MIRA INFORM REPORT

 

 

Report Date :

13.07.2007

 

IDENTIFICATION DETAILS

 

Name :

TAIYO KOGYO CORPORATION

 

 

Registered Office :

4-8-4 Kikawahigashi Yodogawaku Osaka 532-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Oct 1947

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Civil engineering works

 

 

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 1238.3 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

TAIYO KOGYO CORPORATION

 

 

REGD NAME

 

Taiyo Kogyo KK

 

 

MAIN OFFICE

 

4-8-4 Kikawahigashi Yodogawaku Osaka 532-0012 JAPAN

Tel        : 06-6306-3032    

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

E-Mail address: info@taiyokogyo.co.jp

 

 

ACTIVITIES

 

Civil engineering works

 

 

BRANCHES

 

Tokyo, Nagoya, Sapporo, Sendai, Hiroshima, Fukuoka, other (Tot 12)

 

 

OVERSEAS

 

Beijing, Munich, Singapore, Kuala Lumpur;

(Subsidiaries): China (2), Taiwan, Korea, Thailand, Malaysia, UAE, Germany, Australia, USA (2), Mexico (2)

 

 

FACTORY(IES)

 

Hirakata (Osaka), Mizuho (Kyoto), Fukui

 

 

OFFICER(S)

 

KOTARO NOHMURA, PRES                  Taku Nohmura, dir                                                         

Shoichi Hamada, dir                               Takenori Nakahara, dir

Hiroshi Nose, dir                                    Masashi Katoh, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 46,064 M

PAYMENTS      REGULAR                     CAPITAL           Yen 2,570 M

TREND             SLOW                          WORTH            Yen 17,719 M

STARTED         1947                             EMPLOYES      1,384

 

 

COMMENT

 

CIVIL ENGINEERING WORKS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

MAX CREDIT LIMIT: YEN 1,238.3 MILLION, 30 DAYS NORMAL TERMS.

 

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

 

 

HIGHLIGHTS

 

The subject company was established originally in 1922 by Kaneshige Nohmura as a tent sheet mfr in Osaka, on his account.  The firm was destroyed by the WW2 and was reconstructed in 1947.  Ryutaro is the founder’s son and Kotaro his grandson.  This is a civil engineering company specializing in membrane structures, logistics/distribution facilities, and civil engineering materials, other.  Actively engaged in overseas works with 14 overseas JV & subsidiaries worldwide.  Tops in tent sheet mfg and engineering works.  In 1990, established 2 factories in USA; in 2000, founded subsidiary in Thailand; in 2002, in Shanghai and Korea; in 2004, in Germany and in 2005 in Beijing.  Clients are major general contractors.

           

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2006 fiscal term amounted to Yen 46,064 million, a 5% up from Yen 43,888 in the previous term.  Domestic works revived by efforts of subsidiaries, plus increased sales particularly in China and USA.  By divisions, construction was up 8.1% to Yen 26,796 million; facilities, equipment, etc was up 0.9% to Yen 19,267 million.  As a result, the operations came back profitability to post Yen 265 million recurring profit and Yen 399 million net profit, respectively, compared with Yen 1,021 million recurring loss and Yen 2,474 million net loss, respectively, a year ago.  The net profit includes Yen 340 million extraordinary incomes coming from the disposal of assets.

 

For the current term ending Dec 2007 the recurring profit is projected at yen 270 million and the net profit at Yen 400 million, respectively, on a 6.4% rise in turnover, to Yen 49,000 million.  Continued demand is expected from China particularly.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,238.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Oct 1947

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    52 million shares

Issued:                          17,631,310 shares

Sum:                            Yen 2,570 million

Major shareholders (%): Taiyo Kosan KK*(39.6), TSP Taiyo KK (21.3), Nohmura Foundation (7.2), Kotaro

                                    Nohmura (5.7), Employees’ S/Holding Assoc (3.1), Matsumoto Yushi Seiyaku KK (2.2),

                                    KK Union (2.2), Taku Nohmura (2.0), SMBC (1.8), MUFG (1.4), Mizuho Bank (1.4)

*.. Holding company owned by the Nohmura family.

No. of shareholders:       87

           

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

 

 

OPERATION

 

Activities: Civil engineering works: membrane structures, 3 dimensional space frame systems for commercial, transport, sports and cultural facilities. other (30%);            

Distribution/ logistics facilities, tent warehouses, flexible membrane container bags, cryogenic containers, other (38%);

Civil engineering: river/soil improvement & protection, water purification, treatment of tur   bid waste water (25%);

Others (6%), including engineering, fabrication, construction and related works.

(Overseas work ratios 19.8%: USA & Mexico 3.8%; Europe, China, other regions 16.0%).

 

Clients: [Construction companies, general contractors] Shimizu Corp, Takenaka Corp,        Obayashi Corp, Taisei Corp, Kajima Corp, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Itochu Corp, Marubeni Corp, Mitsui & Co, Mitsubishi Corp,    Kuraray Trading, Itochu Plastic, Sumitomo Electric Ind, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

SMBC (Bingomachi)

MUFG (Osaka)

 

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

46,064

43,888

 

  Cost of Sales

35,146

33,755

 

      GROSS PROFIT

10,917

10,132

 

  Selling & Adm Costs

10,435

11,103

 

      OPERATING PROFIT

482

-970

 

  Non-Operating P/L

-217

-51

 

      RECURRING PROFIT

265

-1,021

　

      NET PROFIT

399

-2,474

BALANCE SHEET

 

 

 

 

  Cash

　

6,187

6,252

 

  Receivables

 

15,836

15,535

 

  Inventory

 

4,083

5,104

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,229

705

 

      TOTAL CURRENT ASSETS

27,335

27,596

 

  Property & Equipment

8,864

8,770

 

  Intangibles

 

1,361

1,043

 

  Investments, Other Fixed Assets

4,350

4,223

 

      TOTAL ASSETS

41,910

41,632

 

  Payables

 

7,774

8,123

 

  Short-Term Bank Loans

6,170

6,719

 

　

 

　

　

 

  Other Current Liabs

4,089

4,108

 

      TOTAL CURRENT LIABS

18,033

18,950

 

  Debentures

 

970

120

 

  Long-Term Bank Loans

2,773

1,904

 

  Reserve for Retirement Allw

1,966

2,114

 

  Other Debts

　

449

1,104

 

      TOTAL LIABILITIES

24,191

24,192

 

      MINORITY INTERESTS

 

33

 

Common stock

2,570

2,570

 

Additional paid-in capital

1,971

1,971

 

Retained earnings

13,103

12,704

 

Evaluation p/l on investments/securities

541

594

 

Others

 

(465)

(431)

 

Treasury stock, at cost

(1)

(1)

 

      TOTAL S/HOLDERS` EQUITY

17,719

17,407

　

      TOTAL EQUITIES

41,910

41,632

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

-142

-845

 

Cash Flows from Investment Activities

-2,675

-1,132

 

Cash Flows from Financing Activities

1,053

4,102

　

Cash, Bank Deposits at the Term End

　

4,219

5,919

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

17,719

17,407

 

 

Current Ratio (%)

151.58

145.63

 

 

Net Worth Ratio (%)

42.28

41.81

 

 

Recurring Profit Ratio (%)

0.58

-2.33

 

 

Net Profit Ratio (%)

0.87

-5.64

 

 

Return On Equity (%)

2.25

-14.21

 

 

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%)

 

 

 

 

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