MIRA INFORM REPORT

 

 

Report Date :

25.08.2007

 

IDENTIFICATION DETAILS

 

Name :

NAGANO KEIKI CO LTD

 

 

Registered Office :

1-30-4 Higashimagome Ohtaku Tokyo 153-8544

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Dec 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of weighing/measuring/control equipment

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 1011.7 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

NAGANO KEIKI CO LTD

 

 

REGD NAME

 

Nagano Keiki KK

 

 

MAIN OFFICE

 

1-30-4 Higashimagome Ohtaku Tokyo 153-8544 JAPAN

Tel        : 03-3776-5311   

Fax       : 03-3776-5321

URL      : http://www.naganokeiki.co.jp/

E-Mail address: overseas_sales_dept@naganokeiki.co.jp

 

*.. The given address is its Measurement Instrument Plant at: 1150 Akiwa Ueda City Nagano-Pref

 

 

ACTIVITIES

 

Mfr of weighing/measuring/control equipment

 

 

BRANCH(ES)

 

Tokyo, Osaka, Nagoya, Hiroshima, Ueda, Kanagawa, Sendai, Kumagaya, Shizuoka, Chiba, Toyama, other

 

 

OVERSEAS

 

USA, Germany, Singapore, Canada, Mexico, Venezuela, other (--subsidiaries)

 

 

FACTORY(IES)

 

Ueda (Nagano) (3)

 

 

CHIEF EXEC

 

SHIGERU MIYASHITA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 33,720 M

PAYMENTS      REGULAR                     CAPITAL           Yen 3,379 M

TREND             STEADY                       WORTH            Yen 20,411 M

STARTED         1948                             EMPLOYES      1,832

 

 

COMMENT

 

MFR OF WEIGHING/MEASURING/CONTROL EQUIPMENT.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,011.7 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHTS

 

This is major mfr of pressure gauges & sensors.  World’s largest mfr of gauge/sensors.  Strong in pressure sensors for use in automobiles and measuring instruments.  Originated in Ueda         City, Nagano-Pref and in 1976 moved the Headquarters to Tokyo (at the caption address) to integrate domestic & overseas sales functions.  Maintains 60% of domestic market share in mechanical pressure gauges mainly for automobile industry.  Operates world’s largest electronic pressure sensor plant.  Known for energy-saving and intelligent HQ building in Tokyo.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 33,720 million, a 38.7% up from Yen 24,304 million in the previous term.  Pressure indicators enjoyed continuous growth, let by those for industrial machines on back of active capital spending.  Pressure sensors for semiconductors and those mounted on automobiles also performed well.  By divisions, pressure gauges up 58.6% to Yen 6,652 million; pressure sensors up 9.2% to Yen 795 million; Measuring & control equipment up 9.4% to Yen 291 million.  The recurring profit was posted at Yen 2,030 million and the net profit at Yen 1,466 million, respectively, compared with Yen 1,752 million recurring profit and Yen 1,140 million net profit, respectively, a year ago.

           

For the current term ending Mar 2008 the recurring profit is projected at Yen 2,770 million and the net profit at Yen 1,720 million, on a 23.4% rise in turnover, to Yen 41,600 million.  Ashcroft, sub in N America acquired in preceding term, will contribute to profits for full term.  Operating rates at plants remaining at high levels.  Operating profits advancing substantially.

 

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements.    Max credit limit is estimated at Yen 1,011.7 million, on 30 days normal terms.

 

REGISTRATION

 

Date Registered:            Dec 1948

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    54,840,000 shares

Issued:                          16,591,594 shares

Sum:                            Yen 3,379 million

Major shareholders (%): NK Shoji (15.3), Shigeru Miyashita (4.9), Hachijuni Bank (4.8), Employees’ S/Holding

                                    Assn (4.0), Mizuho Corporate Bank (3.1), NIF SMBC Ventures (2.9), Nidec Sankyo (2.8),

                                    Naoki Toya (2.7), Hachijuni Capital (2.7), Customers’ S/Holding Assn (2.6); foreign

                                    owners (3.5)

No. of shareholders:       2,151

Listed on the S/Exchange (s) of: Tokyo

Managements:               Shigeru Miyashita, pres; Jun’ichi Yoshiike, v pres; Wataru Kobayashi, mgn dir; Hisanori

                                    Shioiri, mgn dir; Masahiro Majima, mgn dir; Masaji Hirai, mgn dir; Takeshi Takeshige, dir;

                                    Jun’ichi Koike, dir

           

Nothing detrimental is known as to the commercial morality of executives.

 

 

Related companies

 

Ashcroft Inc, Nagano Corp, Ashcroft Instruments GmbH, other.

 

           

OPERATION

           

Activities: Manufactures pressure gauges (53%), pressure sensors (28%), measuring & control equipment (10%), others (9%).

 

(Overseas trading ratio 33.3%: USA 18.8%; Germany 6.4%, others 8.1%)

 

Clients: [Mfrs, wholesalers] Posh Co, Tokiko Nagano, Namboku Sangyo, Nippon Sokki, Eiwa Corp, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nagano Hanyo Keiki Seisakusho, Nagano Corp, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Hachijuni Bank (Tokyo)

Mizuho Corporate Bank (Nihombashi)

 

Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

33,720

24,304

 

  Cost of Sales

25,224

18,261

 

      GROSS PROFIT

8,495

6,043

 

  Selling & Adm Costs

6,785

4,516

 

      OPERATING PROFIT

1,710

1,526

 

  Non-Operating P/L

320

226

 

      RECURRING PROFIT

2,030

1,752

　

      NET PROFIT

1,466

1,140

BALANCE SHEET

 

 

 

 

  Cash

　

1,580

3,017

 

  Receivables

 

9,770

7,876

 

  Inventory

 

6,878

4,379

 

  Securities, Marketable

42

27

 

  Other Current Assets

1,033

903

 

      TOTAL CURRENT ASSETS

19,303

16,202

 

  Property & Equipment

13,940

9,854

 

  Intangibles

 

2,170

63

 

  Investments, Other Fixed Assets

6,994

8,138

 

      TOTAL ASSETS

42,407

34,257

 

  Payables

 

3,561

3,064

 

  Short-Term Bank Loans

3,489

3,550

 

　

 

　

　

 

  Other Current Liabs

3,478

3,001

 

      TOTAL CURRENT LIABS

10,528

9,615

 

  Debentures

 

1,130

1,120

 

  Long-Term Bank Loans

6,666

1,139

 

  Reserve for Retirement Allw

2,156

1,804

 

  Other Debts

　

1,515

692

 

      TOTAL LIABILITIES

21,995

14,370

 

      MINORITY INTERESTS

 

77

 

Common stock

3,379

3,379

 

Additional paid-in capital

3,479

3,479

 

Retained earnings

11,728

10,698

 

Evaluation p/l on investments/securities

1,388

2,277

 

Others

 

464

1

 

Treasury stock, at cost

(27)

(25)

 

      TOTAL S/HOLDERS` EQUITY

20,411

19,809

　

      TOTAL EQUITIES

42,407

34,257

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

1,617

1,151

 

Cash Flows from Investment Activities

-6,756

-1,358

 

Cash Flows from Financing Activities

4,628

-901

　

Cash, Bank Deposits at the Term End

　

1,173

1,683

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

20,411

19,809

 

 

Current Ratio (%)

183.35

168.51

 

 

Net Worth Ratio (%)

48.13

57.82

 

 

Recurring Profit Ratio (%)

6.02

7.21

 

 

Net Profit Ratio (%)

4.35

4.69

 

 

Return On Equity (%)

7.18

5.75

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions