MIRA
INFORM REPORT
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Report Date : |
06.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
PENTA-OCEAN CONSTRUCTION CO LTD |
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Registered Office : |
2-2-8 Koraku Bunkyoku Tokyo 112-8576 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
April 1950 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Marine Civil Engineering Works |
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 4,304.4 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
PENTA-OCEAN
CONSTRUCTION CO LTD
REGD NAME: Goyo Kensetsu KK
MAIN OFFICE: 2-2-8 Koraku Bunkyoku Tokyo 112-8576 JAPAN
Tel:
03-3816-7111 Fax: 03-3817-7642
URL: http://www.penta-ocean.co.jp/
E-Mail address: (through the URL)
ACTIVITIES
Marine civil engineering works
BRANCHES
Sapporo, Yokohama, Osaka, Hiroshima, Fukuoka, other (Tot 98)
OVERSEAS
Singapore, Hong Kong, Indonesia, Malaysia, Egypt, Colombo, Manila,
Bangkok, Hanoi, Myanmar, Micronesia, Phnom Penh, Dubai, Taiwan
CHIEF EXEC
YOSHIO MURASHIGE, PRES & CEO
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 352,808 M
PAYMENTS REGULAR CAPITAL Yen 28,070 M
TREND SLOW WORTH Yen 53,862 M
STARTED 1950 EMPLOYES 3,414
COMMENT
MARINE CIVIL
ENGINEERING WORKS.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 4,304.4
MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject
company was established originally in 1896 in Kure by Jinjiro Mizuno, as Mizuno
Gumi, in order to engage in reclamation and seawall construction works, on his
account. Won reputation as master
marine engineering firm which led the firm to be marine civil engineering
firm. A pioneer in large-scale
waterfront projects overseas and earned reputation for technology in Suez Canal
construction. Tops in water-front
dredging works. Aiming at becoming
general contractor by bolstering building construction div. The firm is shifting overseas operations
from Mid East to Asia including Singapore & Vietnam.
(Reported by Nikkei Shimbun dated 15/08/2008): The bankruptcy
filed from midtier real estate developer, Urban Corp, would jeopardize debt
payments the firm owed. Penta-Ocean
said it may not receive payments totaling Yen 2.28 billion for a condominium it
built for Urban. The firm will book
extraordinary losses in Apr-Sept period.
As a result, the firm may have to lower earnings forecasts for 2009
term, which have not been officially disclosed.
FINANCIAL INFORMATION
The sales volume
for Mar/2008 fiscal term amounted to Yen 352,808 million, a 9.1% up from Yen
323,264 million in the previous term.
The growth is supported by robust construction works in Mid East &
Asian countries, centering in distribution systems, urban development works,
other. Domestic works also expanded by
10.4% compared with the previous terms.
By divisions, Construction up 8.4% to Yen 26,154 million; Development up
170.6% to Yen 2,915 million, thanks to sales/disposal of real estate/buildings. The recurring profit was posted at Yen 5,096
million and the net profit at Yen 2,570 million, respectively, compared with
Yen 2,078 million recurring profit and Yen 5,858 million net losses,
respectively, a year ago. Posted
extraordinary income of Yen 3,068 million.
(Apr/Jun/2008
results): Sales Yen 66,849 million (up 20%), operating loss Yen 3,672 million,
recurring loss Yen 4,177 million, net loss Yen 2,311 million.
For the current
term ending Mar 2009 the recurring profit is projected at Yen 8,000 million and
the net profit at Yen 3,000 million, respectively, on a 10.5% rise in turnover,
to Yen 390,000 million. The forecasts
may well be revised down due to the aforesaid client’s bankruptcy. No official words have been heard.
The financial
situation is considered maintained FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 4,304.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr 1950
Legal Status: Limited Company
(Kabushiki Kaisha)
Authorized: 599,135,000
shares
Issued: 491,527,820
shares
Sum: Yen 28,070 million
Major shareholders (%)
Mizuho Corporate Bank (2.8), Japan Trustee
Services Bank, T (2.7), Japan Trustee Services (2.7), Meiji Yasuda Life Ins
(2.7), Sompo Japan Ins (2.4), Master Trust Bank of Japan, T (2.0), BONY GCM
Client JPRD Acct (1.8), Shoei Co (1.6), Tokio Marine & Nichido Fire Ins
(1.6), Mizuho Trust & Banking (1.4), Japan Trustee Services T (1.3);
foreign owners (8.8)
No. of
shareholders: 48,963
Listed on the
S/Exchange (s) of: Tokyo, Osaka, Nagoya
Managements
Yoshio Murashige, pres; Kazuyuki Kawakami,
dir; Hayuru Tsuda, dir; Kiyoshi
Ida, dir; Kosuke Kondo, dir; Yoshihisa Takimoto, dir; Masafumi Saito, dir;
Kunihiko Sasaki, dir; Yoshihisa Tomoda, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies
Penta-Ocean Dredging, Yoshin Construction,
Penta Builders, other (Tot 25 as of Mar/08)
OPERATION
Activities: Civil
engineering works: construction (96%), real estate development (1%), others
(3%).
Overseas
sales ratio 16%: Asia 15%, others 1%.
Clients
Municipal offices, government & public agencies, business firms,
other
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Itochu Corp, Mitsubishi
Corp, Sojitz Corp, Mitsui & Co,
Marubeni Corp, Nippon Steel, Metal One,
other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (H/O)
Resona Bank (Tokyo)
Relations: Satisfactory
FINANCES
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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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352,808 |
323,264 |
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Cost of Sales |
326,281 |
299,498 |
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GROSS PROFIT |
26,527 |
23,766 |
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Selling & Adm Costs |
17,687 |
29,122 |
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OPERATING PROFIT |
8,840 |
4,644 |
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Non-Operating P/L |
-3,744 |
-2,566 |
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RECURRING PROFIT |
5,096 |
2,078 |
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NET PROFIT |
2,570 |
-5,858 |
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BALANCE SHEET |
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Cash |
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33,421 |
49,247 |
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Receivables |
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136,002 |
122,088 |
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Inventory |
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12,740 |
18,728 |
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Securities, Marketable |
102 |
102 |
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Other Current Assets |
63,123 |
59,619 |
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TOTAL CURRENT ASSETS |
245,388 |
249,784 |
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Property & Equipment |
61,271 |
63,950 |
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Intangibles |
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568 |
589 |
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Investments, Other Fixed Assets |
33,006 |
40,746 |
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TOTAL ASSETS |
340,233 |
355,069 |
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Payables |
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117,960 |
113,136 |
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Short-Term Bank Loans |
63,188 |
63,847 |
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Other Current Liabs |
49,668 |
58,731 |
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TOTAL CURRENT LIABS |
230,816 |
235,714 |
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Debentures |
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Long-Term Bank Loans |
45,909 |
46,615 |
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Reserve for Retirement Allw |
1,109 |
6,577 |
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Other Debts |
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8,536 |
8,557 |
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TOTAL LIABILITIES |
286,370 |
297,463 |
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MINORITY INTERESTS |
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Common
stock |
28,070 |
28,070 |
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Additional
paid-in capital |
20,106 |
20,106 |
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Retained
earnings |
3,991 |
4,102 |
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Evaluation
p/l on investments/securities |
(1,973) |
4,276 |
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Others |
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3,688 |
1,066 |
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Treasury
stock, at cost |
(20) |
(15) |
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TOTAL S/HOLDERS` EQUITY |
53,862 |
57,605 |
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TOTAL EQUITIES |
340,233 |
355,069 |
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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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-9,148 |
4,721 |
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Cash
Flows from Investment Activities |
-4,530 |
5,558 |
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Cash Flows
from Financing Activities |
-1,753 |
-25,670 |
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Cash,
Bank Deposits at the Term End |
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33,394 |
49,124 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
53,862 |
57,605 |
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Current
Ratio (%) |
106.31 |
105.97 |
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Net
Worth Ratio (%) |
15.83 |
16.22 |
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Recurring
Profit Ratio (%) |
1.44 |
0.64 |
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Net
Profit Ratio (%) |
0.73 |
-1.81 |
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Return
On Equity (%) |
4.77 |
-10.17 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.46.88 |
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UK Pound |
1 |
Rs.82.97 |
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Euro |
1 |
Rs.64.99 |
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%)