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MIRA INFORM REPORT
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Report No. : |
516547 |
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Report Date : |
22.06.2018 |
IDENTIFICATION DETAILS
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Name : |
NAGAHORI CORPORATION |
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Registered Office : |
Tenjin Bldg, 1-15-3 Ueno Taitoku Tokyo 110-8546 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2018 |
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Date of Incorporation : |
June
1962 |
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Com. Reg. No.: |
0105-01-016760
(Tokyo-Taitoku) |
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Legal Form : |
Limited
Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Wholesale of Diamond Jewelry &
Fashion Jewels |
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No. of Employees : |
517 |
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 (31.12.2017) |
Current Rating (01.04.2018) |
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Japan |
A1 |
A1 |
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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 |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. For three postwar decades, overall real economic growth was impressive - averaging 10% in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which resulted in several years of economic stagnation as firms sought to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008.
Japan enjoyed an uptick in growth since 2013, supported by Prime Minister Shinzo ABE’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the need to address its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. In November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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Source
: CIA |
Company
name and address
NAGAHORI CORPORATION
REGD NAME: KK Nagahori
MAIN OFFICE: Tenjin Bldg, 1-15-3 Ueno Taitoku
Tokyo 110-8546 JAPAN
Tel:
03-3836-4711 Fax: 03-3837-1389
URL: http://www.nagahori.co.jp/
E-Mail address: info@nagahori.co.jp
ACTIVITIES: Mfg, wholesale of diamond
jewelry & fashion jewels
BRANCHES: Osaka, Fukuoka, Chiba, Saitama
(--branch stores)
STORE: Ginza
OVERSEAS: Milan, Antwerp, and Mumbai
SANOCO Co
Ltd (Hong Kong) (subsidiary)
FACTORIES: Mobara (Chiba)
CHIEF EXEC: KEITA NAGAHORI, PRES & CEO
Yen Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 21,199 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
5,323 M
TREND SLOW WORTH Yen 13,028 M
STARTED 1962 EMPLOYES 517
COMMENT
MFR & WHOLESALER SPECIALIZING DIAMOND JEWELRY & FASHION JEWELS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
HIGHLIGHTS
The
subject company was established by M Nagahori originally as Nagahori Pearls KK
for wholesaling pearls and pearl jewelry.
In Oct 1982 renamed as captioned.
This is a leading mfr and wholesaler of jewelry centered on diamonds and
fashion jewels. Also handles pearls and
other precious stones. Has strength in
sales to department stores. In 1973,
approved as official member by Antwerp Diamond Exchange and started diamonds
trading, which now are its main revenue sources. Operates JV in Israel for diamond
trading. It has started
exports and sales through the Hong Kong subsidiary. Bought out SJ Jewelry, with strength in gold
bullion, in 2013, and also merged with “Nicolo Polo”, a retail chain started as
a Jv set up through a purchase from JUSCO (present Aeon Co Ltd)
FINANCIAL
INFORMATION
The
sales volume for Mar/2018 fiscal term amounted to Yen 21,199 million, a 1.58%
fall from Yen 21,539 million in the previous term. The recurring profit was posted at Yen 18 million
while the net loss of Yen 57 million, respectively, compared with Yen 94
million recurring profit and Yen 51 million net losses, respectively, a year
ago.
For
the current term ending Mar 2019 the recurring profit is projected at Yen 320
million and the net profit at Yen 150 million, respectively, on a 1.88% fall in
turnover, to Yen 20,800 million..
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Jun
1962
Regd No.: 0105-01-016760
(Tokyo-Taitoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 40 million shares
Issued:
16,773,376 shares
Sum: Yen
5,323 million
Major shareholders (%): Company’s Treasury Stock (8.5), MF Nagahori Co (7.0), Nagahori Create (4.7), Resona Bank (4.5), Dai-ichi Life Ins (4.1), Morihiro Nagahori (3.4), Joyo Bank (3.1), Keita Nagahori (3.1), MUFG (2.4), Fujiyo Nagahori (2.2); foreign owners (0.9)
No. of shareholders: 3,266
Listed on the S/Exchange (s) of: Tokyo
(Second Section)
Managements: Keita Nagahori, pres; Kaoru
Tabata, mgn dir; Fumihiko Shirakawa, dir;
Naoki Togashi, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Soma KK, KK
Jewelry, Sanaco Co (Hong Kong), Brodia KK, Royal Asscher Japan (Total 6
domestic; 2 overseas)
OPERATION
Activities: Manufactures, processes, imports and partially retails diamonds, pearls, other gemstones, jewelry products (--99%), health care industry (1%).
Diamonds and other gemstones are imported.
(Handling brands): Dal Lago, Sonia Rykiel, Yuki Torii, Hana-Kaido, arut, Pinky & Dianne, Private Label, Annie-j, anan, Lolita Lempicka, Disney, La Germa, Aqua-Style, Y’Sacos, WISP, other.
Clients: [Department stores, chain stores, jewelry stores] Takashimaya, Sogo & Seibu Co Ltd, Vendome Yamada Corp, Nagoya Mitsukoshi, Tsuruya Department Store, FDC Products, other.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Otsuki Pearl Co, Rosy Blue Mfg, Eurostar Diamond Trading, Ishifuku Metal Ind, Dimexon, Tokyo Pearl Co, Kaji International, Jalux Inc, Itochu Corp, other.
Payment record: Slow
But Correct
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Resona
Bank (Ueno)
Mizuho
Bank (Marunouchi-Chuo)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2019 |
31/03/2018 |
31/03/2017 |
31/03/2016 |
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Annual Sales |
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20,800 |
21,199 |
21,539 |
21,579 |
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Recur. Profit |
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320 |
18 |
94 |
-75 |
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Net Profit |
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150 |
57 |
-51 |
-992 |
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Total Assets |
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25,197 |
26,322 |
26,258 |
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Current Assets |
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17,344 |
17,126 |
17,274 |
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Current Liabs |
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9,727 |
10,258 |
9,953 |
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Net Worth |
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13,028 |
13,044 |
13,124 |
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Capital, Paid-Up |
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5,323 |
5,323 |
5,323 |
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Div.P.Share(¥) |
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10.00 |
7.00 |
10.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-1.88 |
-1.58 |
-0.19 |
6.63 |
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Current Ratio |
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.. |
178.31 |
166.95 |
173.56 |
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N.Worth Ratio |
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.. |
51.70 |
49.56 |
49.98 |
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R.Profit/Sales |
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1.54 |
0.08 |
0.44 |
-0.35 |
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N.Profit/Sales |
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0.72 |
0.27 |
-0.24 |
-4.60 |
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Return On Equity |
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.. |
0.44 |
-0.39 |
-7.56 |
Notes: Forecast
(or estimated) figures for the 31/03/2019 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 68.20 |
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1 |
INR 89.58 |
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Euro |
1 |
INR 78.79 |
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Yen |
1 |
INR 0.62 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
PRA |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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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.