MIRA
INFORM REPORT
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Report Date : |
14.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
YKK CORPORATION |
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Registered Office : |
1 Kanda-Izumicho Chiyodaku Tokyo 101-8642 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
January 1934 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Fasteners, Aluminum Sashes, Fastener Mfg
Machinery |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 21,867.1 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
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
OVERSEAS
USA, Mexico, Sri Lanka, Poland, Bangladesh, Rumania, China,
Korea, Taiwan, South Africa
OFFICERS
TADAHIRO YOSHIDA, CH & PRES
Yoshinori Kitano, v ch
Kiyoshi Taie, v ch
Takeshi Kawasaki, v pres
Kiyoshi Takeshima, v pres
Wataru Otani, v pres
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 40,000*
*
19,000 domestic; 21,000 overseas
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 the firm renamed as captioned in 1996 after the brand name. Has 118 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 9.5% to Yen 258,623 million. Shift of apparel production areas to Asia, particularly China where demand boosted. 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, due to firmer wood construction market in Japan. Business in USA was favorable. Industrial Machinery Div was up 1.1% to Yen 35,571 million, supported by rising demand for fastening factory machinery, mainly in China.
(Apr/Sept/2007 results): Sales Yen 333,718 million (up 5.9%), operating profit Yen 26,509 million (down 3.2%), recurring profit Yen 26,487 million (5.4%), net losses Yen 12,391 million. (% compared with the corresponding period a year ago). Losses are due to revaluation of fixed assets (loss due to impairment) and change of corporate tax law.
For the term just ended Mar 2008 the recurring profit was projected at Yen 39,500 million and the net losses at Yen 4,700 million, respectively, on a 3.9% rise in turnover, to Yen 684,200 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 (%)
Employees’ S/Holding Assn (14.6), YK Yoshida Kosan*(14.4), Tadahiro Yoshida (5.4), Mizuho Corporate Bank (4.9), Hokuriku Bank (2.7)
No. of shareholders: 9,167
* Holding company owned by the Yoshida family.
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 (39%), aluminum sashes, doors, house exterior materials, others (59%), dies, fastener mfg machinery & equipment, other (--2%).
Overseas sales ratio 39%.
Clients
[Mfrs, wholesalers] YKK AP Inc, YKK Fastening Products Sales Inc, Shanghai YKK Zipper, YKK Zipper Shenzhen, YKK Taiwan, Dalian YKK Zipper (--subsidiaries), other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Mitsui & Co, YKK Aluminum Australia, other subsidiary mfrs domestic & overseas.
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)
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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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658,228
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619,612
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Cost of Sales |
440,036
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410,032
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GROSS PROFIT |
218,191
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209,579
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Selling & Adm Costs |
172,578
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171,417
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OPERATING PROFIT |
45,613 |
38,162 |
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Non-Operating P/L |
-5,066 |
-4,336 |
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RECURRING PROFIT |
40,547 |
33,826 |
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NET PROFIT |
24,072 |
18,030 |
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BALANCE
SHEET |
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Cash |
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82,537 |
80,889 |
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Receivables |
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172,852
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150,450
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Inventory |
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146,591
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136,366
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Securities, Marketable |
728 |
1,544 |
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Other Current Assets |
19,883 |
15,537 |
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TOTAL CURRENT ASSETS |
422,591
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384,786
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Property & Equipment |
333,457
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321,382
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Intangibles |
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11,459 |
11,966 |
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Investments, Other Fixed Assets |
83,051 |
91,936 |
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TOTAL ASSETS |
850,558
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810,070
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Payables |
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81,287 |
70,290 |
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Short-Term Bank Loans |
25,314 |
29,021 |
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Other Current Liabs |
101,200
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102,114
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TOTAL CURRENT LIABS |
207,801
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201,425
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Debentures |
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30,000 |
20,000 |
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Long-Term Bank Loans |
2,271 |
2,706 |
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Reserve for Retirement Allw |
92,617 |
97,627 |
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Other Debts |
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10,659 |
11,189 |
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TOTAL LIABILITIES |
343,348
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332,947
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MINORITY INTERESTS |
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9,732 |
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Common
stock |
11,992 |
11,992 |
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Additional
paid-in capital |
34,938 |
34,938 |
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Retained
earnings |
443,230
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421,722
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Evaluation
p/l on investments/securities |
9,497 |
13,038 |
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Others |
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7,556 |
(14,297) |
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Treasury
stock, at cost |
(3) |
(2) |
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TOTAL S/HOLDERS` EQUITY |
507,210
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467,391
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TOTAL EQUITIES |
850,558
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810,070
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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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46,383 |
51,678 |
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Cash
Flows from Investment Activities |
-47,449
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-50,376
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Cash
Flows from Financing Activities |
-3,832 |
-14,374
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Cash,
Bank Deposits at the Term End |
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77,254 |
80,223 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
507,210
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467,391
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Current
Ratio (%) |
203.36 |
191.03 |
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Net
Worth Ratio (%) |
59.63 |
57.70 |
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Recurring
Profit Ratio (%) |
6.16 |
5.46 |
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Net
Profit Ratio (%) |
3.66 |
2.91 |
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Return
On Equity (%) |
4.75 |
3.86 |
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%)