MIRA INFORM REPORT

 

 

Report Date :

24.05.2007

 

IDENTIFICATION DETAILS

 

Name :

TOYO KANETSU KK

 

 

Registered Office :

8-19-20 Higashisuna Kotoku Tokyo 136-8666

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

May 1941

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of crude oil storage tanks, LNG/LPG tanks

 

 

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 1539.5 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name

 

TOYO KANETSU KK

 

 

REGD NAME

 

Toyo Kanetsu KK

 

 

MAIN OFFICE

 

8-19-20 Higashisuna Kotoku Tokyo 136-8666 JAPAN

Tel: 03-5857-3100  

Fax: 03-5857-3109

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

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

 

 

ACTIVITIES

 

Mfg of crude oil storage tanks, LNG/LPG tanks

 

 

BRANCHES

 

Osaka, Naha; Abu Dhabi (UAE)

 

 

OVERSEAS

 

Malaysia, Indonesia (--subsidiaries)

 

 

FACTORY(IES)

 

Chiba

 

 

CHIEF EXEC

 

SHIGEAKI KIYOTA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 45,547 M

PAYMENTS      REGULAR                     CAPITAL           Yen 18,580 M

TREND             STEADY                       WORTH            Yen 31,942 M

STARTED         1941                             EMPLOYES      564

 

 

COMMENT

 

OIL TANK STORAGE BUILDER. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

MAX CREDIT LIMIT: YEN 1,539.5 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHTS

 

The subject company is the world’s second largest tank builder.  Originally established for mfg industrial furnaces.  In 1950 commenced production of welded steel tanks.  In 1958, became the first plant in Japan to be authorized by the American Petroleum Institute (API).  In 1978 completed construction of four units of the world’s largest above-ground LNG tanks in Arun, Indonesia, with storage capacity of 800,000 barrels each.  Vying for top domestic position in cryogenic tanks for LNG & LPG.  Also highly competitive in distribution systems for delivery centers & truck terminals (see OPERATION).  Outstanding engineering capacity having constructed 180,000 kiloliter crude oil tank, one of the largest in the world.  In 2002, entered into business alliance with Siemens Dematic, Germany, to create Toyo Kanetsu Solutions KK, a logistic solution provider.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 45,547 million, a shade up from Yen 45,530 million in the previous term.  By divisions, Distribution systems decreased 17.2% to Yen 17,316 million on lack of low-profit orders.  Machinery & Plants Division was up by 16.3% to Yen 17,029 million, thanks to the first orders received from China for 2 units of LNG tanks, plus increased orders for spherical tanks from India & Singapore.  Construction Div was up 4.9% to Yen 5,943 million by focusing on higher-profit orders.  The recurring profit was posted at Yen 2,457 million and the net profit at Yen 2,836 million, respectively, compared with Yen 2,132 million recurring profit and Yen 1,625 million net profit, respectively, a year ago.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 2,870 million and the net profit at Yen 2,700 million, respectively, on an 8.5% rise in turnover, to Yen 49,400 million.  Plant & Machinery div is expected to grow.  Overseas sales ratio of tanks rising due to strong new orders from S/E Asia.  Rising materials & fuel costs will likely worsen profitability.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,539.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            May 1941

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    297 million shares

Issued:                          138,730,741 shares

Sum:                            Yen 18,580 million

Major shareholders (%): Resona Bank (4.9), Nippon Life Ins (3.3), Japan Trustee Services Bank T (2.5),

                                    Leopalace 21 (2.5), Mizuho Bank (2.1), Master Trust Bank of Japan, T (2.1), Daiei Real

                                    Estate & Development (1.5); foreign owners (7.3)

No. of shareholders:       17,278

Listed on the S/Exchange (s) of: Tokyo

Managements:               Shigeaki Kiyota, pres & CEO; Takeshi Mizukami, mgn dir; Sadao Arita, dir; Shinji

                                    Shimazaki, dir; Tohru Yanagawa, dir

 

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

 

 

Related companies

 

Toyo Kanetsu Solutions, Toyo Koken, TKL Co, other (Tot 8 as of Sept/06)

 

 

OPERATION

 

Activities: Manufactures crude oil storage tanks, low temperatures tanks, low temperature tanks for LNG, LPG:

 

(Sales breakdown by divisions):

 

Distribution systems (46%): electric-driven winches, belt conveyers, balancers, industrial robots, conveyors & sorters for construction & airports industries, automated       warehousing for truck terminals, controlling systems, airport baggage handling systems, automatic picking system for cigarettes, digital picking systems;

 

Machinery & Plants (32%): crude oil storage tanks, LNG/LPG cryogenic storage tanks, high-pressure spherical tanks, atmospheric storage tanks, total plant engineering, piping             & instrumentation works, other related facilities;

 

Building & Construction (12%): prefabrication of unit houses, building of offices, condominiums, houses, warehouses, real estate management, building maintenance;

 

Others (10%): leasing, real estate leasing, insurance broking, travel agency, others.

 

Overseas sales ratio (21.3%): S/E Asia (Thailand, Indonesia) 13.1%; Mid East (Iran, Qatar) 4.2%: Other regions (Trinidad, Dubai, Australia) 4.0%]

 

Clients: [Oil refiners, heavy machinery mfrs, house builders] Mitsubishi Heavy Ind, Leopalace 21, Bechtel Int’l, Mitsubishi Liquefied Petroleum Gas, Teheran Jonoob, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Corp, Metal One, Iwatani Int’l, Mitsui & Co, other.

 

Payment record: Regular

 

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

 

           

Bank References

 

Resona Bank (Muromachi)

Mizuho Bank (Fukagawa)

 

Relations: Satisfactory

 

 

FINANCES

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

45,547

45,530

 

  Cost of Sales

39,919

40,034

 

      GROSS PROFIT

5,627

5,495

 

  Selling & Adm Costs

3,741

3,591

 

      OPERATING PROFIT

1,886

1,903

 

  Non-Operating P/L

571

229

 

      RECURRING PROFIT

2,457

2,132

　

      NET PROFIT

2,836

1,625

BALANCE SHEET

 

 

 

 

  Cash

　

7,138

7,965

 

  Receivables

 

8,615

7,636

 

  Inventory

 

9,355

6,166

 

  Securities, Marketable

1,499

1,999

 

  Other Current Assets

3,619

1,543

 

      TOTAL CURRENT ASSETS

30,226

25,309

 

  Property & Equipment

16,955

16,566

 

  Intangibles

 

321

412

 

  Investments, Other Fixed Assets

21,500

24,853

 

      TOTAL ASSETS

69,002

67,140

 

  Payables

 

2,285

2,226

 

  Short-Term Bank Loans

4,860

4,651

 

　

 

　

　

 

  Other Current Liabs

15,720

13,207

 

      TOTAL CURRENT LIABS

22,865

20,084

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

4,360

3,651

 

  Reserve for Retirement Allw

2,352

3,525

 

  Other Debts

　

7,483

8,471

 

      TOTAL LIABILITIES

37,060

35,731

 

      MINORITY INTERESTS

8

9

 

Common stock

18,580

18,580

 

Additional paid-in capital

1,104

1,104

 

Retained earnings

5,049

2,545

 

Evaluation p/l on investments/securities

7,556

391

 

Others

 

(265)

9,525

 

Treasury stock, at cost

(82)

(66)

 

      TOTAL S/HOLDERS` EQUITY

31,942

31,398

　

      TOTAL EQUITIES

69,002

67,140

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

454

7,458

 

Cash Flows from Investment Activities

-2,384

-201

 

Cash Flows from Financing Activities

612

-4,050

　

Cash, Bank Deposits at the Term End

　

8,399

9,767

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

31,942

31,398

 

 

Current Ratio (%)

132.19

126.02

 

 

Net Worth Ratio (%)

46.29

46.76

 

 

Recurring Profit Ratio (%)

5.39

4.68

 

 

Net Profit Ratio (%)

6.23

3.57

 

 

Return On Equity (%)

8.88

5.18

 

 

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