MIRA INFORM REPORT

 

 

Report Date :

10.03.2008

 

 

IDENTIFICATION DETAILS

 

Name :

JGC CORPORATION

 

 

Registered Office :

Queen Tower A, 2-3-1 Minatomirai Nishiku Yokohama 220-6001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

October 1928

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Plant Engineering Works

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 18,932.2 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

name & address

 

JGC CORPORATION

REGD NAME:   Nikki KK

MAIN OFFICE:  Queen Tower A, 2-3-1 Minatomirai Nishiku Yokohama 220-6001 JAPAN

                        Tel: 045-682-1111     Fax: 045-682-1112

URL:                 http://www.jgc.co.jp/

E-Mail address: webmaster@jgc.co.jp

 

 

ACTIVITIES

 

Plant engineering works

 

 

BRANCHES

 

Tokyo, Osaka, Yokohama, other (Tot 15)

 

 

OVERSEAS

 

Beijing, Singapore, Paris, London, Jakarta, Bangkok, Abu Dhabi, Algiers, Teheran, Arzew (Algeria) (Affiliated): China, Philippines, Singapore, Korea, Malaysia, Indonesia, Pakistan,    Saudi Arabia (2), UAE, Qatar, UK (2), Netherlands, Nigeria, Algeria, USA, Venezuela

 

 

CHIEF EXEC

 

KEISUKE TAKEUCHI, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 608,529 M

PAYMENTS      REGULAR                     CAPITAL           Yen 23,511 M

TREND             STEADY                       WORTH            Yen 189,239 M

STARTED         1928                             EMPLOYES      4,531

 

 

 

 

COMMENT

 

INDUSTRIAL PLANT ENGINEERING COMPANY. 

FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.           

 

 

MAX CREDIT LIMIT

 

YEN 18,932.2 MILLION, 30 DAYS NORMAL TERMS

 

 

 

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHTS

 

This is an independent general engineering company, founded originally in 1928 as producer of oil products, on acquisition of license of Dubbs’ thermal cracking process from old Universal Oil Products, USA.  Strong in oil refining, petrochemicals, LNG & nuclear fuel processing lines.  Overseas sales ratio about 75%.  With no production division, all materials, machinery & plants are outsourced including subsidiaries.  Works cover industrial plants, such as crude oil, lube oil, LNG, LPG, ethylene, power generation, nuclear power facilities, food processing, hospitals, shopping centers, airports, non-ferrous metal smelting, pharmaceuticals & R&D facilities, information & telecommunications facilities, medical & welfare facilities, other.  Has close association with Shell.

 

(Recent news release, cited from Nihon Keizai Shimbun):

(Dated 20/12/2007): The firm has won from a local corporation an order to construct ethylene plant in Saudi Arabia for about Yen 200 billion.  Completing by mid 2011, the new plant will be one of the largest facilities of its kind with annual production capacity of 1.2 million tons for ethylene.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 608,529 million, a 10.6% up from Yen 550,301 million in the previous term.  Demand was brisk from petrochemical plants and oil refineries.  Works in Mid East account for 53% of total sales.  Major works are: Oil refining/petrochemical complex from Saudi Arabia; LNG plant from Yemen; oil refining plant from Vietnam.  The recurring profit was posted at Yen 33,029 million and the net profit at Yen 20,187 million, respectively, compared with Yen 23,454 million recurring profit and Yen 15,011 million net profit, respectively, a year ago.

 

(Apr/Dec/2007 results): Sales Yen 432,612 million (up 3.8%), operating profit Yen 32,801 million (up 114.3%), recurring profit Yen 37,636 million (up 89.5%), net profit Yen 23,991 million (up87.9%).  Profits rose underpinned by high-margin projects in the Mid East & S/E Asia.

 

For the current term ending Mar 20087 the recurring profit is projected at Yen 44,000 million and the net profit at Yen 26,500 million, respectively, on a 7.9% fall in turnover, to Yen 560,000 million.  Sales are seen declining , dragged down  by advanced cost for construction works of gas processing plant.  Low profit works finished in first half.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 18,932.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: Oct 1928

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        600 million shares

Issued:              259,052,929 shares

Sum:                Yen 23,511 million

           

 

Major shareholders (%)

 

Master Trust Bank of Japan, T (6.5), Japan Trustee Services Bank, T (6.1), Nikki Shoji (4.6), SMBC (4.2), Saneyoshi Scholarship Found (3.2), Mizuho       Corporate Bank (2.7), MUFG (2.5), Company’s Treasury Stock (2.0) BBH (Lux) Fidelity F    Japan Fund (1.5); foreign owners (32.2)

           

No. of shareholders: 11,359

 

 

Listed on the S/Exchange (s) of

 

Tokyo

 

 

Managements

 

Yoshihiro Shigehisa, ch; Hideo Masuda, v ch; Keisuke Takeuchi, pres;      Kazuo Yamaga, v pres; Masahiko Yaegashi, v pres; Koichi Fujii, mgn dir; Teruo         Nakamura, mgn dir; Yutaka Yamazaki, mgn dir; Nobuo Kikuta, mgn dir; Tadanori Aratani,   mgn dir,

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

Related companies

 

Catalysts & Chemicals Ind, JGC Information Systems, JGC Projects         Services, other (Tot 13 as of Mar/07).

 

 

 

 

 

 

 

OPERATION

 

Activities: General engineering works (sales breakdown by divisions): Comprehensive          engineering works*(94%), catalysts & chemicals**(--6%).

 

(Overseas sales ratio 73.7%: East Asia 1.5%, S/E Asia 12.8%, Mid East 53.0%, Africa 5.4%, other regions 1.0%).

 

*.. Detailed breakdown by industrial areas: oil/gas/resources (17.8%), petroleum refining (27.7%), LNG (18.2%), chemicals (28.3%), others (8.5%).

 

** Products: catalysts-related (FCC catalysts, hydraulic treatment catalysts, de-sulfurization catalysts, catalysts for petrochemicals); new functional-related products (colloidal silica, CRT/FPD surface treatment agents, LCD’s materials, semiconductor materials, batteries, cosmetics, optical, other materials, antibacterial agents, other)

 

 

Clients

 

[Oil refineries, chemical mfrs, other mfrs] Cosmo Oil, Nippon Petrochemicals,        Nippon Petroleum Refining, Kyushu Oil, Japan Energy, other.

 

 

No. of accounts

 

1,000

 

 

Domestic areas of activities

 

Nationwide

 

 

Suppliers

 

[Mfrs, wholesalers] Mitsui Engineering & Shipbuilding, Mitsubishi Heavy Ind,          Hitachi Ltd, Yokogawa Electric, Kobe Steel, Shinko Planning, Sanki Engineering, other.

 

 

Payment record

 

Regular

 

 

Location

 

Business area in Yokohama.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

SMBC (H/O)

Mizuho Corporate Bank (Ohtemachi)

Relations: Satisfactory

 

 

Financials

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

608,529

550,301

 

  Cost of Sales

564,590

514,071

 

      GROSS PROFIT

43,939

36,230

 

  Selling & Adm Costs

17,526

15,840

 

      OPERATING PROFIT

26,413

20,389

 

  Non-Operating P/L

6,616

3,065

 

      RECURRING PROFIT

33,029

23,454

　

      NET PROFIT

20,187

15,011

BALANCE SHEET

 

 

 

 

  Cash

　

159,410

88,490

 

  Receivables

 

80,003

69,557

 

  Inventory

 

50,152

47,032

 

  Securities, Marketable

　

2,998

 

  Other Current Assets

37,768

23,699

 

      TOTAL CURRENT ASSETS

327,333

231,776

 

  Property & Equipment

67,219

65,687

 

  Intangibles

 

4,598

5,906

 

  Investments, Other Fixed Assets

71,136

71,918

 

      TOTAL ASSETS

470,286

375,287

 

  Payables

 

99,789

75,575

 

  Short-Term Bank Loans

3,133

15,306

 

　

 

　

　

 

  Other Current Liabs

134,663

84,547

 

      TOTAL CURRENT LIABS

237,585

175,428

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

17,799

993

 

  Reserve for Retirement Allw

17,059

16,934

 

  Other Debts

　

8,603

8,577

 

      TOTAL LIABILITIES

281,046

201,932

 

      MINORITY INTERESTS

 

291

 

Common stock

23,511

23,511

 

Additional paid-in capital

25,585

25,582

 

Retained earnings

134,299

116,850

 

Evaluation p/l on investments/securities

14,853

17,436

 

Others

 

(4,977)

(6,438)

 

Treasury stock, at cost

(4,032)

(3,878)

 

      TOTAL S/HOLDERS` EQUITY

189,239

173,063

　

      TOTAL EQUITIES

470,286

375,287

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

79,113

26,811

 

Cash Flows from Investment Activities

-14,009

-2,963

 

Cash Flows from Financing Activities

1,552

-2,424

　

Cash, Bank Deposits at the Term End

　

159,410

91,489

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

189,239

173,063

 

 

Current Ratio (%)

137.78

132.12

 

 

Net Worth Ratio (%)

40.24

46.11

 

 

Recurring Profit Ratio (%)

5.43

4.26

 

 

Net Profit Ratio (%)

3.32

2.73

 

 

Return On Equity (%)

10.67

8.67

 

 

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions