MIRA
INFORM REPORT
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Report Date : |
23.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHOWA AIRCRAFT INDUSTRY CO LTD |
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Registered Office : |
600 Tanakacho Akishima City Tokyo-Metrop 196-8522 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
June 1937 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Aircraft-Related Equipment, Special
Purpose Vehicles, other |
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 624.8 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
SHOWA AIRCRAFT
INDUSTRY CO LTD
REGD NAME: Showa Hikoki Kogyo KK (Hikoki means aircraft
in Japanese)
MAIN OFFICE: 600 Tanakacho Akishima City Tokyo-Metrop
196-8522 JAPAN
Tel:
042-541-2111 Fax: 042-545-0147
URL: http://www.showa-aircraft.co.jp/
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of aircraft-related equipment, special purpose vehicles,
other
BRANCH(ES)
Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Fukuoka
FACTORY(IES)
Narita
CHIEF EXEC
YOSHIYUKI YAGI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 25,229 M
PAYMENTS REGULAR CAPITAL Yen 4,949 M
TREND SLOW WORTH Yen 25,933 M
STARTED 1937 EMPLOYES 815
COMMENT
MFR OF
AIRCRAFT EQUIPMENT & VEHICLES; MANAGEMENT OF REAL ESTATE.
FINANCIAL
SITUATION COSIDERED FAIR AND SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 624.8 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was established as an aircraft mfr and later diversified into mfg other than aircraft, such as: aircraft components, light alloy structural materials, tank trucks, bulk trucks, honeycomb cores, electric vehicles, other. (See OPERATION). Also engaged in property leasing, the one in front of Akishima railway station is major earnings source. Fostering electric cars, too. Also operates golf links, which is contributing to profits. Started construction of 3 commercial buildings in this term, with completion slated for in Mar 2010. Clients are airline industries, heavy machinery mfrs, other, nationwide.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 25,299 million, a 0.2% up from Yen 25,245 million in the previous term. While sales of fuel trucks & airframe equipment for delivery to Defense Ministry were in order, sales of airport-relate equipment was slow. Honeycombs, aluminum panels & composite materials were steady. By divisions, Transportation-related Div down 2.5% to Yen 8,947 million. Real Estate Div was up 3.8% to Yen 7,038 million, thanks to full term contribution of commercial buildings started leasing during the previous term. The recurring profit was posted at Yen 1,034 million and the net profit at Yen 522 million, respectively, compared with Yen 1,182 million recurring profit and Yen 524 million net profit, respectively, a year ago. Profits declined due to rising costs of materials & operations.
(Apr/Jun/2008 results): sales Yen 5,400 million (-8.4%), operating profit Yen 219 million (-48.2%),recurring profit Yen 118 million (-62.7%), net profit Yen 23 million (-87.4$). (% compared with the corresponding period a year ago). The sales decline is referred largely to the delivery slippage of new-type large trailers and airframe composite components into the next term, according to the firm. Private-sector demand for Honeycomb-structured panels has decreased due to
adverse changes in the market conditions. Hence, sales of the division were down 7.1% to Yen 1,598 million. Real Estate was up 0.4% to Yen 1,741 million thanks to increased sales at shopping malls.
For the current term ending Mar 2009 the recurring profit is projected at Yen 800 million and the net profit at Yen 450 million, respectively, on a 5.1% fall in turnover, to Yen 24,000 million. Market conditions still continue unfavorable as stated above. Occupancies of real estate leasing stay at 100%. Started construction of 3 commercial building as above. Stressing to boost earnings in real estate business with development of nonperforming land. Targeting breakeven at transportation equipment production in Mar 2012 term.
The financial situation is considered FAIR and should be good for ORDINARY business engagements. Max credit limit is estimated at Yen 624.8 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun 1937
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 120 million shares
Issued: 33,606,132 shares
Sum: Yen 4,949 million
Major shareholders (%)
Mitsui Engineering & Shipbuilding (15.2), JTSB (Mitsui E&S) (15.2), Mitsui & Co (7.7), SMBC (4.7), JTSB (3.9), Muromachi Fudosan (2.6), Deutsche Bank London (2.5), Nomura Holdings (2.4), Chase London St Omnibus Acct (1.9), JP Morgan Chase Bank (1.7); foreign owners (20.8).
No. of shareholders: 1,938
Listed on the S/Exchange (s) of: Tokyo (Second Section)
Managements
Yoshiyuki Yagi, pres; Yoshiharu Ago, mgn dir; Atsushi Akazawa, mgn dir; Tadashi Moriya, dir; Yoshihiro Teranishi, dir; Shuichi Ino, dir; Fumioki Hirahata, dir; Saburo Sakamaki, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
S&S Management Co, Metas Inc, Showa Aircraft USA, other
OPERATION
Activities: Manufactures aircraft/vehicles, their components, other:
(Sales Breakdown by
Divisions):
Transportation Machinery-Related Div (35%): Containers (reefer storage containers, bulk containers, cattle cargo containers, LD-3 aircraft containers); special purpose Vehicle & service vehicles (tank trucks & trailers, bulk cement trucks & trailers, bulk flour tucks & trailers, bulk carbon black trucks); aircraft-related products (service carts, galley, shelter (automatic expandable shelter, GCA shelter)); meal cart (cold storage, reheating cart); honeycomb (of paper, non-combustible, aluminum, flexible aluminum, aramid, blazing, diffusion bonded make); electric cars as commissioned mfg of single-seat electric car “Q-CAR” for Takara Co Ltd since Nov 2002.
Real Estate Leasing (28%): Operates Showa-no-Mori facilities (suburban shopping mall “Mori Town”, leasing of commercial buildings, Akishima station building, other);
Hotel, Sports & Leisure (20%): Hotel S&S Mori Town, Fitness club FORUS”, urban resort hotel “Forest Inn SHOWAKAN”, tennis center, golf course, improvement works of streets, parks, water & sewage, etc;
Merchandise, others
(17%)
Clients
[Airlines, wholesalers] Jalux, Mitsui & Co, JAL International, Mitsubishi Heavy Ind, NTK International, Mitsubishi Electric, other.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Takachiho Electric, Mitsui & Co Stainless Special Steel Ltd, Chiba Metals, Miki & Co, Sakaguchi Electric Ind, other.
Payment record: Regular
Location: Business area in Akishima City, Tokyo-Metrop. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Nihombashi)
Chuo Mitsui Trust Bank (Nihombashi)
Relations: Satisfactory
FINANCIALS
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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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25,299 |
25,245 |
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Cost of Sales |
18,885 |
18,846 |
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GROSS PROFIT |
6,414 |
6,400 |
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Selling & Adm Costs |
4,744 |
4,617 |
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OPERATING PROFIT |
1,670 |
1,783 |
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Non-Operating P/L |
-636 |
-601 |
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RECURRING PROFIT |
1,034 |
1,182 |
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NET PROFIT |
522 |
524 |
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BALANCE SHEET |
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Cash |
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5,245 |
5,271 |
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Receivables |
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4,544 |
4,971 |
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Inventory |
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2,329 |
2,575 |
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Securities, Marketable |
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Other Current Assets |
477 |
921 |
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TOTAL CURRENT ASSETS |
12,595 |
13,738 |
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Property & Equipment |
48,012 |
49,110 |
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Intangibles |
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395 |
476 |
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Investments, Other Fixed Assets |
4,314 |
5,994 |
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TOTAL ASSETS |
65,316 |
69,318 |
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Payables |
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1,804 |
1,998 |
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Short-Term Bank Loans |
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1,150 |
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Other Current Liabs |
9,512 |
9,728 |
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TOTAL CURRENT LIABS |
12,466 |
11,726 |
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Debentures |
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80 |
1,382 |
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Long-Term Bank Loans |
13,542 |
15,316 |
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Reserve for Retirement Allw |
4,036 |
3,814 |
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Other Debts |
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9,259 |
10,169 |
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TOTAL LIABILITIES |
39,383 |
42,407 |
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MINORITY INTERESTS |
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Common
stock |
4,949 |
4,949 |
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Additional
paid-in capital |
7,648 |
7,648 |
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Retained
earnings |
12,251 |
12,097 |
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Evaluation
p/l on investments/securities |
1,193 |
2,282 |
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Others |
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(1) |
1 |
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Treasury
stock, at cost |
(107) |
(67) |
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TOTAL S/HOLDERS` EQUITY |
25,933 |
26,910 |
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TOTAL EQUITIES |
65,316 |
69,318 |
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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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3,939 |
1,681 |
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Cash
Flows from Investment Activities |
-1,585 |
-5,711 |
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Cash
Flows from Financing Activities |
1,816 |
-2,333 |
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Cash,
Bank Deposits at the Term End |
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4,499 |
4,480 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
25,933 |
26,910 |
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Current
Ratio (%) |
101.03 |
117.16 |
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Net
Worth Ratio (%) |
39.70 |
38.82 |
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Recurring
Profit Ratio (%) |
4.09 |
4.68 |
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Net
Profit Ratio (%) |
2.06 |
2.08 |
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Return
On Equity (%) |
2.01 |
1.95 |
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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%)