MIRA
INFORM REPORT
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Report Date : |
09.10.2007 |
IDENTIFICATION DETAILS
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Name : |
MURATA MACHINERY LTD |
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Registered Office : |
136 Takeda-Mukaishirocho Fushimiku |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Dec 1938 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of textile machinery, communication equipment, machine tools, automated 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 4466 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name
MURATA MACHINERY
LTD
REGD NAME
Murata Kikai KK
MAIN OFFICE
136
Takeda-Mukaishirocho Fushimiku Kyoto 612-8686
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
FACTORY(IES)
Inuyama (as
given), Kaga, Ryuoh,
OVERSEAS
Shanghai,
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
Bank References
Mizuho Bank
(Kyoto-Chuo)
SMBC (Kyoto-Chuo)
Relations:
Satisfactory
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FINANCES (Non-Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/05/2006 |
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INCOME STATEMENT |
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Annual Sales |
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127,205 |
135,111 |
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Cost of Sales |
95,869 |
101,474 |
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GROSS PROFIT |
31,336 |
33,637 |
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Selling & Adm Costs |
21,610 |
24,105 |
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OPERATING PROFIT |
9,726 |
9,532 |
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Non-Operating P/L |
4,820 |
4,829 |
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RECURRING PROFIT |
14,546 |
14,361 |
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NET PROFIT |
7,920 |
7,968 |
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BALANCE SHEET |
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Cash |
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35,800 |
41,708 |
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Receivables |
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36,583 |
33,316 |
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Inventory |
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27,823 |
25,464 |
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Securities, Marketable |
1,520 |
759 |
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Other Current Assets |
25,877 |
19,588 |
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TOTAL CURRENT ASSETS |
127,603 |
120,835 |
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Property & Equipment |
21,972 |
20,162 |
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Intangibles |
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1,473 |
1,453 |
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Investments, Other Fixed Assets |
37,325 |
33,058 |
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TOTAL ASSETS |
188,373 |
175,508 |
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Payables |
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36,502 |
31,021 |
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Short-Term Bank Loans |
11,540 |
13,540 |
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Other Current Liabs |
24,962 |
26,815 |
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TOTAL CURRENT LIABS |
73,004 |
71,376 |
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Debentures |
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Long-Term Bank Loans |
3,501 |
3,502 |
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Reserve for Retirement Allw |
1,163 |
878 |
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Other Debts |
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5,403 |
3,879 |
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TOTAL LIABILITIES |
83,071 |
79,635 |
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MINORITY INTERESTS |
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Common
stock |
900 |
900 |
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Additional
paid-in capital |
442 |
442 |
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Retained
earnings |
96,498 |
88,787 |
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Evaluation
p/l on investments/securities |
7,462 |
5,745 |
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Others |
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1 |
(1) |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
105,303 |
95,873 |
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TOTAL EQUITIES |
188,373 |
175,508 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/05/2006 |
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Net
Worth (S/Holders' Equity) |
105,303 |
95,873 |
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Current
Ratio (%) |
174.79 |
169.29 |
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Net
Worth Ratio (%) |
55.90 |
54.63 |
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Recurring
Profit Ratio (%) |
11.44 |
10.63 |
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Net
Profit Ratio (%) |
6.23 |
5.90 |
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Return
On Equity (%) |
7.52 |
8.31 |
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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
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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%)