MIRA
INFORM REPORT
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Report Date : |
16.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
SEIKA CORPORATION |
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Registered Office : |
Shin-Tokyo
Bldg 3F, 3-5-1 Marunouchi Chiyodaku Tokyo 100-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Oct 1947 |
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Legal Form : |
Limited Company
(Kabushiki Kaisha) |
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Line of Business : |
Import, export,
wholesale of electric power plants, industrial machinery |
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
2680.6 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
SEIKA CORPORATION
REGD NAME
Seika Sangyo KK
MAIN OFFICE
Shin-Tokyo Bldg 3F, 3-5-1
Marunouchi Chiyodaku Tokyo 100-0005 JAPAN
Tel : 03-5221-7101
Fax : 03-5221-7125
URL : http://www.seika.com/
E-Mail address: (thru the URL)
ACTIVITIES
Import, export, wholesale
of electric power plants, industrial machinery
BRANCHES
Osaka, Nagoya, Sapporo, Muroran, Hiroshima, Yamaguchi, Fukuyama, Fukuoka, Nagasaki, Mizushima, Kitakyushu, Oita, Takamatsu, other (Tot 16 domestic)
OVERSEAS
Taipei, Shanghai,
Seoul, Atlanta
(Subsidiaries): Seika Shanghai Co Ltd; Seika Tr4ading (Shenzhen) Co Ltd (--China); Seika Sangyo GmbH; Tsurumi (Europe) GmbH; AO Machinery Service GmbH (--Germany); Seika Machinery Inc (USA)
CHIEF EXEC
MORITAKA FUJIMOTO,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 110,727 M
PAYMENTS REGULAR CAPITAL Yen 6,728 M
TREND SLOW WORTH Yen
23,031 M
STARTED 1947 EMPLOYES 537
COMMENT
TRADING HOUSE SPECIALIZING IN POWER GENERATORS & INDUSTRIAL MACHINERY, AFFILIATED TO MITSUBISHI HEAVY IND.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN
2,680.6 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established in Moji, Kitakyushu, on the basis of Machinery Division separated from Mitsubishi Shoji Kaisha Ltd (now Mitsubishi Corp), which had been ordered to resolve in Jul 1947 by the then Supreme Commander of the Allied Forces (Dissolution of the financial combines). This is a trading house specializing in power generators, energy-related industrial machinery & machine tools, etc, supplied from Mitsubishi Heavy Ind, Mitsubishi Electric and group firms. Sales of Mitsubishi Heavy Ind products account for 50% of its revenues. Handling items have expanded into laser equipment, book printing/binding systems and environment protection facilities, such as industrial waste processing, water processing & air pollution analysis equipment. Has stronghold in western Japan. Putting efforts into developing wind & solar powered generation operations. Has 4 overseas branch offices and 6 subsidiaries/affiliated.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 110,727 million, a 5.5% down from Yen 117,197 million in the previous term. Orders received were up 15% to Yen 138,300 million boosted by robust activities in China. By divisions, electric power down by 32% to Yen 26100 million, due to lack of large-lot orders. General industry-related was up 1.8% to Yen 70,900 million, thank to delivery of domestic orders. Electronics & information was down by 3.2% to Yen 8.700 million, due to decreased deliveries. The sales decline indicates the delayed deliveries of orders received. The recurring profit was posted at Yen 2,537 million and the net profit at Yen 1,198 million, respectively, compared with Yen 2,127 million recurring profit and Yen 1,051 million net profit, respectively, a year ago. Operations are concentrated on selective profitable orders.
For the current term ending Mar 2007 the recurring profit is projected at Yen 3,200 million and the net profit at Yen 1,900 million, respectively, on a 35% rise in turnover, to Yen 150,000 million. Beefing up maintenance of power plants. New orders arising for new energy (wind power, etc) plants. LCD mfg equipment for Taiwan increasing. Bolstering orders from Mitsubishi Heavy Ind for pressurized-water reactor. Domestic trade rights maintained firmly despite Toshiba’s buyout of PWR developer Westinghouse, USA.
First half results ending Sept/2006: sales Yen 68,857 million (up 14.7%), operational profit Yen 1,569 million (up 34.7%), recurring profit Yen 1,650 million (up 34.2%), net profit Yen 905 million (up 37.2%). On this basis, the firm revised upward the Mar/2007 projections to above from the earlier estimates of: sales Yen 140,000 million, recurring profit Yen 2,580 million, net profit Yen 1,380 million, respectively.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 2,680.6 million, on 30 days normal terms.
REGISTRATION
Date Registered : Oct 1947
Legal Status : Limited Company (Kabushiki
Kaisha)
Authorized : 188,529,000 shares
Issued : 85,103,252 shares
Sum : Yen 6,728 million
Major shareholders (%) : Mitsubishi Heavy Ind (4.8), Bank of Tokyo-Mitsubishi UFJ (3.2), Master Trust
Bank of Japan T (2.6), Japan Trustee Bank T (2.2), Tamotsu Yakou (2.0),
Nikkiso Co (1.8), Japan Securities Finance (1.7), Mitsubishi Electric (1.6),
Tsurumi Mfg (1.5), Mitsubishi Kakoki (1.4); foreign owners (2.0)
No. of shareholders : 13,673
Listed on the
S/Exchange (s) of: Tokyo
Managements: Moritaka Fujimoto, pres & CEO; Kazuyoshi Kondo, v pres; Tomio Hyodo, mgn dir; Masao Hikima, dir; Kiyoshi Shimizu, dir; Tsuneo Hayakawa, dir; Hiroyasu Nishi, dir
Nothing detrimental
is known as to the commercial morality of executives.
Related companies
Nippon Dia Valve,
Seika Sangyo GmbH, other (Tot 5 as of Mar/06)
OPERATION
Activities: Trading
house for import, export and wholesale of:
(Sales breakdown by divisions):
Electric Power Plant Div (24%): power generating plant (for thermal, hydraulic, nuclear, gas turbine, diesel & gas engine, geothermal, wind, co-generation, tidal & other renewable energy, fuel cell power plants); electrical facilities (transmission & substation equipment, power control center, various electrical equipment); ancillary facilities (coal storage facility, fuel storage tank, water purification & treatment plant, exhaust gas De-SOX & De-NOX equipment, dust collector, fire extinguisher, ash/fly ash treatment equipment, steel chimney & stack, security system;
General Industry-related Machinery Div (64%): heavy chemical industries & plant engineering (petroleum refinery plant, various chemical plant, cement & ceramic mfg plant, iron& steel making plant; food & beverage machinery (preparation/fermentation/filtration equipment, fats & oils processing, filling & packaging machinery, food processing equipment, packaging machinery, label check system); fiber & plastics plants & machinery: film/sheet mfg plant (biaxially oriented film plant, non-oriented film plant, blow-extrusion film plant, sheet forming machines, pilot plant; synthetic fiber/non-woven fabric mfg plant (polyester, polyamide filament/staple plant, spandex fiber plant, carbon fiber plant, non-woven fabric plant, artificial leather/synthetic leather mfg plant, polymerization pilot plant); injection machines (oversized injection machines, general-purpose injection machines, multi-color injection machine); environmental protection system (air-pollution control equipment, waste treatment equipment, waste water treatment system & equipment, various analysis & measuring equipment, noise/sound absorption & insulation equipment, others); machinery for general industries (book printing & binding machinery, paper converting machinery, housing & construction materials mfg facility, packaging machinery, factory automation system, steel bridge, steel frame, water gate, steel tower, steel chimney & other steel structures, car parking facility, machine tools, fan, blower & compressor, pump, valve, filter, flange & fittings, hydraulic equipment, material handling system, heat exchanger, powder feeding & weighing system, fire extinguisher, other); instruments analyzers (video imaging system for engineering & entertainment industry); analyzers for: bio & nano-technology, combustion engineering & fluid science, food, beverage & chemicals industries, chemical & electrochemical industries, semiconductor industry, environment engineering & process control, medical facilities & equipment, others;
Machinery Mfg Div (4%): various valves, mfr’d by Nippon
Dia Valve.
Overseas Sales Ratio (10%): Asia 5.6% (China, Philippines, Korea, etc); Europe 3.4% (Germany, UK, etc); USA, other 1.0%.
Clients
[Electric powers, mfrs] Kansai Electric, Chugoku Electric, Shikoku Electric, Kyushu Electric, Mitsubishi Heavy Ind, JGC,
No.
of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers
[Mfrs, wholesalers] Mitsubishi Heavy Ind, Mitsubishi Electric, Taihei Dengyo, Nikkiso Co, Organo Corp, other.
Payment record:
Regular
Location
Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References
Bank of
Tokyo-Mitsubishi UFJ (H/O)
SMBC (Marunouchi)
Relations:
Satisfactory
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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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110,727
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117,197
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Cost of Sales |
99,944
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108,143
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GROSS PROFIT |
10,783
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9,054
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Selling & Adm Costs |
8,694
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7,137
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OPERATING PROFIT |
2,088
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1,916
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Non-Operating P/L |
449 |
211 |
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RECURRING PROFIT |
2,537
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2,127
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NET PROFIT |
1,198
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1,051
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BALANCE
SHEET |
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Cash |
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6,628
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6,214
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Receivables |
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35,430
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32,866
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Inventory |
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2,908
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1,214
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Securities, Marketable |
124 |
1,135
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Other Current Assets |
3,810
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2,771
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TOTAL CURRENT ASSETS |
48,900
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44,200
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Property & Equipment |
2,574
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2,634
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Intangibles |
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319 |
358 |
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Investments, Other Fixed Assets |
19,766
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13,020
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TOTAL ASSETS |
71,559
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60,212
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Payables |
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29,893
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28,425
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Short-Term Bank Loans |
6,980
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6,700
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Other Current Liabs |
4,965
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3,827
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TOTAL CURRENT LIABS |
41,838
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38,952
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Debentures |
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Long-Term Bank Loans |
1,000
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1,000
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Reserve for Retirement Allw |
1,578
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1,318
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Other Debts |
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4,095
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863 |
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TOTAL LIABILITIES |
48,511
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42,133
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MINORITY INTERESTS |
16 |
12 |
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Common
stock |
6,728
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6,728
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Additional
paid-in capital |
2,098
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2,096
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Retained
earnings |
7,623
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6,933
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Evaluation
p/l on investments/securities |
6,653
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2,430
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Others |
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(27) |
(84) |
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Treasury
stock, at cost |
(44) |
(36) |
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TOTAL S/HOLDERS` EQUITY |
23,031
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18,067
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TOTAL EQUITIES |
71,559
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60,212
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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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135 |
1,423
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Cash
Flows from Investment Activities |
1,010
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574 |
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Cash
Flows from Financing Activities |
-817 |
-2,134
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Cash,
Bank Deposits at the Term End |
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6,626
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6,213
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ANALYTICAL
RATIOS Terms ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
23,031
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18,067
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Current
Ratio (%) |
116.88
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113.47
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Net
Worth Ratio (%) |
32.18
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30.01
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Recurring
Profit Ratio (%) |
2.29 |
1.81 |
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Net
Profit Ratio (%) |
1.08 |
0.90 |
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Return
On Equity (%) |
5.20 |
5.82 |
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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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