MIRA
INFORM REPORT
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Report Date : |
07.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
KINDEN CORPORATION |
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Registered Office : |
2-3-41 Honjo-Higashi Kitaku Osaka 531-8550 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Apr 1944 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Electrical engineering works |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 21277.1 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name
KINDEN CORPORATION
REGD NAME
KK Kinden
MAIN OFFICE
2-3-41 Honjo-Higashi Kitaku Osaka 531-8550 JAPAN
Tel : 06-6375-6000
Fax : 06-6375-6370
URL : http://www.kinden.co.jp/
E-Mail address: info@kinden.co.jp
*.. The given address is its Tokyo Office at: 2-1-21 Kudan-Minami Chiyodaku Tokyo
ACTIVITIES
Electrical engineering works
BRANCHES
Tokyo, Osaka, Nagoya, Sendai, Yokohama, Kusatsu, Nara, Wakayama, Kobe, Himeji, Okayama, Fukuoka, other (Tot 127)
OVERSEAS
Hong Kong, Singapore, Guam, Saipan, Egypt, Taiwan, Dubai,
Shanghai, Thailand, Kuala Lumpur
(Affiliates) USA (2), Guam, Hong Kong, Indonesia, Thailand,
Philippines, Malaysia, Vietnam (See REGISTRATION)
CHIEF EXEC
OSAMU NAKATANI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 482,125 M
PAYMENTS REGULAR CAPITAL Yen 26,411 M
TREND STEADY WORTH Yen 313878 M
STARTED 1944 EMPLOYES 8,352
COMMENT
ELECTRICAL ENGINEERING COMPANY, AFFILIATED TO KANSAI ELECTRIC POWER CO.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT
ENGAGEMENTS FOR: US$148,000 / O/A 30 DAYS
MAX CREDIT LIMIT: YEN 21,277.1 MILLION, 30 DAYS NORMAL
TERMS.
Forecast (or estimated)
figures for 31/03/2008 fiscal term
HIGHLIGHTS
This is a major general facility engineering firm handling power facility, electric information, communications and automation control facilities for building and plants. Member of Kansai Electric Power group (see REGISTRATION). Kansai Electric-related works account for about 20% of total sales. Branch offices operate on self-support accounting basis throughout Japan and attract orders from private sector, expanding into other than Kansai Electric Power orders. Excels in intelligent building projects. The firm will build the nation’s largest wind power plant in Shimane in JV with Eurus Energy Holdings Corp. Located in Izumo City, the project will have a total output of 80,000 kW. Construction starting in 2007, with operations scheduled in spring 2009.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen
482,125 million, a 6.8% up from Yen 451,514 million in the previous term. The growth was thanks to the expanded
private sector spending particularly brisk orders for data-communication works. Received orders up 3.2% and orders delivered
up 6.8%, respectively. The recurring
profit was posted at Yen 17,868 million and the net profit at Yen 9,136
million, respectively, compared with Yen 15,526 million recurring profit and
Yen 7,843 million net profit, respectively, a year ago.
(Apr/Sept/2007 results): Sales Yen 216,305 million (up 6.1%),
operating profit Yen 6,665million (down 0.5%), recurring profit Yen 7,125
million (up 1.6%), net profit Yen 3,402 million (down 12.5%). (% compared with the same period last
year).
For the current term ending Mar 20088 the recurring profit is
projected at Yen 118,500 million and the net profit at Yen 10,100 million,
respectively, on a 7.8% rise in turnover, to Yen 520,000 million. General electrical engineering works
continuing growth. Works for electric
power systems and data-communication systems will expand. Profits on works widening, benefiting from
selective acceptance of orders.
Acquired top-ranking plumbing & sanitary equipment work from
Nishihara Co, and added con subsidiary in Apr/2007. With acquisition, aims to scale up environmental works, including
wind-power generation systems, medical welfare field, including air cleaning
systems.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 21,277.1
million, on 30 days normal terms. The
proposed amount for 30 days O/A terms is considered well within the firm’s
financial capabilities.
REGISTRATION
Date Registered: Apr
1944
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 800
million shares
Issued: 266,065,080
shares
Sum: Yen
26,411 million
Major shareholders (%): Kansai Electric Power*(33.4), Company’s Treasury Stock (6.9), Kanden Ind (5.4),
Employees’ S/Holding Assn (3.6), Japan Trustee Services Bank T (3.5), Master Trust
Bank of Japan T (3.5), Michio Kanbe (0.9), State Street Bank & Trust (0/8), Tam Two
(0.6);
foreign owners (12.6)
No. of shareholders: 11,869
*..Nation’s second largest electric power company, Osaka, next to Tokyo Electric Power,
founded 1951, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 489,320 million, turnover
Yen 2,596,371 million, recurring profit Yen 231,676 million, net profit Yen 147,935 million,
total assets Yen 6,827,230 million, net worth Yen 1,872,413 million, employees 28,875,
pres Shosuke Mori
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Keishi Yoshimoto, ch; Osami Nakatani, v ch; Kunihiko Fujita, pres; Shigeharu Tsutsui, v
pres; Kazuyoshi Teraoka, ｖpres; Michiyuki Hashimoto, s/mgn dir; Haruo Ashitaka,
s/mgn dir; Seishiro Tanabe, s/mgn dir; Katsutoshi Itoh, s/mgn dir; Tadahiko Onishi, mgn
dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Kinden Shoji Co, Kinden Electrical & Mechanical Service Co, MECS Corp, Alef Networks Corp, other
Overseas affiliates: US Kinden Corp, Wasa Electrical Services
Inc (--USA); Kinden Pacific Corp (Guam); Kinden International Ltd (Hong Kong);
PT Kinden Indonesia (Indonesia); Kindenko (Thailand) Co (Thailand); Kinden
Phils Corp (Philippines); Bintal Kinden Corp (Malaysia); Kinden Vietnam Co Ltd
(Vietnam)
OPERATION
Activities: Electrical Engineering Works
(Sales
breakdown by divisions):
Power distribution lining (15%): electric power poles, distribution lines, lines to home & electric power meters, other;
Electrical engineering (62%): electrical system installation for public facilities, buildings, factories, schools, hospitals, commercial establishments, other;
Data-Communication networks (12%): installation of instruments in factories & buildings, construction involving optical fiber, CATV, base stations for mobile communications, and private communication networks;
Environmental management
facilities (8%): ventilation, sanitation, plumbing systems in buildings,
others;
Electric
power, others (4%)
Overseas
works (6%)
Clients: [Electric power, construction firms] Kansai Electric Power, Shimizu Corp, Takenaka Corp, Obayashi Corp, Kajima Corp, K-Opticom Corp, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Electric works] Matsushita Electric Works, Sumiden
Hitachi Cable, Fujikura Dia Cable Ltd, other.
Payment record: Regular
Location: Business area in Osaka. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
SMBC (Osaka H/O)
MUFG (Osaka)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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482,125 |
451,514 |
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Cost of Sales |
427,812 |
397,701 |
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GROSS PROFIT |
54,312 |
53,812 |
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Selling & Adm Costs |
37,469 |
37,857 |
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OPERATING PROFIT |
16,843 |
15,955 |
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Non-Operating P/L |
1,025 |
-429 |
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RECURRING PROFIT |
17,868 |
15,526 |
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NET PROFIT |
9,136 |
7,843 |
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BALANCE SHEET |
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Cash |
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52,957 |
58,910 |
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Receivables |
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124,640 |
95,258 |
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Inventory |
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Securities, Marketable |
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500 |
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Other Current Assets |
125,148 |
115,919 |
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TOTAL CURRENT ASSETS |
302,745 |
270,587 |
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Property & Equipment |
94,985 |
97,934 |
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Intangibles |
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1,284 |
1,207 |
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Investments, Other Fixed Assets |
126,907 |
130,614 |
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TOTAL ASSETS |
525,921 |
500,342 |
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Payables |
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76,988 |
62,322 |
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Short-Term Bank Loans |
15,522 |
16,032 |
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Other Current Liabs |
93,138 |
80,911 |
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TOTAL CURRENT LIABS |
185,648 |
159,265 |
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Debentures |
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Long-Term Bank Loans |
720 |
720 |
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Reserve for Retirement Allw |
25,568 |
27,022 |
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Other Debts |
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107 |
86 |
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TOTAL LIABILITIES |
212,043 |
187,093 |
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MINORITY INTERESTS |
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146 |
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Common stock |
26,411 |
26,411 |
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Additional paid-in capital |
29,847 |
29,784 |
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Retained earnings |
240,832 |
236,462 |
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Evaluation p/l on
investments/securities |
32,192 |
34,996 |
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Others |
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182 |
(97) |
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Treasury stock, at cost |
(15,586) |
(14,454) |
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TOTAL S/HOLDERS` EQUITY |
313,878 |
313,102 |
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TOTAL EQUITIES |
525,921 |
500,342 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash Flows from Operating Activities |
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7 |
14,677 |
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Cash Flows from Investment
Activities |
-203 |
-11,538 |
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Cash Flows from Financing Activities |
-6,194 |
-4,517 |
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Cash, Bank Deposits at the Term End |
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52,848 |
58,731 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
313,878 |
313,102 |
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Current Ratio (%) |
163.07 |
169.90 |
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Net Worth Ratio (%) |
59.68 |
62.58 |
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Recurring Profit Ratio (%) |
3.71 |
3.44 |
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Net Profit Ratio (%) |
1.89 |
1.74 |
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Return On Equity (%) |
2.91 |
2.50 |
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. |
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%)