|
Report Date : |
21.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
CARMIT MISTER FIX LTD. |
|
|
|
|
Registered Office : |
Hayam Road Ytong Compound, Pardes Hana/ Caesarea Caesarea/ Pardes Hana |
|
|
|
|
Country : |
Israel |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
25.07.1980 |
|
|
|
|
Legal Form : |
Public Limited
Liability Company |
|
|
|
|
Line of Business : |
Manufacturers, importers and marketers of products and materials for the building field. |
|
|
|
|
No. of Employees |
92 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
ISRAEL ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition
|
Source
: CIA |
CARMIT MISTER FIX LTD.
Telephone 972 4 617 89 06
Fax 972 4 637 11 24
Email: marketing@mrfix.co.il
Physical address
Hayam Road
Ytong Compound, Pardes Hana/ Caesarea
Caesarea/ PARDES HANA
Mailing address
P.O. Box 3530
Caesarea 3088900 Israel
Originally incorporated as a public limited liability company and registered as such as per No. 52-003187-3 on the 25.07.1980.
Converted into a private
limited company and registered as such as per file
No. 51-149330-6 on the 29.07.1990.
Originally registered under the name MODUL BETON INDUSTRIAL INVESTMENTS (1980) LTD., which changed to MODUL BETON INDUSTRIAL INVESTMENTS LTD on the 16.05.1982, which changed to the present name on the 07.09.2010.
Until July 1989 subject’s shares were traded on the Tel Aviv Stock Exchange, but then subject acquired all of its shares from the public.
On the 29.05.2012 subsidiary CARMIT – CONSTRUCTION IMPROVEMENT PRODUCTS (1982) LTD., incorporated in 1982, was merged into subject.
Authorized share capital NIS 5,000,000.00, divided into -
5,000,000 ordinary shares of NIS 1.00 each,
of which 4,496,185 shares amounting to NIS 4,496,185.00 were issued.
Company is fully owned by INROM CONSTRUCTION INDUSTRIES LTD., a public limited company controlled (55.68%) by INROM INVESTMENT IN INDUSTRY (H.B.) LIMITED PARTNERSHIP, owned by INROM INDUSTRIES LTD., fully controlled by FIMI Investment Fund, controlled by Ishay Davidi (Eldad Ben-Moshe holds 9.7% in INROM LP).
Following a successful IPO, on the 01.06.2014 INROM CONSTRUCTION INDUSTRIES LTD. shares began to be traded on the Tel Aviv Stock Exchange (TASE). As part of the IPO, the shares of subject and other INROM Group's subsidiaries were transferred to INROM CONSTRUCTION from INROM INDUSTRIES – see more in CHARACTER.
Eldad Ben-Moshe, General Manager of INROM Group,
2. Noam Schalke, CFO of INROM.
Tommy Hardy.
Manufacturers, importers and marketers of products and materials for the building field.
Products include insulation plasters, bonders, adhesives, supplements for building and other construction materials as such.
Also traders and marketers in working tools for the building
sector (after assuming the business activities of subsidiary CARMIT CONSTR
Products are marketed under the brand name “Carmit” and "Mr. Fix".
All sales are local, to constructors, stores, traders in construction products, etc.
Most of subject suppliers are foreign.
Sole local representatives of:
ARDEX, of Germany,
NEOGARD, RPM, both of USA.
Operating from a very large premises, part of the YTONG compound, on an area of 100,000 sq. meters (land very long-term leased from the State), in Hayam Road, located on the border between the 2 municipalities of Pardes Hana and Caesarea (subject pays municipal fees to both municipalities).
Having 92 employees in
INROM CONSTRUCTION's Finished Construction Products segment (subject).
Having 808 employees in INROM Group.
Assets attributed to
INROM CONSTRUCTION Finished Construction Products segment (subject) as of
31.12.2013: NIS 126,552,000 (NIS 99,134,000 as of 31.12.2012); Liabilities NIS
94,561,000 (NIS 61,865,000 as of 31.12.2012).
INROM CONSTRUCTION raised a total of NIS 354.6 million issuing shares
and options on the Tel Aviv Stock Exchange.
Consolidated B/S of
INROM CONSTRUCTION INDUSTRIES LTD. shows (pro forma):
NIS
(thousands)
31.12.2013 31.03.2014
ASSETS
Current assets
Cash and cash equivalents
32,712 15,689
Other financial assets
1,261 1,284
Clients 313,828 339,833
Other debtors
5,092 4,879
Other assets
3,311 2,260
Stock 88,647 91,806
444,851 455,751
Non-current assets
Fixed assets, net 164,029 168,151
Goodwill and intangible assets 9,626 9,538
Other non-current assets 3,098 2,989
176,753 180,678
621,604 636,429
======= =======
LIABILITIES
Current liabilities 238,687 247,774
Long term liabilities 176,148 159,818
Equity 206,769 228,837
621,604 636,429
======= =======
INROM CONSTRUCTION
INDUSTRIES current market value US$ 224.7
million.
Subject is an “Approved Enterprise” and as such entitled for State support, grants and tax relief.
There are 4 charges for unlimited amounts registered in the company's assets (financial and other assets), in favor of Bank Leumi Le'Israel Ltd., Israel Discount Bank Ltd., Bank Hapoalim Ltd. and The First International Bank of Israel Ltd. (charges placed in 2004, 2010, 2012 and last on in January 2013).
2009 sales claimed to be NIS 90,000,000.
2010 sales claimed to be NIS 100,000,000.
Sales by INROM
CONSTRUCTION's Finished Construction Products segment (subject):
2011 sales were NIS
131,313,000, making an operating profit of NIS 20,043,000.
2012 sales were NIS
150,510,000, making an operating profit of NIS 27,277,000.
2013 sales were NIS
172,941,000, making an operating profit of NIS 34,720,000.
INROM
CONSTRUCTION INDUSTRIES LTD.
Consolidated
Statement of Income (pro forma)
Year
ended 31.12
NIS
(thousands)
2011 2012 2013
Sales 694,434 743,197 809,393
Gross profit 240,826 247,762 292,700
Operating income 84,964 86,170 119,273
Profit before taxes on
income 74,681 73,666 107,230
Net income 55,094 54,160 79,949
======= ======= =======
INROM CONSTRUCTION consolidated first 3 months sales were
NIS 214,225,000 (11% increase compared to parallel period in 2013), making a gross profit of NIS 78,419,000, an operating income of NIS 32,517,000 and a net income of NIS 22,068,000.
INROM CONSTRUCTION
INDUSTRIES LTD., a holding company fully owns:
YTONG INDUSTRIES LTD.,
holding company, owns:
YTONG LTD.,
manufacturers and marketers of concrete blocks, building material, etc.
YTONG PAVING LTD.
NIRLAT COLORS LTD.,
61%, directly and through its subsidiaries (NIRLAT Group) are manufacturers,
exporters and marketers of paints, lacquers and varnishes (for painting on
wood, metal and buildings), powder coatings, glues and chemicals, etc. holds:
NIRLAT LTD., 100%,
manufacturers, marketers and exporters of insulating materials, sealants,
paints and additives, etc. Fully owns NIMNI PAINTS NORTH LTD., marketing arm to
the northern region, and NADIR VEGA PROJECTS LTD., developers, manufacturers,
marketers and exporters of industrial electrostatic powder paints (powder
coating).
UNIVERCOL PAINTS LTD.,
developers, manufacturers, marketers and exporters of industrial electrostatic
powder paints (powder coating) and wet solvent paints. Having 50 employees,
2013 sales claimed to be NIS 50 million.
LINK COLOR N.A. Inc.,
marketing arm in the U.S.A.,
INROM INDUSTRIES LTD.,
holding company, heads the Group and also holds:
INROM INVESTMENTS IN INDUSTRY (H.B.) LP ("FIMI
4"), which holds (100%, unless
otherwise mentioned) in the following subsidiaries:
URDAN METAL &
CASTING INDUSTRIES LTD., metal works, exporters and marketers of steel
elements,
CYCLE GROUP LTD.,
ORLITE INDUSTRIES (MILLENIUM 2000) LTD., manufacturers and marketers of
advanced products made of lightweight composite materials,
ALONY MARBLE LTD.,
importers, manufacturers and marketers of tiles, marble, granite, ceramics,
sanitary tools, and K.E.R. PARQUET LTD., parquet floors,
FIMI Fund Group has
many other holdings (see more CHARACTER).
Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.
Nothing unfavorable learnt (there is a pending lawsuit against subject on a business matter though it appears to be insignificant).
INROM Group
established INROM CONSTRUCTION INDUSTRIES LTD. for the sake of an IPO of some
40% of its shares. INROM CONSTRUCTION assumed the holding of INROM Group in 3
main companies (and their subsidiaries): subject, YTONG LTD. and of NIRLAT
COLORS.
Subject is veteran and well-known in their fields.
INROM Group, including YTONG, is a leading player in the local construction inputs market.
According to "FIMI 4" Fund reports (which is the fund, out of FIMI's other funds, investing in INROM) as of 2011 3rd quarter, INROM is highly profitable.
YTONG was for many
years part of URDAN Group, later re-named GREENSTONE Group, part of local SFK
Group (later SHREM FUDIM Group). In the framework of a re-organization process
in GREENSTONE and SFK, INROM published in mid
FIMI already purchased
50% of INROM from GREENSTONE in December 2007 for NIS 144 million. At the 2nd
phase, in November 2008 FIMI purchased the other 50% for NIS 105 million,
reaching full control of INROM Group.
Founded in 1997, FIMI Fund (mainly via 5 funds) is a leading local private equity investment fund (mezzanine and buy-out fund), headed by its founder Ishay Davidi. Having a successful track record of 67 major transactions (37 cash exits) in total value of over US$ 1.7 billion. Presently, the Fund has more than US$900 million equity available for new investments. FIMI investors list includes leading US and Israeli institutional investors (mainly ISRAEL DISCOUNT BANK). According to American research firm PREQIN, based on the average annual yield to its investors, FIMI Fund was ranked the 4th best private equity fund in the world.
In March 2010 the Supreme Court ruled in favor of subject against the Tax Authorities, allowing subject to deduct losses generated from “Approved Enterprise” activities with other activities, in order to pay less taxes.
The Home Design area is directly influence by the changes in the local market in general, and construction and real estate market in particular.
From the Central Bureau of Statistics (CBS) data, investments in construction for dwelling in 2012 reached NIS 56.1 billion (which comprises 62% of total investment in construction), higher by 6% (in real terms) from 2011. Construction for dwelling fell by 0.3% in 2013 (despite the Government's efforts to increase investments). The fall in investment also lead to a rise in houses prices.
Investments in construction not for dwelling (public institutions, commerce, industry, etc.) and other construction works (e.g. roads, offices, industrial, institutional), summed up to NIS 37 billion in 2012, a 2.5% rise from 2011. Investments in infrastructures comprise 18% of total investments in construction.
The CBS data on local
households' consumption expenditure in 2013 on Housing grew by 3.2% from the
previous year, similar to the growth rate in 2012 (from 2011).
The building sector indicators showed an improvement in activities in 2013, after ambiguous signs shown in the previous several years. Volume of building starts for dwelling (which is a dominant indicator for the trend in the building sector) in 2013 reached 44,340 (although number may rise after final calculations), a 3.4% increase comparing to 2012, a year in which a 13% decrease from 2011 was noted. The decline in 2012 came after a growth trend in building starts in the previous couple of years (9% in 2011 and 7% rise in 2009).
In 2013 there was also 11.8% increase in apartments whose construction was finished (41,970 apartments).
Government efforts to increase the supply side also witnessed in the double-digit rise in number of plots being marketed and sharp rise in planning volumes.
Number of dwellings transactions rose by 19% in 2012 from 2011 (when it fell by 18% from 2010), and climbed by 9% in 2013 reaching total of 111 thousands transactions (rise in both new and second-hand apartments). In new apartments sold, a slight 0.3% rise noted in 2013 from 2012.
Since the beginning of 2014, the building and real estate market has been showing cooling down signs and stand-still, due to a planned government reform of relieves in taxes for purchasing a new apartment (which will drive prices downwards), but the plan still awaits legislation and implementation, therefore many potential buyers are in stand-by.
Good for trade engagements.
Note: Since February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.28 |
|
|
1 |
Rs.102.77 |
|
Euro |
1 |
Rs.82.12 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.