MIRA
INFORM REPORT
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Report Date : |
17.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
FUKUDA DENSHI CO LTD |
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Registered Office : |
3-39-4 Hongo Bunkyoku Tokyo 113-8483 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Jul 1948 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of electrocardiograph,
other medical electronics equipment |
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 3001.9 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
NAME
FUKUDA DENSHI CO LTD
REGD NAME
Fukuda Denshi KK
MAIN OFFICE
3-39-4 Hongo Bunkyoku Tokyo 113-8483 JAPAN
Tel: 03-5684-1455
Fax: 03-3814-1222
Hongo Office: International Sales Division at: 2-35-8 Hongo
Bunkyoku Tokyo, as given
URL : http://www.fukuda.co.jp/
E-Mail address: info@fukuda.co.jp
ACTIVITIES
Mfg of electrocardiograph, other medical electronics
equipment
BRANCHES
Hongo (2)
OVERSEAS
Fukuda Denshi USA Inc (USA); Beijing Fukuda Denshi Medical
Instruments Co Ltd (China); Kontron Medical SAS (France); Kontron Medical AG
(Switz); Fukuda Denshi UK (UK)
FACTORY(IES)
Shiroi (Chiba)
CHIEF EXEC
KOTARO FUKUDA, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 86,613 M
PAYMENTS REGULAR CAPITAL Yen 4,621 M
TREND STEADY WORTH Yen 73,641 M
STARTED 1948 EMPLOYES 2,630
COMMENT
MFR SPECIALIZING IN MEDICAL ELECTRONICS EQUIPMENT. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 3,001.9 MILLION, 30 DAYS NORMAL
TERMS..
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
This firm specializes in mfg microelectronic equipment for medical use. Highly competitive in products for circulatory system, maintaining largest market share in electro-cardiographs. Goods are also imported and exported. Operates 5 overseas subsidiaries for mfg and sales/marketing activities. Active in overseas expansion. Has tie-ups with overseas firms, including Siemens, Germany. Domestic clients are hospitals, Universities (Medical), other, nationwide, marketed through subsidiary dealerships.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen
86,613 million, a 16% up from Yen 74,659 million in the previous term. By divisions, Physiological Diagnostic
Equipment rose 15.2% to Yen 26,754 million.
Diagnostic ultrasound imaging equipment, automatic blood cell counter
devices and respiratory diagnostic equipment rose. Electrocardiogram-related products account for 30% of sales in
this segment. Patient Monitoring Equipment
was up 30.5% to Yen 6,822 million, with overseas sales climbed 18.6% thanks to
the increase of new competitive products.
Medical Treatment Equipment rose 18.7% to Yen 31,020 million; sales of
automated external defibrillators (AEDs) rose significantly due to growing
awareness of diseases causing sudden death by cardiac arrest. The recurring profit was posted at Yen 5,580
million and the net profit at Yen 605 million, respectively, compared with Yen
7,121 million recurring profit and Yen 4,075 million net profit, respectively,
a year ago. Profits deterioration is
referred to increased investments in human resources and R&D aimed at
expanding market share, particularly in overseas market. Net profit decline is due primarily to
provision for business losses totaling Yen 4,105 million, due to extraordinary
losses associated with divestiture of two overseas consolidated subsidiaries.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 6,200 million and the net profit at Yen 3,400 million, on a
similar turnover, at Yen 86,700 million.
(Third quarterly results ended Dec/2006): Sales Yen 62,320
million (up 3.5%), operating profits
Yen 4,568 million (up 30.7%), recurring profit Yen 4,867 million (up 33.6%),
net profit Yen 2,585 million (up 71.7%).
(% compared with the same period a year ago). Sales growth is thanks nationwide consciousness to prevent and
early detect diseases such as metabolic syndrome, according to the firm.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 3,001.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jul
1948
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 30
million shares
Issued: 19,588,000 shares
Sum: Yen
4,621 million
Major shareholders (%): Steel Partners Strategic F Offshore (14.0), Atomic Sangyo (12.4), Tokyo Enterprise (7.3),
TCSB (Tokyo Tomin Bank) (4.7), Mizuho Bank (3.9), MUFG (3.7), Mellon Bank Treaty
CL Omnibus (3.6), Nippon Life Ins (3.5), Bank of New York (3.1), Junko Fukuda (2.8);
foreign owners (31.5)
No. of shareholders: 19,588
Listed on the S/Exchange (s) of: JASDAQ
Managements: Kotaro Fukuda, pres & CEO; Takashi Takahashi,
s/mgn dir; Junzo Fujiwara, mgn dir; Susumu Segawa, dir; Masayuki Iwamoto, dir;
Yoshiyuki Arimoto, dir; Osamu Shirakawa, dir; Kenji Ozaki, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Fukuda Denshi Hokkaido Hambai, other (Tot 49 as of Mar/06).
OPERATION
Activities: Manufactures, imports and exports medical
electronics equipment:
(Sales breakdown by
divisions):
Physiological Diagnostic Equipment (31%): ECG (electro-cardiograph), stress test sys tem, digital Holter recorder, ECG data filing, diagnostic ultrasound imaging equipment, automatic blood cell counter devices, ultrasound scanner, ultrasound Doppler scanner, respiratory diagnostic equipment;
Patient Monitoring Equipment (8%): central monitoring systems, bed-side monitoring systems, medical telemeters, others;
Medical Treatment Equipment (36%): defibrillators, oxygen concentrators used to treat sleep apanea syndromes & in-home ventilators, catheters, artificial respirators, heart pacers, CPAP treatment apparatus, others;
Other Equipment (25%): data
filing system, data recording system, disposable electrode, other supplies,
consumables and accessories.
Clients: [Hospitals, universities, clinics, dealerships] Fukuda Denshi Hambai, Fukuda Life Tech (--subsidiaries),
other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Horiba Ltd, Hitachi Ltd, Phillips Electronics Japan, Fujitsu Ltd, TDK, Konica Minolta Group Inc, Hitachi Medical Corp, Gunze Ltd, other.
Imports from St Jude Medical, Airsep (--USA), Maquet
(Germany), Seim (France), other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Tokyo Tomin Bank (Kanda)
MUFG (Hongo)
Relations: Satisfactory
FINANCES
(In Million Yen)
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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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86,613 |
74,659 |
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Cost of Sales |
51,383 |
40,892 |
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GROSS PROFIT |
35,229 |
33,767 |
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Selling & Adm Costs |
29,832 |
26,546 |
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OPERATING PROFIT |
5,397 |
7,220 |
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Non-Operating P/L |
183 |
-99 |
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RECURRING PROFIT |
5,580 |
7,121 |
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NET PROFIT |
605 |
4,075 |
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BALANCE SHEET |
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Cash |
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24,480 |
26,721 |
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Receivables |
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24,740 |
23,070 |
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Inventory |
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13,990 |
13,332 |
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Securities, Marketable |
599 |
599 |
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Other Current Assets |
4,227 |
3,319 |
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TOTAL CURRENT ASSETS |
68,036 |
67,041 |
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Property & Equipment |
16,562 |
15,162 |
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Intangibles |
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2,548 |
1,310 |
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Investments, Other Fixed Assets |
17,894 |
15,914 |
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TOTAL ASSETS |
105,040 |
99,427 |
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Payables |
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14,980 |
14,527 |
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Short-Term Bank Loans |
3,172 |
3,637 |
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Other Current Liabs |
8,691 |
4,279 |
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TOTAL CURRENT LIABS |
26,843 |
22,443 |
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Debentures |
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Long-Term Bank Loans |
104 |
205 |
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Reserve for Retirement Allw |
4,417 |
4,427 |
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Other Debts |
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24 |
23 |
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TOTAL LIABILITIES |
31,388 |
27,098 |
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MINORITY INTERESTS |
10 |
9 |
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Common
stock |
4,621 |
4,621 |
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Additional
paid-in capital |
9,851 |
9,851 |
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Retained
earnings |
56,087 |
57,408 |
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Evaluation
p/l on investments/securities |
3,926 |
1,389 |
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Others |
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87 |
(20) |
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Treasury
stock, at cost |
(931) |
(929) |
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TOTAL S/HOLDERS` EQUITY |
73,641 |
72,320 |
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TOTAL EQUITIES |
105,040 |
99,427 |
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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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6,462 |
6,869 |
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Cash
Flows from Investment Activities |
-6,320 |
-5,915 |
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Cash
Flows from Financing Activities |
-2,452 |
-2,487 |
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Cash,
Bank Deposits at the Term End |
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24,328 |
26,576 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
73,641 |
72,320 |
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Current
Ratio (%) |
253.46 |
298.72 |
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Net
Worth Ratio (%) |
70.11 |
72.74 |
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Recurring
Profit Ratio (%) |
6.44 |
9.54 |
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Net
Profit Ratio (%) |
0.70 |
5.46 |
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Return
On Equity (%) |
0.82 |
5.63 |
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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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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%)