MIRA
INFORM REPORT
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Report Date : |
23.10.2008 |
IDENTIFICATION DETAILS
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Name : |
CHIYODA CORPORATION |
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Registered Office : |
2-12-1 Tsurumi-Chuo Tsurumiku Yokohama
230-8601 |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
January 1948 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Plant Engineering Company of Oil Refining and
Petrochemical Plants |
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 10,470.5 Million |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name & address
CHIYODA
CORPORATION
REGD NAME: Chiyoda Kako
Kensetsu KK
MAIN OFFICE: 2-12-1 Tsurumi-Chuo Tsurumiku
Yokohama 230-8601 JAPAN
Tel: 045-521-1231 Fax: 045-506-7085
URL: http://www.chiyoda-corp.com/
E-Mail address: CHYOD@ykh.chiyoda.co.jp
ACTIVITIES
Plant engineering company of oil refining &
petrochemical plants
BRANCHES
Tokyo, Osaka, Nagoya, Sapporo, Naha, Sendai, Kurashiki, Takamatsu
OVERSEAS
Abu Dhabi, Doha, Teheran, Shanghai, Beijing, Jakarta,
Singapore, Hague, Milan
FACTORY(IES)
Kawasaki (research center)
CHIEF EXEC
TAKASHI KUBOTA, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 603,559 M
PAYMENTS REGULAR CAPITAL Yen 12,934 M
TREND STEADY WORTH Yen 81,637 M
STARTED 1948 EMPLOYES 3,067
COMMENT
MAJOR COMPREHENSIVE PLANT ENGINEERING COMPANY, AFFILIATED TO
MITSUBISHI CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 10,470.5 MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was established on the basis of a
construction division spun off from Mitsubishi Oil Co Ltd (now Nippon Oil
Corp). This is a leading comprehensive
plant engineering company belonging to Mitsubishi group, with strength in
petroleum & petrochemical facilities.
Excels in LNG plants, which division has grown to be the mainstay,
accounting for 65% of total sales.
Engaged in major LNG engineering plant projects in Near & Mid East,
and Russia. At one time the firm was
thrown into management crisis but with the help of Bank of Tokyo-Mitsubishi,
Mitsubishi Corp and Kellogg Brown & Root of the US, the firm recovered. Robust demand of LNG plants overseas helped
greatly to the restructuring and profitability.
Boasts high level technology with recognition by oil majors. Engaged in joint work with Ebara Corp, a
pumps & air-blower maker, Tokyo, in environment-related overseas plant
engineering. Started test run for LNG1
plants, and LNG2 plant projects to be completed in spring 2009. Received first orders for LNG plant from
Algeria. Mitsubishi Corp is the top
shareholder.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal
term amounted to Yen 603,559 million a 24.5% up from Yen 484,895 million in the
previous term. Although orders received
were down 53.6% to Yen 258,700 million, deliveries of backlog orders completed
during the term. This includes 5 LNG/gas
plants for Qatar. Overseas orders
account for 40% of total orders. Orders
backlog at the end of the term was Yen 670,000 million. The recurring profit was posted at Yen 19,121
million and the net profit at Yen 9,640 million, respectively, compared with
Yen 36,797 million recurring profit and Yen 23,531 million net profit,
respectively, a year ago. Surging
equipment costs and shortage of skilled labor particularly in Qatar projects
ate into profits.
(Apr/Jun/2008 results): Sales
Yen 114,347 million (down 18.5%), operating profit Yen 1,353 million (down
81.4%), recurring profit Yen 3,274 million (down 69.4%), net profit Yen 1,785
million (down 66.6%). (% compared with
the same period last year). New
contracts on consolidated basis were Yen 46,273 million, a 28.4% decrease
compared with the same period a year ago, and the backlog of contracts
decreased 38.1% to Yen 620,382 million.
The profits decline is largely referred to surging equipment costs that
continued and higher labor costs in Mid East, added to shortage of skilled
labor. Many energy-related projects are
underway in Mid East, creating acute shortage of skilled labor and leading to
higher personnel costs and work delays.
For the current term ending Mar
2009 the recurring profit is projected at Yen 16,000 million and net profit at
Yen 9,500 million, respectively, on a 23.8% fall in turnover, to Yen 460,000
million. LNG plant construction in Qatar
still burdensome, but lucrative engineering works for domestic customers
continuing. Free of special loss on
retirement benefits at subsidiaries and net profit expected nearly flat. Next target sets at LNG projects in Australia
& Russia and refinery projects in Asia.
The financial situation is
considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,433.6
million, on 30 days normal terms.
REGISTRATION
Date
Registered: Jan 1948
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
650 million shares
Issued:
193,182,529 shares
Sum: Yen 12,934 million
Major shareholders (%): Mitsubishi Corp (33.4), State
Street Bank & Trust (4.6), JP Morgan Chase Bank (3.9), MUFG (3.4),
Mitsubishi UFJ Trust (3.0), Master Trust Bank of Japan T (2.8, Japan Trustee
Services T (2.4), Bank of New York Treaty Jasdic
(2.0), Deutche Securities (1.6), BNP Paribas Sec
(Japan) (1.4); foreign owners (29.6)
No. of
shareholders: 28,464
Listed
on the S/Exchange (s) of: Tokyo
Managements: Nobuo Seki, ch;
Takashi Kubota, pres; Yoichi Kanno, v pres; Hiroshi
Shibata, v pres; Nobuyasu Kamei, v pres; Madoka Koda, s/mgn dir; Atsuo Minamoto, mgn dir; Sumio Nakashima, mgn dir; Satoru
Yokoi, mgn dir; Hiroshi Ogawa, mgn
dir; Seiji Shiraki, dir
Nothing detrimental is knows as to the commercial morality
of executives.
Related
companies: Chiyoda Keiso, Chiyoda Kosho,
other
OPERATION
Activities: Plant
engineering works:
(Sales
breakdown by divisions): LNG plants (65%), gas & electric
power plants (16%), petroleum & petrochemicals plants (12%), general
chemicals plants (4%), social development works & environmentally-related
(2%), general industrial machinery (1%),
Overseas
sales ratio (81.8%): Asia 2.8%, Near & Mid East 70.6%,
Russia/Mid Asia 8.2%, other region
(0.2%)
Clients
[Oil, LNG,
petrochemical industries] Oman LNG, Exxon Chemical Singapore, Shell Eastern Petroleum, Tokyo Electric
Power, Tokyo Gas, Teijin Polycarbonate Singapore, Kobe Steel, Eastern
Petrochemical, Yokohama City government, Nippon Shinyaku, Nippon Oil, Bayer & Dow Chemical, Qatar
LNG, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Dosan Mecatec Co, Daekyung Machinery & Engineering Co, Nuovo Fignon ESPA, Taylor Forge
Engineered Systems, Alfa Laval Lund AB, Sungjin Goetec, GE Oil & Gas, other.
Domestically, Mitsubishi Corp, Ebara Corp, Mitsubishi Heavy Ind, Nippon Steel, Fisher
Japan, Yokogawa Electric, Mitsubishi Electric, Man Turbo Machinery, other.
Payment
record: Regular
Location:
Business area in Yokohama City. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References
MUFG (H/O)
Mitsubishi Trust Bank (H/O)
Relations: Satisfactory
FINANCES: (In Million Yen)
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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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603,559 |
484,895 |
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Cost of Sales |
583,035 |
445,158 |
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GROSS PROFIT |
20,524 |
39,736 |
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Selling & Adm
Costs |
11,684 |
11,036 |
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OPERATING PROFIT |
8,839 |
28,700 |
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Non-Operating P/L |
10,282 |
8,097 |
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RECURRING PROFIT |
19,121 |
36,797 |
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NET PROFIT |
9,640 |
23,531 |
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BALANCE SHEET |
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Cash |
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60,484 |
77,177 |
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Receivables |
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36,368 |
38,659 |
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Inventory |
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192,683 |
256,060 |
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Securities, Marketable |
10,500 |
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Other Current Assets |
38,172 |
46,141 |
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TOTAL CURRENT ASSETS |
338,207 |
418,037 |
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Property & Equipment |
23,072 |
7,464 |
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Intangibles |
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4,714 |
3,352 |
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Investments, Other Fixed Assets |
12,826 |
14,099 |
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TOTAL ASSETS |
378,819 |
442,952 |
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Payables |
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74,037 |
86,813 |
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Short-Term Bank Loans |
10,039 |
96 |
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Other Current Liabs |
209,910 |
264,535 |
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TOTAL CURRENT LIABS |
293,986 |
351,444 |
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Debentures |
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Long-Term Bank Loans |
22 |
10,067 |
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Reserve for Retirement Allw |
2,226 |
2,275 |
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Other Debts |
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948 |
1,751 |
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TOTAL LIABILITIES |
297,182 |
365,537 |
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MINORITY INTERESTS |
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Common
stock |
12,934 |
12,928 |
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Additional
paid-in capital |
6,718 |
6,711 |
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Retained
earnings |
65,155 |
58,398 |
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Evaluation
p/l on investments/securities |
(847) |
247 |
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Others |
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(1,264) |
35 |
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Treasury
stock, at cost |
(1,059) |
(905) |
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TOTAL S/HOLDERS` EQUITY |
81,637 |
77,414 |
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TOTAL EQUITIES |
378,819 |
442,952 |
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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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14,274 |
35,531 |
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Cash
Flows from Investment Activities |
-3,917 |
-3,458 |
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Cash
Flows from Financing Activities |
-17,219 |
-2,191 |
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Cash,
Bank Deposits at the Term End |
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70,089 |
77,051 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
81,637 |
77,414 |
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Current
Ratio (%) |
115.04 |
118.95 |
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Net
Worth Ratio (%) |
21.55 |
17.48 |
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Recurring
Profit Ratio (%) |
3.17 |
7.59 |
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Net
Profit Ratio (%) |
1.60 |
4.85 |
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Return
On Equity (%) |
11.81 |
30.40 |
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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.49.95 |
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UK Pound |
1 |
Rs.79.56 |
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Euro |
1 |
Rs.63.65 |
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%)