MIRA
INFORM REPORT
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Report Date : |
31.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
ASAHI TEC CORPORATION |
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Registered Office : |
547-1 Horinouchi Kikugawa City Shizuoka-Pref 439-8651 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Aug 1938 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of malleable cast iron
products for motor vehicles |
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 880.2 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
ASAHI TEC CORPORATION
REGD NAME
Asahi Tec KK
MAIN OFFICE
547-1 Horinouchi Kikugawa City Shizuoka-Pref 439-8651 JAPAN
Tel: 0537-36-3111
Fax: 0537-36-4160
*.. Kikugawacho was upgraded to Kikugawa City, automatically
Ogasawaragun was abolished.
URL : http://www.asahitec.co.jp/
E-Mail address: info@asahitec.co.jp
ACTIVITIES
Mfg of malleable cast iron products for motor vehicles
BRANCHES
Tokyo, Nagoya, Osaka, Shizuoka
FACTORY(IES)
At the caption address & vicinities (2), Toyokawa
(Aichi)
OVERSEAS
Thailand (3), China
CHIEF EXEC
SHOICHIRO IRIMAJIRI, CH, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 57,994 M
PAYMENTS REGULAR CAPITAL Yen 7,218 M
TREND STEADY WORTH Yen 15,332 M
STARTED 1938 EMPLOYES 3,695
COMMENT
MFR OF CAST IRON PRODUCTS, AFFILIATED TO RHJ INTERNATIONAL SA
NV. FINANCIAL SITUAITON CONSIDERED FAIR
AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 880.2 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established originally on the basis of
a division separated from Asahi Foundry, as Asahi Malleable Iron Co Ltd; in Jan
1950 became a subsidiary of NGK Insulators Ltd and started production of
aluminum alloy casting. Name changed as
captioned in Nov 1989. In May 2003, US
investment company, Ripplewood Holdings LLC, took a stake in the company. In Mar 2005, RHJ International SA/NV became
the parent company by taking over the assets of Ripplewood Holding LLC in
Japan. The firm specializes in mfg
malleable cast iron parts & components for trucks/passenger cars &
construction machinery to Mitsubishi group firms, including Mitsubishi
Motors. The firm is actively expanding
sales to Honda Motor. Has production
plants in Thailand (3) and China (Guangzhou).
In Feb 2006, took a stake in Techno-Metal Co Ltd to make it a
consolidated subsidiary. In Oct 2006,
took over Metaldyne Corp, USA, as planned (see below). In order to provide logistical & other
assistance to the subject, Mitsui & Co founded a special unit to cover
global markets as business of the subject will expand steeply by the addition
of Techno-Metal Co Ltd and Metaldyne Corp, USA. Sales will expand sharply.
(Recent news, released 02/09/2006,
cited from The Nihon Keizai Shimbun)
TOKYO (Nikkei)--Autoparts maker Asahi Tec Corp announced Friday that it plans
to buy U.S. rival Metaldyne Corp., heralding a wave of global consolidation in
the industry. The
transaction, the largest ever of its kind, is valued at approximately 1.2 billion
dollars, or 137.3 billion yen. The figure dwarfs Asahi Tec's projected group
sales of about 50 billion yen for fiscal 2006.
The deal is
being managed by RHJ International SA, formerly known as Ripplewood Holdings
LLC, the leading shareholder in Asahi Tec with a roughly 60% stake. The funds
to finance the acquisition will be partly procured through a roughly 47 billion
yen private placement of new ordinary and preferred shares to RHJ, Mitsui &
Co. and others.
There is
little overlap between the two firms' customers. Asahi Tec sells mainly to
Japanese automakers, while Metaldyne supplies U.S. and European manufacturers,
including General Motors Corp. As a result, the deal is expected to yield
synergies, strengthening both firms' positions in modular parts, their shared
area of expertise.
RHJ is boosting investments in the autoparts sector, which is playing a larger role in the manufacturing process. Carmakers are rapidly transferring development responsibility to autoparts makers as they focus on expanding overseas manufacturing capacity, and as demand surges for environmental and safety features.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen
5,7994 million, a 0.7% up from Yen 57,994 million in the previous term. This is attributed to the production of
truck parts triggered by the new long-term Exhaust Gas Emission Regulations,
the increased demand for industrial construction machinery, two-wheel vehicle
parts, and accident-prevention fittings for overhead line fittings, and the
ongoing boom in the Thai automobile industry.
Casting & forging parts up 128.9% to Yen 2,593 million, and
machinery & equipment up 0.3% to Yen50,081 million from the last term. The recurring profit was posted at Yen 1,447
million and the net losses at Yen 282 million, respectively, compared with Yen
107 million recurring profit and Yen 1,294 million net losses, respectively, a
year ago. The losses are referred to
the employment of assets impairment accounting method (Yen 621 million) and
purchasing costs of Techno-Metal Co (Yen 646 million).
For the current term ending Mar 2007 the recurring profit is
projected at 1,640 million and the net profit at Yen 120 million, respectively,
on a 160% rise in turnover, to Yen 150,720 million. This is attributed to the addition of Techno Metal (the sales of
which will contribute fully) and Metaldyne of USA (contributing 6 months). Automobile-use cast moldings growing. Profits margin of China sub improving.
Sales results for
Apr/Sept 06 period: sales Yen 67,831 million (up 64.2%), operating profit
Yen 2,279 million (up 57.2%), recurring profit Yen 1,928 million (up 89.6%),
net profit Yen 994 million (up
887.7%). (% compared with the previous
corresponding period). Sales increase
is attributed to the increase in domestic demand for truck parts, order of new
parts for automobile and motor cycles, and demand for automobile parts in
Thailand and also to the newly consolidation of net sales of Techno-Metal Co
Ltd.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 880.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: Aug
1938
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 355,369,252
shares
Issued: 99,376,129
shares
Sum: Yen
7,218 million*
*.. Capital increased to Yen 34,384 million effective 05/03/2007 with the completion of stock transfer from the acquired Metaldyne of USA. Upon this closing, RHJ International’s shares decreased to 37.5%. Detailed breakdown of other shareholders are yet to be announced.
Major shareholders (%): RHJ International SA/NV (62.7), Japan Casting 3 LP (5.7),
Mitsubishi Fuso Truck & Bus (1.6), Japan Trustee Services Bank (1.4), Master Trust Bank of Japan, T (1.4), Customers’ S/Holding Assn (1.3), Japan Security Finance (1.1), Trust & Custody Services, Trust D (0.9), Meiji Yasuda Life Ins (0.6), Employees’ S/Holding Assn (0.6); foreign owners (70.2).
No. of shareholders: 4,974
(as of Mar/06)
Listed on the S/Exchange (s) of: Tokyo
Managements: Shoichiro Irimajiri, ch, pres & CEO*; Timothy D Leuliette, co ch*; Takao Yoshida, s/mgn dir; Katsunori Otsuka, s/mgn dir; Yoichiro Nagashima, mgn dir; Mamoru Otahara, mgn dir; Hajime Ikeda, mgn dir; Hiroaki Okuma, dir*
*.. Will take the posts on 01/04/2007.
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
Techno-Metal Co, Hoei Industrial Co, Asahi Tec Tohoku Sales,
Asahi Service Co, Asahi Tec
Service Co, ASAHI TEC ALUMINUM (THAILAND) CO, ASAHI TEC METALS (THAILAND) CO.
(Tot 7 as of Mar/06)
OPERATION
Activities: Manufactures cast iron components/parts (86%), machinery & equipment (14%).
(Overseas sales ratio 16.3%: Asia (Thailand, Malaysia, China, Korea)
16.5%; other region (Australia, Europe, USA, etc) 0.8%.
(Products)
Aluminum components: intake manifolds, steering members, seatback frames, etc for automobiles, motorcycles;
Ductile components: for trucks (chassis), construction machinery, forklifts & automobiles;
Aluminum wheels: mostly OEM mfg to most of the Japanese auto makers, manufactured at plants in Thailand & China;
Electric power
equipment: more than 80,000 units of hardware fittings for transmission
lines, distribution lines, substation facilities, underground cables, other.
Clients: [Auto mfrs, heavy machinery mfrs] Mitsubishi Fuso Truck & Bus, Mitsubishi Motors, Suzuki Motors, Fuji Heavy Ind, Honda Motors, Nissan Diesel Motor, Chubu Electric Power, Mitsubishi Heavy Ind, NGK Insulators, Shin-Mitsubishi Caterpillar, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Hoei Ind, Mitsubishi Shoji Light
Metal Sales Corp, Toyota Tsusho Corp,
Suzuki Motors, Mitsui & Co, Mitsubishi Heavy Ind, other.
Payment record: Regular
Location: Light Industrial area in Kikugawa City,
Shizuoka-Pref. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (Hamamatsu)
Aozora Bank (H/O)
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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57,994 |
57,574 |
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Cost of Sales |
50,012 |
50,993 |
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GROSS PROFIT |
7,982 |
6,581 |
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Selling & Adm Costs |
5,969 |
5,953 |
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OPERATING PROFIT |
2,013 |
628 |
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Non-Operating P/L |
-566 |
-521 |
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RECURRING PROFIT |
1,447 |
107 |
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NET PROFIT |
282 |
1,294 |
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BALANCE SHEET |
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Cash |
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4,148 |
3,810 |
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Receivables |
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18,181 |
13,463 |
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Inventory |
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9,758 |
5,799 |
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Securities, Marketable |
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Other Current Assets |
945 |
603 |
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TOTAL CURRENT ASSETS |
33,032 |
23,675 |
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Property & Equipment |
36,899 |
24,054 |
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Intangibles |
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799 |
194 |
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Investments, Other Fixed Assets |
1,863 |
1,635 |
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TOTAL ASSETS |
72,593 |
49,558 |
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Payables |
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14,963 |
9,724 |
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Short-Term Bank Loans |
4,418 |
2,387 |
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Other Current Liabs |
6,672 |
4,848 |
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TOTAL CURRENT LIABS |
26,053 |
16,959 |
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Debentures |
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Long-Term Bank Loans |
18,626 |
13,990 |
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Reserve for Retirement Allw |
4,753 |
1,959 |
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Other Debts |
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5,441 |
3,197 |
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TOTAL LIABILITIES |
54,873 |
36,105 |
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MINORITY INTERESTS |
2,387 |
872 |
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Common
stock |
7,218 |
5,712 |
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Additional
paid-in capital |
8,142 |
6,647 |
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Retained
earnings |
(3,392) |
(3,393) |
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Evaluation
p/l on investments/securities |
43 |
28 |
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Others |
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3,335 |
3,596 |
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Treasury
stock, at cost |
(14) |
(10) |
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TOTAL S/HOLDERS` EQUITY |
15,332 |
12,580 |
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TOTAL EQUITIES |
72,593 |
49,558 |
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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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2,772 |
2,972 |
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Cash
Flows from Investment Activities |
-6,831 |
-2,104 |
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Cash
Flows from Financing Activities |
4,366 |
-574 |
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Cash,
Bank Deposits at the Term End |
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4,119 |
3,716 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
15,332 |
12,580 |
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Current
Ratio (%) |
126.79 |
139.60 |
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Net
Worth Ratio (%) |
21.12 |
25.38 |
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Recurring
Profit Ratio (%) |
2.50 |
0.19 |
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Net
Profit Ratio (%) |
0.49 |
2.25 |
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Return
On Equity (%) |
1.84 |
10.29 |
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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%)