MIRA
INFORM REPORT
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Report Date : |
14.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
FOSTER ELECTRIC CO LTD |
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Registered Office : |
512 Miyazawacho Akishima City Tokyo-Metrop 196-8550 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Jun 1948 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of speaker parts, speakers for home audios
& stereos |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 2590.7 millions |
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Status : |
Fair |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
FOSTER ELECTRIC CO LTD
REGD NAME
Foster Denki KK
MAIN OFFICE
512 Miyazawacho Akishima City Tokyo-Metrop 196-8550 JAPAN
Tel: 042-546-2311
Fax: 042-546-2317
E-Mail address: info@foster.co.jp
ACTIVITIES
Mfg of speaker parts, speakers for home audios & stereos
BRANCHES
Osaka, Tachikawa, Aichi, Mie
FACTORY(IES)
(subcontracted overseas)
OVRSEAS
China (5, including Hong Kong); USA (5); Singapore, Taiwan,
Indonesia, Vietnam, Europe
(--subsidiaries & factories)
CHIEF EXEC
YASUO HIGASHI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 66,047 M
PAYMENTS REGULAR CAPITAL Yen 3,770 M
TREND STEADY WORTH Yen 22,867 M
STARTED 1948 EMPLOYES 26,245
COMMENT
MFR OF
SPEAKERS FOR AUDIO & STEREOS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,590.7 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established jointly by two men: S Nishimura
and S Shinohara as Shinano Onkyo Institute for manufacturing loud
speakers. Renamed as captioned in May
1959. This is a specialized mfr of
speakers parts and speakers for home audios & car stereos. Production is 100% consigned to overseas
factories, mainly on OEM basis. Expanding into information and
communications-use micro speakers, headphones, headsets and earphones. New factory in Vietnam started production of
headphones in Sept 2006. Overseas
operations high with history of supplying products to General Motors Corp.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen
66,047 million, a 25.3% up from Yen 52,720 million in the previous term. Demand for headphones for mobile digital AV
equipment brisk. Speaker systems also
brisk for flat TVs. Electronic
equipment division, however, was down 5.1% to Yen 21,923 million, hurt by
severe market competition both at home and abroad. Parts div was up by 50.1% to Yen 41,944 million, thanks to
increased demand for speakers & headphones. Microphones revived in the telecommunications market. The recurring profit was posted at Yen 5,623
million and the net profit at Yen 2,842 million, respectively, compared with
Yen 3,139 million recurring profit and Yen 1,648 million net profit,
respectively, a year ago.
For the term just ended Mar 2007 the recurring profit was
projected at Yen 5,400 million and the net profit at Yen 3,100 million, on a
10.5% rise in turnover, to Yen 73,000 million.
Headphones & head sets for mobile phones lead profit growth. Operating profit continued high, even with
price falls of modular products for flat-screen TVs. Net profit will hit all-time high, free of special losses. Newly started production in Sept 2006 at
Vietnam factory for headphones contributed.
(Apr/Dec/2006 results): Sales Yen 56,404 million (up 13.6%),
operating profit Yen 3,801 million (down 17.4%), recurring profit Yen 3,752
million (down 16.6%), net profit Yen 2,211 million (up 3.7%). (% compared with the same period the last
year). Headphones for mobile audios and
headsets for mobile phones remained robust in demand. Active speakers were robust, too.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 2,590.7 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun
1948
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 80
million shares
Issued: 24,106,015
shares
Sum: Yen
3,770 million
Major shareholders (%): Japan Trustee Services Bank T (12.2), Master Trust Bank of Japan T (7.2), Master
Services Bank of Japan T (Hitachi Metals) (6.9), Nomura Trust, Toshin (4.8), Mizuho
Bank (4.2), Hiroaki Shinohara (2.5), Assets Custody Trust (2.4), MTBJ (TDK), Melon
Bank
Melon Omnibus US Pension (2.1); foreign owners (20.7)
No. of shareholders: 5,660
Listed on the S/Exchange (s) of: Tokyo
Managements: Yasuo Higashi, pres; Kazunari Shimizu, s/mgn dir; Rintaro Kohara, mgn dir; Yukio
Miyata, mgn dir; Akira To, mgn dir; Yoichi Takahashi, mgn dir; Shigeki Osawa, dir;
Hiroyuki
Makiura, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Foster Electric (Hong Kong), Foster Electric (USA), Foster
Electric (Singapore), other (Tot 12 as of Mar/06)
OPERATION
Activities: Manufactures loud speakers, audio equipment,
electronic equipment:
(Sales breakdown by divisions): Electronic equipment (33%),
electronic parts & components (64%), others (3%). All production done overseas, mainly on OEM basis.
(Handling items): loud speakers, active speakers, micro
speakers, speaker systems, headphones, microphones, electrics equipment, their
parts & components.
Overseas sales ratio 85%: Asia 38.9%; N America 23.5%;
Europe 22.2%, others 0.4%.
Clients: [Audio equipment mfrs, wholesalers] Sony Corp, General
Motors, Yamaha Corp, Clarion Co, Apple, Alpine, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Hitachi Metal Ind, Nippon
Chemi-Con Corp, TDK Corp, Mitsumi Electric, other.
Payment record: Regular
Location: Business area in Akishima City, Tokyo-Metrop. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
Mizuho Bank (Tachikawa)
MUFG (Tachikawa)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME STATEMENT |
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Annual Sales |
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66,047 |
52,720 |
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Cost of Sales |
52,526 |
42,216 |
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GROSS PROFIT |
13,520 |
10,503 |
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Selling & Adm Costs |
7,764 |
7,000 |
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OPERATING PROFIT |
5,756 |
3,503 |
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Non-Operating P/L |
-133 |
-364 |
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RECURRING PROFIT |
5,623 |
3,139 |
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NET PROFIT |
2,842 |
1,648 |
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BALANCE SHEET |
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Cash |
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5,192 |
3,083 |
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Receivables |
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11,501 |
9,792 |
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Inventory |
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8,709 |
7,630 |
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Securities, Marketable |
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Other Current Assets |
1,119 |
903 |
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TOTAL CURRENT ASSETS |
26,521 |
21,408 |
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Property & Equipment |
8,060 |
7,069 |
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Intangibles |
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206 |
155 |
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Investments, Other Fixed Assets |
3,848 |
2,221 |
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TOTAL ASSETS |
38,635 |
30,853 |
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Payables |
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4,469 |
3,817 |
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Short-Term Bank Loans |
5,593 |
5,709 |
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Other Current Liabs |
3,312 |
2,985 |
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TOTAL CURRENT LIABS |
13,374 |
12,511 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
252 |
330 |
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Other Debts |
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2,142 |
347 |
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TOTAL LIABILITIES |
15,768 |
13,188 |
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MINORITY INTERESTS |
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Common
stock |
3,770 |
3,770 |
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Additional
paid-in capital |
4,564 |
3,896 |
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Retained
earnings |
15,871 |
13,356 |
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Evaluation
p/l on investments/securities |
421 |
291 |
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Others |
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(1,758) |
(2,752) |
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Treasury
stock, at cost |
(1) |
(896) |
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TOTAL S/HOLDERS` EQUITY |
22,867 |
17,665 |
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TOTAL EQUITIES |
38,635 |
30,853 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Cash
Flows from Operating Activities |
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4,434 |
2,495 |
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Cash
Flows from Investment Activities |
-3,174 |
-2,000 |
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Cash
Flows from Financing Activities |
785 |
296 |
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Cash,
Bank Deposits at the Term End |
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5,182 |
3,072 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
22,867 |
17,665 |
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Current
Ratio (%) |
198.30 |
171.11 |
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Net Worth
Ratio (%) |
59.19 |
57.26 |
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Recurring
Profit Ratio (%) |
8.51 |
5.95 |
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Net
Profit Ratio (%) |
4.30 |
3.13 |
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Return
On Equity (%) |
12.43 |
9.33 |
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RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)