MIRA
INFORM REPORT
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Report Date : |
13.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
JUKI CORPORATION |
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Registered Office : |
8-2-1 Kokuryocho Chofu City Tokyo-Metrop 182-8655 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
December 1938 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Industrial Sewing Machines, Industrial
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 2,235.1 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
JUKI CORPORATION
REGD NAME: JUKI KK
MAIN OFFICE: 8-2-1 Kokuryocho
Chofu City Tokyo-Metrop 182-8655 JAPAN
Tel:
03-3480-1111 Fax: 03-3430-4909
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of industrial sewing machines, industrial machinery
BRANCH(ES)
Domestic 122 locations; globally 79 locations
OVERSEAS
China (2), Singapore, India (6), Sri Lanka, Vietnam (3), Bangladesh (3), UAE, Cambodia, Thailand, Myanmar, Poland, Germany, Italy, Romania, Russia, Belarus, Turkey, USA, other.
FACTORY(IES)
Otahara (Tochigi), other; China, Vietnam, India, other
CHIEF EXEC
KAZUYUKI NAKAMURA, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 140,497 M
PAYMENTS REGULAR CAPITAL Yen 15,950 M
TREND STEADY WORTH Yen 33,816 M
STARTED 1938 EMPLOYES 6,954
COMMENT
MFR OF INDUSTRIAL SEWING MACHINES.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 2,235.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company was established originally as a rifle mfr, shifted into home sewing machines after WW2 and succeeded in production of nation’s first machine in 1947. Now the firm is the largest producer of industrial sewing machines in world and third largest in home-use machines in Japan.Also expanding electronic equipment including chip mounter production. Boosting output in China. One time known as door-to-door sales of household sewing machines but this business is not contracting.
Recent news from Nikkei Business Daily): JUKI Corp will more than triple design engineers at a Vietnam unit to move the work of changing product specifications to that country from China. Engineers at the Vietnamese unit will be increased to around 50 by fiscal 2010 with eight added in fiscal 2008 and more hired later.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 140,497 million, a 12.6% hike from Yen 124,788 million in the previous term. By divisions, Industrial Sewing Machines up 12.2% to Yen 73,459 million, thanks to robust demand in India, Bangladesh & other Asian countries, together with steady growth in Chinese & European markets. Household Sewing Machines down 18.2% to Yen 8,599 million, due to the scaling down of door-to-door sales networks. The sales of the highest grade embroidery stitching computer sewing machines decreased. SMT Systems up 47.4% to Yen 31,388 million, spurred by ongoing demand growth in digital electronics industry centering mainly in China thru strengthened sales networks there. Electronics Equipment & Computer Peripherals up 12.9% to Yen 16,704 million, helped by substantial increase in sales. The recurring profit was posted at Yen 11,962 million and the net profit at Yen 6,954 million, respectively, compared with Yen 8,890 million recurring profit and Yen 5,369 million net profit, respectively, a year ago. The firm earned record profit levels for the second year in a row.
(Apr/Dec/2007 results): Sales Yen 101,637 million (down 5.0%), operating profit Yen 11,353 million (up 6.2%), recurring profit Yen 10,782 million (up 10.7%), net profit Yen 6,036 million (up 15.9%). (% compared with the corresponding period a year ago). Industrial sewing machines rose 8.1% helped by steady demand in China & other S/E Asian countries, while household machines sharply declined by 26.2% due to reduced door-to-door sales as cost-cutting efforts. Industrial machinery down 7.2% due to domestic makers’ shifting of factories overseas.
For the current term ending Mar 2008 the recurring profit is projected at Yen 12,500 million and the net profit at Yen 6,800 million, on a 0.4% fall in turnover, to Yen 140,000 million. Door-to-door sales of household sewing machines contracting further and deficit expanding. Electronic products staying sluggish due to withdrawal from unprofitable businesses. Exports of mainstay industrial sewing machines continuing rise, led by robust China market. Integrating 2 output bases of household sewing machines in China and transferring HVA products to plant in Hiroshima. Reducing domestic sales offices and placing focus on development of new market overseas.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 2,235.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1938
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 400 million shares
Issued: 129,370,899 shares
Sum: Yen 15,950 million
Major shareholders (%)
Japan Trustee Services T (10.8), Master Trust Bank of Japan T (6.9), Morgan Stanley & Co (4.0), Mizuho Bank (3.6), Nippon Life Ins (3.3), Goldman Sachs International (3.3), Mellon Bank Mellon Omnibus US P (3.1), Meiji Yasuda Life Ins (3.0), Asahi Life Ins (2.7), JP Morgan Chase Bank (2.4); foreign owners (36.3).
No. of shareholders
6,489
Listed on the S/Exchange (s) of
Tokyo
Managements
Takeo Yamaoka, ch; Kazuyuki Nakamura, pres & CEO; Tomohisa Miyake, s/mgn dir; Hiroshi Kawano, s/mgn dir; Masakuni Fujita, mgn dir; Hirokazu Nagashima, mgn dir; Takashi Mizuno, dir; Yoshihiro Otake, dir; Hiroshi Nakamura, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Juki Denshi Kogyo, Juki Singapore, other (Tot 43 con subs)
OPERATION
Activities: Manufactures, imports and exports industrial sewing machines, household sewing machines, industrial equipment, electronics, precision instruments:
Sales Breakdown by
Divisions:
Industrial Sewing Machines (52%): 1-needle, lockstitch machine, 2-needle, lockstitch machine, overlock safety stitch machine, zigzag stitching machine, covering stitch machine, double chain stitch machine, button sewing machine, bartacking machine, shape-tacking machine, buttonholing machine & eyelet buttonholing machine, special purpose machine, computer-controlled cycle machine, automatic machine, motor, devices & software, flat-bed sewing machine, long arm sewing machine, cylinder-bed sewing machine, post-bed sewing machine, machine for extra heavy materials;
Household Sewing Machines (6%): 1-needle lockstitch sewing machine, home surgers, semi-professional sewing machine, other;
SMT (Surface Mount Technology) systems (22%): pick & placer, general pick & placer, bare-chip flexible pick & placer, small-type pick & placer, other;
Electronics & Precision Equipment (12%): electronic equipment, computer peripherals, others;
Other businesses (8%): jewelry, health-care products, lost wax products, others;
Overseas sales ratio (66.5%): N America 5.9%, Asia 47.6%, Europe 12.9%, others 0.1%.
Clients
[Mfrs, wholesalers] JUKI Hong Kong, JUKI Singapore, JUKI Automation Systems, JUKI European Holdings, JUKI Union Special, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] JUKI Matsue, JUKI Denshi Kogyo, JUKI Hiroshima Seisakusho, Juki Kogyo, other.
Payment record
Regular
Location
Business area in Chofu City, Tokyo-Metrop. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
Mizuho Bank (Shinjuku)
Mizuho Trust Bank (H/O)
Relations: Satisfactory
Financials
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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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140,497 |
124,788 |
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Cost of Sales |
91,166 |
78,696 |
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GROSS PROFIT |
49,330 |
46,091 |
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Selling & Adm Costs |
36,334 |
34,824 |
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OPERATING PROFIT |
12,995 |
11,266 |
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Non-Operating P/L |
-1,033 |
-2,376 |
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RECURRING PROFIT |
11,962 |
8,890 |
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NET PROFIT |
6,594 |
5,369 |
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BALANCE SHEET |
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Cash |
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9,192 |
10,369 |
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Receivables |
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26,745 |
24,388 |
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Inventory |
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37,526 |
40,480 |
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Securities, Marketable |
39 |
51 |
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Other Current Assets |
4,062 |
4,044 |
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TOTAL CURRENT ASSETS |
77,564 |
79,332 |
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Property & Equipment |
26,175 |
21,968 |
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Intangibles |
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2,741 |
2,820 |
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Investments, Other Fixed Assets |
8,463 |
9,803 |
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TOTAL ASSETS |
114,943 |
113,923 |
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Payables |
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20,644 |
18,472 |
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Short-Term Bank Loans |
25,681 |
29,627 |
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Other Current Liabs |
16,834 |
11,351 |
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TOTAL CURRENT LIABS |
63,159 |
59,450 |
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Debentures |
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500 |
1,300 |
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Long-Term Bank Loans |
10,635 |
18,051 |
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Reserve for Retirement Allw |
6,531 |
6,575 |
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Other Debts |
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302 |
383 |
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TOTAL LIABILITIES |
81,127 |
85,759 |
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MINORITY INTERESTS |
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419 |
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Common
stock |
15,950 |
15,950 |
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Additional
paid-in capital |
9,000 |
8,999 |
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Retained
earnings |
10,478 |
5,035 |
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Evaluation
p/l on investments/securities |
743 |
1,147 |
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Others |
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(2,289) |
(3,343) |
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Treasury
stock, at cost |
(66) |
(43) |
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TOTAL S/HOLDERS` EQUITY |
33,816 |
27,745 |
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TOTAL EQUITIES |
114,943 |
113,923 |
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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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17,142 |
10,485 |
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Cash
Flows from Investment Activities |
-5,845 |
-356 |
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Cash
Flows from Financing Activities |
-12,728 |
-11,707 |
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Cash,
Bank Deposits at the Term End |
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8,668 |
9,060 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
33,816 |
27,745 |
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Current
Ratio (%) |
122.81 |
133.44 |
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Net
Worth Ratio (%) |
29.42 |
24.35 |
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Recurring
Profit Ratio (%) |
8.51 |
7.12 |
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Net
Profit Ratio (%) |
4.69 |
4.30 |
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Return
On Equity (%) |
19.50 |
19.35 |
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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%)