MIRA INFORM REPORT

 

 

Report Date :

24.10.2011

 

IDENTIFICATION DETAILS

 

Name :

MAX CO LTD

 

 

Registered Office :

6-6 Nihombashi-Hakozakicho Chuoku Tokyo 103-8502

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Year of Establishment :

November 1942

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 057739

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of staplers, air nailers

 

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 2,139.7 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 and 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

 

                        * The given address is its Tamamura Factory

 

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 (Tot 22)

 

FACTORIES  

 

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 54,463 M

PAYMENTS      REGULAR                     CAPITAL           Yen 12,367 M

TREND SLOW                          WORTH            Yen 62,357 M

STARTED         1942                             EMPLOYES      2,165

 

 

COMMENT

 

MFR SPECIALIZING IN STAPLERS & AIR NAILERS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY                                   BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 2,139.7 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2011 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.  As copier-built-in book-binding machines using plastic rings making good start, aiming to cultivate demand from new customers.  Developed IC time recorder capable of modifying software according to customer’s needs, and strengthening sales at agencies.  The firm increased its stake in equity-method subsidiary Kawamura Cycle Co Ltd, mfr of wheelchairs, thru TOB in May/June 2010, intending to beef up nursing-care equipment business. Kawamura Cycle also gives approval and plans to keep the listed company status at TSE.

 

           

FINANCIAL INFORMATION

 

            The sales volume for Mar/2011 fiscal term amounted to Yen 54,463 million, a 12.7% up from Yen 48,321 million in the previous term.  During the fiscal year under review, due to the positive results of the fiscal and monetary measured adopted in the countries of Europe and North America and the continued expansion of the economies of China and other emerging countries, the world economy showed gradual recovery.  By divisions, Office Equipment up 10.5% to Yen 21,481 million; Industrial Equipment up 5.0% to Yen 30,335 million.  The recurring profit was posted at Yen 4,166 million and the net profit at Yen 1,633 million, respectively, compared with Yen 1,998 million recurring profit and Yen 1,125 million net profit, respectively, a year ago.

           

            (Apr/June/2011 results): Sales Yen 13,126 million (up 8.9%), operating profit Yen 954 million (up 19.1%), recurring profit Yen 999 million (up 27.3%), net profit Yen 578 million (down 25.5%).  (% compared with the corresponding period a year ago). 

  

For the current term ending Mar 2011 the recurring profit is projected at Yen 5,300 million and the net profit at Yen 3,000 million, respectively, on a 8.3% rise in turnover, to Yen 59,000 million.  Max’s group operating profit likely climbed 11% on the year to slightly more than 2.1 billion yen in the April/September half, beating the existing projection of a 6& rise to 2 billion.  Ales at the manufacturer of office, industrial and housing equipment are believed to have risen 8% to nearly 28 billion yen.  Domestic sales of nailing machines recorded double-digit growth.

           

            The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,139.7 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: Nov 1942

Regd No.:        (Tokyo-Chuoku) 057739

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        145,383,000 shares

Issued:               50,500,626 shares

Sum:                  Yen 12,367 million

           

Major shareholders (%): Dai-ichi Life Ins (9.2), Nippon Life Ins (8.7), Company’s Daiichi Kyoeikai Assn (5.7) Japan Trustee Services Bank, T (4.9), Mizuho Bank (4.6), Gunma Bank (4.1), Trust & Custody Services Inv T (3.4), Meiji Yasuda Life Ins (3.3), Master Trust Bank of Japan T (3.3); foreign owners (4.3).

 

No. of shareholders: 3,683

 

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

 

Managements: Takashi Miida, pres & CEO; Toshio Yamada, mgn dir; Tadayoshi Ohta, mgn dir; Hiroshi Shiokawa, mgn dir; Hachiro Kawamura, mgn dir, Keishiro Murayama, dir; Koichi Higuchi, 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 (39%): 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 (56%): 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;

.Others (5%)

Overseas sales ratio (24.9%): N/S Americas 6.7%; Asia 10.7%; Europe/others 7.5%.

 

 

Clients: [Mfrs, wholesalers] Canon Finetech, Rocoh Elemex, Max USA Corp, Sekisui Home Techno, Ricoh, Max Europe BV, 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, Hitachi Metal Precision, 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

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

54,463

48,321

 

  Cost of Sales

33,552

31,202

 

      GROSS PROFIT

20,911

17,119

 

  Selling & Adm Costs

16,756

15,534

 

      OPERATING PROFIT

4,154

1,584

 

  Non-Operating P/L

12

414

 

      RECURRING PROFIT

4,166

1,998

　

      NET PROFIT

1,633

1,125

BALANCE SHEET

 

 

 

 

  Cash

　

7,032

7,282

 

  Receivables

 

12,584

11,361

 

  Inventory

 

7,031

5,760

 

  Securities, Marketable

5,545

4,010

 

  Other Current Assets

2,295

1,185

 

      TOTAL CURRENT ASSETS

34,487

29,598

 

  Property & Equipment

17,733

16,067

 

  Intangibles

 

216

269

 

  Investments, Other Fixed Assets

29,052

31,530

 

      TOTAL ASSETS

81,488

77,464

 

  Payables

 

3,845

3,104

 

  Short-Term Bank Loans

2,908

2,050

 

　

 

　

　

 

  Other Current Liabs

5,614

4,391

 

      TOTAL CURRENT LIABS

12,367

9,545

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

185

150

 

  Reserve for Retirement Allw

4,981

4,608

 

  Other Debts

　

1,596

1,464

 

      TOTAL LIABILITIES

19,129

15,767

 

      MINORITY INTERESTS

 

 

 

Common stock

12,367

12,367

 

Additional paid-in capital

10,517

10,518

 

Retained earnings

42,010

42,221

 

Evaluation p/l on investments/securities

(199)

9

 

Others

 

(2,251)

(3,338)

 

Treasury stock, at cost

(87)

(81)

 

      TOTAL S/HOLDERS` EQUITY

62,357

61,696

　

      TOTAL EQUITIES

81,488

77,464

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

3,813

8,011

 

Cash Flows from Investment Activities

-1,006

-6,307

 

Cash Flows from Financing Activities

-2,127

-1,987

　

Cash, Bank Deposits at the Term End

　

6,905

6,282

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

62,357

61,696

 

 

Current Ratio (%)

278.86

310.09

 

 

Net Worth Ratio (%)

76.52

79.64

 

 

Recurring Profit Ratio (%)

7.65

4.13

 

 

Net Profit Ratio (%)

3.00

2.33

 

 

Return On Equity (%)

2.62

1.82

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.06

UK Pound

1

Rs.79.15

Euro

1

Rs.69.03

 

 

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

--

NB

                                       New Business

 

--

 

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.