MIRA
INFORM REPORT
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Report Date : |
30.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
HITACHI ELECTRONICS SERVICES CO LTD |
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Registered Office : |
Mita MT Bldg, 3-13-12 Mita Minatoku Tokyo 108-0073 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Oct 1962 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Provider of integrated support
services for computer network systems |
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 4853.7 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
HITACHI ELECTRONICS SERVICES CO LTD
REGD NAME
Hitachi Denshi Service KK
MAIN OFFICE
Mita MT Bldg, 3-13-12 Mita Minatoku Tokyo 108-0073 JAPAN
Tel : 03-5441-8000
Fax : 03-5441-9243
URL : http://www.hitachi-densa.co.jp/
E-Mail address: einfo@hitachi-densa.co.jp
ACTIVITIES
Provider of integrated support services for computer network
systems
BRANCHES
Tokyo (2), Sapporo, Sendai, Saitama, Yokohama, Nagoya, Osaka, Hiroshima,
Fukuoka
SERVICE OFFICES
Domestic 320 locations nationwide;
Overseas 11 locations: Sefton Park, London, Munich, Santa
Clara, San Francisco, New York, San Diego, Beijing, Shanghai, Singapore, Sydney
OFFICERS
TSUGIO MOMOSE, PRES Hirotake
Kosaka, dir
Ryohei Sumi, mgn dir Tetsuo Miyazaki, dir
Mitsuru Kai, dir Akinori
Fujibayashi, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 170,835 M
PAYMENTS REGULAR CAPITAL Yen
5,000 M
TREND STEADY WORTH Yen
75,226 M
STARTED 1962 EMPLOYES 5,280
COMMENT
PROVIDER OF INTEGRATED SOLUTION SERVICES FOR COMPUTER NETWORK
SYSTEMS, WHOLLY OWNED BY HITACHI LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 4,853.7 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was established on the basis of a division separated from Hitachi Ltd (see REGISTRATION) in order to engage in the installation & maintenance of communication equipment & computers. In 1983, commenced maintenance support services for Hitachi America Ltd & Hitachi Europe Ltd. In 2002, integrated five support centers to form Hitachi Solution Support Center, Tokyo. In 2005, merged Hitachi Open Platform Solution, in order to offer integrated support services combining hardware & software over the life cycle of information systems. Further in 2006, merged six group subsidiaries* at major regional locations nationwide to further integrate and strengthen group operations. The firm offers integrated support services for a wide area of computer network systems, including planning, procurement, distribution, design, construction and introduction of the systems. Clients include government agencies, financial institutions, local municipalities, insurances, other, nationwide.
*.. Integrated six firms: Nissei Hitachi Electronic Services, Kansai Hitachi Electronic Services, Chubu Hitachi Electronic Services, Ibaraki Electronic Services, Chugoku Electronic Services & Tohoku Electronic Services.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen
170,835 million, a 13% down from Yen 196,843 million in the previous term. This is referred to the transfer of part of
business operations to a sister firm.
The recurring profit was posted at Yen 13,969 million and the net profit
at Yen 11,988 million, respectively, compared with Yen 10,330 million recurring
profit and Yen 6,550 million net profit, respectively, a year ago. Profits improved thanks to cost cut efforts
eliminating redundant operations after the merger.
For the current term ending Mar 2008 the recurring profit is
projected at Yen 14,100 million and the net profit at Yen 12,500 million,
respectively, on a 5% rise in turnover, to Yen 180,000 million.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 4,853.7 million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct
1962
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 400,000
shares
Issued: 100,000
shares
Sum: Yen
5,000 million
Major shareholder(s): Hitachi Ltd*(100)
*.. Hitachi Ltd, largest comprehensive mfr of electrical machinery, Tokyo, founded 1920, listed Tokyo, Osaka, Nagoya, Luxemburg, Frankfurt, Amsterdam, Paris, New York S/E’s, capital Yen 282,033 million, turnover Yen 10,247,903 million, recurring profit Yen 202,338 million, net losses Yen 32,799 million, total assets Yen 10,644,259 million, net worth Yen 2,442,797 million, employees 384,444, pres Kazuo Furukawa
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities: Offers integrated support services for computer
network systems, including planning, procurement, distribution, design,
construction, maintenance, and incidental services for the systems (--100%).
Business services areas:
Integrated support of both hardware & software; integrated
support of information systems over their life cycles; integrated support of
open (multi-vendor/multi-platform) environments; wholesale of equipment,
supplies, software & other items related to computer network systems;
planning, introductory, operation, management & training services for
E-learning systems.
Clients: [Mfr, governments, banks, insurances, business firms] Hitachi Ltd, Hitachi Software Engineering, Hitachi Information Systems, Nikkyo Create, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Hitachi Ltd and group firms.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
MUFG (Tokyo)
Mizuho Bank (Totsuka)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2008 |
31/03/2007 |
31/03/2006 |
31/03/2005 |
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Annual Sales |
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180,000 |
170,835 |
196,843 |
158,531 |
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Recur. Profit |
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14,100 |
13,969 |
10,330 |
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Net Profit |
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12,500 |
11,988 |
6,550 |
5,872 |
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Total Assets |
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162,736 |
154,261 |
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Current Assets |
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127,337 |
118,207 |
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Current Liabs |
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71,837 |
68,745 |
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Net Worth |
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75,226 |
69,020 |
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Capital, Paid-Up |
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5,000 |
5,000 |
5,000 |
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Div.P.Share(¥) |
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583.00 |
275.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
5.36 |
-13.21 |
24.17 |
-3.58 |
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Current Ratio |
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177.26 |
171.95 |
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N.Worth Ratio |
.. |
46.23 |
44.74 |
.. |
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R.Profit/Sales |
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7.83 |
8.18 |
5.25 |
.. |
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N.Profit/Sales |
6.94 |
7.02 |
3.33 |
3.70 |
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Return On Equity |
.. |
15.94 |
9.49 |
.. |
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Notes: Forecast (or estimated) figures for 31/03/2008 fiscal
term.
SUPPLEMENTS
Consolidated Financials of the parent, Hitachi Ltd
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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10,247,903 |
9,464,801 |
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Cost of Sales |
8,088,371 |
7,387,744 |
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GROSS PROFIT |
2,159,532 |
2,077,057 |
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Selling & Adm Costs |
1,977,020 |
1,821,045 |
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OPERATING PROFIT |
182,512 |
256,012 |
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Non-Operating P/L |
19,826 |
18,852 |
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RECURRING PROFIT |
202,338 |
274,864 |
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NET PROFIT |
-32,799 |
37,320 |
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BALANCE SHEET |
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Cash |
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617,866 |
658,255 |
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Receivables |
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2,341,609 |
2,266,097 |
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Inventory |
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1,450,258 |
1,262,308 |
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Securities, Marketable |
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Other Current Assets |
1,024,402 |
980,657 |
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TOTAL CURRENT ASSETS |
5,434,135 |
5,167,317 |
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Property & Equipment |
2,688,977 |
2,460,186 |
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Intangibles |
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Investments, Other Fixed Assets |
2,521,147 |
2,393,692 |
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TOTAL ASSETS |
10,644,259 |
10,021,195 |
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Payables |
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1,584,959 |
1,416,367 |
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Short-Term Bank Loans |
894,393 |
752,527 |
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Other Current Liabs |
2,188,192 |
1,952,557 |
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TOTAL CURRENT LIABS |
4,667,544 |
4,121,451 |
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Debentures |
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Long-Term Bank Loans |
1,489,843 |
1,418,489 |
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Reserve for Retirement Allw |
818,457 |
827,669 |
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Other Debts |
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151,869 |
109,006 |
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TOTAL LIABILITIES |
7,127,713 |
6,476,615 |
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MINORITY INTERESTS |
1,073,749 |
1,036,807 |
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Common stock |
282,033 |
282,033 |
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Additional paid-in capital |
560,796 |
561,484 |
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Retained earnings |
1,713,757 |
1,778,203 |
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Evaluation p/l on
investments/securities |
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Others |
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(88,450) |
(95,997) |
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Treasury stock, at cost |
(25,339) |
(17,950) |
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TOTAL S/HOLDERS` EQUITY |
2,442,797 |
2,507,773 |
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TOTAL EQUITIES |
10,644,259 |
10,021,195 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash Flows from Operating Activities |
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615,052 |
690,875 |
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Cash Flows from Investment Activities |
-786,170 |
-501,362 |
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Cash Flows from Financing Activities |
121,259 |
-261,638 |
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Cash, Bank Deposits at the Term End |
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617,866 |
658,255 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
2,442,797 |
2,507,773 |
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Current Ratio (%) |
116.42 |
125.38 |
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Net Worth Ratio (%) |
22.95 |
25.02 |
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Recurring Profit Ratio (%) |
1.97 |
2.90 |
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Net Profit Ratio (%) |
-0.32 |
0.39 |
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Return On Equity (%) |
-1.34 |
1.49 |
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. |
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%)