MIRA INFORM REPORT

 

 

Report Date :

06.11.2007

 

IDENTIFICATION DETAILS

 

Name :

MURATA MACHINERY LTD

 

 

Registered Office :

136 Takeda-Mukaishirocho Fushimiku Kyoto 612-8686

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Dec 1938

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of textile machinery, communication equipment, machine tools, automated systems

 

 

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 4466 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

MURATA MACHINERY LTD

 

 

REGD NAME

 

Murata Kikai KK

 

 

MAIN OFFICE

 

136 Takeda-Mukaishirocho Fushimiku Kyoto 612-8686 JAPAN

Tel        : 075-672-8130 

Fax       : 075-672-8691

URL      : http://www.muratec.net.jp/

E-Mail address: (thru the URL)

 

*.. The given address is its Inuyama Factory at: 2 Nakajima Hashizume Inuyama City Aichi-Pref, as given.

 

 

ACTIVITIES

 

Mfg of textile machinery, communication equipment, machine tools, automated systems

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Yokohama, Fukuoka

 

 

FACTORY(IES)

 

Inuyama (as given), Kaga, Ryuoh, Oita, Gifu

 

 

OVERSEAS

 

Shanghai, Taipei, Hsin-Chu, Singapore, Salt Lake City, Charlotte (--subsidiaries)

 

 

OFFICERS

 

Jun’ichi Murata, ch                                 DAISUKE MURATA, PRES & CEO

Yosuke Murata, v pres                            Takao Hayashi, s/mgn dir                                              

Masakazu Yamamoto, s/mgn dir             Yoshiharu Tanaka, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 127,205 M*

PAYMENTS      REGULAR                     CAPITAL           Yen 900 M

TREND             STEADY                       WORTH            Yen 105,303 M

STARTED         1938                             EMPLOYES      1,700

                                                            *.. Irregular 10 months

 

 

COMMENT

 

MFR SPECIALIZING IN TEXTILE MACHINERY AND OTHER INDUSTRIAL MACHINERY. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY         BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 4,466.0 MILLION, 30 DAYS NORMAL TERMS.

 

Notes: The 31/03/2007 term is irregular 10 months due to change to Apr/Mar from the previous Jun/May accounting term.  Growth rates are adjusted on a 12-month basis.

 

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

 

 

HIGHLIGHTS

           

The subject company was established by a certain Murata for mfg textile machinery and has been succeeded by his descendants.  The firm has since diversified operations into communications equipment, logistics & automated systems, machine tools, etc, in addition to textile machinery, which still remains as the main pillar.  Focusing on FA/OA equipment and systems.  Also aggressive to advance into overseas markets, with exports accounting for 60% of total sales.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2007 fiscal term for irregular 10 months, due to change of accounting term to Apr/Mar, amounted to Yen 127,205 million, a 13% hike, on an adjusted basis,  from Yen 135,111 million for 12 months in the previous term.  While communication equipment dipped, textile machines, machine tools and automated systems surged supported by robust demand for exports.  Weaker Yen also contributed to the sales growth in Yen terms.  Recurring profit was posted at Yen 14,546 million and the net profit at Yen 7,920 million, respectively, compared with Yen 14,361 million recurring profit and Yen 7,968 million net profit, respectively, a year ago.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 14,600 million and the net profit at Yen 8,000 million, respectively, on an 4.8% rise in turnover, to Yen 1160,000 million.  Sales are expected to continue growing, while the profitability may deteriorate due to heavy R&D costs outlays, according to the firm.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,466.0 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:            Dec 1938

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    18 million shares

Issued:                          13,820,000 shares

Sum:                            Yen 900 million

Major shareholders (%): Murata KK*(39.7), Murata Kosan KK*(15.2), Jun’ichi Murata (13.9), Daisuke Murata

                                    (4.4), Yosuke Murata (4)

*.. Group subsidiaries

No. of shareholders:       23

                       

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

 

 

OPERATION

           

Activities: Manufactures:

           

Textile Machinery (24%): spinning frames, auto winders, electric dobbins;

Communication Equipment (16%): digital multifunctional products, laser & thermal Fax machines;

Logistics & Automation Equipment Systems (38%): systems for medical supplies, apparel, beverages, foodstuffs, sporting, data management, others;

Machine Tools (21%): tuning machines, sheet metal fabricating machines, lathes;

Hydraulic riveting machines (1%): magnetic induction sensors, others.

Export 60%.

           

Clients: [Mfrs, wholesalers] Itochu Tekmatecs, Toppoley Optoelectronics Corp, Fuji Xerox, Toyota Tsusho Corp, Toyo Seikan, TMT Machinery, Hannstar Display Corp, Innolux Display Corp, Inotera Memories Inc, Hyundai Elevator, MC Machinetech, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Fanuc Ltd, Konica Minolta Business Technologies, Fuji Xerox, Tokai EC, SMC, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

Mizuho Bank (Kyoto-Chuo)

SMBC (Kyoto-Chuo)

 

Relations: Satisfactory

 

FINANCES

 

(Non-Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/05/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

127,205

135,111

 

  Cost of Sales

95,869

101,474

 

      GROSS PROFIT

31,336

33,637

 

  Selling & Adm Costs

21,610

24,105

 

      OPERATING PROFIT

9,726

9,532

 

  Non-Operating P/L

4,820

4,829

 

      RECURRING PROFIT

14,546

14,361

　

      NET PROFIT

7,920

7,968

BALANCE SHEET

 

 

 

 

  Cash

　

35,800

41,708

 

  Receivables

 

36,583

33,316

 

  Inventory

 

27,823

25,464

 

  Securities, Marketable

1,520

759

 

  Other Current Assets

25,877

19,588

 

      TOTAL CURRENT ASSETS

127,603

120,835

 

  Property & Equipment

21,972

20,162

 

  Intangibles

 

1,473

1,453

 

  Investments, Other Fixed Assets

37,325

33,058

 

      TOTAL ASSETS

188,373

175,508

 

  Payables

 

36,502

31,021

 

  Short-Term Bank Loans

11,540

13,540

 

　

 

　

　

 

  Other Current Liabs

24,962

26,815

 

      TOTAL CURRENT LIABS

73,004

71,376

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

3,501

3,502

 

  Reserve for Retirement Allw

1,163

878

 

  Other Debts

　

5,403

3,879

 

      TOTAL LIABILITIES

83,071

79,635

 

      MINORITY INTERESTS

 

 

 

Common stock

900

900

 

Additional paid-in capital

442

442

 

Retained earnings

96,498

88,787

 

Evaluation p/l on investments/securities

7,462

5,745

 

Others

 

1

(1)

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

105,303

95,873

　

      TOTAL EQUITIES

188,373

175,508

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/05/2006

 

 

Net Worth (S/Holders' Equity)

105,303

95,873

 

 

Current Ratio (%)

174.79

169.29

 

 

Net Worth Ratio (%)

55.90

54.63

 

 

Recurring Profit Ratio (%)

11.44

10.63

 

 

Net Profit Ratio (%)

6.23

5.90

 

 

Return On Equity (%)

7.52

8.31

 

Notes: The 31/03/2007 term is for irregular 10 months due to change of accounting term to Apr/Mar from the previous Jun/May.

 

 

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.

 

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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