MIRA INFORM REPORT

 

 

Report Date :           

15.03.2011

 

IDENTIFICATION DETAILS

 

Name :

NHK SPRING CO Ltd

 

 

Registered Office :

3-10 Fukuura Kanazawaku Yokohama 236-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

September 1939

 

 

Com. Reg. No.:

(Yokohama-Kanazawaku) 003308

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of springs

 

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 11,915.0 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

 

NHK SPRING CO Ltd

 

 

REGD NAME 

 

Nippon Hatsujo KK

 

 

MAIN OFFICE

 

3-10 Fukuura Kanazawaku Yokohama 236-0004 JAPAN

Tel: 045-786-7511     Fax: 045-786-7598-

URL:                             http://www.nhk.spring.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of springs

 

 

BRANCHES   

 

Yokohama, Kita-Kanto, Hamamatsu, Nagoya, Osaka, Hiroshima, Fukuoka

 

 

OVERSEAS   

 

Thailand (4), Taiwan, Hong Kong (2), Malaysia, China (4), USA (5), Brazil, India, Spain (--subsidiaries)

 

 

FACTORIES

 

Yokohama, Shiga, Gunma, Toyota, Atsugi, Ina, Komagane, Yasu, Isehara

 

 

CHIEF EXEC 

 

KAZUMI TAMAMURA, PRE

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 　A/SALES       Yen 404,143 M

PAYMENTS      REGULAR         　CAPITAL        Yen 17,009 M

TREND             SLOW              　WORTH         Yen 144,533 M

STARTED         1939                 　EMPLOYES   13,949

 

 

COMMENT    

 

MFR OF SPRINGS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 11,915.0 MILLION, 30 DAYS NORMAL TERMS

 

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

 

 

HIGHLIGHTS

 

The subject company is the top-ranked mfr of springs, mainly producing car suspensions and seats and seat springs.  Information-related springs showing fast growth.  Fostering computerized security equipment including card reader-writer terminals.  Other non-automotive lines include precision suspensions for HDD core parts.  The company plans a Yen 68 billion investment for three years from the March 2012 term.  It plans to build two seat plants in China, slated to start production in 2012, following Thailand, in attempt to boost demand in the newly-emerging countries.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 404,143 million, an 8.3% down from Yen 440,908 million in the previous term.  Global economic downturn affected the sales particularly in the first half of the term.  In the automobile industry, its major focus of the group, domestic production fell 11.4%.  In IT equipment, PC demand increased and HDDs production trended up, but not sufficient to compensate for the fall in automobile production.  Exports were hurt by the high Yen.  By divisions, Suspension Springs down 19.3% to Yen 81,624 million, as the fall in automobile production led to a reduction of orders; Seating Products down 3.8% to Yen 163,331 million; Precision Springs & Components down 4.1% to Yen 126,922 million, as orders declined from the automobile industry; Industrial Equipment down 13.8% to Yen 32,266 million, as the poor economic conditions resulted in a fall in sales of the industry and lifestyle sectors.  The recurring profit was posted at Yen 17,361 million and the net profit at Yen 10,290 million, respectively, compared with Yen 12,925 million recurring profit and Yen 5,262 million net profit, respectively, a year ago.　.

 

(Apr/Dec/2010 results): Sales Yen 344,306 million (up 20.3%), operating profit Yen 25,277 million (up 193.5%), recurring profit Yen 25,090 million (207.3%), net profit Yen 15,297 million (up 161.9%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 32,000 million and the net profit at Yen 19,000 million, on an 11.3% rise in turnover, to Yen 450,000 million.  Sales of seats & springs for automobiles will increase, offsetting a sales drop from the absence of government’s subsidy with brisk demand in the newly-emerging countries.  Profit margin will widen, in line with the sales growth of finished seats.  Operating profit will increase, despite a fall in sales of HDD springs in the second half and the strong Yen.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 11,915.0 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　      Sept 1939

Regd No.:                                 (Yokohama-Kanazawaku) 003308

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  600 million shares

Issued:                          244,066,144shares

Sum:                             Yen 17,009 million

 

Major shareholders (%): MTBJ (Daido Steel) (12.6), Japan Trustee Services T (9.1), Sojitz Corp (4.5), Metal One Corp (4.5), Company’s Treasury Stock (4.0), Master Trust Bank of Japan T (3.9), TCSB (Kobe Steel) (3.8), Japan Trustee Services T9 (2.7), TCSB (Mizuho Corporate Bank) (2.3), Bank of Yokohama (2.3); foreign owners (17.2)

 

No. of shareholders: 10,369

 

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

 

Managements: Kenji Sasaki, ch; Kazumi Tamamura, pres; Tsutomu Yamaguchi, v pres; Akira Yamazaki, s/mgn dir; Shoichi Hara, s/mgn dir; Takao Itoi, s/mgn dir; Shigeru Yasuda, mgn dir; Mitsushige Kawakubo, mgn dir; Kaoru Hatayama, mgn dir; Hiroyuki Kado, mgn dir

 

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

 

Related companies: NHK Sales Co, NHK Spring (Thailand) Co, other.

 

OPERATION

           

Activities: Manufactures automobile-related springs, seats, seat springs:

 

(Sales Breakdown by Divisions):

 

Suspension Springs Division (20%): coil springs, leaf springs, torsion bars, solid & tubular stabilizers, stabilizer links, bellows accumulator;

 

Seating Division (41%): sporty seat with active headrest, power seats for recreational vehicles, air suspension seat, cushion restraint devices;

 

Precision Spring & Components Division (31%): wire springs, flat springs, functional components for automobiles, functional components for OA & IT products, mechanical parts for HDD, micro contactors;

 

Industrial Machinery & Equipment Division (8%): pipe supports, blazed products, multiple level automotive parking systems, sealing materials, gaskets, metal base printed wiring boards, other.

 

Overseas Trading Ratio (36.3%): North America 9.6%, Asia 26.3%, others 0.4%

           

Clients: [Mfrs, wholesalers] Fuji Heavy Ind, Suzuki Motor, Isuzu Motors, Toyota Motors, Shenzhen Hailiang Storage Products, Fujitsu Ltd, Honda Motors, Nippatsu Parking Systems, Toyota Boshoku Co, Faurecia-NHK Co, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Metal One Corp, Fuji Heavy Ind, Toyota Boshoku Co, Nitto Denko Corp, Yokohama Kiko Co, Shiroki Corp, Sumihatsu Co, other

 

Payment record: Regular

 

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

 

Bank References:

Misuzu Corporate Bank (Yokohama)

Bank of Yokohama (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

404,143

440,908

 

  Cost of Sales

353,303

396,219

 

      GROSS PROFIT

50,839

44,689

 

  Selling & Adm Costs

32,053

34,229

 

      OPERATING PROFIT

18,785

10,459

 

  Non-Operating P/L

-1,154

2,466

 

      RECURRING PROFIT

17,631

12,925

　

      NET PROFIT

10,290

5,262

BALANCE SHEET

 

 

 

 

  Cash

　

36,021

31,490

 

  Receivables

 

88,337

61,241

 

  Inventory

 

30,697

34,843

 

  Securities, Marketable

　

　

 

  Other Current Assets

18,659

16,291

 

      TOTAL CURRENT ASSETS

173,714

143,865

 

  Property & Equipment

126,245

133,439

 

  Intangibles

 

2,794

3,874

 

  Investments, Other Fixed Assets

54,388

43,710

 

      TOTAL ASSETS

357,141

324,888

 

  Payables

 

94,229

68,373

 

  Short-Term Bank Loans

30,641

46,941

 

　

 

　

　

 

  Other Current Liabs

28,545

26,146

 

      TOTAL CURRENT LIABS

153,415

141,460

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

32,586

36,118

 

  Reserve for Retirement Allw

11,791

12,707

 

  Other Debts

　

14,816

9,558

 

      TOTAL LIABILITIES

212,608

199,843

 

      MINORITY INTERESTS

 

 

 

Common stock

17,009

17,009

 

Additional paid-in capital

17,295

17,295

 

Retained earnings

97,962

89,408

 

Evaluation p/l on investments/securities

14,673

7,534

 

Others

 

2,336

(1,549)

 

Treasury stock, at cost

(4,742)

(4,653)

 

      TOTAL S/HOLDERS` EQUITY

144,533

125,044

　

      TOTAL EQUITIES

357,141

324,888

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

42,807

22,639

 

Cash Flows from Investment Activities

-17,777

-29,303

 

Cash Flows from Financing Activities

-22,465

15,806

　

Cash, Bank Deposits at the Term End

　

35,379

32,253

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

144,533

125,044

 

 

Current Ratio (%)

113.23

101.70

 

 

Net Worth Ratio (%)

40.47

38.49

 

 

Recurring Profit Ratio (%)

4.36

2.93

 

 

Net Profit Ratio (%)

2.55

1.19

 

 

Return On Equity (%)

7.12

4.21

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.15

UK Pound

1

Rs.72.59

Euro

1

Rs.62.95

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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