MIRA
INFORM REPORT
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Report Date : |
23.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
MAX CO LTD |
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Registered Office : |
6-6 Nihombashi-Hakozakicho Chuoku Tokyo 103-8502 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
November 1942 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Staplers, Air Nailers |
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 2,671.9 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
MAX CO LTD
REGD NAME: Max KK
MAIN OFFICE: 6-6 Nihombashi-Hakozakicho Chuoku Tokyo
103-8502 JAPAN
Tel:
03-3669-0311 Fax: 03-5695-7915
URL: http://www.max-ltd.co.jp/
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of staplers, air nailers
BRANCHES
Sapporo, Sendai Morioka, Nagoya, Osaka, Hiroshima, Fukuoka,
other
FACTORY(IES)
Gunma (2)
OVERSEAS
New York, Germany, Hong Kong, China, Singapore, Malaysia,
Thailand,
Netherlands (--subsidiaries)
CHIEF EXEC
TAKASHI MIIDA, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 65,537 M
PAYMENTS REGULAR CAPITAL Yen 12,367 M
TREND STEADY WORTH Yen 63,071 M
STARTED 1942 EMPLOYES 1,701
COMMENT
MFR SPECIALIZING IN STAPLERS & AIR NAILERS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,671.9 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was established originally as a maker of parts for aircraft wings, and after the end of World War II shifted its operations to production of staplers and other office metal equipment. Strengthening operations for automatic staplers & steel beam binding machines for construction industries. Also stressing industrial fastening equipment and housing products Including bathroom dryers. In 2006, opened subsidiary in Netherlands to cover European markets. Opened sales JV in Thailand, in attempt to increase sales of time recorders, etc. Sales in Asia account for about 40% of total overseas sales.
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 65,537 million, a 0.7% up
from Yen 65,101 million in the previous term.
Sales slowed, particularly in the industrial equipment segment, where
the housing startups were down 20% to the level of nearly 40 years ago. While the office equipment division was up
3.3% to Yen 24,228 million, thanks to increased sales of automatic staplers,
including consumable supplies, to copy-machine producers. Increased overseas sales also
contributed. The recurring profit was
posted at Yen 6,787 million and the net profit at Yen 4,013 million,
respectively, compared with Yen 7,541 million recurring profit and Yen 4,472
million net profit, respectively, a year ago.
Profits decline is referred to rising costs of materials &
operations.
(Apr/June/2008 quarterly results): Sales Yen 14,689 million (down 5.2%), operating profit Yen 1,202 million (down 29.7%), recurring profit Yen 1,602 million (down 15.2%), net profit Yen 991 million (down 10.7%). (% compared with the corresponding period a year ago). Inventory adjustment at US customers side, due to slowdown of overall economies, hurt the sales. Exports slowed into USA.
For the current term ending Mar 2008 the recurring profit is projected at Yen 7,300 million and the net profit at Yen 4,260 million, respectively, on a 5.3% rise in turnover, to Yen 69,000 million. Smoke alarms will continue growing. Bathroom dryers production in China will also contribute to sales growth. Thailand plant will contribute for full term..
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 2,671.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: Nov 1942
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 145,983,000 shares
Issued: 50,500,626 shares
Sum: Yen 12,367 million
Major shareholders (%): Dai-ichi Life Ins (9.2), Nippon
Life Ins (8.7), Japan Trustee Services Bank, T (5.5), Company’s Treasury Stock
(5.2), Mizuho Bank (4.6), Gunma Bank (4.1), Master Trust Bank of Japan (3.6),
company’s Treasury Stock 2 (3.5), Meiji Yasuda Life Ins (3.3), Trust &
Custody Services (3.3); foreign owners (6.3).
No. of shareholders: 3,633
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Takashi Miida, pres & CEO; Keiichi Mizuoka, s/mgn dir; Toshio Hiranuma mgn dir; Toshio Yamada, mgn dir; Teruhiro Kamon, mgn dir; Tadayoshi Ohta, dir; Kenji Shiraishi, dir; Akira Matsukawa, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: Max Fastening Systems, Max Shinwa, Max Europa, others
OPERATION
Activities:
Manufactures air nailers, staplers, others:
(Sales breakdown by divisions):
Office Equipment Div (37%): Auto staplers, staplers, numbering machines, time recorders, check writers, vinyl cutting machines, printing machines, cutter/printers, tube marking machines, brush handwriting software, brush handwriting plotters, parallel rulers, plotters, stamp pads, clips (of all types), punchers, scissors, cutting tools, printing tools, label printers, markers, graphic tools, others;
Industrial Equipment Div (63%): Pneumatic nailers, hand tackers, system nailers, collated screw drivers, collated screw nailers, various staples, nails, screws, concrete reinforcing bar tying machines, air compressors, vegetable bunching machines, bag sealing machines, dry/heater/ventilator for bathroom, 24-hour residential ventilation system with air to air heat exchangers, dryers, floor heating systems, fire alarms, others;
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Overseas sales ratio (28.8%): N/S Americas 7.4%; Asia 11.5%; Europe/others 9.7%).
Clients
[Mfrs, wholesalers] Canon Finetech, Rocoh Elemex, Max USA Corp, Sekisui Home Techno, Ricoh, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Nippon Steel Trading, Max Shinwa, Max Fastening System, Yasuki Seisakusho, Kawabe Seisakusho, other.
Payment record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References
Mizuho Bank (Shinkawa)
Gunma Bank (Takasaki)
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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65,537 |
65,101 |
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Cost of Sales |
40,510 |
40,441 |
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GROSS PROFIT |
25,027 |
24,659 |
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Selling & Adm Costs |
18,175 |
17,794 |
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OPERATING PROFIT |
6,851 |
6,865 |
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Non-Operating P/L |
-264 |
676 |
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RECURRING PROFIT |
6,787 |
7,541 |
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NET PROFIT |
4,013 |
4,472 |
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BALANCE SHEET |
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Cash |
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6,236 |
6,496 |
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Receivables |
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15,019 |
16,097 |
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Inventory |
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7,914 |
7,014 |
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Securities, Marketable |
3,700 |
4,909 |
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Other Current Assets |
2,225 |
2,045 |
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TOTAL CURRENT ASSETS |
35,094 |
36,561 |
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Property & Equipment |
18,279 |
18,436 |
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Intangibles |
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237 |
255 |
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Investments, Other Fixed Assets |
26,079 |
27,064 |
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TOTAL ASSETS |
79,689 |
82,316 |
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Payables |
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4,360 |
4,516 |
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Short-Term Bank Loans |
2,232 |
2,150 |
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Other Current Liabs |
4,975 |
6,937 |
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TOTAL CURRENT LIABS |
11,567 |
13,603 |
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Debentures |
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Long-Term Bank Loans |
132 |
50 |
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Reserve for Retirement Allw |
3,814 |
3,980 |
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Other Debts |
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1,104 |
457 |
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TOTAL LIABILITIES |
16,617 |
18,090 |
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MINORITY INTERESTS |
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Common
stock |
12,367 |
12,367 |
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Additional
paid-in capital |
10,517 |
10,519 |
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Retained
earnings |
42,152 |
44,201 |
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Evaluation
p/l on investments/securities |
759 |
2,248 |
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Others |
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(2,681) |
(2,226) |
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Treasury
stock, at cost |
(43) |
(2,883) |
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TOTAL S/HOLDERS` EQUITY |
63,071 |
64,226 |
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TOTAL EQUITIES |
79,689 |
82,316 |
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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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4,901 |
6,506 |
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Cash
Flows from Investment Activities |
-2,531 |
-5,082 |
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Cash
Flows from Financing Activities |
-2,965 |
-1,537 |
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Cash,
Bank Deposits at the Term End |
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6,236 |
6,496 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
63,071 |
64,226 |
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Current
Ratio (%) |
303.40 |
268.77 |
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Net
Worth Ratio (%) |
79.15 |
78.02 |
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Recurring
Profit Ratio (%) |
10.36 |
11.58 |
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Net Profit
Ratio (%) |
6.12 |
6.87 |
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Return
On Equity (%) |
6.36 |
6.96 |
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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.45.72 |
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UK Pound |
1 |
Rs.84.81 |
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Euro |
1 |
Rs.67.60 |
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%)