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MIRA
INFORM REPORT
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Report No. : |
490844 |
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Report Date : |
13.02.2018 |
IDENTIFICATION DETAILS
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Name : |
HAMAMA MEIR TRADING (1996) LTD. |
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Registered Office : |
30 Sheshet Hayamim Street, Champion Tower, Bnei Brak 5120261 |
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Country : |
Israel |
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Financials (as on) : |
30.09.2017 |
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Date of Incorporation : |
20.11.1996 |
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Legal Form : |
Private limited company |
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Line of Business : |
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No. of Employees : |
60(2016) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company name and address
HAMAMA MEIR TRADING (1996) LTD.
(Also HAMAMA MEIR TRADE (1996) LTD.)
Telephone 972 3
519 55 55
Fax 972
3 510 70 10
Email: info@hamama.biz
30 Sheshet Hayamim Street
Champion Tower
BNEI BRAK 5120261 ISRAEL
HISTORY & LEGAL FORMATION
A private limited company, incorporated as per file
No. 51-239801-7 on the 20.11.1996.
Subject was incorporated in view of
continuing the trade in food activities of HAMAMA BROS. & CO. LTD., owned
and founded by Hamama family in 1951 (incorporated in 1972), which turned into
a real estate holding company.
In May 2007 published a prospectus
offering shares to the public through the Tel Aviv Stock Exchange, following
which subject converted into a public limited company and its shares started
trading on 07.06.2007 (keeping same registration number).
SHARE CAPITAL
Authorized share capital NIS 40,000,000.00, divided
into -
40,000,000 ordinary shares of NIS 1.00 each,
of which 14,369,117 shares amounting to NIS
14,369,117.00 were issued.
SHAREHOLDERS
1. Eliyahu
Hamama, 55.2%,
2. Meir
Hamama, 9.5%,
3. Josef
Hamama, 7.3%,
4. Institutional
investors THE PHOENIX (7.1%) and PSAGOT (5%),
5. Shares
are also traded on the Tel Aviv Stock Exchange (TASE).
DIRECTORS
1. Zvika Amit,
Chairman,
2. Avi
Diamant,
3. Yehonatan
Shamir,
4. Ms. Sigal
Projansky.
GENERAL MANAGER
Eliyahu
(Eli) Hamama.
BUSINESS
Traders, importers, exporters, marketers and
distributors in dried foodstuff, mostly commodities, including cereals, dried
fruits, nuts, rice, legumes, sesame, coffee, spices, etc.
Also importers of row materials for animal feed.
Selling some 50 families of products, imported from
different countries.
In 2016, 90% of sales were sold to clients in Israel,
9.3% to the Palestinian market, and the rest for export.
Subject has some 400 local customers, divided into 4
sectors: most (88.5%) of the local clients are from the Commercial market:
mostly to wholesalers, supermarket chains, packing and roasting houses, as well
as food manufacturers and retailers. 1.6% is sold to the institutional market.
Purchasing (of finished goods, no raw
materials) are both locally and from abroad, with 200 suppliers, mainly from
Ethiopia, Turkey, North America, Argentina, Far East (India, Thailand, China).
Among suppliers: AS PISTACHIOS.
Among local suppliers are corn growers, etc.
Operating from rented offices premises, on an area of
737 sq. meters, in 30 Sheshet Hayamim Street, Champion Tower, Bnei Brak, from
logistics center in Kiryat Gat (owned by sister company), on an area of 15,720
sq. meters (8,500 sq. meters are built), as well as using storage facilities
throughout Israel according to need.
Website: www.hamama.biz
Having 60 employees as of end of 2016 (had 56
employees in the end of 2015).
Note:
current number of employees expected to be updated with the publication of
subject's 2017 financial statements by the end of March 2018
MEANS
B/S shows:
NIS
(thousands)
31.12.2016 30.09.2017
ASSETS
Current
assets:
Cash
and cash equivalents 3,926 2,291
Customers 148,775 122,425
Other debtors and
assets 2,309 5,476
Stock 137,111 128,414
292,121 258,606
Non-current assets:
Customers 1,934 1,283
Fixed assets, net 8,335 7,679
Other non-current assets 3,287 3,293
13,556 12,255
305,677 270,861
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LIABILITIES
Current liabilities 173,268 161,991
Non-current liabilities 48,764 27,661
Equity 83,645 81,209
305,677 270,861
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Current market value US$ 14.93
million.
Accrued orders as of March 2017
NIS 43 million.
In May 2007 subject made a
public offering of its shares and bonds, raising a gross proceeds of NIS 91.5
million.
In July 2013 subject raised NIS
81,000,000 issuing bonds on the TASE.
There
are 8 charges for unlimited amounts registered on the company’s assets in favor
of Bank Leumi Le’Israel Ltd., The First international Bank of Israel Ltd., and
Mizrahi Tefahot Bank Ltd.
REVENUES
Statement
of Income
NIS
(thousands)
Year
ended 31.12
2014 2015 2016
Sales 525,268 484,562 452,269
Gross
profit 39,400 6,652 20,922
Operating
income (loss) 20,448 (10,947) 3,379
Pre-tax
income (loss) 6,695 (18,616) (2,747)
Net
income (loss) 4,963 (15,202) (4,481)
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Revenues for the first 3
quarters of 2017 were NIS 291,050,000 (16% decrease compared to parallel period
in 2016), making a gross profit of NIS 15,734,000, an operating income of NIS
2,424,000, and a net loss of NIS 2,492,000.
OTHER
COMPANIES
Subject has non-active wholly-owned subsidiaries, which
participate in the Ministry of Agriculture tenders for receiving import
licenses:
FOOD–TRONICS LTD., A.A. SHIBOLET LTD., GRICIA LTD., SHAKED
HAKESEM LTD., BOTEN
HAMAHATZ LTD., MAZON SAME'ACH LTD., TE'ENAT CAN'AN LTD.
Other companies owned by Hamama
family:
TENE NEGEV LTD., marketers and
exporters of peanuts,
HAMAMA MEIR DEVELOPMENT AND
INVESTMENTS CO. (1991) LTD.,
HAMAMIT
LTD.,
TENE PEANUTS LTD.,
TENE
PEANUTS 91 SORTING AND MARKETING LTD.
HAMAMA
BROTHERS & CO. LTD., real estate,
MILGAD LTD.,
HAMAMA TENE HAI PEANUTS 1997 LTD.,
POLIVA LTD., 12%, traders, importers and marketers of
raw materials and substances for bakeries.
S. HAMAMA HOLDINGS INDUSTRY & HI-TECH LTD.
BANKERS
Bank Leumi Le’Israel Ltd.,
Principal Branch Tel Aviv (No. 800), Tel Aviv.
Union Bank of Israel Ltd., Main
Branch (No. 63), Tel Aviv.
CHARACTER AND REPUTATION
In January 2011 subject received a
claim that it violated a lease agreement and is seued for NIS 3.8 million. In
September 2012 matter ended in a comprmise, in which subject will pay NIS
160,000 and all claimes will be dropped.
In April 2014 subject's storage
facilities in Kiryat Gat did not meet the Ministry of health regulations. The
Ministry of Health revoked subject's stortage for a month until these defalts
were taken care of. In May 2014 subject reported that the appopriate mesures
were taken and the facilty received a storage permit. Subject invested some NIS
1 million these mesures.
Subject is
currently in dispute with the Kiryat gan municipality regarding a
NIS 5.5 million municipal tax demand.
Nothing unfavorable
learned apart from the above.
Subject is veteran, one of the
two leading companies in their field in the local market, with an estimated
market share of 15%-20% in 2016 (similar to previous years). The company is ISO
9000 certified and meets other quality standards.
In 2000, HAMAMA Group sold all
activities of MILOUMOR OIL INDUSTRIES (1992) LTD., processors of oil, to SHEMEN
Group, for US$ 10 million.
In March 2006 subject sold its rights in a plot in
Kiryat Gat, including the structures, to a third party in consideration of NIS
20.78 million.
According
to Ministry of Agriculture data from 2009, 3,600 tons of pistachio and 3,100
tons of almonds are imported to Israel each year.
The
whole local nuts/almonds and dried fruits market rolls some NIS 600 million
annually. Most of it arrives from import from Turkey, China, USA, Far East
countries and South Africa.
According to survey from 2013, the local food market,
manufacturing, import and trade, rolls NIS 80 billion per annum. There are some
1,700 food plants in Israel (some also import) and hundreds of importers in the
food, beverage and consumer products, supplying raw materials and finished
goods to the food market.
The
StoreNext Market Research survey (based on circa 80% of the sales in the local
FMCG bar-coded market) on 2017, points on 1.7% rise in the food and beverages
sales from 2016, to total of NIS 35.7 billion, though estimated to be most from
price rise, not quantity, taking into account the population growth, so in
practice point on stagnation in the market.
In 2016 the FMCG market summed
up to NIS 40.8 billion, practically a freeze from 2015, with 0.5% decrease in
sales in terms of price, sided by a mild increase of 0.6% in real terms (the
prices index fall by 1.1%), while the growth in population is 2% per annum.
That comes after mild increases in sales in 2015 and 2014, compared to the
previous year.
Food products sale in 2016
witnessed 0.8% fall in money terms from 2015 and totaled NIS 30.5 billion, beverages
sales rose by 1.5% to NIS 4.5 billion.
Sales
for exports by the food products & beverages industries rose by 8.6% in
2017 from 2016, summing at US$ 1,041 million, after in 2016 export fell by 2.8%
from 2015 and plunged by circa 10% in 2015 from 2014.
According to Central Bureau of Statistics
(CBS), import of food and beverages to Israel in
2017 reached NIS 9,501.2 million, 4.6% rise from 2016 (11.6% rise in US$
currency terms), continuing the upward steady growth trend in last years
(including by 9.1% & 8.3% in 2016 and 2015, respectively from the previous
year, in NIS terms).
From
the CBS National Accounts for 2016, it turns that current expenditure by local
households on Food, Beverage & Tobacco
grew by 4.9% from 2015, compared to growth rates of 3.5% in the last couple of
years.
SUMMARY
Notwithstanding the losses,
considered good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.28 |
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1 |
INR 89.02 |
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Euro |
1 |
INR 78.93 |
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ILS |
1 |
INR 18.21 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.