MIRA
INFORM REPORT
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Report Date : |
15.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
DAIKOKUELECTRIC WIRE CO LTD |
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Registered Office : |
767-90 Hachisu Ootawara City Tochigi-Pref 324-0244 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
February 1948 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Self-Bonding Magnet and Wires |
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 123.9 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
DAIKOKUELECTRIC
WIRE CO LTD
REGD NAME: Daikoku Densen KK
MAIN OFFICE: 767-90 Hachisu Ootawara City Tochigi-Pref
324-0244 JAPAN
Tel:
0287-54-2700 Fax: 0287-54-3589
* The given
address is Tochigi Kurohane Factory
URL: http://www.daikokudensen.co.jp/
E-Mail
address: el-gibu@daikokudensen.co.jp
ACTIVITIES
Mfg of self-bonding magnet & wires
BRANCHES
Tokyo, Osaka, Fukuoka
FACTORY(IES)
At the caption,
Iwate, Niigata
OFFICER(S)
KENJI SETO, PRES
Shinsuke Nishiyama, dir
Hiroshi Takenaka, dir
Mizuho Tanaka, dir
Yen
Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 3,870 M
PAYMENTS REGULAR CAPITAL Yen
496 M
TREND STEADY WORTH Yen
2,338 M
STARTED 1948 EMPLOYES 139 (overseas 460)
COMMENT
MFR SPECIALIZING IN MAGNET WIRES
& COILS, AFFILIATED TO SUMITOMO ELECTRIC IND.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 123.9 MILLION, 30 DAYS NORMAL
TERMS
HIGHLIGHTS
The
subject company was established originally in 1946 by Chojiro Tanaka as Daikoku
Electric Shokai, on his account, for mfg magnet wires & coils. In 1948 reorganized and incorporated as
Daikoku Electric Wire Co Ltd.
Specializes in mfg self-bonding magnet wires & coils. In 1957 went into technical tie-up with
Sumitomo Electric Ind and expanded business operations. Subsequently in 1959 received capital
participation of Sumitomo Electric Ind (See REGISTRATION). Overseas,
has two mfg plants in Thailand & Philippines. Products are exported.
FINANCIAL INFORMATION
The
sales volume for Dec/2007 fiscal term amounted to Yen 3,870 million, a 7% up
from Yen 3,620 million in the previous term.
Exports of wires & coils for handy phones into China expanded. The recurring profit was posted at Yen 602
million and the net profit at Yen 344 million, respectively, compared with Yen
359 million recurring profit and Yen 85 million net losses, respectively, a
year ago. .
For
the current term ending Dec 2008 the recurring profit is projected at Yen 600
million and the net profit at Yen 40 million, respectively, on a 2% fall in
turnover, to Yen 3,800 million. Sales
to automakers are drastically reduced during the second half of the term, as
affected by financials crisis world over, particularly hurting auto
makers. Wire harnesses dropped from
mid-2008, affected by stagnant sales in N America.
The financial situation is
considered FAIR and good for ORDINARY business engagements. Max credit limit is
estimated at Yen 123.9 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Feb 1948
Legal
Status: Limited
Company (Kabushiki Kaisha)
Authorized: 18 million shares
Issued: 4.4
million shares
Sum: Yen 496 million
Major shareholders (%)
Sumitomo Electric Ind*(85),
Mizuho Tanaka (15)
No. of
shareholders: 2
* Sumitomo \electric Ind,
largest producer of electric wires & cables, founded 1911, listed Tokyo,
Osaka, Nagoya, Frankfurt S/E’s, capital Yen 96,914 million, sales Yen 2,540,858
million, operating profit Yen 148,996 million, recurring profit Yen 169,664
million, net profit Yen 87,804 million, total assets Yen 2,194,882 million, net
worth Yen 967,529 million, employees 153,725, pres Masayoshi Matsumoto
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities:
Manufactures wires & coils (---100%)
(Sales
Breakdown by Divisions):
Coil Division (55%): relay coils, solenoid coils,
other miniature coils, spools (injection molding), other;
Magnet Wire Division (42%): self-bonding magnet wire,
special conductors series, flat magnet wire, other;
Real Estate Rent (3%).
Clients
[Mfrs, wholesalers] NEC Tokin
Corp, Sumitomo Electric Ind, Matsushita Electric Works, Taiko Device Ltd, Canon
Electronics Inc, IDEC, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Sumitomo
Electric Ind, NEC Tokin Corp, Daikoku Thailand, Daikoku Philippines, other.
Payment
record: Regular
Location:
Business area in Ootawara City, Tochigi-Pref.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
SMBC (Shimbashi)
Sumitomo Trust Bank (Tokyo)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
31/12/2008 |
31/12/2007 |
31/12/2006 |
31/12/2005 |
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Annual
Sales |
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3,800 |
3,870 |
3,620 |
3,302 |
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Recur.
Profit |
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600 |
602 |
359 |
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Net
Profit |
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340 |
344 |
-85 |
221 |
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Total
Assets |
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4,659 |
4,730 |
5,274 |
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Current
Assets |
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1,269 |
1,305 |
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Current
Liabs |
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1,794 |
1,919 |
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Net
Worth |
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2,338 |
2,025 |
2,625 |
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Capital,
Paid-Up |
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496 |
496 |
496 |
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Div.P.Share(¥) |
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5.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
-1.81 |
6.91 |
9.63 |
-8.71 |
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Current Ratio |
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.. |
70.74 |
68.00 |
.. |
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N.Worth Ratio |
.. |
50.18 |
42.81 |
49.77 |
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R.Profit/Sales |
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15.79 |
15.56 |
9.92 |
.. |
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N.Profit/Sales |
8.95 |
8.89 |
-2.35 |
6.69 |
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Return On Equity |
.. |
14.71 |
-4.20 |
8.42 |
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Notes: Forecast (or estimated) figures for the 31/12/2009
fiscal term.
SUPPLEMENTS:
CONSOLIDATED FINANCIALS OF THE PARENT, SUMITOMO ELECTRIC IND
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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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2,540,858 |
2,384,395 |
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Cost of Sales |
2,102,375 |
1,979,737 |
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GROSS PROFIT |
438,483 |
404,658 |
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Selling & Adm Costs |
289,487 |
275,913 |
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OPERATING PROFIT |
148,996 |
128,745 |
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Non-Operating P/L |
20,648 |
16,623 |
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RECURRING PROFIT |
169,644 |
145,368 |
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NET PROFIT |
87,804 |
76,029 |
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BALANCE SHEET |
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Cash |
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137,948 |
130,541 |
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Receivables |
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580,487 |
547,295 |
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Inventory |
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311,983 |
271,234 |
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Securities, Marketable |
15,001 |
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Other Current Assets |
88,399 |
83,629 |
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TOTAL CURRENT ASSETS |
1,133,818 |
1,032,699 |
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Property & Equipment |
570,384 |
542,053 |
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Intangibles |
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35,645 |
32,012 |
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Investments, Other Fixed Assets |
455,035 |
519,641 |
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TOTAL ASSETS |
2,194,882 |
2,126,405 |
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Payables |
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342,719 |
310,747 |
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Short-Term Bank Loans |
139,263 |
152,351 |
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Other Current Liabs |
264,748 |
182,810 |
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TOTAL CURRENT LIABS |
746,730 |
645,908 |
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Debentures |
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135,000 |
217,617 |
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Long-Term Bank Loans |
59,709 |
71,431 |
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Reserve for Retirement Allw |
27,115 |
23,381 |
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Other Debts |
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98,093 |
115,079 |
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TOTAL LIABILITIES |
1,066,647 |
1,073,416 |
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MINORITY INTERESTS |
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Common
stock |
96,914 |
96,784 |
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Additional
paid-in capital |
168,197 |
117,491 |
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Retained
earnings |
616,834 |
543,451 |
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Evaluation
p/l on investments/securities |
70,408 |
117,178 |
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Others |
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176,482 |
178,676 |
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Treasury
stock, at cost |
(600) |
(591) |
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TOTAL S/HOLDERS` EQUITY |
1,128,235 |
1,052,989 |
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TOTAL EQUITIES |
2,194,882 |
2,126,405 |
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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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204,612 |
130,997 |
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Cash Flows
from Investment Activities |
-126,414 |
-131,193 |
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Cash
Flows from Financing Activities |
-55,946 |
-16,949 |
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Cash,
Bank Deposits at the Term End |
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151,778 |
130,521 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
1,128,235 |
1,052,989 |
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Current
Ratio (%) |
151.84 |
159.88 |
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Net
Worth Ratio (%) |
51.40 |
49.52 |
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Recurring
Profit Ratio (%) |
6.68 |
6.10 |
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Net
Profit Ratio (%) |
3.46 |
3.19 |
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Return
On Equity (%) |
7.78 |
7.22 |
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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.47.82 |
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UK Pound |
1 |
Rs.73.08 |
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Euro |
1 |
Rs.65.56 |
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%)