MIRA INFORM REPORT

 

 

Report Date :

04.10.2007

 

IDENTIFICATION DETAILS

 

Name :

MIKUNI CORP

 

 

Registered Office :

Mikuni Bldg, 6-13-11 Sotokanda Chiyodaku Tokyo 101-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Oct 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of carburetors for motorcycles & automobiles

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 2163 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular


name

 

MIKUNI CORP

 

 

REGD NAME

 

KK Mikuni

 

 

MAIN OFFICE

 

Mikuni Bldg, 6-13-11 Sotokanda Chiyodaku Tokyo 101-0021 JAPAN

Tel        : 03-3833-0392    

Fax       : 03-3834-7607

URL      : http://www.mikuni.co.jp/

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

                       

*.. The given address is its Nagoya Branch at: Ammnat Bldg 12F, 1-4-3 Sakae Nakaku Nagoya; Tel: 052-223-3920; Fax: 052-223-3925, where in-house company, Mikuni Shoko Company is located (See Highlights).

 

 

ACTIVITIES

 

Mfg of carburetors for motorcycles & automobiles

 

 

BRANCHES

 

Osaka, Nagoya, other (tot 9)

 

 

OVERSEAS

 

USA (3), Mexico, Germany, Thailand, India, Indonesia, Korea, Taiwan, China (5) (--subsidiaries)

 

 

FACTORY(IES)

 

Morioka, Iwate (2), Odawara, Shizuoka (2)

 

 

CHIEF EXEC

 

MASAKI IKUTA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 95,546 M

PAYMENTS      REGULAR                     CAPITAL           Yen 2,215 M

TREND             STEADY                       WORTH            Yen 26,601 M

STARTED         1948                             EMPLOYES      5,356

 

 

COMMENT

 

MFR SPECIALIZING IN CARBURETORS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 2,163.0 MILLION, 30 DAYS NORMAL TERMS.

 

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

 

 

HIGHLIGHTS

 

This is an independent maker of carburetors for motorcycles and 4-wheelers.  Rapidly diversifying from carburetors into thermal equipment, including oil pumps, fuel pumps, gas burner safety devices.  Focuses on fuel injection-related devices.  Major customers include Suzuki Motor and Yamaha Motor.  Expanding sales of welfare & health-related equipment domestically and in North America, which division continuing profitable.  Imports of aircraft parts & materials sales are handled by the in-house company, Mikuni Shoko Company, which division starting to increase by the recovery of airline industry.  . 

 

Mikuni Shoko Company was absorbed in Oct 2003 into the subject as in-house company division handling imports of equipment, components, parts & materials for the aerospace industry, as well as turf-care and maintenance equipment & machines for golf courses & sports fields.

 

New plant in Kikukawa (Shizuoka-Pref) that started operation in May/2007 concentrating on production of electronic control parts for motorcycles.  Developed hydrogen sensor for fuel batteries jointly with Iwate University.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 95,546 million, an 11.4% up from Yen 85,777 million in the previous term.  Mainline parts for motorcycles and 4-wheelers remained steady.  Exports expanded for motorcycles particularly in India, Indonesia and China, while domestic demand slowed.  By divisions, Automotive-related Div rose 8.1% to Yen 66,041 million.  Lifestyle & related Div up 5.4% to Yen 8,657 million, thanks to increased exports of heating devices and construction-use equipment into Europe, South America, China, etc.  Import products Div leaped 26.7% to Yen 20,846 million, helped by increasing new demand for aircraft parts & components by the recovery of aircraft industry.  Golf carts & turf care equipment also contributed.  The recurring profit was posted at Yen 2,917 million and the net profit at Yen 1,383 million, respectively, compared with Yen 4,380 million recurring profit and Yen 2,228 million net profit, respectively, a year ago.  Profit deterioration is referred to: higher materials aluminum and copper prices; cost for shift from mechanical carburetors to electronically-controlled ones; increased capital spending and depreciation.  The firm wrote off Yen 386 million as extraordinary losses for compensation expenses for products previously delivered.

 

(Apr/Jun/2007 results): sales Yen 24,032 million (up 4.2%), operating profit Yen 475 million (up 13.4%), recurring profit Yen 508 million (up 40.2%), net profit Yen 238 million (up 37.3%).     (% compared with the same period the previous year).  Sales rose in N America and India.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 3,000 million and the net profit at Yen 1,700 million, respectively, on an almost similar turnover, at Yen 96,000 million.  Sales of imported aircraft parts may decrease slightly after sharp growth the previous term, but remaining at high level.  Mainline parts for motorcycles and 4-wheelers will remain steady.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 2,163.0 million, 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Oct 1948

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    110 million shares

Issued:                          34,049,423 shares

Sum:                            Yen 2,215 million

Major shareholders (%): Aioi Ins (5.5), Masaki Ikuta (5.0), Bank of Yokohama (4.9), Resona Bank (4.9), Mikuni

                                    Sogyo (3.5), MUFG (3.3), Suzuki Motor (2.9), Credietbank (Lux) Bourgeois Ins (2.8),

                                    Tokio Marine & Nichido Fire Ins (2.8), Japan Trustee Services T (2.6); foreign owners

                                    (7.5)

No. of shareholders:       3,232

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

Managements:               Masaki Ikuta, pres & CEO; Hisataka Ikuta, dir; Hiroshi Yamanaka, dir; Takeshi

                                    Umebayashi, dir; Junnosuke Sakura, dir; Masanobu Kawabata, dir; Masahiro Hayashida,

                                    dir; Toshiro Asai, Eiichi Sakurai, dir

           

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

 

 

Related companies

 

Mikuni America, Mikuni Thailand, other

           

 

OPERATION

 

Activities: Manufactures carburetors, oil pumps, fuel pumps, gas burners safety devices, heaters, others for motorcycles & automobiles, lifestyle & environment products, imported products, other:

 

(Sales Breakdown by Divisions)

 

Automotive-related Div (69%): carburetors for cars, motorcycles, snowmobiles, water vehicles, general purpose engines; electric fuel injection for throttle bodies, injection mixers, variable air-intake valves, throttle position sensors, fuel filters; pumps for oil pumps, fuel pumps, vacuum pumps; controllers; fuel controllers, air controllers, electronic controllers; heaters, engine pre-heaters for buses, trucks, cars, construction machinery special vehicles, trains, boats, other;

 

Lifestyle & environmental products Div (9%): medical equipment, easy care equipment for elderly & handicapped from dressing room to bath tub, hydraulic lifts, articulated arm, child seats, wheel chairs;

 

Imported products Div (22%): (handled by intra-company Mikuni Shoko Company): lawn mowers, turf care equipment, golf carts, general industrial machinery & parts, aircraft parts & materials.

 

Overseas sales ratio (24.7%): N America 5.3%; Europe (Germany, Italy) 2.5%; Asia (China, Taiwan, Korea, Thailand, India, Indonesia) 16.4%; other regions (New Zealand, Australia, Brazil, Iran, other) 0.6%.

 

Clients: [Carmakers] Suzuki Motor, Mitsubishi Motors, Yamaha Motor Co, Defense Agency, Ishikawajima-Harima Heavy Ind, Mitsubishi Heavy Ind, other. 

 

Exports to China, S/E Asian countries, USA, etc.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Yamaha Corp, other.  Imports from USA, Europe, Asia, etc. 

 

Payment record: Regular

 

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

 

 

Bank References

 

Resona Bank (Ohtemachi)

Bank of Yokohama (Tokyo)

 

Relations: Satisfactory

 

 

Financials

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

95,546

85,777

 

  Cost of Sales

82,093

71,532

 

      GROSS PROFIT

13,452

14,244

 

  Selling & Adm Costs

10,459

10,253

 

      OPERATING PROFIT

2,992

3,990

 

  Non-Operating P/L

-75

390

 

      RECURRING PROFIT

2,917

4,380

　

      NET PROFIT

1,383

2,228

BALANCE SHEET

 

 

 

 

  Cash

　

2,529

2,404

 

  Receivables

 

20,640

17,941

 

  Inventory

 

11,071

10,207

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,187

3,278

 

      TOTAL CURRENT ASSETS

37,427

33,830

 

  Property & Equipment

35,563

33,209

 

  Intangibles

 

849

1,014

 

  Investments, Other Fixed Assets

10,258

10,579

 

      TOTAL ASSETS

84,097

78,632

 

  Payables

 

13,286

13,063

 

  Short-Term Bank Loans

20,655

15,201

 

　

 

　

　

 

  Other Current Liabs

10,887

10,741

 

      TOTAL CURRENT LIABS

44,828

39,005

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

4,161

5,900

 

  Reserve for Retirement Allw

4,413

4,529

 

  Other Debts

　

4,094

4,216

 

      TOTAL LIABILITIES

57,496

53,650

 

      MINORITY INTERESTS

 

1,738

 

Common stock

2,215

2,215

 

Additional paid-in capital

1,700

1,700

 

Retained earnings

13,425

12,513

 

Evaluation p/l on investments/securities

7,539

2,329

 

Others

 

1,755

4,512

 

Treasury stock, at cost

(33)

(27)

 

      TOTAL S/HOLDERS` EQUITY

26,601

23,242

　

      TOTAL EQUITIES

84,097

78,632

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

2,911

4,862

 

Cash Flows from Investment Activities

-5,292

-3,529

 

Cash Flows from Financing Activities

2,459

-2,944

　

Cash, Bank Deposits at the Term End

　

2,516

2,390

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

26,601

23,242

 

 

Current Ratio (%)

83.49

86.73

 

 

Net Worth Ratio (%)

31.63

29.56

 

 

Recurring Profit Ratio (%)

3.05

5.11

 

 

Net Profit Ratio (%)

1.45

2.60

 

 

Return On Equity (%)

5.20

9.59

 

 

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%)

 

 

 

 

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