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Report No. : |
349748 |
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Report Date : |
19.11.2015 |
IDENTIFICATION DETAILS
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Name : |
HAI PLASTIC LTD. |
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Formerly Known As : |
HAI FILTERS LTD |
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Registered Office : |
P.O. Box 1053, 7 Haglilonit Street,
Industrial Zone, Sderot 8700101 |
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Country : |
Israel |
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Year of Establishment : |
1972 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject, directly and via subsidiaries,
are developers, manufacturers, exporters and marketers of injection plastic
packaging for the food and beverage industries, as well as domestic plastic
products (kitchen products, food storing products, etc.). |
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No. of Employees : |
101 |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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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 |
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 2013, 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. Israel's economy
also has weathered the Arab Spring because strong trade ties outside the Middle
East have insulated the economy from spillover effects. Slowing demand
domestically and internationally and reduced investment due to uncertainties
caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2%
during 2014. 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 expected to come online no sooner than 2017, but
production from Tamar provided a one percentage point boost to Israel's GDP in
2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the
grievances but has maintained that it will not engage in deficit spending to
satisfy populist demands. 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 |
HAI PLASTIC LTD.
Telephone 972 8 661 13 55
Fax 972 8 661 14 45
Email: info@hai-plastic.co.il
P.O. Box 1053
7 Haglilonit Street
Industrial Zone
SDEROT 8700101 ISRAEL
Originally established a sole proprietorship
in 1972 under the name S.S. PLASTIC.
Converted into a private limited company and
registered as such as per file
No. 51-088782-1 on the 31.05.1981.
Originally registered under the name HAI
FILTERS LTD., which changed to the present name on the 11.07.1984.
On the 05.11.2014 BRAMLI PLASTICS INDUSTRIES
LTD. was merged into subject (till then subject operated as BRAMLI PLASTIC's
exclusive manufacturing arm).
Authorized share capital NIS 20,570,250.00,
divided into -
20,570,250 ordinary shares of NIS 1.00 each,
of which 13,162,080 shares amounting to NIS 13,162,080.00 were issued.
Subject is fully owned by BRAM INDUSTRIES LTD.,
a public limited company, shares traded on the Tel Aviv Stock Exchange (TASE),
controlled by Eli Bramli (28.05%), Haim Bramli (26.91%) and HAI
B. BRAMLI LTD. (11.88%), owned by Bramli family.
1. Eliyahu
(Eli) Bramli, General Manager of subject and of BRAM
INDUSTRIES,
2. Hai
Bramli.
Subject, directly and via subsidiaries, are
developers, manufacturers, exporters and marketers of injection plastic
packaging for the food and beverage industries, as well as domestic plastic
products (kitchen products, food storing products, etc.).
Subject is BRAM INDUSTRIES Group main
manufacturing arm.
30% of Group's sales are for export, mainly
to Europe and USA.
Among local clientele: NEVIOT NATURE OF
GALILEE, THE CENTRAL BOTTLING CO. (COCA COLA), HATZI HINAM, NAKNIK NAHARIYA
KASHER SOGLOWEK, KEYAD HAMELECH, PEAMIT CARDBOARD AND PACKAGING, DR. PACK, KLIR
CHEMICALS, BITAN WINES, TEMPO BEVERAGES, and more.
Among Group's foreign clientele: WALMART,
TARGET, TEDCO, CARREFOUR, AMAZON, BED BATH & BEYOND, REWE, and more.
Operating from rented (from shareholder Eli Bramli and a relative of his) premises (offices, plant and warehouse), on an
area of 5,305 sq. meters, in 7 Haglilonit Street, Industrial Zone, Sderot.
Having 101 employees in subject (88 in the
packaging segment and 13 in the domestic product segment), and 140 employees in
BRAM Group, as of end of 2014.
BRAM INDUSTRIES LTD. current market value
US$ 22.1 million.
In October 2005 BRAM INDUSTRIES made an IPO on
the TASE.
In in May 2015 BRAM raised NIS 42.5 million
on the TASE issuing bonds.
Subject is an “Approved Enterprise” and as
such entitled for State support, grants and tax relief.
In 2001 the Israeli Investment Centre (IIC)
approved a US$ 1.5 million investment in the expansion of subject's plant.
In 2005, 2006 and 2012 the IIC approved NIS
3 million, NIS 14.5 million and NIS 20.4 million investment plans,
respectively, in expansion of subject's plant.
In June 2015 subject sold its holdings (50%)
in S. KETER ASSETS LTD. and S. KETER PRINTING LTD. for NIS 16 million.
There are 23 charges for unlimited amounts registered on the company's
assets (financial assets, fixed assets, equipment and vehicles) in favor the
State of Israel, Mizrahi Tefahot Bank Ltd., Bank Hapoalim Ltd., Mercantile
Discount Bank Ltd., Bank Leumi Le'Israel Ltd. and companies (last charge placed
August 2015).
Financial data is
included in the consolidated B/S of ('grand') parent company, BRAM INDUSTRIES
LTD., which shows:
NIS
(thousands)
31.12.2014 30.06.2015
ASSETS
Current assets
Cash and cash equivalents 713 25,826
Other financial assets 1,257 387
Customers 31,388 34,989
Other debtors and current assets 1,618 2,124
Stock 9,701 13,032
44,677 76,358
Non-current assets
Fixed assets (net) 40,457 46,387
Other non-current assets 25,198 13,140
65,655 59,527
110,332 135,885
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LIABILITIES
Current
liabilities 40,215 38,692
Non-current
liabilities 22,824 46,950
Equity 47,293 50,243
110,332 135,885
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REVENUES
Subject ended 2012 with a net profit of NIS
3,578,000.
Subject ended 2013 with a net profit of NIS
3,203,000.
Subject ended 2014 with a net profit of NIS
4,876,000.
BRAM INDUSTRIES LTD.
Consolidated
Statement of Income
Year
ended 31.12
NIS
(thousands)
2012 2013 2014
Sales 72,586 82,762 85,669
Gross profit 15,444 18,885 19,823
Operating income 286 2,613 3,758
Profit (loss) before taxes on income (705) 1,124 4,682
Net profit (loss) (1,823) (337) 2,865
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BRAM INDUSTRIES
LTD. consolidated revenues for
the first 6 months of 2014 were NIS 50,211,000, making a gross profit of NIS
13,618,000, an operating income of NIS 4,284,000, and a net income of NIS
4,531,000.
LIFE PLASTIC S.A.R.L., 100%, France, home
ware products manufacturer,
K AND F PLASTICS LTD., 50%, manufactures of
disposable cutlery,
SHS TRADE 2011 GMBH, 100%, marketing arm in
Germany.
BRAM INDUSTRIES LTD., parent company, a
holding company, also holds:
PRIFORM BEVERAGES LTD., 50%, manufacturers
of drink packages.
BRAMLI PACKAGING 2000 LTD., fully owned by Eli Bramli, owns premises in Sderot.
Based on our (could not be confirmed with
subject's officials):
Bank Leumi Le'Israel Ltd.,
Bank Hapoalim Ltd.,
Mercantile Discount Bank Ltd., branches data
not forthcoming.
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials, as
they were always unavailable. We left messages which so far remain unanswered
Subject is a veteran business and so is BRAMLI Group.
Subject is ISO 9000:2008 certified.
In August 2010 ISAP ITALY completed the
acquisition of LIFE PLASTIC's production lines for € 1,400,000.
In July 2011, POLYCAD INDUSTRIES acquired 30% of BRAM INDUSTRIES with investment of NIS 24.5 million in BRAM and subject.
In March 2014 POLYCAD
INDUSTRIES exited BRAM, selling its holdings for NIS 19.4 million.
In February 2011 subject completed the acquisition of 50% of PRIFORM BEVERAGES
LTD. from TEMPO BEVERAGES for NIS
In July 2014 subject sold its holdings in S. KETER ASSETS
LTD. and S. KETER PRINTING LTD. for NIS 16 million.
In April 2015 it was reported that BRAM
INDUSTRIES is erecting a plant in the USA, with an investment of NIS 16
million.
According to a
market research firm published in mid 2014 (ordered by the Ministry of
Economy), total revenues of the local Plastic & Rubber Industry reached US$
5 billion (return to the levels in 2007, prior to the global economic crisis,
when revenues fell and started to climb back since 2010), half of which was for
export (which is comprise US$ 2.3 billion from goods, the rest from raw
products). Sales breakdown: 30% of the branch's sales are for the Household,
23% - Agriculture, 16% - Packaging, 9% - Building sector, 9% Industry, 5%
Furniture, 4% - Compounds (rest is to other fields).
There were 23,700
workers employed in the Plastic & Rubber branch in 2013.
According to the Central Bureau of Statistics (CBS), sales for export
from the manufacturing of Plastic and Rubber products in 2014 climbed by 6%
from 2013 up to US$ 2,086 million, continuing the upward trend from 2013 (rose
7.6% from 2012, after it fell by some 3% in 2012 from 2011). The export
witnessed a reverse trend in the first 5 months of 2015 with 7.8% decrease
compared to the parallel period in 2014.
According to the
CBS, import of Plastic and Rubber raw material for the local industry in 2014
summed up to US$ 2,518 million, up 4.5% from 2013 (in $ terms, rose by 2.7% in
2013 from 2012). Yet, a 17% decrease in import was marked in the first 5 months
of 2015 compared to the parallel period in 2014.
Plastic &
rubber raw materials consumption by the local industry is of around 1 million
tons, 70% of which derives from import, the rest from local production (which
is comprised mainly of simple raw materials).
Investment in imported machinery and equipment by the Plastic & Rubber
industries rose in 2014 by 5.5% from 2013, totaling NIS 410.4 million. This is
after a decrease in 2013 by 18% from 2012.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.66.11 |
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1 |
Rs.100.51 |
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Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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.