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Report No. : |
306759 |
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Report Date : |
09.02.2015 |
IDENTIFICATION DETAILS
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Name : |
DHC CORPORATION |
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Registered Office : |
2-7-1 Minami-Azabu Minatoku Tokyo 106-0047 |
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Country : |
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Financials (as on) : |
31.07.2014 |
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Date of Incorporation : |
Dec., 1975 |
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Com. Reg. No.: |
(Tokyo-Minatoku) 018074 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer Wholesale, Retail of Cosmetics, Health Foods,
Pharmaceutical Products. |
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No. of Employees : |
820 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
DHC CORPORATION
REGD NAME: KK
DHC
MAIN OFFICE: 2-7-1
Minami-Azabu Minatoku Tokyo 106-0047 JAPAN
Tel: 03-3457-5311 Fax: 03-3457-5315
URL: http//:www.dhc.co.jp
E-mail: (thru the URL)
Mfg, wholesale,
retail of cosmetics, health foods, pharmaceutical products
Tokyo (3)
170 direct-run
stores nationwide from Hokkaido to Okinawa;
Over 12 million members
DHC USA Inc; DHC Taiwan Inc; DHC Hong Kong
Ltd; DHC Korea Inc; Shanghai
DHC Cosmetic Co Ltd; DHC France SAS
Miyagi, Iwatsuki
(Saitama), other (Tot 5)
YOSHIE TAKAHASHI,
PRES Yoshiaki Yoshida ch
Noriko Nakamura, s/mgn dir Kozo Denho, dir
Kanako Okuta, dir Miyako Kajiya, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 108,408 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 3,377 M
TREND STEADY WORTH Yen 92,729 M
STARTED 1975 EMPLOYES 820
MFR OF COSMETICS,
HEALTH FOODS, PHARMACEUTICALS, OTHER.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS
The subject company
was established by Yoshiaki Yoshida, now ch, as a translation outsourcing
service company. In 1980 launched
production of cosmetics; in 2002 launched health food business; in 2005 started
production of pharmaceutical products.
Tops in the mail-order sales of cosmetics & health foods in
Japan. Also, active in overseas
expansion, with six overseas subsidiaries actively covering the areas. In 2009, distribution agreement signed with
Singapore local firm. The number of
direct-run stores is about 170, with over 12 million members. Goods also sold online. Also operates a day service center for
elderly in Tokyo and esthetic saloons.
The sales volume
for Jul/2014 fiscal term amounted to Yen 108,408 million, a 5% down from Yen 113,779
million in the previous term. The
recurring profit was posted at Yen 15,616 million and the net profit at Yen
4,966 million, respectively, compared with Yen 18,047 million recurring profit
and Yen 9,597 million, respectively, a year ago. .
For the current
term ending Jul 2015 the recurring profit is projected at Yen 16,000 million
and the net profit at Yen 5,000 million, respectively, on a 2% rise in
turnover, to Yen 111,000 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,116.1
million, on 30 days normal terms.
Date Registered: Dec
1975
Regd No.:
(Tokyo-Minatoku) 018074
Legal Status: Limited Company
(Kabushiki Kaisha)
Authorized: 27 million shares
Issued: 6,754,594 shares
Sum: Yen 3,377.29
million
Major shareholders (%): Yoshiaki
Yoshida* (majority owned)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Manufactures,
exports, imports, wholesales and retails: cosmetics, pharmaceutical products,
health foods & supplements, DHC branded deep-sea water, foodstuffs,
apparel, inner wear, operating elderly day service center, esthetic saloon,
other (--100%)
Clients: [Consumers, mfrs,
wholesalers] SVD, Mitsui & Co, Mitsubishi Corp, Oracle Japan, Nippon Access
Inc, Tenpo Ryutsuu Nett Inc, All Japan Spar Central Inc, Ida Ryogokudo Co,
Seven-Eleven Japan, other
No. of accounts:
1,000 (wholesale div only)
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Beauty Cosmetics, Toyo Beauty Supply, Tatsumi, CKK Corp, Takeda
Pharmaceutical Co, Tokyo Glass Co, other
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption address
are owned and maintained satisfactorily.
Bank References
Resona Bank (Azabu)
MUFG (Roppongi)
Relations: Satisfactory
(In Million Yen)
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Terms Ending: |
31/07/2015 |
31/07/2014 |
31/07/2013 |
31/07/2012 |
|
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Annual
Sales |
|
111,000 |
108,408 |
113,779 |
114,118 |
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Recur.
Profit |
|
16,000 |
15,616 |
18,047 |
14,896 |
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Net
Profit |
|
5,000 |
4,966 |
9,597 |
6,816 |
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Total
Assets |
|
|
117,358 |
114,133 |
112,855 |
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Current
Assets |
|
|
74,497 |
67,151 |
64,610 |
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Current
Liabs |
|
|
20,820 |
19,187 |
24,468 |
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Net
Worth |
|
|
92,729 |
89,953 |
82,132 |
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Capital,
Paid-Up |
|
|
3,377 |
3,377 |
3,377 |
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Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
2.39 |
-4.72 |
-0.30 |
10.61 |
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Current Ratio |
|
.. |
357.81 |
349.98 |
264.06 |
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N.Worth Ratio |
|
.. |
79.01 |
78.81 |
72.78 |
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R.Profit/Sales |
|
14.41 |
14.40 |
15.86 |
13.05 |
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N.Profit/Sales |
|
4.50 |
4.58 |
8.43 |
5.97 |
|
Return On Equity |
|
.. |
5.36 |
10.67 |
8.30 |
Notes: Forecast
(or estimated) figures for the 31/07/2015 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.74 |
|
|
1 |
Rs.94.65 |
|
Euro |
1 |
Rs.70.79 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.