MIRA
INFORM REPORT
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Report Date : |
09.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
TOYO KANETSU KK |
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Registered Office : |
8-19-20 Higashisuna Kotoku Tokyo 136-8666 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
May 1941 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Crude Oil Storage Tanks, LNG/LPG tanks |
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 1,539.5 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
TOYO KANETSU KK
REGD NAME: Toyo Kanetsu KK
MAIN OFFICE: 8-19-20 Higashisuna
Kotoku Tokyo 136-8666 JAPAN
Tel:
03-5857-3100 Fax: 03-5857-3109
URL: http://www.toyokanetsu.co.jp/
E-Mail address:info@toyokanetsu.co.jp
ACTIVITIES
Mfg of crude oil storage tanks, LNG/LPG tanks
BRANCHES
Osaka, Naha; Abu Dhabi (UAE)
OVERSEAS
Malaysia, Indonesia (--subsidiaries)
FACTORY(IES)
Chiba
CHIEF EXEC
SHIGEAKI KIYOTA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 45,547 M
PAYMENTS REGULAR CAPITAL Yen 18,580 M
TREND STEADY WORTH Yen 31,942 M
STARTED 1941 EMPLOYES 564
COMMENT
OIL TANK STORAGE
BUILDER.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 1,539.5 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company is the world’s second
largest tank builder. Originally
established for mfg industrial furnaces.
In 1950 commenced production of welded steel tanks. In 1958, became the first plant in Japan to be
authorized by the American Petroleum Institute (API). In 1978 completed construction of four units of the world’s
largest above-ground LNG tanks in Arun, Indonesia, with storage capacity of
800,000 barrels each. Vying for top
domestic position in cryogenic tanks for LNG & LPG. Also highly competitive in distribution
systems such as conveyors & sorters for construction and airports
industries, and automated warehousing for truck terminals. Outstanding engineering capacity having
constructed 180,000 kiloliter crude oil tank, one of the largest in the
world. In 2002, entered into business
alliance with Siemens Dematic, Germany, to create Toyo Kanetsu Solutions KK, a
logistic solution provider.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term
amounted to Yen 45,547 million, a shade up from Yen 45,530 million in the
previous term. By divisions,
Distribution systems down 17.2% to Yen 17,316 million on lack of high-profit
orders. Machinery & Plants Division
up 16.3% to Yen 17,029 million, thanks to the first orders received from China
for 2 units of LNG tanks, plus increased orders for spherical tanks from India
& Singapore. Construction Div up
4.9% to Yen 5,943 million by focusing on higher-profit orders. The recurring profit was posted at Yen 2,457
million and the net profit at Yen 2,836 million, respectively, compared with
Yen 2,132 million recurring profit and Yen 1,625 million net profit,
respectively, a year ago.
(Apr/Dec/2007 results): Sales Yen 34,006
million (up 1.6%), operating profit Yen 2,186 million (up 45.9%), recurring
profit Yen 2,544 million (up 41.7%), net profit Yen 2,630 million. (% compared
with the corresponding period a year ago).
Sales shade up due to decrease in large-lot orders of distribution
systems (down 19.4% to Yen 10,658 million) as in the previous term, while
Machinery & Plants up 25.1% to Yen 15,917 million, as overseas LNG &
Crude Oil tanks construction progressed as scheduled plus increased
reconstruction of quake-free facilities in domestic market.
For the term ended Mar 2008 the recurring
profit was projected at Yen 3,670 million and the net profit at Yen 3,670
million, respectively, on an 8.5% rise in turnover, to Yen 49,400 million. LNG & LPG tanks fared well in both
domestic and overseas markets.
Carried-over shipment also contributed to sales. Distribution systems stagnant, but tanks
enjoyed high operating rates. Plant & Machinery div is expected to grow. Higher material costs already incorporated
into unit prices and firm revised the profits upward as estimated in the
mid-term.
The financial
situation is considered maintained FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 1,539.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: May 1941
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 297
million shares
Issued: 138,730,741
shares
Sum: Yen
18,580 million
Major shareholders (%)
Resona Bank (4.9),
Nippon Life Ins (3.3), Japan Trustee
Services Bank T (2.5), Leopalace 21 (2.5),
Mizuho Bank (2.1), Master Trust Bank of Japan, T (2.1), Daiei Real Estate &
Development (1.5); foreign owners (7.3)
No. of shareholders: 16,795
Listed on the S/Exchange (s) of
Tokyo
Managements
Shigeaki Kiyota,
pres & CEO; Takeshi Mizukami, mgn dir; Sadao Arita, dir; Shinji Shimazaki, dir; Tohru Yanagawa, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
Toyo Kanetsu
Solutions, Toyo Koken, TKL Co, other
OPERATION
Activities:
Manufactures crude oil storage tanks, low temperatures tanks, low tempera- ture tanks for LNG, LPG:
(Sales
breakdown by divisions):
Distribution systems (38%): electric-driven winches,
belt conveyors, balancers, industrial robots, conveyors & sorters for
construction & airports industries, automated warehousing for truck terminals, controlling systems, airport
baggage handling systems, automatic picking system for cigarettes, digital
picking systems;
Machinery & Plants (37%): crude oil
storage tanks, LNG/LPG cryogenic storage tanks, high-pressure spherical tanks, atmospheric storage tanks, total
plant engineering, piping &
instrumentation works, other related facilities;
Building
& Construction (13%): prefabrication of unit houses, building of
offices, condominiums, houses, warehouses, real estate management, building
maintenance;
Others (12%): leasing, real estate leasing, insurance
broking, travel agency, others.
Overseas
sales ratio (21.3%): S/E Asia (Thailand, Indonesia) 13.1%; Mid East
(Iran, Qatar) 4.2%: Other regions
(Trinidad, Dubai, Australia) 4.0%]
Clients
[Oil refiners,
heavy machinery mfrs, house builders] Mitsubishi Heavy Ind, Leopalace 21,
Bechtel Int’l, Mitsubishi Liquefied Petroleum Gas, Teheran Jonoob, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Sumitomo
Corp, Metal One, Iwatani Int’l, Mitsui & Co, other.
Payment record
Regular
Location
Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References
Resona Bank (Muromachi)
Mizuho Bank (Fukagawa)
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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45,547 |
45,530 |
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Cost of Sales |
39,919 |
40,034 |
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GROSS PROFIT |
5,627 |
5,495 |
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Selling & Adm Costs |
3,741 |
3,591 |
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OPERATING PROFIT |
1,886 |
1,903 |
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Non-Operating P/L |
571 |
229 |
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RECURRING PROFIT |
2,457 |
2,132 |
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NET PROFIT |
2,836 |
1,625 |
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BALANCE SHEET |
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Cash |
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7,138 |
7,965 |
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Receivables |
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8,615 |
7,636 |
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Inventory |
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9,355 |
6,166 |
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Securities, Marketable |
1,499 |
1,999 |
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Other Current Assets |
3,619 |
1,543 |
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TOTAL CURRENT ASSETS |
30,226 |
25,309 |
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Property & Equipment |
16,955 |
16,566 |
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Intangibles |
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321 |
412 |
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Investments, Other Fixed Assets |
21,500 |
24,853 |
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TOTAL ASSETS |
69,002 |
67,140 |
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Payables |
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2,285 |
2,226 |
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Short-Term Bank Loans |
4,860 |
4,651 |
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Other Current Liabs |
15,720 |
13,207 |
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TOTAL CURRENT LIABS |
22,865 |
20,084 |
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Debentures |
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Long-Term Bank Loans |
4,360 |
3,651 |
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Reserve for Retirement Allw |
2,352 |
3,525 |
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Other Debts |
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7,483 |
8,471 |
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TOTAL LIABILITIES |
37,060 |
35,731 |
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MINORITY INTERESTS |
8 |
9 |
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Common
stock |
18,580 |
18,580 |
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Additional
paid-in capital |
1,104 |
1,104 |
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Retained
earnings |
5,049 |
2,545 |
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Evaluation
p/l on investments/securities |
7,556 |
391 |
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Others |
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(265) |
9,525 |
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Treasury
stock, at cost |
(82) |
(66) |
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TOTAL S/HOLDERS` EQUITY |
31,942 |
31,398 |
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TOTAL EQUITIES |
69,002 |
67,140 |
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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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454 |
7,458 |
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Cash
Flows from Investment Activities |
-2,384 |
-201 |
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Cash
Flows from Financing Activities |
612 |
-4,050 |
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Cash,
Bank Deposits at the Term End |
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8,399 |
9,767 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
31,942 |
31,398 |
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Current
Ratio (%) |
132.19 |
126.02 |
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Net
Worth Ratio (%) |
46.29 |
46.76 |
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Recurring
Profit Ratio (%) |
5.39 |
4.68 |
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Net
Profit Ratio (%) |
6.23 |
3.57 |
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Return
On Equity (%) |
8.88 |
5.18 |
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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%)