|
|
|
MIRA INFORM REPORT
|
Report No. : |
508433 |
|
Report Date : |
10.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
KOBE BUSSAN CO LTD |
|
|
|
|
Registered Office : |
883 Naka-Isshiki Kakogun Hyogo-Pref 675-1177 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.10.2017 |
|
|
|
|
Date of Incorporation : |
April 1991 |
|
|
|
|
Com. Reg. No.: |
1400-01-044630 (Hyogo-Kakogun) |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Operator of Commercial-Use Supermarket
Chains |
|
|
|
|
No. of Employees : |
335 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Maximum Credit Limit : |
Yen 3,078.4 Million |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
|
Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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.
|
Source
: CIA |
Company
name & address
KOBE BUSSAN CO LTD
REGD NAME: KK
Kobe Bussan
MAIN OFFICE: 883
Naka-Isshiki Kakogun Hyogo-Pref 675-1177 Japan
Tel:
079-496-6610 Fax: 079-496-6620
URL: http://www.kobebussan.co.jp/
E-Mail address: store@kobebussan.co.jp
ACTIVITIES: Operator
of commercial-use supermarket chains
STORES: Tohoku
(25), Kanto (102), Chubu (54), Kansai (155), Chugoku (31),
Shikoku
(17), Kyushu (17). (Tot 570)
FACTORIES: China, Hong Kong,
Myanmar, USA, Egypt (--food processing yards)
CHIEF EXEC: HIROKAZU
NUMATA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 251,503 M
PAYMENTS REGULAR CAPITAL Yen 64 M
TREND STEADY WORTH Yen
24,001 M
STARTED 1985 EMPLOYES 335
COMMENT: OPERATOR OF COMMERCIAL-USE SUPERMARKET CHAINS. FINANCIALS SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARYBUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 3,078.4 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company is an operator of “commercial-use supermarket franchise chains” with great number of stores in industry. Products produced at own factories in China & S/E Asia. Affiliates restaurants chains (G Taste & Sakai) joined the consolidated subsidiary roaster in Feb 2013. Actively expanding the electricity sales through photovoltaic power generation, in addition to the geothermal and woody biomass power generation.
FINANCIAL
INFORMATION
The sales volume for Oct/2017 fiscal term amounted to Yen 251,503 million, a 5.11% up from Yen 239,266 million in the previous term. The recurring profit was posted at Yen 15,778 million and the net profit at Yen 8,346 million, respectively, compared with Yen 8,729 million recurring profit and Yen 4,560 million net profit, respectively, a year ago.
For the current term ending Oct 2018 the recurring profit is projected at Yen 15,900 million and the net profit at Yen 10,900 million, respectively, on a 5.37% rise in turnover, to Yen 265,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,078.4 million, on 30 days normal terms.
REGISTRATION
Date Registered:
Apr 1991
Regd No.:
1400-01-044630
(Hyogo-Kakogun)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 32
million shares
Issued:
8.8 million shares
Sum: Yen
64 million
Major
shareholders (%): Gyomu Super Japan Dream Foundation (25.7), Company’s Treasury Stock
(22.8), Shoji Numata (7.6), Mineko Numata (2.9), Masami Ogawa (2.9), Hirokazu
Numata (2.9), Kyodaigo Miso (2.2), Mineral Soft (1.9), M&U Asset Management
(1.8), Nomura Int’l LDN Sec. Lending (1.1); foreign owners (3.9)
No. of shareholders: 15,770
Listed on the S/Exchange
(s) of: Tokyo.
Managements: Hirokazu Numata, pres; Yasuhiro
Tanaka, v pres; Tsutomu Nakashima, dir; Kazuo Asami, dir; Satoshi Nishida, dir;
Yasuhiro Yago, dir; Takumi Kobayashi, dir; Takeshi Ieki, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Kobe Bussan Foods (Hong Kong), Dalian Fulaixin Foods,
Kobebussan Foods Ltd (Anqin)
(--China).
OPERATION
Activities: Operator of commercial-use supermarket chains (86%), “Kobe Cook” (1%), “Cookinoventure” (13%)
Imports from China account for 60-70% of total vegetable imports.
Import sources are expanded to Egypt, etc
Clients: Consumers,
franchisees, other
No. of accounts:
Unavailable
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Imports from China & other S/E Asian subcontracted Factories. Also supplied from Nippon Meat Packers, Itoham Foods, Prima Meat Packers, Marudai Foods, Snow Brand Access, G7 Super Mart, Ocean System, Passport, other.
Payment record: Regular
Location: Business area in Kakogun, Hyogo-Pref. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (Kobe-Chuo)
SMBC (Kakogawa)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
Terms Ending: |
31/10/2018 |
31/10/2017 |
31/10/2016 |
31/10/2015 |
|
|
Annual
Sales |
|
265,000 |
251,503 |
239,266 |
228,590 |
|
Recur.
Profit |
|
15,900 |
15,778 |
8,729 |
8,477 |
|
Net
Profit |
|
10,900 |
8,346 |
4,560 |
7,174 |
|
Total
Assets |
|
|
144,484 |
133,199 |
134,042 |
|
Current
Assets |
|
|
100,342 |
86,604 |
82,310 |
|
Current
Liabs |
|
|
37,925 |
29,796 |
29,673 |
|
Net
Worth |
|
|
24,001 |
16,560 |
14,730 |
|
Capital,
Paid-Up |
|
|
64 |
64 |
64 |
|
Div.P.Share(¥) |
|
|
50.00 |
45.00 |
80.00 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
5.37 |
5.11 |
4.67 |
6.80 |
|
Current Ratio |
|
.. |
264.58 |
290.66 |
277.39 |
|
N.Worth Ratio |
|
.. |
16.61 |
12.43 |
10.99 |
|
R.Profit/Sales |
|
6.00 |
6.27 |
3.65 |
3.71 |
|
N.Profit/Sales |
|
4.11 |
3.32 |
1.91 |
3.14 |
|
Return On Equity |
|
.. |
34.77 |
27.54 |
48.70 |
Notes: Forecast (or estimated) figures for the
31/10/2018 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.38 |
|
|
1 |
INR 91.09 |
|
Euro |
1 |
INR 79.75 |
|
YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.