MIRA INFORM REPORT

 

 

Report Date :

15.09.2012

 

IDENTIFICATION DETAILS

 

Name :

HITACHI KOKUSAI ELECTRIC INC

 

 

Registered Office :

Akihabara UDX Bldg, 4-14-1 Sotokanda Chiyodaku Tokyo 101-8980

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

Nov 1949

 

 

Com. Reg. No.:

0100-01-098064

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of information equipment & electronic parts

 

 

No. of Employees :

5,477

 

 

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

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

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

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company name

 

HITACHI KOKUSAI ELECTRIC INC

 

REGD NAME:    KK Hitachi Kokusai Denki

MAIN OFFICE:  Akihabara UDX Bldg, 4-14-1 Sotokanda Chiyodaku Tokyo 101-8980 JAPAN

Tel: 03-5209-5931     Fax: 03-5209-6119     -

 

URL:                 http://www.hitachi-kokusai.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of information equipment & electronic parts

 

 

BRANCHES        

 

Sapporo, Sendai, Nagoya, Osaka, Hiroshima, Kagawa, Fukuoka

 

 

OVERSEAS

 

USA, Europe, China, other

 

 

FACTORIES  

 

Toyama, Hamura (Tokyo-Metrop), Koganei, Sendai

 

 

CHIEF EXEC 

 

MANABU SHINOMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 　A/SALES       Yen 147,184 M

PAYMENTS No complaints        　CAPITAL        Yen 10,058 M

TREND UP                    　WORTH         Yen 78,243 M

STARTED         1949                 　EMPLOYES   5,477

 

 

COMMENT    

 

MFR OF COMMUNICATIONS EQUIPMENT & ELECTRONICS PARTS, BELONGING TO HITACHI LTD GROUP 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Unit: In Million Yen

Forecast figures for the 31/03/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is a leading mfr of information equipment, including amplifiers for NTT DoCoMo’s mobile phone base stations and semiconductor-mfg systems.  In Oct 2000, the firm was reorganized out of a merger of Hitachi group firms, Kokusai Electric, Hitachi Electronics & Yagi Antenna, with Kokusai Electric as a surviving entity.  It also manufactures pagers, mobile phones and stations for radio ground stations.  The firm intends to stress the video & wireless system business in Middle East and Asia, following Brazil.  In the domestic market, a new building on its Koganei Plant site will be constructed, and production will be transferred from its Hamura Plant to the Koganei Plant.  NTT and Defense Agency are the main clinets.

 

 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 147,184 million, a 2.1% up from Yen 142,706 million in the previous term.  In Oct 2011 acquired a Brazil’s top maker of broadcasting equipment and made it a subsidiary as Hitachi Kokusai Linear Electronic Equipments SA.  Sales increased.  By Divisions; Image & Radio Network up 0.8% to  Yen 81,129 million; Eco & Thin Film Process up 6.4% to Yen 65,330 million.  The recurring profit was posted at Yen 8,636 million and the net profit at Yen 5,120 million, respectively, compared with Yen 3,689 million recurring profit and Yen 5,065 million net losses, respectively, a year ago. 

 

            (Apr/Jun/2012 results): Sales Yen 27,599 million (down 10.4%), operating loss Yen 391 million (previously Yen 1,401 million profit), recurring loss yen 304 million (previously Yen 1,750 million profit), net losses Yen 738 million (previously Yen 161 million profit).  (% & figures compared with the corresponding period a year ago)

           

            For the current term ending Mar 2013 the recurring profit is projected at Yen 7,000 million and the net profit at Yen 4,000 million, on a 2.8% fall in turnover, to Yen 143,000 million.  Sales of main profit-earner semiconductor-mfg equipment are likely to decrease, but inquiries from Taiwan are active.  New orders are exceeding the company’s targets in the first half, thanks to hold steady in South Korea.   

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

           

Date Registered:　Nov 1949

Regd No.:         0100-01-098064 (Tokyo-Chiyodaku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       400 million shares

Issued:                105,221,259 shares

Sum:                   Yen 10,058 million

 

Major shareholders (%): Hitachi Ltd (50.4), Mater Trust Bank of Japan T (4.9), Japan Trustee Services T (4.0), Japan Trustee Services T9 (2.9), Company’s Treasury Stock (2.2), Nippon Vest (1.2), State Street Bank & Trust 505104 (1.0), BBH Lux Fidelity F (0.9), Nomura Trust Inv T (0.7), State Street Bank & Trust (0.6); foreign owners (12.0)

 

No. of shareholders: 6,564

           

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

 

Managements: Junzo Nakajima, ch; Manabu Shinomoto, pres; Kenshiro Koto, v pres; Tadahiko Ishigaki, v pres; Yoshifumi Nomura, v pres; Hideyuki Hagiwara, s/mgn dir; Tetsuo Takemura, s/mgn dir; Takeo Kawano, s/mgn dir

 

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

 

Related companies: Yagi Antenna, other.

 

 

 

OPERATION

           

Activities: Manufactures information equipment: Image & radio Network (55%),Eco & thin film process (44%), others (1%)

 

(Mfg items):

Semiconductor Equipment Div: semiconductor mfg systems;

Defense Electronics Div: wireless telephone systems for air traffic control, aircraft communication systems, shipboard communications;

Mobile Systems: radio communications equipment (basis station equipment, radio packet communications equipment, local communications systems business-purpose radio equipment);

Government & Public Communication Systems: radio communications equipment (disaster-prevention administrative radio systems) communications systems for governmental establishments and public enterprises, information display systems;

Broadcasting & Video Systems: broadcasting equipment, business-purpose video cameras, image processing and monitoring equipment, electronics meters & gauges;

Information Systems: information solutions, broadcasting tapeless systems, other

           

Clients: [Mfrs, governments, wholesalers] Samsung Japan, TSMC, Integra Memories, Kokusai Electric Korea Co Ltd, Defense Agency, NHK, Kokusai Semiconductor Equipment Corp, NTT DoCoMo, Hitachi Capital, Nana Technology Corp, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Hitachi Kokusai Electric Service, Hitachi Kokusai Electric Engineering, Hitachi Ltd, Kokusai Electric Semiconductor Service, Yagi Antenna, Hitachi Information & Control Solutions, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (Uchisaiwaicho)

MUFG (Tokyo)

Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

147,184

142,706

 

  Cost of Sales

106,149

108,410

 

      GROSS PROFIT

41,035

34,296

 

  Selling & Adm Costs

32,721

30,340

 

      OPERATING PROFIT

8,314

3,956

 

  Non-Operating P/L

322

-267

 

      RECURRING PROFIT

8,636

3,689

　

      NET PROFIT

5,120

-5,065

BALANCE SHEET

 

 

 

 

  Cash

　

12,001

10,775

 

  Receivables

 

39,705

40,044

 

  Inventory

 

28,988

30,042

 

  Securities, Marketable

　

　

 

  Other Current Assets

40,250

40,550

 

      TOTAL CURRENT ASSETS

120,944

121,411

 

  Property & Equipment

21,448

20,999

 

  Intangibles

 

5,226

2,466

 

  Investments, Other Fixed Assets

4,447

4,908

 

      TOTAL ASSETS

152,065

149,784

 

  Payables

 

30,980

28,813

 

  Short-Term Bank Loans

554

815

 

　

 

　

　

 

  Other Current Liabs

19,066

21,295

 

      TOTAL CURRENT LIABS

50,600

50,923

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

19,312

20,061

 

  Other Debts

　

3,910

5,097

 

      TOTAL LIABILITIES

73,822

76,081

 

      MINORITY INTERESTS

 

 

 

Common stock

10,058

10,058

 

Additional paid-in capital

26,203

26,204

 

Retained earnings

43,218

39,124

 

Evaluation p/l on investments/securities

61

150

 

Others

 

1,309

762

 

Treasury stock, at cost

(2,606)

(2,595)

 

      TOTAL S/HOLDERS` EQUITY

78,243

73,703

　

      TOTAL EQUITIES

152,065

149,784

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

7,607

3,655

 

Cash Flows from Investment Activities

-6,141

-2,488

 

Cash Flows from Financing Activities

-1,963

-1,892

　

Cash, Bank Deposits at the Term End

　

43,969

44,629

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

78,243

73,703

 

 

Current Ratio (%)

239.02

238.42

 

 

Net Worth Ratio (%)

51.45

49.21

 

 

Recurring Profit Ratio (%)

5.87

2.59

 

 

Net Profit Ratio (%)

3.48

-3.55

 

 

Return On Equity (%)

6.54

-6.87

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.72

UK Pound

1

Rs.88.60

Euro

1

Rs.71.34

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.