MIRA
INFORM REPORT
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Report Date : |
20.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
SINKO INDUSTRIES LTD |
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Registered Office : |
1-4-5 Minamimori-machi Chuoku Osaka 530-0054 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
June 1950 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Air-Conditioning Equipment |
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 698.1 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
SINKO INDUSTRIES
LTD
REGD NAME: Shinko Kogyo KK
MAIN OFFICE: 1-4-5 Minamimori-machi Chuoku Osaka 530-0054
JAPAN
Tel:
06-6367-1811 Fax: 06-6367-1838
* The given
address is its Tokyo Office at: 2-57-7 Nihombashi-Hamacho Chuoku Tokyo
E-Mail address:intnl@sinko.co.jp
ACTIVITIES
Mfg of air-conditioning equipment
BRANCH(ES)
Tokyo (as given), Nagoya, Sapporo, Sendai, Fukuoka
OVERSEAS
China (2), Taiwan, Hong Kong, Thailand (--subsidiaries) (See
REGISTRATION)
FACTORY(IES)
At the caption address
CHIEF EXEC
KENJI KASHIWABARA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 33,260 M
PAYMENTS REGULAR CAPITAL Yen 5,822 M
TREND STEADY WORTH Yen 14,943 M
STARTED 1950 EMPLOYES 1,028
COMMENT
MFR OF
AIRCONDITIONING SECONDARY EQUIPMENT.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 698.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
This is the largest mfr of office air-conditioning equipment, with nearly 40% domestic market share. Secondary air-conditioning such as ventilation mainstay. Engaged in sales and R&D, which 2 subsidiaries do mfg. Have five overseas subsidiaries including 2 in China.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 33,260 million, a 3.1% up from Yen 32,257 million in the previous term. Domestic demand was slow as construction works decreased due to stricter building standards regulations enacted, while China-bound sales expanded supported by robust construction works particularly prior to the Olympic Games in 2008. The recurring profit was posted at Yen 3,171 million and the net profit at Yen 1,646 million, respectively, compared with Yen 2,936 million recurring profit and Yen 1,755 million net profit, respectively, a year ago. Operating profits grew sluggishly as depreciation costs doubling.
For the current term ending Mar 2009 the recurring profit is projected at Yen 3,100 million and the net profit at Yen 1,750 million, on a 2.3% fall in turnover, to Yen 32,500 million. Domestic demand will continue slowly.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 698.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun 1950
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 79,850,000 shares
Issued: 27,212,263 shares
Sum: Yen 5,822 million
Major shareholders (%)
Meiko Ltd (13.4), Master Trust Bank of Japan T (13.1), Japan Trustee Services Bank T (7.2), MUFG (4.8), Mizuho Bank (3.8), Akira Fujii (2.9), Nippon Life Ins (2.8), Company’s S/Holding Assn (2.2), Chase (London) SL Omnibus Acct (2.1), Resona Bank (2.0); foreign owners (8.7).
No. of shareholders: 1,473
Listed on the S/Exchange (s) of: Osaka (Second Section)
Managements
Hiroshi Fujii, ch; Kenji Kashiwabara, pres; Yasuhiro Ono, v pres; Isao Nozawa, dir; Kenji Itakura, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Domestic) Sinko Air Conditioning Ind, Okayama Sinko Kogyo, Sinko Atmos Co, Sinko Kucho Service, BAC Japan;
(Overseas): Sinko Air Conditioning (Thailand) Co; Sinko Air Conditioning (HK) Ltd; Shanghai Sinko Air Conditioning & Equipment Co; Shanghai Sinko Refrigeration Machine Co; Taiwan Sinko Kogyo Co.
OPERATION
Activities: Manufactures business-use air-conditioner secondary equipment (--100%).
(Mfg items): Air handling units (commercial & industries), fan coil units, fan filter units, terminal units (VAV & CAV control boxes), indoor air quality improving devices, air pollution control devices, vapor crystal system, other.
Overseas sales ratio (18.7%): Asia (mainly China) 18.3%; others 0.4%
Clients
[Mfrs, wholesalers] Takasago Thermal Engineering, Hitachi Plant Technology, Takenaka Corp, Dai-Dan Co, Taikisha Ltd, Shinryo Corp, Sanki Engineering, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Sinko Air-Conditioning Ind, Sinko Atmos Co, Okayama Sinko Kogyo, Sinko Kucho Service, Ptic Inc, Yashima Denki, other..
Payment record
Regular
Location: Business area in Osaka. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
MUFG (Umeda-Chuo)
Mizuho Bank (Umeda)
Relations: Satisfactory
FINACIALS
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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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32,257 |
29,042 |
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Cost of Sales |
22,896 |
20,763 |
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GROSS PROFIT |
9,361 |
8,279 |
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Selling & Adm Costs |
6,373 |
6,048 |
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OPERATING PROFIT |
2,987 |
2,230 |
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Non-Operating P/L |
-51 |
-116 |
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RECURRING PROFIT |
2,936 |
2,114 |
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NET PROFIT |
1,755 |
1,094 |
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BALANCE SHEET |
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Cash |
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4,486 |
3,592 |
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Receivables |
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16,793 |
15,173 |
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Inventory |
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3,063 |
3,127 |
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Securities, Marketable |
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Other Current Assets |
841 |
1,002 |
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TOTAL CURRENT ASSETS |
25,183 |
22,894 |
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Property & Equipment |
9,780 |
9,164 |
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Intangibles |
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335 |
350 |
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Investments, Other Fixed Assets |
4,373 |
5,235 |
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TOTAL ASSETS |
39,671 |
37,643 |
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Payables |
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8,825 |
7,206 |
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Short-Term Bank Loans |
4,620 |
3,654 |
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Other Current Liabs |
4,992 |
5,796 |
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TOTAL CURRENT LIABS |
18,437 |
16,656 |
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Debentures |
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590 |
1,010 |
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Long-Term Bank Loans |
3,028 |
3,644 |
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Reserve for Retirement Allw |
1,253 |
1,177 |
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Other Debts |
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1,849 |
2,145 |
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TOTAL LIABILITIES |
25,157 |
24,632 |
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MINORITY INTERESTS |
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2,076 |
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Common
stock |
5,822 |
5,822 |
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Additional
paid-in capital |
4,922 |
4,922 |
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Retained
earnings |
1,984 |
488 |
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Evaluation
p/l on investments/securities |
925 |
1,009 |
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Others |
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910 |
(1,258) |
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Treasury
stock, at cost |
(49) |
(49) |
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TOTAL S/HOLDERS` EQUITY |
14,514 |
10,934 |
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TOTAL EQUITIES |
39,671 |
37,643 |
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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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3,516 |
2,292 |
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Cash
Flows from Investment Activities |
-803 |
-1,217 |
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Cash
Flows from Financing Activities |
-1,856 |
-3,148 |
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Cash,
Bank Deposits at the Term End |
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4,486 |
3,592 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
14,514 |
10,934 |
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Current
Ratio (%) |
136.59 |
137.45 |
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Net
Worth Ratio (%) |
36.59 |
29.05 |
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Recurring
Profit Ratio (%) |
9.10 |
7.28 |
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Net
Profit Ratio (%) |
5.44 |
3.77 |
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Return
On Equity (%) |
12.09 |
10.01 |
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Notes: Full financials for the 31/03/2008 fiscal term have
not been made available.
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%)