S/Exchange (s) of: Tokyo (Second section)

 

Managements: Ichiro Honda, pres; Hidemitsu Honda, s/mgn dir; Toyomi Nakashima, mgn dir; Hirokane Fujio, mgn dir; Moriyasu Fujikane, dir; Masami Takahashi, dir; Keizo Fujikawa, dir

 

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

 

Related companies: Tsukuba Nyugyo, Mondo, Joyo Seika, Kyo Maron, other.

 

 

OPERATION

 

Activities: A trading house for import and wholesale of confectionery raw materials:

 

(Sales breakdown by divisions);

Milk Products, Oils & Fats (30%), Confectionery raw Materials (21%), Canned Foods, Dried Fruits, Confectionery, Retailing goods, others (--49%)

Overseas Sales Ratio (8%).

 

Clients: [Bakery, confectionery makers, dairy foods makers] Meiji Dairies, Yamazaki Baking, Kirin Beverage, other

No. of accounts: 3,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, farm coops] Zen-Noh, Meiji Dairies, Morinaga Milk Ind, other

 

Payment record: No complaints

 

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

 

Bank References:        Mizuho Bank (Ueno)

                                    MUFG (Asakusabashi)

                                    Relations: Satisfactory

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/10/2013

31/10/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

87,945

81,334

 

  Cost of Sales

76,137

69,873

 

      GROSS PROFIT

11,807

11,461

 

  Selling & Adm Costs

9,321

8,842

 

      OPERATING PROFIT

2,485

2,619

 

  Non-Operating P/L

554

177

 

      RECURRING PROFIT

3,039

2,796

 

      NET PROFIT

2,075

1,714

BALANCE SHEET

 

 

 

 

  Cash

 

4,859

6,461

 

  Receivables

 

16,372

15,442

 

  Inventory

 

13,842

12,382

 

  Securities, Marketable

 

 

 

  Other Current Assets

1,741

1,550

 

      TOTAL CURRENT ASSETS

36,814

35,835

 

  Property & Equipment

14,704

11,506

 

  Intangibles

 

170

154

 

  Investments, Other Fixed Assets

2,842

2,217

 

      TOTAL ASSETS

54,530

49,712

 

  Payables

 

8,860

9,009

 

  Short-Term Bank Loans

10,864

10,877

 

 

 

 

 

 

  Other Current Liabs

4,042

3,567

 

      TOTAL CURRENT LIABS

23,766

23,453

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

2,049

1,270

 

  Reserve for Retirement Allw

296

285

 

  Other Debts

 

664

417

 

      TOTAL LIABILITIES

26,775

25,425

 

      MINORITY INTERESTS

 

 

 

Common stock

3,379

3,379

 

Additional paid-in capital

3,042

3,042

 

Retained earnings

21,078

19,294

 

Evaluation p/l on investments/securities

523

183

 

Others

 

1,032

(312)

 

Treasury stock, at cost

(1,300)

(1,300)

 

      TOTAL S/HOLDERS` EQUITY

27,754

24,286

 

      TOTAL EQUITIES

54,530

49,712

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/10/2013

31/10/2012

 

Cash Flows from Operating Activities

 

1,932

1,233

 

Cash Flows from Investment Activities

-4,137

-2,425

 

Cash Flows from Financing Activities

289

2,469

 

Cash, Bank Deposits at the Term End

 

4,859

6,461

ANALYTICAL RATIOS            Terms ending:

31/10/2013

31/10/2012

 

 

Net Worth (S/Holders' Equity)

27,754

24,286

 

 

Current Ratio (%)

154.90

152.79

 

 

Net Worth Ratio (%)

50.90

48.85

 

 

Recurring Profit Ratio (%)

3.46

3.44

 

 

Net Profit Ratio (%)

2.36

2.11

 

 

Return On Equity (%)

7.48

7.06

 

 

           

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.32

UK Pound

1

Rs.101.78

Euro

1

Rs.84.68

 

 

INFORMATION DETAILS

 

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.