MIRA INFORM REPORT
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Report Date : |
17.06.2011 |
IDENTIFICATION DETAILS
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Name : |
HITACHI METALS Ltd |
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Registered Office : |
1-2-1 Shibaura
Minatoku Tokyo 105-8614 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
April 1956 |
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Com. Reg. No.: |
(Tokyo-Minatoku) 038783 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of high-quality special steel, electronics
& IT device |
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 14,569.1 Million |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
HITACHI METALS Ltd
REGD NAME
Hitachi Kinzoku KK
MAIN OFFICE
1-2-1 Shibaura
Minatoku Tokyo 105-8614 JAPAN
Tel:
03-5765-4000 -
URL: http://www.hitachi-metals.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of
high-quality special steel, electronics & IT device
BRANCHES
Osaka,
Nagoya, Fukuoka, Kumagaya, other (Tot 8)
OVERSEAS
New
York, Dusseldorf, London, Paris, Hong Kong, Beijing, Singapore, other
FACTORIES
Fukuoka,
Shimane, Osaka, Tottori, Wakayama, other (Tot 10 factories; 4 R&D)
CHIEF EXEC
HIROYUKI
FUJII, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES
FAIR A/SALES Yen 520,186 M
PAYMENTS REGULAR CAPITAL Yen
6,857 M
TREND STEADY WORTH Yen 228,010 M
STARTED 1956 EMPLOYES 804
COMMENT
MFR OF HIGH-QUALITY SPECIAL STEEL, ELECTRONICS & IT
DEVICE.
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 14,569.1 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company was established on the basis of an iron & steel
division separated from Hitachi Ltd (See REGISTRATION). This is a major mfr of high-quality special
steel. Now this is the leading strategic
company of Hitachi group. Expanded into
diverse electronic materials and new materials.
World’s top maker of magnetic materials.
Also engaged in overseas production.
The company aims to form a JV with Molycorp (USA), owner of rare earth
deposits. It intends to expand
production facilities for materials for electric equipment in Japan, to cope
with increasing demand in the newly emerging countries.
(Recent news from
the Nikkei dated 01/Mar/2011)
6 Firms Ally On JV For Aircraft Titanium Material: Hitachi Metals Ltd,
Kobe Steel Ltd, IHI Corp and Kawasaki Heavy Industries Ltd – said they have set
up a joint venture to produce a titanium material for aircraft fuselages and
engine parts. Marubeni-Itochu Inc and
Sojitz Aerospace Corp will join the companies later this month, boosting the
venture’s capital to Yen 1.85 million.
The consortium will receive government subsidies to build, starting this
month, a domestic plant to mfr large forgings.
The venture, Japan Aeroforge Ltd, is headquartered in Tokyo’s Chuo
Ward. Hitachi Metals and Kobe Steel will
be the largest shareholders, with stakes of 40.5% each. The group targets sales of Yen 13 billion in
fiscal 2017.
FINANCIAL INFORMATION
The sales volume for Mar/2011 fiscal term amounted to Yen 520,186
million, a 20.5% up from Yen 431,683 million in the previous term. The global economy registered an overall tone
of recovery. In China, business activity
expanded, especially in the domestic market.
In US & Europe, business likewise picked up and was generally
maintained. Sales grew in all
segments. By Divisions, High-Quality
Metals Div up 20.0% to Yen 225,624 million; Electronics & Information Parts
Div up 26.6% to Yen 133,975 million; High-end Functional Div up 17.3% to Yen
161,847 million. The recurring profit
was posted at Yen 37,591 million and the net profit at Yen 22,204 million,
respectively, compared with Yen 10,033 million recurring profit and Yen 1,937
million net profit, respectively, a year ago. .
For the current term ending Mar 2011, the firm says: with regard to the
outlook for consolidated business performance in the next term, at the present stage
in time, it is difficult to gauge the full impact of the disaster and the
planned power outages that have followed on economic activity and personal
consumption as well as on the performance of Hitachi Metals Group itself. For ramifications for performance outlook,
therefore, we will be scrutinizing the situation from here on out and pledge to
disclose figures as soon as the results of those studies have been compiled.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 14,569.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr 1956
Regd No.: (Tokyo-Minatoku) 038783
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 500 million shares
Issued:
366,557,889shares
Sum: Yen 26,284
million
Major shareholders
(%):
Hitachi Ltd* (52.8), Master Trust Bank of Japan (5.7), Japan Trustee Services
Bank (5.6), Company’s Treasury Stock (3.8), State Street Bank & Trust (2.5),
Northern Trust Co (1.3), Nomura Trust Inv T (1.1), Credit Swiss Securities USA
(1.1), Melon Bank (1.0), Daido Steel (0.9); foreign owners (16.0)
*.. Largest comprehensive mfr of electrical machinery, Tokyo, founded
1920, listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, New York S/E’s, capital
Yen 408,818 million, sales Yen 9,315,807 million, operating profit Yen 444,508
million, recurring profit Yen 432,201 million, net profit Yen 238,869 million,
total assets Yen 9,185,629 million, net worth Yen 1,439,865 million, employees
361,745, pres Yoshie Ohta
No. of
shareholders: 8,894
Listed on the
S/Exchange (s) of: Tokyo, Osaka
Managements: Nobuo Mochida,
ch; Hiroyuki Fujii, pres; Yorihiko Shima, s/mgn dir; Naoki Hamamoto, s/mgn dir;
Shin’ichiro Murayama, mgn dir
Nothing detrimental is
known as to the commercial morality of executives.
Related companies: Hitachi Metals
Techno Ltd, Hitachi Tool, Hitachi Metals Admet Ltd, other.
OPERATION
Activities: Manufactures:
High-Grade Metal
Products & Materials (43%): molds & tool sheets, alloys for
electronic products (display-related, semiconductor & other packages),
industrial equipment & energy-related materials, rolls for steel,
nonferrous & non-metal applications, injection molding machine parts, structural
ceramic products, steel-flame joints for construction, cutting tools;
Electronics &
IT Devices (26%): magnets (rare-earth magnets, ferrite magnetic materials, and applied
products), components for information & telecommunications equipment (multilayered
devices, isolators), IT components & materials, soft magnetic materials
(soft ferrite cores & applied products, nanocrystaline magnetic materials,
and applied devices, amorphous metals, and applied products);
High-Grade
Functional Components & Equipment (31%): high-grade casting components for
automobiles (high-grade ductile iron products, heat-resistant exhaust casting
components, aluminum wheels, other aluminum components), piping &
infrastructure components (pipe fittings, stainless steel & plastic piping
components, water cooling equipment, precision mass flow control devices),
construction components (access floor systems, structural systems, material
handling systems).
Overseas Sales
Ratio (42.7%): North America 10.7%, Europe 7.8%, others 1.4%
Clients: [Mfrs,
wholesalers] Nissan Motors, Samsung Electronics Co, Tokyo Gas, other
No. of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui Metal Mining, Hitachi Ltd, other
Payment record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
MUFG
(Tokyo)
Mizuho
Corporate Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2011 |
31/03/2010 |
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INCOME STATEMENT |
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Annual Sales |
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520,186 |
431,683 |
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Cost of Sales |
406,282 |
352,382 |
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GROSS PROFIT |
113,904 |
79,301 |
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Selling & Adm Costs |
70,761 |
65,952 |
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OPERATING PROFIT |
43,143 |
13,349 |
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Non-Operating P/L |
-5,552 |
-3,316 |
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RECURRING PROFIT |
37,591 |
10,033 |
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NET PROFIT |
22,204 |
1,937 |
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BALANCE SHEET |
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Cash |
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28,712 |
31,175 |
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Receivables |
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95,728 |
90,564 |
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Inventory |
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108,606 |
84,724 |
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Securities, Marketable |
17 |
416 |
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Other Current Assets |
26,563 |
32,898 |
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TOTAL CURRENT ASSETS |
259,626 |
239,777 |
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Property & Equipment |
186,032 |
198,434 |
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Intangibles |
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49,552 |
50,592 |
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Investments, Other Fixed Assets |
34,659 |
29,181 |
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TOTAL ASSETS |
529,869 |
517,984 |
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Payables |
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78,145 |
67,213 |
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Short-Term Bank Loans |
48,422 |
52,874 |
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Other Current Liabs |
49,186 |
50,178 |
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TOTAL CURRENT LIABS |
175,753 |
170,265 |
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Debentures |
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24,000 |
24,000 |
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Long-Term Bank Loans |
20,105 |
40,000 |
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Reserve for Retirement Allw |
22,072 |
21,299 |
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Other Debts |
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59,929 |
49,637 |
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TOTAL LIABILITIES |
301,859 |
305,201 |
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MINORITY INTERESTS |
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Common
stock |
26,284 |
26,284 |
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Additional
paid-in capital |
41,244 |
41,243 |
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Retained
earnings |
170,471 |
150,470 |
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Evaluation
p/l on investments/securities |
3,812 |
1,861 |
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Others |
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(3,107) |
3,589 |
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Treasury
stock, at cost |
(10,694) |
(10,664) |
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TOTAL S/HOLDERS` EQUITY |
228,010 |
212,783 |
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TOTAL EQUITIES |
529,869 |
517,984 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2011 |
31/03/2010 |
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Cash
Flows from Operating Activities |
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42,688 |
57,012 |
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Cash
Flows from Investment Activities |
-24,607 |
-21,495 |
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Cash
Flows from Financing Activities |
-25,156 |
-25,252 |
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Cash,
Bank Deposits at the Term End |
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33,994 |
43,639 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
228,010 |
212,783 |
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Current
Ratio (%) |
147.72 |
140.83 |
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Net
Worth Ratio (%) |
43.03 |
41.08 |
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Recurring
Profit Ratio (%) |
7.23 |
2.32 |
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Net
Profit Ratio (%) |
4.27 |
0.45 |
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Return
On Equity (%) |
9.74 |
0.91 |
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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.44.90 |
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UK Pound |
1 |
Rs.72.54 |
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Euro |
1 |
Rs.63.39 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.