MIRA
INFORM REPORT
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Report Date : |
11.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
THE JAPAN STEEL WORKS LTD |
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Registered Office : |
Gate City Osaki-West Tower, 1-11-1 Osaki Shingawaku Tokyo 141-0032 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
December 1950 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Plastics Machines, Steel Castings and
Forgings |
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 4,347.9 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
THE JAPAN STEEL
WORKS LTD
REGD NAME: Nihon Seikosho KK
MAIN OFFICE: Gate City Osaki-West Tower, 1-11-1 Osaki
Shingawaku Tokyo 141-0032 JAPAN
Tel:
03-5745-2001 Fax: 03-5745-2025
E-Mail
address: info_steel_forging@jsw.co.jp;
wesmaster@jsw..co.jp
ACTIVITIES
Mfg of plastics machines, steel castings & forgings
BRANCHES
Osaka, Nagoya, Shizuoka, Fukuoka, Sapporo
FACTORY(IES)
Muroran, Hiroshima, Yokohama
CHIEF EXEC
MASAHISA NAGATA, PRES
Yen
Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 220,851 M
PAYMENTS REGULAR CAPITAL Yen 19,694 M
TREND STEADY WORTH Yen 85,231 M
STARTED 1950 EMPLOYES 4,540
COMMENT
MFR OF
PLASTIC MACHINES, LARGE STEEL CASTINGS & FORGING.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 4,347.9 MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company is one of
world’s leading mfr of plastic machines and large steel castings & forging
bound for electric power & general plants.
Renowned for resin machinery.
Ranked in 2nd group in field of injection machines in
Japan. Also makes defense equipment
including guns, tanks, missile launchers & antiaircraft gun systems. French nuclear firm, Areva, acquired 1.3%
stake in the subject firm and signed a long term purchase contract for large
forged-steel parts for nuclear power plants, reported in Nov 2008. The long term contract likely covers the
purchasing of forged-steel parts for 20 or more nuclear reactors between 2012
& 2016, as reported.
FINANCIAL INFORMATION
The sales volume for Mar/2008
fiscal term amounted to Yen 220,851 million, a 6.6% up from Yen 207,138 million
in the previous term. Demand for
thermal & nuclear power stations increased. By divisions, Steel Products up 21% to Yen 92,613 million (total
orders up 21% to 118,007 million); Machinery Products up 1% to Yen 126,155
million (total orders up 16% to Yen 144,461 million), as solid growth was seen
in orders for resin production & processing machinery, plastic extrusion
machinery, and in wind power development business. The recurring profit was posted at Yen 30,864 million and the net
profit at Yen 17,484 million, respectively, compared with Yen 23,459 million
recurring profit and Yen 12,515 million net profit, respectively, a year
ago.
(Apr/Sept/2008 results) Sales
Yen 109,598 million (down 0.7%), operating profit Yen 17,471 million (up 4.5%),
recurring profit Yen 17,443 million (up 8.5%), net profit Yen 9,711 million (up
2.7%). (% compares with the
corresponding period a year ago).
For the current term ending Mar
2009 the recurring profit is projected at Yen 35,000 million and the net profit
at Yen 19,500 million, on a 7.8% rise in turnover, to Yen 238,000 million. Established aluminum die cast mfg sub, in
50%-50% investment with Buhler of Switz, producing die cast at Hiroshima plant. Set up service base in Shanghai, in attempt
to step up sales of plastic processing equipment in China.
The financial situation is
considered FAIR and good for ORDINARY business engagements. Max credit limit is
estimated at Yen 4,347.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1950
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
1,000 million shares
Issued:
371,463,036 shares
Sum: Yen 19,694 million
Major shareholders (%)
Master Trust Bank of Japan
(9.0), Japan Trustee Services Bank (7.4), Credit Swiss (5.0), Trust &
Custody Services Bank (4.1), Mitsui Life Ins (4.0), SMBC (2.9), Chuo Mitsui Trust Bank (2.9), Clearstream
Banking (2.4), Mitsui Sumitomo Ins (2.3), Hitachi Ltd (1.3); foreign owners
(25.0)
No. of shareholders: 24,160
Listed
on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, Fukuoka,
Sapporo
Managements
Masahisa Nagata, pres; Tadao
Iwadate, v pres; Hideo Nomura, v pres; Hisao Iwashita, s/mgn dir; Atsushi
Igarashi, mgn dir; Yuuichi Yoshino, mgn dir; Mitsuhiro Iwakoshi, mgn dir; Ikuo
Satoh, mgn dir; Seiichi Uehara, dir; Osamu Kishi, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Nikko Trading, Nikko Tokki, Nikko Techno, other
OPERATION
Activities: Manufactures plastic machines and large
casting & forgings bound for electric power and general plants:
(Sales breakdown by Divisions):
Steel Product-related (42%): steel forgings & castings,
clad steel products, pressure vessel;
Machinery-related (57%): magnesium process equipment
& products, injection molding machine, polyolefin extruders, auto screen
changer, compounding extruders, microcellular foam processing technology,
reciprocating compressors labyrinth piston type, film & sheet production
systems;
Regional Development-related (1%): wind
turbine system, commercial building development, Fuchu intelligent park,
shopping center, other;
Overseas sales ratio (47.1%): East Asia 22.5%, N America
4.2%, others 20.3%
Clients
[Mfrs, wholesalers] Mitsui &
Co, JSW Plastics, Nikko Trading, Nikko Techno, Yodogawa Steel Works, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Mitsui &
Co, NS Stainless, Nikko Trading, Nikko Techno, Nippon Oil, Shibaura Iron Works,
other.
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References
SMBC (H/O)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
FINANCES: (In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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220,851 |
207,138 |
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Cost of Sales |
160,642 |
156,545 |
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GROSS PROFIT |
60,209 |
50,592 |
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Selling & Adm Costs |
27,733 |
25,914 |
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OPERATING PROFIT |
32,475 |
24,678 |
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Non-Operating P/L |
-1,611 |
-1,219 |
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RECURRING PROFIT |
30,864 |
23,459 |
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NET PROFIT |
17,484 |
12,515 |
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BALANCE SHEET |
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Cash |
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36,552 |
27,881 |
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Receivables |
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52,062 |
53,753 |
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Inventory |
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66,815 |
58,228 |
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Securities, Marketable |
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Other Current Assets |
13,234 |
7,912 |
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TOTAL CURRENT ASSETS |
168,663 |
147,774 |
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Property & Equipment |
61,277 |
58,642 |
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Intangibles |
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623 |
1,578 |
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Investments, Other Fixed Assets |
31,890 |
24,450 |
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TOTAL ASSETS |
262,453 |
232,444 |
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Payables |
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48,732 |
49,532 |
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Short-Term Bank Loans |
6,218 |
6,611 |
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Other Current Liabs |
81,358 |
65,734 |
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TOTAL CURRENT LIABS |
136,308 |
121,877 |
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Debentures |
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10,000 |
10,030 |
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Long-Term Bank Loans |
10,239 |
8,344 |
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Reserve for Retirement Allw |
5,633 |
4,796 |
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Other Debts |
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15,041 |
11,776 |
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TOTAL LIABILITIES |
177,221 |
156,823 |
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MINORITY INTERESTS |
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Common
stock |
19,694 |
19,694 |
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Additional
paid-in capital |
5,422 |
5,422 |
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Retained
earnings |
58,492 |
45,019 |
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Evaluation
p/l on investments/securities |
1,930 |
5,808 |
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Others |
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(170) |
(263) |
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Treasury
stock, at cost |
(137) |
(59) |
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TOTAL S/HOLDERS` EQUITY |
85,231 |
75,621 |
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TOTAL EQUITIES |
262,453 |
232,444 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash Flows
from Operating Activities |
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42,040 |
35,630 |
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Cash
Flows from Investment Activities |
-24,765 |
-9,599 |
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Cash
Flows from Financing Activities |
-8,751 |
-16,570 |
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Cash,
Bank Deposits at the Term End |
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36,133 |
27,472 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
85,231 |
75,621 |
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Current
Ratio (%) |
123.74 |
121.25 |
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Net
Worth Ratio (%) |
32.47 |
32.53 |
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Recurring
Profit Ratio (%) |
13.98 |
11.33 |
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Net
Profit Ratio (%) |
7.92 |
6.04 |
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Return
On Equity (%) |
20.51 |
16.55 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.71 |
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UK Pound |
1 |
Rs.72.85 |
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Euro |
1 |
Rs.64.70 |
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%)