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MIRA
INFORM REPORT
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Report No. : |
493988 |
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Report Date : |
05.03.2018 |
IDENTIFICATION DETAILS
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Name : |
HAMADIA DOORS LTD |
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Registered Office : |
Mobile Post Emek Beit Shean, Hamadia, 1085500 |
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Country : |
Israel |
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Date of Incorporation : |
06.01.1965 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, installers, retailers and marketers of doors (wooden,
fireproof, decorative) and frames. |
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No. of Employees : |
120 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Exist |
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 (30.09.2017) |
Current Rating (31.12.2017) |
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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
RE: HAMADIA DOORS LTD.
Telephone 972 4 666 66 00 /1
Fax
972 4 658 79 50
Email:
info@hamadia-doors.net
Mobile Post Emek Beit Shean
HAMADIA 1085500 ISRAEL
HISTORY & LEGAL FORMATION
A
private limited company, incorporated as per file No. 51-044671-9 on the 06.01.1965
by Kibbutz Hamadia, continuing business activities which originally began in
Kibbutz Hamadia in 1949.
SHARE CAPITAL
Authorized
share capital NIS 2,200,710.00, divided into -
8 ordinary "A" shares of NIS
0.005 each (all issued),
2,199,900 ordinary "A" shares
of NIS 1.00 each (2,149,900 shares issued),
100 ordinary "A" shares of NIS
0.0002 each (all issued),
709,940 ordianry "A" shares of
NIS 0.001 each (617,770 shares issued),
100 ordinary "B" shares of NIS
1.00 each (all issued),
of
which shares amounting to NIS 2,150,617.83 were issued.
SHAREHOLDERS
Subject
is fully owned by S.E.G.M. HOLDINGS LTD., owned by Ehud Sasi (76%) and Miki
Globinsky (24%).
In
2010 Ehud Sasi aquired all of subject's shares from Kibbutz Hamadia (see also
MEANS and CHARACTER).
At
a later stage (after 2013), Miki Globinsky entered.
DIRECTORS
1.
Ehud Sasi, General Manager, also a registered
authorized reporting official,
2.
Michael (Miki) Globinsky, Deputy
General Manager.
BUSINESS
Manufacturers,
installers, retailers and marketers of doors (wooden, fireproof, decorative,
etc.) and frames.
Also
operating 7 showrooms/sales branches.
Sales
are to retailers, as well as to construction compnies, institutions,
organizations, etc.
Among
clients: S. COHEN METAL WORKS, HAIM GAMLIEL, DANYA CEBUS, FRIEDMAN HAKHSHURI,
JUDEA INTERNATIONAL EXPORT IMPORT, RIMI MANAGEMENT & INVESTMENTS, DEPOT
GLOBE, KFIRI, etc.
Among
suppliers: ADANIM WOOD INDUSTRIES, DAVID STOESSEL, ELBE METAL WORKING
MACHINERY, etc.
Operating
from premises, on an area of 15,000 sq. meters (of which 8,000 sq. metres are
built), in Kibbutz Hamadia*. Also operating from 7 showrooms/sales branches in
Ra’anana, Jerusalem, Ramat Gan, Rishon Le-Zion, Afula, Haifa and Ashdod.
*
Note: The property in Kibbutz Hamadia was originally very-long leased to
Kibbutz Hamadia from the State (which practically means ownership). Kibbutz
Hamadia sold part of the preoperty to Ehud Sasi, subject's owner.
Currently the property is partly owned
by Mr. Sasi (via another company he owns HAMADIA'S DOORS HOLDINGS LTD.) and
partly by Kibutz Hamadia (land registration matters vis-à-vis the State are
still under administrative procedurs).
Website:
www.hamadia-doors.co.il
Having
120 employees (had 100 employees in 2013).
MEANS
In
2010, Ehud Sasi informed us that he acquired subject in February 2010 for
NIS
15,000,000.
Other
financial data not forthcoming.
There
are no charges registered on the company's assets.
REVENUES
2008
sales claimed to be NIS 43,000,000.
2009
sales claimed to be NIS 50,000,000.
Sales
for the first 6 months of 2010 claimed to be NIS 27,000,000.
Later
sales data not forthcoming. According to a report from end of 2011, subject is
profitable.
Later
sales data not forthcomign
OTHER COMPANIES
Also
fully owned by Ehud Sasi:
HAMADIA'S
DOORS HOLDINGS LTD., a holding company, owns part of the real estate property
in Kibbutz Hamadia, where subject is operating from (see NOTE below).
KAL
VACHOMER GOLAN LTD., a DIY retail store,
KAL
VACHOMER ENTERPRISES LTD., a real etate company,
SAGM
HOLDINGS LTD. a holding company.
Ehud
Sasi may also hold other companies.
BANKERS
Mizrahi
Tefahot Bank Ltd., Beit Shean Branch (No. 439), Beit Shean, account No. 538559.
A check with the Central Banks' database did
not reveal negative information on subject’s a/m bank account.
Bank Leumi
Le'Israel Ltd., Ha’amakim Business Branch (No.
745), Afula.
CHARACTER AND REPUTATION
Subject
is inviolved in several legal cases, all part of normal business activity, none
seem significant.
Apat
from that, nothing unfavorable learned.
Subject’s CFO
refused to disclose financial data.
Subject
is a veteran plant, its products and brands are well-known in the local
building market and among the leading in the field.
Kibbutz
Hamadia ("Kibbutz" is a typical local
cooperative agricultural settlement/ village), who founded subject and
owned it, was forced to sell its holdings in subject due to the Kibbutz’s
financial distress, after accumulating hefty debts, reaching freezing
procedures status. The Kibbutz reached that situations due to management
problems and collapse of its other holding in a company INBAR REINFORCED
POLYESTER LTD., irrelated to subject, which was not financially
troubled.
Subject
is ISO 9001:2000 certified.
Import of Wood and
its Products raw materials in 2017 summed up at US$ 599 million, compared to
US$ 553.4 in 2016, US$ 548.7 million in 2015, and US$ 604.8 million in 2014,
according to the Central Bureau of Statistics (CBS).
According to the
CBS data, investments by the Wood & Furniture manufacturing industries in
imported machinery & equipment in 2016 summed up at NIS 197.2 million,
which represents 37% increase from 2015 (after in 2015 a 12.5% decrease was
noted from 2014).
The Home Design area is directly influence
by the changes in the local market in general, and construction and real estate
market in particular.
From the Central Bureau of Statistics (CBS)
data, investments in construction for dwelling in 2016 rose by 8.6% from the
previous year, which follows 2.2% increase in 2015 and increase of 6.4% in
2014.
Investments in construction not for dwelling
(public institutions, commercial and industrial building) rose in 2016 by 1%
(after 3.9% rise in 2015 and 3.6% in 2014), and investments in construction in
other construction works (e.g. roads, infrastructure) saw 2.1% rise in 2016,
continuing the upward trend (by 3.3%) in 2015 (after falling by 18.2% in 2014).
The annual volume of houses renovations
according to the Renovations Contractors Association is estimated at NIS 15
billion, and the turnover of the ceramics branch is estimated to capture NIS
2.3 billion (which comprises some 80% of the branch's total volume).
From the CBS data, in 2016 the volume of building starts for dwelling
(which is a dominant indicator for the trend in the building sector) amounted
to 53,661 housing units, compared with 53,503 units from 2015 (in 2014 there
were 46,987 building starts, 47,704 in 2013 and 43,454 building starts in
2012), and well below the Government's goal for 60,000 building starts.
In the 1st
half of 2017 building starts were close to 23,300 units, 12.5% lower than the 1st
half of 2016.
The number of building finishing in 2016 reached 46,091 units, 6% higher
than 2015 (2015 marked 2.5% decrease in building finishing from 2014).
Number of dwellings transactions in 2015 reached a climax with total of
120 thousands transactions (rise in both new and second-hand apartments), but
started decreasing in 2016, due to the government's policy of tax raising. That
decreasing trend intensified into 2017. According to the review by the Chief
Economist at the Ministry of Finance, in 2017 close to 100,000 apartment were
sold, which represents estimated decrease of 11%-12% from 2016.
SUMMARY
Notwithstanding the refusal to disclose
financial details, 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 65.23 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 79.50 |
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ILS |
1 |
INR 18.94 |
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 : |
SYL |
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
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.