MIRA INFORM REPORT

 

Report No. :

324181.3

Report Date :

29.06.2015

 

IDENTIFICATION DETAILS

 

Name :

SHOEI FOODS CORPORATION

 

 

Registered Office :

5-7 Akihabara Taitoku Tokyo 110-8723

 

 

Country :

Japan

 

 

Financials (as on) :

31.10.2014

 

 

Date of Incorporation :

November, 1947

 

 

Com. Reg. No.:

0100-01-139914

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of Foodstuff Materials, Fruits, Nuts-Seeds, Other.

 

 

No. of Employee :

1,181

 

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

 

Company name and Address

 

SHOEI FOODS CORPORATION

 

REGD NAME:               Shoei Shokuhin Kogyo K

 

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

 

Import, export, wholesale of foodstuff materials, fruits, nuts-seeds, other

 

 

BRANCHES

 

Osaka, Nagoya, Sapporo, Sendai, Niigata, Hiroshima, Fukuoka (Tot 7)

 

 

FACTORIES

 

4 subsidiary makers with 6 factories

 

 

OVERSEAS

 

USA (2), China (7) (--processing plants), Hong Kong

 

 

CHIEF EXEC

 

ICHIRO HONDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 98,250 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 3,379 M

TREND STEADY                       WORTH            Yen 30,304 M

STARTED         1947                             EMPLOYES      1,181

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN FOODSTUFFS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

                     Unit: In Million Yen

Forecast (or estimated) figures for 31/10/2015 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.   Clients include well-known international food makers, retailers, other

 

 

FINANCIAL INFORMATION

 

The sales volume for Oct/2014 fiscal term amounted to Yen 98,250 million, an 11.7% up from Yen 87,945 million in the previous term.  Mainline domestic demand fared well.  Sales grew, mainly in raisins and walnuts but, with imports at a high level, the weaker Yen squeezed domestic profits.  But the weaker Yen drove up earnings overseas, including in the US and China.  The recurring profit was posted at Yen 2,742 million and the net profit at Yen 1,677 million, respectively, compared with Yen 3,039 million recurring profit and Yen 2,075 million net profit, respectively, a year ago.

 

(Nov/2014-Apr/2015 results): Sales Yen 55,610 million (up 9.3%), operating profit Yen 2,235 million (up 28.7%), recurring profit Yen 2,397 million (up 32.4%), net profit Yen 1,856 million (up 68.0%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Oct 2015 the recurring profit is projected at Yen 3,300 million and the net profit at Yen 2,400 million, respectively, on a 6.9% rise in turnover, to Yen 105,000 million.  Mainline domestic sales will benefit from brisk demand for confectionery materials, dairy products, oils & fats.  In the US, strikes at ports on the west coast will affect exports to Europe and Asia.  Business in China will become profitable as harvests return to normal

 

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*(17.5), Company’s Treasury Stock (8.0), Honda Kosan*(6.2), Customers’ S/Holding Assn (3.2), Hidemitsu Honda (2.9), Mizuho Bank (2.5), Group Employees’ S/Holding Assn (2.4), Ichiro Honda (2.2), MUFG (2.1), Meiji Co (2.0); foreign owners (0.4)

*.. Holding companies owned by the Honda family

 

No. of shareholders: 13,317

 

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; Masami Takahashi, dir; Keizo Fujikawa, dir; Kazuhiko Harada, dir; Nobuyasu Hara, dir

 

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

 

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

 

 

OPERATION

 

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

 

(Sales breakdown by divisions);

Milk Products, Oils & Fats (29%), Confectionery raw Materials (18%), Confectionery raw materials (18%), Canned Foods, Dried/Frozen Fruits, Retailing goods, nuts & seeds, others (--53%)

Overseas Sales Ratio (12%).

 

Clients: [Bakery, confectionery makers, dairy foods makers] Meiji Dairies, Yamazaki Baking, Kirin Beverage, Japanese Consumers’ Co-operative Union, Tsukuba Dairy Products, Futaba Foods, Otsuka Pharmaceutical, Wakayama Sangyo, Takase Bussan Co, Tivoli Co, Fujichu Co, other

Exports to: USA, Europe, South Asia, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, farm coops] Zen-Noh, Meiji Dairies, Morinaga Milk Ind, Tsukuba Dairy   Products, Ezaki Glico,  Taiyo Yushi Corp, other

Imports from: USA, China, other (--subsidiaries)

 

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:

31/10/2014

31/10/2013

INCOME STATEMENT

　

　

  Annual Sales

　

98,250

87,945

　

  Cost of Sales

85,692

76,137

　

      GROSS PROFIT

12,557

11,807

　

  Selling & Adm Costs

10,049

9,321

　

      OPERATING PROFIT

2,507

2,485

　

  Non-Operating P/L

235

554

　

      RECURRING PROFIT

2,742

3,039

　

      NET PROFIT

1,677

2,075

BALANCE SHEET

　

　

  Cash

　

5,490

4,859

　

  Receivables

18,252

16,372

　

  Inventory

14,603

13,842

　

  Securities, Marketable

　

　

　

  Other Current Assets

2,189

1,741

　

      TOTAL CURRENT ASSETS

40,534

36,814

　

  Property & Equipment

15,190

14,704

　

  Intangibles

174

170

　

  Investments, Other Fixed Assets

3,371

2,842

　

      TOTAL ASSETS

59,269

54,530

　

  Payables

9,827

8,860

　

  Short-Term Bank Loans

11,958

10,864

　

　

　

　

　

  Other Current Liabs

4,434

4,042

　

      TOTAL CURRENT LIABS

26,219

23,766

　

  Debentures

　

　

　

  Long-Term Bank Loans

1,427

2,049

　

  Reserve for Retirement Allw

354

296

　

  Other Debts

　

964

664

　

      TOTAL LIABILITIES

28,964

26,775

　

      MINORITY INTERESTS

　

　

Common stock

3,379

3,379

　

Additional paid-in capital

3,042

3,042

　

Retained earnings

22,415

21,078

　

Evaluation p/l on investments/securities

859

523

　

Others

1,909

1,032

　

Treasury stock, at cost

(1,300)

(1,300)

　

      TOTAL S/HOLDERS` EQUITY

30,304

27,754

　

      TOTAL EQUITIES

59,269

54,530

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/10/2014

31/10/2013

　

Cash Flows from Operating Activities

　

3,128

1,932

　

Cash Flows from Investment Activities

-2,297

-4,137

　

Cash Flows from Financing Activities

-330

289

　

Cash, Bank Deposits at the Term End

　

5,490

4,859

ANALYTICAL RATIOS            Terms ending:

31/10/2014

31/10/2013

　

Net Worth (S/Holders' Equity)

30,304

27,754

　

Current Ratio (%)

154.60

154.90

　

Net Worth Ratio (%)

51.13

50.90

　

Recurring Profit Ratio (%)

2.79

3.46

　

Net Profit Ratio (%)

1.71

2.36

　

　

Return On Equity (%)

5.53

7.48


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.60

UK Pound

1

Rs.100.09

Euro

1

Rs.71.23

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

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.