MIRA INFORM REPORT

 

 

Report Date :

12.10.2007

 

IDENTIFICATION DETAILS

 

Name :

YKK CORPORATION

 

 

Registered Office :

1 Kanda-Izumicho Chiyodaku Tokyo 101-8642

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Jan 1934

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of fasteners, aluminum sashes, fastener manufacturing machinery.

 

 

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 21867.1 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

 

name

 

YKK CORPORATION

 

 

REGD NAME

 

YKK KK

 

 

MAIN OFFICE

 

1 Kanda-Izumicho Chiyodaku Tokyo 101-8642 JAPAN

Tel        : 03-3864-2000              

URL      : http://www.ykk.co.jp

E-Mail address: hp-tp@ykk.co.jp

 

 

ACTIVITIES

 

Mfg of fasteners, aluminum sashes, fastener mfg machinery

 

 

BRANCHES

 

22 Domestic; 97 overseas in 90 countries

 

 

FACTORY(IES)

 

Kurobe, Toyama, Ishikari (Hokkaido), Miyagi, Kagawa, Kumamoto

 

 

OVDERSEAS

 

USA, Mexico, Sri Lanka, Poland, Bangladesh, Rumania, China, Korea, Taiwan, South Africa

 

 

OFFICERS

 

TADAHIRO YOSHIDA, PRES                 Takeshi Kawasaki, v pres          

Kiyoshi Takeshima, v pres                      Noritaka Tsubata, v pres

Masayuki Sarumaru, s/mgn dir                Akira Matsuda, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 658,228 M

PAYMENTS      REGULAR                     CAPITAL           Yen 11,982 M

TREND             STEADY                       WORTH            Yen 507,210 M

STARTED         1934                             EMPLOYES      38,398

 

 

COMMENT

 

MFR SPECIALIZING IN FASTENERS, ALUMINUM SASHES, OTHER.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 21,867.1 MILLION, 30 DAYS NORMAL TERMS. 

 

                                    Notes: Forecast figures for the 31/03/2008 fiscal term.

 

 

HIGHLIGHTS

           

The subject company was established by Tadahiko Yoshida in order to make most of his experience in the subject line of business.  Tadahiro is the founder’s grandson.  Specializes in mfg fasteners, aluminum sashes, fastener making machinery, other industrial machinery.  Tops in fasteners and second in aluminum sashes.  Goods are branded as “YKK” and firm renamed as captioned in 1996 after the brand name. Has 119 subsidiaries/affiliates in 70 countries.  Fasteners and sashes are also manufactured overseas.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2007 fiscal term amounted to Yen 658,228 million, a 6.2% up from Yen 619,612 million in the previous term.  Fasteners rose particularly in China where sewing business and factories shifted from Japan.  By divisions Fastener Div rose 9% to Yen 22,685 million.  Hikes in material and fuel prices were absorbed by reduced materials & operation costs, plus market price hikes.  Building Materials Div was up 3.9% to Yen 391,140 million.  Business in USA was favorable.  Industrial Machinery Div was up 4% to Yen 796 million, supported by rising demand in China.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 41,000 million and the net profit at Yen 24,500 million, respectively, on a 4.8% rise in turnover, to Yen 690,000 million.  Business continues rising steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 21,867.1 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Jan 1934

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    4,260,000 shares

Issued:                          1,199,240 shares

Sum:                            Yen 11,992 million

Major shareholders (%): YK Yoshida Kosan*(14.4), Employees’ S/Holding Assn (14.2), Tadahiro Yoshida (5.0),

                                     Mizuho Corporate Bank (4.9), Hokuriku Bank (2.7)

No. of shareholders:       9,167

           

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

 

 

OPERATION

 

Activities: Manufactures metal & plastic buttons, hooks, fasteners, needles, pins, other clothing accessories used in jeans, casual wear, sports wear, work clothes, other garments, their fixing equipment, including leasing, maintenance services (40%), aluminum sashes, doors, house exterior materials, others (59%), dies, other industrial machinery (--1%).

          

Overseas sales ratio 37%.

 

Clients: [Mfrs, wholesalers] YKK AP Inc, YKK Fastening Products Sales Inc (--subsidiaries), other. 

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, YKK Aluminum Australia, other subsidiary mfrs.

 

Payment record: Regular

 

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

 

 

Bank References

 

Mizuho Corporate Bank (H/O)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

658,228

619,612

 

  Cost of Sales

440,036

410,032

 

      GROSS PROFIT

218,191

209,579

 

  Selling & Adm Costs

172,578

171,417

 

      OPERATING PROFIT

45,613

38,162

 

  Non-Operating P/L

-5,066

-4,336

 

      RECURRING PROFIT

40,547

33,826

　

      NET PROFIT

24,072

18,030

BALANCE SHEET

 

 

 

 

  Cash

　

82,537

80,889

 

  Receivables

 

172,852

150,450

 

  Inventory

 

146,591

136,366

 

  Securities, Marketable

728

1,544

 

  Other Current Assets

19,883

15,537

 

      TOTAL CURRENT ASSETS

422,591

384,786

 

  Property & Equipment

333,457

321,382

 

  Intangibles

 

11,459

11,966

 

  Investments, Other Fixed Assets

83,051

91,936

 

      TOTAL ASSETS

850,558

810,070

 

  Payables

 

81,287

70,290

 

  Short-Term Bank Loans

25,314

29,021

 

　

 

　

　

 

  Other Current Liabs

101,200

102,114

 

      TOTAL CURRENT LIABS

207,801

201,425

 

  Debentures

 

30,000

20,000

 

  Long-Term Bank Loans

2,271

2,706

 

  Reserve for Retirement Allw

92,617

97,627

 

  Other Debts

　

10,659

11,189

 

      TOTAL LIABILITIES

343,348

332,947

 

      MINORITY INTERESTS

 

9,732

 

Common stock

11,992

11,992

 

Additional paid-in capital

34,938

34,938

 

Retained earnings

443,230

421,722

 

Evaluation p/l on investments/securities

9,497

13,038

 

Others

 

7,556

(14,297)

 

Treasury stock, at cost

(3)

(2)

 

      TOTAL S/HOLDERS` EQUITY

507,210

467,391

　

      TOTAL EQUITIES

850,558

810,070

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

46,383

51,678

 

Cash Flows from Investment Activities

-47,449

-50,376

 

Cash Flows from Financing Activities

-3,832

-14,374

　

Cash, Bank Deposits at the Term End

　

77,254

80,223

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

507,210

467,391

 

 

Current Ratio (%)

203.36

191.03

 

 

Net Worth Ratio (%)

59.63

57.70

 

 

Recurring Profit Ratio (%)

6.16

5.46

 

 

Net Profit Ratio (%)

3.66

2.91

 

 

Return On Equity (%)

4.75

3.86

 

 

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