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MIRA INFORM REPORT
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Report No. : |
500096 |
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Report Date : |
24.03.2018 |
IDENTIFICATION DETAILS
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Name : |
HANWA CO LTD |
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Registered Office : |
4-3-9 Fushimi-machi Chuoku Osaka |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Apr 1947 |
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Com. Reg. No.: |
1200-01-077530 (Osaka-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of steel products, nonferrous metals, foods, chemicals, petroleum products, machinery, lumber, other. |
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No. of Employees : |
1,337 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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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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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 - a 10% average 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 entailed considerable 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.
Japan enjoyed an 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. 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 necessity of addressing 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 another recession, so Prime Minister ABE has twice postponed the next increase, 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.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and 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).
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Source
: CIA |
Company
name & address
HANWA CO LTD
REGD NAME: Hanwa
Kogyo KK
MAIN OFFICE: HK
Yodoyabashi Garden Avenue, 4-3-9 Fushimimachi Chuoku Osaka 541-8585 Japan
Tel:
06-7525-5000 Fax: 06-7525-5365
*.. Registered at: 4-3-9
Fushimi-machi Chuoku Osaka
**.. The
given address is its Tokyo Office
E-Mail address: info@hanwa.co.jp
ACTIVITIES: Import, export, wholesale of steel
products, nonferrous metals, foods, chemicals,
petroleum products, machinery,
lumber, other.
BRANCHES: Tokyo, Nagoya, Sendai, Kitakyushu,
Sapporo, Sendai, Fukuoka, other (Tot 22)
OVERSEAS: North & South Americas, Asia,
China, Europe & Mid East (--subsidiaries)
CHIEF EXEC: HIRONARI FURUKAWA, PRES & CEO
Yen Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,514,037 M
PAYMENTS REGULAR CAPITAL Yen 45,651 M
TREND STEADY WORTH Yen
64,205 M
STARTED 1947 EMPLOYES 1,337
COMMENT: TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
This is a time-honored trading house originating in Osaka specializing in steel products as mainline. Aiming to become general trading firm by boosting seafood imports. Advanced into electronics field. OA equipment developed in-house is growing rapidly. Strong and active in China operations, having 9 offices in China. Expanding into general trading house operations from the original steel products business. Coil center in San Diego (US), acquired in Sept 2009, expanding sales of products for microwave ovens and flat-screen, TVs in Mexico, thanks to customs-free advantage. In China, developing new markets thru units in inland provinces, including Chorigging. In Apr 2008, established Hanwa India Private Ltd in Mumbai, with office in New Delhi to focus in automobiles, shipbuilding, gas & petroleum, energy markets in India. . The company formed a comprehensive tie-up with Bohai Iron and Steel Group, China’s leading steelmaker, and aims to expand business in China and abroad, including in processed steel products and materials development. The company aims to strengthen sales-force with buyouts of regional processing businesses and the startup of a large-scale warehouse.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 1,514,037 million, a 0.15% up from Yen 1,511,800 million in the previous term. The recurring profit was posted at Yen 22,907 million and the net profit at Yen 16,363 million, respectively, compared with Yen 15,424 million recurring profit and Yen 25,469 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 25,000 million and the net profit at Yen 16,500 million, respectively, on a 12.28% rise in turnover, to Yen 1,700,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Apr 1947
Regd No.:
1200-01-077530
(Osaka-Chuoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 570
million shares
Issued:
211,863,200 shares
Sum: Yen
45,651 million
Major shareholders (%): Japan Trustee Services T 7.5), Master Trust Bank of Japan T (5.3), Company’s Treasury Stock (4.6), Customers’ S/Holding Assn (3.8), SMBC (3.6), CBNY Government of Norway (2.8), JP Morgan Chase Bank 385632 (2.2), Employees’ S/Holding Assn (2.0), Japan Trustee Services T (1.6); foreign owners (25.7)
No. of shareholders: 7,213
Listed on the S/Exchange (s) of: Tokyo
Managements: Shuji Kita, ch;
Hironari Furukawa, pres; Hideo Kawanishi, v pres; Hiroshi Serizawa, v pres;
Akihiko Ogasawara, s/mgn dir; Naoyuki Togawa, s/mgn dir; Yasumichi Kato, s/mgn
dir; Hirotaka Yamamoto, mgn dir; Koji Hatanaka, mgn dir; Hidemi Nagashima, mgn
dir; Yoichi Nakagawa, mgn dir; Yasuharu Kurata, mgn dir; Osamu Seki, dir;
Tatsuji Hori, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: Hanwa Logistics, Hanwa (Hong Kong) Ltd, Halows Co, other
OPERATION
Activities: A trading house for import, export and wholesale of:
(Sales Breakdown by Divisions)
Steel Div (51%): steel bars, shapes, construction materials, wire rods, steel sheets, other;
Steel Materials Div (9%); forged iron, cast iron, special steel wires, screws;
Non-Ferrous Metal Div
(5%): aluminum, copper, nickel, chromium, zinc (recycling);
Foods Div (6%): prawns, crab, other seafoods;
Petroleum & Chemicals Div (17%): fuels, petrochemicals, other;
Overseas subsidiaries Div (7%):
Other Div (5%): lumber, plywood, logs, building materials, other.
Overseas sales ratio (25%)
Clients: [Mfrs, wholesalers, general contractors] JX Nippon Oil & Energy Corp, Mitsui-OSK Lines, K Lines, NYK Lines, Idemitsu Kosan, Obayashi Corp, Takenaka Corp, Shimizu Corp, Sumitomo Metal Ind, Oji Paper Mills, Osaka Uoichiba, NYK Lines, K Lines, Multi Trade Enterprises, China Ordins Group Co, Daewoo Shipbuilding & Marine Engineering, Seojoo Global Corporation, Nippon Metal Ind, Ministry of Defense, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, Nisshin Steel, JFE Steel, JXX Nippon Oil & Energy Corp, Tonen General Sekiyu, Kobe Steel, Double Rich Ltd, Aegean Marine Petroleum, other.
Imports from; USA, Canada, Chile, Finland, Sweden, Norway, Russia, China, Indonesia, other
Payment record: Regular
Location: Business area in Osaka. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
SMBC (Bingomachi)
Mizuho Bank (H/O)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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1,700,000 |
1,514,037 |
1,511,800 |
1,737,397 |
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Recur.
Profit |
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25,000 |
22,907 |
15,424 |
14,264 |
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Net
Profit |
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16,500 |
16,363 |
25,469 |
9,086 |
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Total
Assets |
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175,457 |
177,646 |
181,187 |
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Current
Assets |
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101,015 |
103,191 |
101,799 |
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Current
Liabs |
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51,886 |
52,971 |
51,233 |
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Net
Worth |
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64,205 |
69,759 |
72,904 |
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Capital,
Paid-Up |
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45,651 |
45,651 |
45,651 |
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Div
Ttl in Million (¥) |
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4,291 |
3,532 |
3,077 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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12.28 |
0.15 |
-12.98 |
3.26 |
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Current Ratio |
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194.69 |
194.81 |
198.70 |
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N.Worth Ratio |
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36.59 |
39.27 |
40.24 |
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R.Profit/Sales |
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1.47 |
1.51 |
1.02 |
0.82 |
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N.Profit/Sales |
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0.97 |
1.08 |
1.68 |
0.52 |
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Return On Equity |
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25.49 |
36.51 |
12.46 |
Notes: Forecast (or
estimated) figures for the 31/03/2018 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 65.23 |
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1 |
INR 91.95 |
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Euro |
1 |
INR 80.34 |
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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
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NIS |
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Report Prepared
by : |
KET |
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
·
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.