MIRA INFORM REPORT

 

 

Report Date :

17.09.2007

 

IDENTIFICATION DETAILS

 

Name :

CANARE ELECTRIC CO LTD

 

 

Registered Office :

1-2 Dannoue Nagakute Nagakutecho Aichigun Aichi-Pref 480-1121

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

February, 1974

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Cables for Broadcasting

 

 

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 406.3 MILLION

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

COMPANY NAME

 

CANARE ELECTRIC CO LTD

REGD NAME:   Canare Denki KK

 

ADDRESS

 

MAIN OFFICE

 

1-2 Dannoue Nagakute Nagakutecho Aichigun Aichi-Pref 480-1121 JAPAN

Tel        : 0561-62-8701    

Fax       : 0561-62-8091

URL      : http://www.canare.co.jp/

E-Mail   : overseas@canare.co.jp

 

Shin-Yokohama Office at: Shin-Yokohama WN Bldg 4F, 2-4-1 Shin-Yokohama Kohokuku Yokohama, as given (Tel: 045-470-5674; Fax: 045-470-5676).

 

 

ACTIVITIES

 

Mfg of cables for broadcasting

 

 

BRANCH(ES)

 

Tokyo, Nagoya, Osaka, Fukuoka

 

 

OVERSEAS

 

Canare Corp of America; Canare Corp of Korea; Canare Corp of Taiwan; Canare Electric Corp of Tianjiang (--subsidiaries)

 

 

FACTORY(IES)

 

At the caption address (subsidiary mfr: Canare Harness KK)

 

 

CHIEF EXEC

 

KIMIO KAWAMOTO, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 9,498 M

PAYMENTS      REGULAR                     CAPITAL           Yen 1,047 M

TREND             STEADY                       WORTH            Yen 5,911 M

STARTED         1991                             EMPLOYES      230

 

 

COMMENT

 

MFR OF CABLES FOR BROADCASTING. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 406.3 MILLION, 30 DAYS NORMAL TERMS.

 

                       

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

 

 

HIGHLIGHTS

 

The subject company was established originally in 1970 by Kimio Kawamoto at Nagoya in order to make most of his experience in the subject line of business, on his account.  Incorporated in 1974, the firm released multi-channel audio snake cables, followed by color microphone cables (1977), fixed use microphone cables (1981), etc.  This is a medium-scale mfr of cables, harnesses, connectors for broadcasting and information equipment.  Largest maker of cables for audio equipment. Has many clients in major firms, such as TV stations, telecommunication firms and    concert hall operators.  Mfg is handled by subsidiaries: Canare Harness Co and Canare Electric Co (Shanghai) Ltd; also consigned to domestic makers. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 9,498 million, a 4% up from Yen 9,125 million in the previous term.  Demand rose in China, Russia, Europe, and other regions.  Sales in China nearly doubled.  Domestically rather flat affected by peak-out of terrestrial-digital related investments  The recurring profit was posted at Yen 1,275 million and the net profit at Yen 863 million, respectively, compared with Yen 1,324 million recurring profit and Yen 748 million net profit, respectively, a year ago. Material cost-ups and rising operation costs deteriorated the recurring profit.

           

(Apr/Jun/2007 results): Sales Yen 2,358 million (up 5.4%), operating profit Yen 358 million (up 12.8%), recurring profit Yen 359 million (up 28.8%), net profit Yen 238 million (up 34.1%).  (% compared with the same period last year).  Demand continued steady and strong.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 1,340 million and the net profit at Yen 870 million, on a 6.3% rise in turnover, to Yen 10,100 million.  Sales in China will continue growing.  High-profitable operations in Korea also will grow steadily. 

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements.    Max credit limit is estimated at Yen 406.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered : Feb 1974

Legal Status                  : Limited Company (Kabushiki Kaisha)

Authorized                     : 23 million shares

Issued                           : 7,028,060 shares

Sum                             : Yen 1,047 million

           

Major shareholders (%): Kimio Kawamoto (16.6), Canare Ltd (11.3), Seiji Kato (9.9), Shigeki Kawamoto (9.9), Bank of NY GCM Client EISG (3.9), Japan Trustee Services Bank T (3.4), Osaka Industries (2.8), Master Trust Bank of Japan T (2.8), Chukyo Bank (2.5), MUFG (2.5); foreign owners (4.5)

           

No. of shareholders: 3,606

 

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

 

Managements: Kimio Kawamoto, pres; Seiji Kato, dir; Yoji Shimizu, dir; Masao Obase, dir; Akio Satoh, dir; Yasunari Ikeda, dir

           

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

 

Related companies: Canare Harness, Canare Corp of America, Canare Corp of Korea, Canare Corp of Taiwan, Canare Electric Corp of Tianjiang, other.

           

 

OPERATION

           

Activities: Manufactures, imports and exports cables for broadcasting and information equipment:.

 

(Sales breakdown by divisions):

 

Cables (36%); Harnesses (19%); Connectors (20%); Passive Equipment (14%); Electronic Equipment (4%); Others (6%). Overseas Sales Ratio (38.9%): Americas 13.9%; Asia 21.3%; other region 3.7%

 

Clients: [TV stations, telecommunication industry, wholesalers] Canare America, Canare    Korea, Canare HK, Toshiba Corp, Matsushita Electric Ind, Ikegami Tsushinki, other.

 

No. of accounts: 3,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Canare Harness, Canare HK, other..

 

Payment record: Regular

 

Location: Business area in Aichigun, Aichi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

MUFG (Kurokawa)

SMBC (Shin-Yokohama)

Relations: Satisfactory

 

 

FINANCIALS

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

9,498

9,125

 

  Cost of Sales

5,974

5,565

 

      GROSS PROFIT

3,524

3,559

 

  Selling & Adm Costs

2,293

2,178

 

      OPERATING PROFIT

1,230

1,381

 

  Non-Operating P/L

45

-67

 

      RECURRING PROFIT

1,275

1,314

　

      NET PROFIT

863

748

BALANCE SHEET

 

 

 

 

  Cash

　

1,613

2,370

 

  Receivables

 

1,328

1,239

 

  Inventory

 

1,103

986

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,445

426

 

      TOTAL CURRENT ASSETS

5,489

5,021

 

  Property & Equipment

1,426

1,451

 

  Intangibles

 

2

2

 

  Investments, Other Fixed Assets

326

366

 

      TOTAL ASSETS

7,243

6,840

 

  Payables

 

648

652

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

540

657

 

      TOTAL CURRENT LIABS

1,188

1,309

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

42

205

 

  Other Debts

　

102

14

 

      TOTAL LIABILITIES

1,332

1,528

 

      MINORITY INTERESTS

 

 

 

Common stock

1,047

1,047

 

Additional paid-in capital

1,175

1,175

 

Retained earnings

3,921

3,321

 

Evaluation p/l on investments/securities

19

72

 

Others

 

(250)

(302)

 

Treasury stock, at cost

(1)

(1)

 

      TOTAL S/HOLDERS` EQUITY

5,911

5,312

　

      TOTAL EQUITIES

7,243

6,840

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

484

1,115

 

Cash Flows from Investment Activities

-237

-121

 

Cash Flows from Financing Activities

-253

-158

　

Cash, Bank Deposits at the Term End

　

2,380

2,361

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

5,911

5,312

 

 

Current Ratio (%)

462.04

383.58

 

 

Net Worth Ratio (%)

81.61

77.66

 

 

Recurring Profit Ratio (%)

13.42

14.40

 

 

Net Profit Ratio (%)

9.09

8.20

 

 

Return On Equity (%)

14.60

14.08

 

           


 

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