MIRA INFORM REPORT

 

 

Report Date :           

19.04.2012

 

IDENTIFICATION DETAILS

 

Name :

SODICK CO LTD

 

 

Registered Office :

3-12-1 Nakamachidai Tsuzukiku Yokohama 224-8522

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

August 1976

 

 

Com. Reg. No.:

0200-01-020736 (Yokohama-Tsuzukiku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of NC electro dischargers   

 

 

No. of Employees :

2,998

 

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 1,079.9 Million

Status :

Good

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

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

 

SODICK CO LTD

 

 

REGD NAMe

 

Sodick KK

 

 

MAIN OFFICE

 

3-12-1 Nakamachidai Tsuzukiku Yokohama 224-8522 JAPAN

Tel: 045-942-3111     Fax: 045-943-5835

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of NC electro dischargers   

 

 

BRANCHES

 

Sendai, Saitama, Nagoya, Osaka, Kyoto, Osaka, other (Tot 14)

 

 

OVERSEAS

 

China (2), Singapore, Europe, other

 

 

FACTORIES

 

Fukui; Suzhou (China), Bangkok (Thailand)

 

CHIEF EXEC 

 

KATSUHIDE FUJIWARA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR 　A/SALES                                   Yen 54,213 M

PAYMENTS      REGULAR         　CAPITAL        Yen 20,775 M

TREND             UP                    　WORTH         Yen 28,158 M

STARTED         1976　EMPLOYES        2,998

 

 

COMMENT

 

MFR OF NC MACHINE TOOLS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,079.9 MILLION, 30 DAYS NORMAL TERMS

 

 

 

                        Unit: In Million Yen

Forecast (or estimated) figures for 30/03/2012 fiscal term

 

 

HIGHLIGHTS

 

The subject company is pioneer & top-ranked mfr of NC electro dischargers.  Ranked second in the world.  Maintains strong market share in linear motor-driven type lector dischargers.  Has mfg bases in Suzhou (China) and Thailand.  Transferred the function at Yokohama office to the headquarter plant office in Fukui-Pref, except for the financial section.  It will reduce annual costs by approx Yen 1 billion.  Production of molding machines will enter a full-fledged growth phase at its plant in Amoy, China.  The firm intends to shift to its production to overseas, to reduce exchange risks.  It will market linear motors manufactured in-house for internal use to outside firms.  The company will construct a new plant at the upland in Thailand at the cost of Yen 1.2 billion with start-up slated for Sept 2012, and boost production capacity at the plants in Xiamen and Suzhou, to decentralize production bases.  It made Sodick Plustech its wholly owned subsidiary through TOB.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 54,213 million, a 47.5% up from Yen 36,761 million in the previous term.  The Japanese economy continued to stage a moderate recovery as industry profits improved thanks to rising exports to emerging economies in Asia as well as economic-stimulus packages including public subsidies for purchases of consumer durables such as environment friendly cars and electric appliances.  Thanks to the growth in the market for LED products, capital investment demand increased also for injection molding machinery for LED product appliances.  In the product development, the firm worked on machine tools with superior cost performance for markets in the emerging economies, says the firm.   The operations came back to profitability to post Yen 3,944 million recurring profit and Yen 5,111 million net profit, respectively, compared with Yen 3,073 million recurring loss and Yen 3,669 million net losses, respectively, a year ago.

 

(Apr/Dec/2011 results): Sales Yen 41,084 million (up 4.2%), operating profit Yen 4,659 million (up 16.2%), recurring profit Yen 3,068 million (up 28.9%), net profit Yen 1,096 million (down 66.7%).  (% & figures compared with the corresponding period a year ago).

 

For the term just ended Mar 2012 the recurring profit was projected at Yen 3,000 million and the net profit at Yen 2,000 million, respectively, on a 1.4% rise in turnover, to Yen 55,000 million.  Production of electro dischargers, whose sales performed well is the term’s start, are delayed, hit by the floods in Thailand.  Operating profits show a setback against estimates, affected by the Yen’s appreciation.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,079.9 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Aug 1976

Regd No.:           0200-01-020736 (Yokohama-Tsuzukiku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         150 million shares

Issued:               53,432,510 shares

Sum:                   Yen 20,775 million

 

Major shareholders (%): Company’s Treasury Stock (7.3), Japan Trustee Services T (2.3), Toshihiko Furukawa (2.2), T F Ltd (2.1), Customers’ Kyoeikai Assn (1.8), Hideo Ohmura (1.6), SMBC (1.5), Japan Trustee Services T9 (1.3), Masaaki Suzuki (1.3),  Hokuriku Bank (1.3; foreign owners (5.1)

 

No. of shareholders: 15,415

 

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

 

Managements: Toshihiko Furukawa, ch; Katsuhide Fujiwara, pres; Akio Hosaka, v pres;  Keisuke Takagi, s/mgn dir; Yuji Kaneko, s/mgn dir; Takashi Matsui, mgn dir; Kosaku Karato, mgn dir; Ken’ichi Furukawa, mgn dir; Mitsuhiro Kubo, dir; Shuji Okazaki, dir

 

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

 

Related companies: Sodick Plastic, other

           

 

OPERATION

           

Activities: Manufactures NC machine tools (66%), industrial machinery (18%), Precision metal molds & formed products (6%), food machinery (5%), others (5%)

 

Overseas Sales Ratio (53.0%): Americas 6.9%, Europe 8.8%, Asia, others (37.3%)

 

(Mfg items): CNC die-sinker EDM, CNC wire EDM, CNC high-speed small hole drilling EDM, customized EDM & optional equipment (pallet changers & robots), CNC & power supply devices, precision EDM tooling, high speed precision milling center, nano-level precision machines, computer integrated mfg, high-precision injection molding machines, engineering ceramics, linear motors for machine tool & industrial production machines, electrochemical machines, EDM wires, precision tool and precise molding goods, electronic components, software, food machines, other.

           

Clients: [Mfrs, wholesalers] Yuasa Trading, Sodick Europe, Kanematsu KGK, Sodick Singapore, Sodick Inc, Yamazen Corp, other

           

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sodick Thailand, Sodick Engineering, THK, Sodick EMG, Sodick FA, Yasukawa Mechatrec, other.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Yokohama-Ekimae)

Mizuho Bank (Yokohama)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

54,213

36,761

 

  Cost of Sales

36,592

27,877

 

      GROSS PROFIT

17,621

8,883

 

  Selling & Adm Costs

12,027

11,575

 

      OPERATING PROFIT

5,594

-2,692

 

  Non-Operating P/L

-1,650

-381

 

      RECURRING PROFIT

3,944

-3,073

　

      NET PROFIT

5,111

-3,669

BALANCE SHEET

 

 

 

 

  Cash

　

16,622

15,817

 

  Receivables

 

14,217

11,653

 

  Inventory

 

17,671

13,595

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,056

1,091

 

      TOTAL CURRENT ASSETS

51,566

42,156

 

  Property & Equipment

21,829

23,786

 

  Intangibles

 

2,567

2,743

 

  Investments, Other Fixed Assets

3,548

4,082

 

      TOTAL ASSETS

79,510

72,767

 

  Payables

 

9,568

7,037

 

  Short-Term Bank Loans

12,065

21,687

 

　

 

　

　

 

  Other Current Liabs

10,824

8,057

 

      TOTAL CURRENT LIABS

32,457

36,781

 

  Debentures

 

58

792

 

  Long-Term Bank Loans

16,965

9,303

 

  Reserve for Retirement Allw

1,072

1,005

 

  Other Debts

　

800

1,038

 

      TOTAL LIABILITIES

51,352

48,919

 

      MINORITY INTERESTS

 

 

 

Common stock

20,775

20,775

 

Additional paid-in capital

5,879

6,949

 

Retained earnings

4,181

(1,990)

 

Evaluation p/l on investments/securities

27

33

 

Others

 

(569)

216

 

Treasury stock, at cost

(2,135)

(2,135)

 

      TOTAL S/HOLDERS` EQUITY

28,158

23,848

　

      TOTAL EQUITIES

79,510

72,767

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

3,216

7,256

 

Cash Flows from Investment Activities

-167

-693

 

Cash Flows from Financing Activities

-1,965

-9,437

　

Cash, Bank Deposits at the Term End

　

16,615

15,804

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

28,158

23,848

 

 

Current Ratio (%)

158.87

114.61

 

 

Net Worth Ratio (%)

35.41

32.77

 

 

Recurring Profit Ratio (%)

7.28

-8.36

 

 

Net Profit Ratio (%)

9.43

-9.98

 

 

Return On Equity (%)

18.15

-15.38

           


FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.50

UK Pound

1

Rs.81.99

Euro

1

Rs.67.54

 

 

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.