MIRA INFORM REPORT

 

 

Report Date :

09.07.2007

 

IDENTIFICATION DETAILS

 

Name :

SHIN CATERPILLAR MITSUBISHI LTD

 

 

Registered Office :

4-10-1 Yoga Setagayaku Tokyo158-8530

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

Nov 1963

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of construction machinery & equipment

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 11653.8 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

SHIN CATERPILLAR MITSUBISHI LTD

 

 

REGD NAME

 

Shin Caterpillar Mitsubishi KK

 

 

MAIN OFFICE

 

4-10-1 Yoga Setagayaku Tokyo158-8530 JAPAN

Tel        : 03-5717-1121    

*.. The given phone/fax numbers are those of the Sagamihara Plant

URL      : http://www.scm.co.jp

E-Mail address: webmaster@scm.co.jp

 

 

ACTIVITIES

 

Mfg of construction machinery & equipment

 

 

BRANCHES

 

Sagamihara, Akashi, Chichibu

 

 

FACTORY(IES)

 

Sagamihara, Akashi

 

 

OFFICERS

 

SHOICHI HIRANO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 332,681 M

PAYMENTS      REGULAR                     CAPITAL           Yen 23,100 M

TREND             STEADY                       WORTH            Yen 98,551 M

STARTED         1963                             EMPLOYES      5,129

 

 

COMMENT

 

MFR SPECIALIZING IN CONSTRUCTION MACHINERY, JV WITH MITSUBISHI HEAVY IND & CATERPILLAR INTERNATIONAL INVESTMENTS CORPORATIE UA.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 11,653.8 MILLION, 30 DAYS NORMAL TERMS. 

 

 

HIGHLIGHTS

           

The subject company was established originally as Caterpillar Mitsubishi Ltd by Mitsubishi Heavy Ind, nation’s largest comprehensive heavy machinery mfr, Tokyo (See REGISTRATION).  In Jul 1987 reorganized as JV with Mitsubishi Heavy Ind and Caterpillar International Investments Cooperatie UA and renamed as captioned.  Specializes in mfg hydraulic excavators, truck-type tractors, wheel, loaders, road pavement equipment, and other construction machinery & equipment.  Goods are exported including used machinery & equipment, demand for which is getting brisk particularly in China.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2006 fiscal term amounted to Yen 332,681 million, a 49% sharp rise from Yen 222,884 million for irregular 9 months in the previous term.  The firm changed the accounting term to Jan/Dec from Apr/Mar.  The growth rate is adjusted on a 12-month basis.  The sharp rise is attributed to robust demand for used machinery & equipment from China.  Exports rose.  The recurring profit was posted at Yen 20,980 million and the net profit at Yen 14,659 million, respectively, compared with Yen 11,305 million recurring profit and Yen 7,122 million net profit, respectively, for irregular 9 months a year ago.

 

For the current term ending Dec 2007 the recurring profit is projected at yen 22,000 million and the net profit at Yen 15,000 million, respectively, on a 6% rise in turnover, to Yen 352,000 million.  Weaker Yen will also contribute to sales growth.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 11,653.8 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Nov 1963

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    462,000 shares

Issued:                          462,000 shares

Sum:                            Yen 23,100 million

Major shareholders (%): Mitsubishi Heavy Ind*(50), Caterpillar International Investments Cooperatie UA (50).

No. of shareholders:       2

*.. Nation’s largest comprehensive heavy machinery mfr, Tokyo, founded 1896, listed Tokyo, Osaka, Nagoya S/E’s, capital lYen103,187 million, turnover Yen 1,438,618 million, recurring profit Yen 49,052 million, net profit Yen 29,771 million, total assets Yen 1,357,979 million, net worth Yen 290,427 million, employees 29,211, pres Tadaharu Ohashi

 

Consolidated financials are as attached.

           

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

 

 

OPERATION

 

Activities: Manufactures construction machinery 6 equipment (100%).

 

(Mfg items):

Products of the firm: hydraulic excavators, mini hydraulic excavators, track-type tractors, wheel loaders, mini wheel loaders, track-type loaders, asphalt pavers, inplace surface recycling machines, others:

Products of Caterpillar: truck-type tractors, wheel loaders, dump trucks, articulated dump trucks, motor scrapers, motor graders, compactors, skidders, others;

Products of Mitsubishi Heavy Ind: track-type tractors, motor graders, etc.

 

Clients: [Construction companies, machinery mfrs, wholesalers] Kajima Corp, Taisei Corp, Shimizu Corp, Obayashi Corp, governments & public offices, others.   

 

Goods are distributed through 9 dealerships nationwide and 11 rental/leasing firms nationwide.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Caterpillars Int’l, Mitsubishi Corp, Mitsubishi Heavy Ind, Press Kogyo, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

MUFG (H/O)

Mizuho Corporate Bank (H/O)

 

Relations: Satisfactory.

 

 

FINANCES

 

(In Million Yen)

 

       Terms Ending:

31/12/2007

31/12/2006

31/12/2005

31/03/2005

Annual Sales

　

352,000

332,681

222,884

284,529

Recur. Profit

　

22,000

20,980

11,305

22,353

Net Profit

　

15,000

14,659

7,122

13,351

Total Assets

　

　

209,199

214,176

　

Current Assets

　

　

142,069

145,769

　

Current Liabs

　

　

90,232

98,859

　

Net Worth

　

　

98,551

87,094

　

Capital, Paid-Up

　

　

23,100

23,100

23,100

Div.P.Share(¥)

　

　

　

5625.00

6000.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

5.81

49.26

4.44

20.35

       Current Ratio

 

..

157.45

147.45

..

       N.Worth Ratio

..

47.11

40.66

..

       R.Profit/Sales

 

6.25

6.31

5.07

7.86

       N.Profit/Sales

4.26

4.41

3.20

4.69

       Return On Equity

..

14.87

8.18

..

 

Note: Forecast (or estimated) for the 31/12/2007 fiscal term.

 

 

CONSOLIDATED FINANCIALS OF THE JAPAN PARTNER, MITSUBISHI HEAVY IND.

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

3,068,504

2,792,108

 

  Cost of Sales

2,681,867

2,460,819

 

      GROSS PROFIT

386,636

331,288

 

  Selling & Adm Costs

277,724

260,376

 

      OPERATING PROFIT

108,912

70,912

 

  Non-Operating P/L

-25,864

-20,547

 

      RECURRING PROFIT

83,048

50,365

　

      NET PROFIT

48,839

29,816

BALANCE SHEET

 

 

 

 

  Cash

　

244,233

195,185

 

  Receivables

 

1,166,702

1,097,403

 

  Inventory

 

1,048,586

971,508

 

  Securities, Marketable

2,772

1,549

 

  Other Current Assets

325,022

277,840

 

      TOTAL CURRENT ASSETS

2,787,315

2,543,485

 

  Property & Equipment

824,744

765,236

 

  Intangibles

 

33,444

35,769

 

  Investments, Other Fixed Assets

746,361

702,632

 

      TOTAL ASSETS

4,391,864

4,047,122

 

  Payables

 

746,591

669,667

 

  Short-Term Bank Loans

290,411

307,772

 

　

 

　

　

 

  Other Current Liabs

770,409

649,223

 

      TOTAL CURRENT LIABS

1,807,411

1,626,662

 

  Debentures

 

196,605

213,311

 

  Long-Term Bank Loans

661,954

563,748

 

  Reserve for Retirement Allw

98,497

108,710

 

  Other Debts

　

180,961

140,631

 

      TOTAL LIABILITIES

2,945,428

2,653,062

 

      MINORITY INTERESTS

 

17,770

 

Common stock

265,608

265,608

 

Additional paid-in capital

203,879

203,864

 

Retained earnings

744,562

718,479

 

Evaluation p/l on investments/securities

212,265

193,372

 

Others

 

25,185

120

 

Treasury stock, at cost

(5,063)

(5,154)

 

      TOTAL S/HOLDERS` EQUITY

1,446,436

1,376,289

　

      TOTAL EQUITIES

4,391,864

4,047,122

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

158,721

73,928

 

Cash Flows from Investment Activities

-158,653

-104,065

 

Cash Flows from Financing Activities

48,730

7,974

　

Cash, Bank Deposits at the Term End

　

227,584

176,274

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

1,446,436

1,376,289

 

 

Current Ratio (%)

154.22

156.36

 

 

Net Worth Ratio (%)

32.93

34.01

 

 

Recurring Profit Ratio (%)

2.71

1.80

 

 

Net Profit Ratio (%)

1.59

1.07

 

 

Return On Equity (%)

3.38

2.17

 

 

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/normal.

 

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