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MIRA INFORM REPORT
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Report No. : |
499620 |
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Report Date : |
30.03.2018 |
IDENTIFICATION DETAILS
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Name : |
HARMONYA LABAIT LTD |
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Formerly Known As : |
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COMIX FASHION LTD ·
HIDUSH UBINUY LTD |
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Registered Office : |
P.O. Box 8796, Netanya, Bnei Dror Industrial Zone, Bnei Dror, 4581500 |
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Country : |
Israel |
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Date of Incorporation : |
09.12.2004 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, traders (local purchasing),
marketers and retailers of house ware goods (giftware, ornamental items, home
design products, kitchen ware), home textile and light furniture. |
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No. of Employees : |
200 - 230 |
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 : |
No Complaints |
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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: HARMONYA LABAIT LTD.
Telephone 972 9 891 17 10
Fax 972 9 891 91 44
Email: customerservice@hr-l.co.il
P.O. Box 8796, NETANYA
Bnei Dror Industrial Zone
BNEI DROR, 4581500, ISRAEL
HISTORY
& LEGAL FORMATION
A private limited company, incorporated as per file No. 51-361643-3 on the
09.12.2004.
Originally registered under the name HIDUSH UBINUY LTD., which changed to
COMIX FASHION LTD. on the 8.12.2005 and then changed to present name on the
28.11.2007.
(Note: English registered name is HARMONIA LABAIT LTD. with an “I”, while subject is using
the name with “Y” as you gave, also using HARMONYA LE BAIT. The name’s
translation into English is: “Harmony for Home”).
SHARE CAPITAL
Authorized share capital NIS 25,000.00, divided
into:-
25,000 ordinary shares of NIS 1.00 each,
of which 2,000 shares amounting to NIS 2,000.00
were issued.
SHAREHOLDERS
Company is fully owned by Miran Malka.
SOLE DIRECTOR
Miran Malka, General Manager, born in 1972.
BUSINESS
Importers, traders (local purchasing), marketers
and retailers of house ware goods (giftware, ornamental items, home design
products, kitchen ware), home textile and light furniture.
Operating a household goods retail store chain of
17 shops under the name “Harmonya Labait”, of which 1 is franchised (had 21
branches in 2nd half 2017, 27 branches in end of 2016 of which 2
franchised, 30 shops in the beginning of 2016, 4 of which franchised, 32 shops
in the beginning of 2015, 7 franchised,).
Note: according to an interview with Miran Malka in February 2016, subject is
in the process of increasing shops size to 400-600 sq. meters, as well as
closing unprofitable branches. In our interview in November 2017 had 21
branches, now 17 (which indicates the streamlining is ongoing).
Website: www.harmonya-l.co.il
Shops are situated mainly in commercial centers
and shopping malls.
90% of purchasing is from import, mainly from the
Far East, rest purchased locally. All of subject's imported goods are sold
solely in their retail chain.
Advertising agency: YEHOSHUA TBWA.
Operating from rented offices and warehouse, on
an area of 3,000 sq. meters, in the Industrial Zone, Bnei Dror, which is a
locality east of Netanya.
Also operating from 27 shops, 200-400 sq. meters
each, rented, countrywide.
Among landlords: IBC INDUSTRIAL BUILDINGS, GAZIT
GLOBE ISRAEL, BIG.
Having 200 - 230 employees (had 250 employees in
2nd half 2017 and end of 2016, some 300 employees in the beginning of
2016, 250 employees in the beginning of 2015).
MEANS
Inventory was valued at NIS 25,000,000 in end of
2017 (was valued at NIS 30,000,000 in end 2016, similar to the beginning of
2016 and beginning of 2015).
Estimated 2012 advertising budget NIS 5.3 million
(price-list prices).
There are 12 charges for unlimited and limited amounts (on several NIS
million) registered on the company's assets (all assets, mainly on financial
assets), in favor of Bank Hapoalim Ltd. and Bank Otsar Hahayal Ltd.
REVENUES
2011 sales claimed to be NIS 60,000,000.
2012 sales claimed to be NIS 70,000,000.
2013 sales claimed to be NIS 87,000,000.
2014 sales claimed to be NIS 100,000,000.
2015 sales claimed to be NIS 101,000,000.
2016 sales claimed to be NIS 90,000,000.
2017 sales claimed to be around NIS 70,000,000.
BANKERS
Bank Hapoalim Ltd., Netanya Business Branch (No. 167), Netanya, account No.
47299.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m account.
Bank Otsar Hahayal
Ltd., Central Branch (No. 357),
Ramat Gan.
CHARACTER AND REPUTATION
A claim against subject for NIS 100,000 filed to
the Central-Lod District Court by KUCHINA DESIGN in March 2016. No further/
later data found (case No. 1794-06-16).
In February 2017 a (former) employee filed a
motion to the Haifa District Court for its approval as a class action lawsuit
against subject, in the matter of transportation fees payment for the company’s
employees. Matter is pending (case no. 27566-02-17). It should be noted that
such motions may take long time to be approved by the Court, and mostly reach a
compromise or being dropped beforehand.
There is a pending legal dispute, where NIGHT
SLEEP CENTER (2000) LTD. sued subject for debt of some NIS 600,000 rental fees
that the plaintiff claims from the defendant (in November 2016 the Court
instructed subject to pay part of the sum (NIS 120,000 which considered not in
dispute). Matter is pending (case no. 62112-03-16).
Subject is involved in several other legal cases,
all part of normal business activity, none seems significant.
Also, in the business aspect, it should be that
subject has been ongoing streamlining, in view of the fierce competition and
general slow-down in the retail sector in last period, which results in closing
unprofitable branches.
Apart from that, nothing unfavorable learned.
Subject’s owner
and General Manager, Mr. Miran
Malka,
has experience in the retail field from working in the same area, as the
marketing VP of MATIM LI STORES, a large local fashion dealer and retailer
(previously owned by his bother Avi Malka).
It was reported that Mr. Malka acquired the chain of stores in March 2006
from the receiver of the previous owner, who established the chain in 2001 and
went into financial difficulties.
Reported new shops openings during 2013: Bialik
Mall, Ramat Gan – leased 350 sq. meters, paying NIS120 per sq.m/ month; "Big
Center"- leased 350 sq.m, paying
NIS100 per sq.m/ month, investment of NIS 1.2 million in the shop; 4 new shops with total
investment of NIS 4 million in "Big Yoqneam", Hutzot Hamifratz Mall,
Peretz Boneh Hanegev Mall and RamLod Mall, each branch 400 – 600 sq.m.
Reported new shops openings during 2014: Azrieli Mall, Tel Aviv – leased 600 sq. meters,
paying NIS180 per sq.m/ month; Haifa Mall – leased 700 sq. meters, paying
NIS150 per sq.m/ month, investment of NIS 2 million in the shop.
In October 2015
subject established its Customer Club, with an investment of NIS 1 million. Subject's
General Manager estimates that some 200,000 customers will join the club in the
first years.
In an interview
with Miran Malka from February
2016, he informed that he is very aware of the market conditions for each
branch and is taking appropriate measures (increasing branch size, closing
unprofitable branches, etc.). He further stated that he owes no one money and
subject is in AAA condition.
In August 2016 it
was reported that subject invested NIS 1.1 million in opening a 500 sq. meters
branch in Ashkelon.
In September 2016 the Tel Aviv Magistrate Court
rejected a claim of a former concessionaire of subject for NIS 701,000 (Case
File No. 3819-06-13).
In January 2017 it
was reported that subject leased 350 sq. meters in the new Power Center in the
north of the country for its new branch.
The local
housewares and household products market is considered highly competitive after
reaching market saturation. It includes household textile, tableware and
kitchenware and utensils, bath accessories and ornaments & decorative
items, ceramic and glass ware, etc. According to estimations, the housewares
retail market volume reaches NIS 1 billion annually, 70% controlled by the
large players (GOLF & CO., FOX Home, HARMONIYA LABAIT, HAMASHBIR), the rest
by private shops.
According to the Central Bureau of
Statistics (CBS), import of Furniture and Household Equipment in 2016 totaled
US$ 2,462.4 million (compared to US$ 2,301.4 million in 2015 and US$ 2,373.5
million in 2014).
Breakdown of the
import includes: Household Equipment US$ 1,118 million (US$ 1,046 million in
2015), Household Utensils US$ 244.5 million (US$ 230 million in 2015), and
import of Household Maintenance articles US$ 317 million in 2016 (US$ 308
million in 2015).
Import in the first 11 months of 2017
amounted to US$ 2,405.1 million, close to 6% increase compared to the parallel
period in 2016. In breakdown: Household Equipment climbed 8.2%, Household
Utensils rose 14.5% and import of Household Maintenance articles rose by 4.3%
compared to the first 11 months of 2016.
According
to the CBS,
import of consumer goods in 2017 marked 4% decrease (in NIS terms), a reverse
in trend to the last previous years (in 2016 noted 11% increase, 3.5% increase
in 2015 and 8% increase in 2014). The decrease emanated from the sharp decrease
in the import of durable goods, which fell 13.2% (after climbing 18.6% in 2016
and 1% rise in 2015). In contrast, import of non-durable goods increased by
3.3% (rose 5.7% in 2016, 5.4% in 2015).
From the CBS
National Accounts for 2016 on consumption expenditure of households in the
domestic market, it turns that expenditure on semi-durable goods rose by 5%
from 2015 (after rising by 1.2% in 2015 and 6.9% in 2014), and included
expenditure on Clothing and Footwear, which rose by 4.2% (after it remained
stagnant in 2015 and rose by 7.8% in 2014).
Expenditure on
durable goods in 2016 marked 20% rise (after remaining stagnant in 2015 and
rising by 10.4% in 2014), deriving from the jump in vehicles purchasing. From
breakdown of expenditure by households on durable goods, expenditure on furniture and jewelry rose by 7.7% (6.9% in
2015), and 1.7% rise in electric appliances and other equipment (rose 8.6% in
2015).
According to estimations
(from 2016), the local disposable table ware ("kitchen care") market
rolls circa NIS 500 million per annum. Around 70% is from import (mainly from
China and from Turkey), the rest is manufactured locally. The market, which has
been constantly growing in recent years, includes cutlery (some 60% of the
market), tablecloth and napkins, plastic wraps, tin foils, food and bin bags.
Sales are climbing mainly in the holiday periods in March-April and in
September-October. Most sales (65%) are in the supermarket chains, the rest
(35%) in specialized and local stores.
SUMMARY
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 65.04 |
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1 |
INR 92.28 |
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Euro |
1 |
INR 80.62 |
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ILS |
1 |
INR 18.55 |
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
·
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.