MIRA
INFORM REPORT
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Report Date : |
16.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
TOKYO STEEL MFG CO LTD |
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Registered Office : |
Daido Seimei Kasumigaseki Bldg, 1-4-2 Kasumigaseki Chiyodaku Tokyo
100-0013 |
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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 |
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Line of Business : |
Electric Furnace Steel Maker |
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 9,568.1 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name of the company
TOKYO STEEL MFG CO LTD
REGD NAME: Tokyo Seitetsu KK
MAIN OFFICE
Daido Seimei Kasumigaseki Bldg, 1-4-2 Kasumigaseki Chiyodaku Tokyo
100-0013 JAPAN
Tel: 03-3501-7721 Fax:
03-3580-8859
URL
E-Mail address
somu@tokyosteel.co.jp
ACTIVITIES
Electric furnace steel maker
BRANCHES
Osaka, Kitakyushu, Utsunomiya
FACTORY(IES)
Okayama, Kitakyushu, Utsunomiya, Takamatsu
CHIEF EXEC
TOSHIKAZU NISHIMOTO, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES GOOD A/SALES Yen 208,561 M
PAYMENTS REGULAR CAPITAL Yen 30,894 M
TREND STEADY WORTH Yen 229,826 M
STARTED 1934 EMPLOYES 942
COMMENT
ELECTRIC FURNACE
STEEL MAKER.
FINANCIAL SITUATION CONSIDERED GOOD AND
RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 9,568.1 MILLION, 30 DAYS NORMAL TERMS
Forecast (or estimated)
figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company is the largest
independent electric furnace steelmaker, established before the WWII. After the war, restarted operations with
ordinary steel production. Resumed to
top-ranked maker of H-beams. Expanding
into surface treatment and cold rolling areas.
Produces a variety of products, including H-beams and thick plates. Known as debt-free management. Goods are exported briskly to China, Korea,
other. Exports are handled by general
trading houses.
(Recent news from Nikkei Business Daily
18/Oct/2007): The subject has started exporting steel plate used for
shipbuilding, with plans to double the current 5,000 tons a month by the
beginning of next year. The firm
entered the domestic market for steel plate in January using its Kyushu
steelworks to make products for ships, construction materials & machinery. By July, it had met the ship-plate standards
for Japan, South Korea, USA and Europe.
FINANCIAL INFORMATION
The sales volume
for Mar/2007 fiscal term amounted to Yen 208,561 million, an almost similar
amount in the previous term. Sales
remained flat. Sales of H-beams as
construction steel were strong in volume and unit price but higher prices of
steel scrap, the raw materials for construction-grade steel, weighed down on
operating profits. Also referred to are
depreciation charges for steel-plate production lines at Kitakyushu plant. The recurring profit was posted at Yen
35,969 million and the net profit at Yen 21,612 million, respectively, compared
with Yen 58,213 million recurring profit and Yen 33,944 million net profit,
respectively, a year ago. Steel scrap
purchasing prices averaged slightly more than Yen 30,000/ton for the term.
(Apr/Sept/2007 results): Sales 118,253
million (up 12.7%), operating profit Yen 11,464 million (down 47.2%), recurring
profit Yen 12,333 million (down 45.0%), net profit Yen 7,542 million (down
44.7%). (% compared with the same
period the last term). Scrap iron
prices continued rising and unable to fully pass on to the clients. Iron prices went as high as around Yen
38,500/ton for the first-half year period.
Exports to Korea and China have been growing on strong demand in these
markets, which boosted scrap prices.
For the current term ending Mar 2008 the
recurring profit is projected at Yen 23,000 million and net profit at Yen
13,000 million, on a 16.5% rise in turnover, to 243,000 million. Steel plate plant in Kitakyushu will
contribute to sales for full term after production startup in the preceding
term. Exports of steel scraps to China
have sharply increased due to the construction boom there, while Korea has also
boosted imports. In addition, Japanese
blast furnace steel makers are using up more steel scraps. Profits will plunge as higher materials
prices passed onto selling prices failing to offset adverse effect. Sales will increase due to expected rising
exports of steel materials for shipbuilding.
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The financial situation is considered GOOD
and responsible for ORDINARY business engagements. Max credit limit is estimated at Yen 9,568.1 million, on 30 days
normal terms.
REGISTRATION
Date Registered: Jan
1934
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 602
million shares
Issued: 155,064,249
shares
Sum: Yen
30,894 million
Major shareholders (%)
Toshiko Iketani (14.7), Iketani Science
& Tech Found (8.3), Masanari Iketani (3.9), Japan Trustee Services Bank T
(3.8), Yoshihiro Iketani (3.8), Master Trust Bank of Japan T (3.5), Morgan
Stanley & Co (3.1), Japan Trustee Services, T4 (2.3), Bank of NY GCM Client
EISG (2.2), JP Morgan Chase Bank (1.6); foreign owners (30.4)
No of shareholders
18,778
Listed on the S/Exchange (s) of
Tokyo
Managements
Toshikazu Nishimoto, pres & CEO; Eiji
Sakabe, mgn dir; Naoto Ohori, mgn dir; Hiroyuki Yamashita, dir; Kazufumi
Yamada, dir; Takuo Ogawa, dir; Kiyoshi Imamura, dir
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities:
Electric furnace steelmaker manufacturing steel products (--100%):
(Mfg items): H-beam steel
plates, U-shape steel pipes, I-shape steel, channel steel, wire rods, deformed
steel rods, hot coils, zinc-coated steel, universal plates, cut sheets, other
steel products.
(Export: approx 10%).
Clients
General trading house, steel wholesalers,
specialty traders, other. Exports to China, Korea, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
General trading houses, steel traders, wholesalers, other.
Payment record
Regular
Location
Business area in
Tokyo. Office premises at the caption address
are leased and maintained satisfactorily.
Bank References
SMBC (Ningyocho)
Mizuho Corporate Bank (Uchisaiwaicho)
Relations: Satisfactory
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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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208,561 |
209,163 |
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Cost of Sales |
158,424 |
135,989 |
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GROSS PROFIT |
50,136 |
73,174 |
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Selling & Adm Costs |
15,949 |
15,638 |
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OPERATING PROFIT |
34,186 |
57,535 |
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Non-Operating P/L |
1,783 |
678 |
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RECURRING PROFIT |
35,969 |
58,213 |
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NET PROFIT |
21,612 |
33,944 |
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BALANCE SHEET
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Cash |
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124,491 |
131,049 |
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Receivables |
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44,512 |
42,837 |
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Inventory |
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12,437 |
8,617 |
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Securities, Marketable |
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Other Current Assets |
1,935 |
1,374 |
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TOTAL CURRENT ASSETS |
183,375 |
183,877 |
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Property & Equipment |
105,324 |
64,663 |
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Intangibles |
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2,688 |
1,438 |
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Investments, Other Fixed Assets |
25,726 |
19,492 |
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TOTAL ASSETS |
317,113 |
269,470 |
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Payables |
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41,369 |
25,495 |
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Short-Term Bank Loans |
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Other Current Liabs |
34,857 |
22,493 |
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TOTAL CURRENT LIABS |
76,226 |
47,988 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
5,860 |
6,598 |
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Other Debts |
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5,201 |
4,511 |
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TOTAL LIABILITIES |
87,287 |
59,097 |
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MINORITY INTERESTS |
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Common stock |
30,894 |
30,892 |
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Additional paid-in capital |
28,844 |
28,844 |
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Retained earnings |
162,979 |
144,468 |
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Evaluation p/l on investments/securities |
7,130 |
6,181 |
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Others |
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1 |
4 |
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Treasury stock, at cost |
(22) |
(16) |
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TOTAL S/HOLDERS` EQUITY |
229,826 |
210,373 |
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TOTAL EQUITIES |
317,113 |
269,470 |
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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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36,202 |
23,396 |
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Cash Flows from Investment
Activities |
-39,763 |
-17,401 |
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Cash Flows from Financing Activities |
-3,105 |
-3,096 |
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Cash, Bank Deposits at the Term End |
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124,491 |
131,049 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
229,826 |
210,373 |
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Current Ratio (%) |
240.57 |
383.17 |
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Net Worth Ratio (%) |
72.47 |
78.07 |
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Recurring Profit Ratio (%) |
17.25 |
27.83 |
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Net Profit Ratio (%) |
10.36 |
16.23 |
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Return On Equity (%) |
9.40 |
16.14 |
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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%)