MIRA INFORM REPORT

 

 

Report Date :           

06.04.2011

 

IDENTIFICATION DETAILS

 

Name :

THK CO Ltd

 

 

Registered Office :

3-11-6 Nishi-Gotanda Shinagawaku Tokyo 141-8503

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

April 1971

 

 

Com. Reg. No.:

(Tokyo-Shinagawaku) 006176

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of linear motion systems

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 5,164.5 Million

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

----

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name

 

THK CO Ltd

 

 

REGD NAME

 

THK KK

 

 

MAIN OFFICE

 

3-11-6 Nishi-Gotanda Shinagawaku Tokyo 141-8503 JAPAN

Tel: 03-5434-0300-

URL:                             http://www.thk.co.jp

E-Mail address:                        info@thk.co.jp

 

 

ACTIVITIES  

 

Mfg of linear motion systems

 

 

BRANCHES   

 

Osaka, Nagoya, Yamagata, Mie, Gifu, other (Tot 39)

 

 

OVERSEAS   

 

USA, Europe, Asia, other

 

 

FACTORIES  

 

Yamagata, Sendai, Niigata, Fukushima, Mishima, Kofu, Gifu, Mie, Yamaguchi, Fukuoka

 

CHIEF EXEC

 

AKIHIRO TERAMACHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 115,330 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 34,606 M

TREND             SLOW              　WORTH         Yen 162,258 M

STARTED                     1971                 　EMPLOYES   7,816

 

 

COMMENT

 

MFR OF LINEAR MOTION SYSTEMS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 5,164.5 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast figures for the 31/03/2011 fiscal term.

 

 

HIGHLIGHTS

 

This is the pioneer mfr of linear motion systems (LMS), mainly for semiconductor-mfg equipment & machine tools.  Commands world’s largest market share of 60%.  Emphasizing products for automotive use.  Has newly-developed LM guide fixed with ball  retainers.  Stepping up sales base in China & India.  It plans to set up three sales bases and one R&D center in China.  It is also considering expansion of production/sales bases in India, Thailand and Vietnam.  It is pushing ahead with R&D of automobile parts and quake-absorbing equipment.  The three production bases in Tohoku area was hurt by the recent Earthquake & Tsunami but resumed operation on 01/04/2011, reports the firm.


FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 115,330 million, a 35.7% down from Yen 179,269 million in the previous term.  Global economic downturn affected the sales.  Demand declined substantially both at home and abroad.  Exports were hurt by the high Yen.  Operations plunged into the deficit to register Yen 8,797 million recurring loss and Yen 14,300 million net losses, respectively, compared with Yen 8,329 million recurring profit and Yen 1,204 million net profits, respectively, a year ago.　Wrote off extraordinary losses of Yen 5,404 million stemming from the goodwill depreciation charges.

 

(Apr/Dec/2010 results): Sales Yen 141,499 million (up 80.4%), operating profit Yen 15,999 million (previously Yen 11,048 million loss), recurring profit Yen 14,458 million (previously Yen 10,322 million loss), net profit Yen 9,407 million (previously Yen 8,066 million loss).  (% & figures compared with the corresponding period a year ago).

 

For the term that just ended Mar 2011 the recurring profit was projected at Yen 19,000 million and the net profit at Yen 12,000 million, on a 64.7% rise in turnover, to Yen 190,000 million.  Sales of linear motion guiding equipment and ball screws to machine tool mfrs were running in tip-top shape in Asia.  Domestic sales of products for industrial machinery and electric devices grew firmly.  The effects of the Tohoku Earthquake are not included in these figures.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,164.5 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Apr 1971

Regd No.:             (Tokyo-Shinagawaku) 006176

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:         467,877,700 shares

Issued:                133,856,903 shares

Sum:                   Yen 34,806 million

 

Major shareholders (%): State Street Bank & Trust (7.2), Japan Trustee Services T (5.7), Chase London SL Omnibus Acct (4.8), Master Trust Bank of Japan T (4.4), Akihiro Teramachi (4.3), Company’s Treasury Stock (3.9), Chase Manhattan Bank 385036 (3.2), Goldman Sachs (Regular Acct) (1.9), State Street Bank & Trust 505224 (1,8), FTC Co (1.5); foreign owners (49.4)

 

No. of shareholders: 22,885

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Akihiro Teramachi, pres; Masamichi Ishii, s/mgn dir; Takeshige Shirai, mgn dir; Toshihiro Teramachi, mgn dir; Hiroshi Konno, mgn dir; Takashi Okubo, dir; Tetsuya Hayashida, dir; Hideyuki Kiuchi, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: THK America, THK Europe, other.

 

 

OPERATION

 

Activities: Manufactures linear motion systems (e.g. LM guide & ball spine), ball screw, XY tables, link balls & rod ends, other:

For Industrial equipment-related (73%), transportation equipment (27%).

Overseas Sales Ratio (39.0%): USA (12.6%), Europe (11.0%), Asia, others (15.5%)

           

Clients: Mfrs, wholesalers, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

           

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (Shinjuku)

MUFG (Gotanda)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

115,330

179,269

 

  Cost of Sales

92,141

130,928

 

      GROSS PROFIT

23,189

48,340

 

  Selling & Adm Costs

32,697

39,817

 

      OPERATING PROFIT

-9,508

8,523

 

  Non-Operating P/L

711

-194

 

      RECURRING PROFIT

-8,797

8,329

　

      NET PROFIT

-14,300

1,204

BALANCE SHEET

 

 

 

 

  Cash

　

69,266

64,130

 

  Receivables

 

40,466

36,808

 

  Inventory

 

24,760

27,135

 

  Securities, Marketable

　

　

 

  Other Current Assets

8,968

7,295

 

      TOTAL CURRENT ASSETS

143,460

135,368

 

  Property & Equipment

79,841

85,001

 

  Intangibles

 

1,263

9,410

 

  Investments, Other Fixed Assets

11,810

10,571

 

      TOTAL ASSETS

236,374

240,350

 

  Payables

 

24,226

20,423

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

10,148

13,418

 

      TOTAL CURRENT LIABS

34,374

33,841

 

  Debentures

 

10,000

　

 

  Long-Term Bank Loans

20,000

20,000

 

  Reserve for Retirement Allw

4,796

4,322

 

  Other Debts

　

4,946

4,474

 

      TOTAL LIABILITIES

74,116

62,637

 

      MINORITY INTERESTS

 

 

 

Common stock

34,606

34,606

 

Additional paid-in capital

44,342

44,342

 

Retained earnings

98,703

114,998

 

Evaluation p/l on investments/securities

542

144

 

Others

 

(14,579)

(5,027)

 

Treasury stock, at cost

(11,356)

(11,351)

 

      TOTAL S/HOLDERS` EQUITY

152,258

177,712

　

      TOTAL EQUITIES

226,374

240,350

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

4,401

25,192

 

Cash Flows from Investment Activities

-7,322

-19,078

 

Cash Flows from Financing Activities

7,932

11,030

　

Cash, Bank Deposits at the Term End

　

69,266

64,130

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

152,258

177,712

 

 

Current Ratio (%)

417.35

400.01

 

 

Net Worth Ratio (%)

67.26

73.94

 

 

Recurring Profit Ratio (%)

-7.63

4.65

 

 

Net Profit Ratio (%)

-12.40

0.67

 

 

Return On Equity (%)

-9.39

0.68

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.45

UK Pound

1

Rs.71.59

Euro

1

Rs.63.01

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

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%)

 

 

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.