MIRA
INFORM REPORT
|
Report Date : |
12.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
SUMITOMO PRECISION PRODUCTS CO LTD |
|
|
|
|
Registered Office : |
1-10 Fusocho Amagasaki Hyogo-Pref 660-0891 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
January1961 |
|
|
|
|
Com. Reg. No.: |
1410-01-049416 (Hyogo-Amagasaki) |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of aircraft equipment (propellers, wheels) |
|
|
|
|
No. of Employees : |
1379 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 small agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. While self-sufficient in rice production, Japan imports about 60%
of its food on a caloric basis. 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. Modest economic
growth continued after 2000, but the economy has fallen into recession three
times since 2008. A sharp downturn in business investment and global demand for
Japan's exports in late 2008 pushed Japan 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 and the
ensuing tsunami in March disrupted manufacturing. The economy has largely
recovered in the two years since the disaster, but reconstruction in the Tohoku
region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared
the economy his government's top priority; he has pledged to reconsider his
predecessor's plan to permanently close nuclear power plants and is pursuing an
economic revitalization agenda of fiscal stimulus and regulatory reform and has
said he will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 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 2012. The new government will continue a longstanding debate 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
SUMITOMO PRECISION PRODUCTS CO LTD
REGD NAME
Sumitomo Seimitsu
KK
MAIN OFFICE
1-10 Fusocho Amagasaki Hyogo-Pref
660-0891JAPAN
Tel:
06-6482-8811
Fax: 06-6489-5801-
URL: http://www.spp.co.jp
E-Mail address: info@spp.co.jp
ACTIVITIES
Mfg of
aircraft equipment (propellers, wheels)
BRANCHES
Tokyo,
Nagoya
OVERSEAS
New
York, London
FACTORIES
Shiga,
Wakayama
CHIEF EXEC
SHIN’ICHI
MIKI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARy
FINANCES FAIR A/SALES Yen
40,170 M
PAYMENTS REGULAR CAPITAL Yen
10,311 M
TREND SLOW WORTH Yen
33,617 M
STARTED 1961 EMPLOYES 1,379
COMMENT
MFR SPECIALIZING IN AIRCRAFT EQUIPMENT
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2014
fiscal term.
HIGHLIGHTS
The subject company was established on the basis of aircraft equipment
division separated from Sumitomo Metal Ind.
Specializes in mfg aircraft equipment, including propellers &
wheels. Diversified into large heat
exchangers and industrial machinery, including ozonizers & plasma
systems. This is a specialized mfr of
aircraft equipment, including propellers & wheels. Strengthening MEMS (micro electronic
mechanical systems) products. The firm
is planning commercialization of GTL equipment converting associated gas
released from oil drilling to liquid fuel with Kawasaki Heavy Industries, etc. It will supply reactors filled with
catalysts, core equipment. It will
establish a new plant for those products in Amagasaki City, Hyogo-Pref at a
cost of Yen 5 billion.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 40,170
million, a 23.2% down from Yen 52,295 million in the previous term. Sales and profits in the high profitable
MEMS-mfg equipment business narrowed due to the sale of its overseas subsidiary
in the UK in the preceding term. Profits
were down, squeezed by slump in LCD-making equipment, etc. It posted Yen 850 recurring profit and Yen
267 million net profit, respectively, compared with Yen 3,913 million recurring
profit and Yen 6,694 million net profit, respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is projected
at Yen 850 million and the net profit at Yen 400 million, respectively, on a
14.5% rise in turnover, to Yen 46,000 million.
Sales of aircraft equipment such as landing gears for both the private
and Ministry of Defense will increase.
In heat exchanger business orders for vaporizers for LNG import plants
will hold steady and those for multipurpose products will recover. Operating profits will bounce back, thanks to
streamlining in the unprofitable LCD-making systems business.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Jan 1961
Regd No.: 1410-01-049416 (Hyogo-Amagasaki)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized: 200 million shares
Issued: 53,167,798shares
Sum: Yen 10,311
million
Major shareholders
(%):
Nippon Steel & Sumitomo Metal Ind (40.2), Sumitomo Corp (1.6), Japan Trustee
Services T (3.9), Master Trust Bank of Japan T (1.6), Company’s Kyosaikai Assn
(1.6), Sumitomo Corp (1.6), Japan Trustee Services T9 (1.5), SMBC (1.0), Tatsuo Yamamoto (0.8); foreign owners (8.7)
No. of
shareholders: 5,379
Listed on the
S/Exchange (s) of: Tokyo, Osaka
Managements: Shin’ichi Miki,
pres; Yoshihisa Nakamura, v pres; Masahiro Murakami, s/mgn dir; Yoshio Taoka,
s/mgn dir; Kiyotaka Nogi, s/mgn dir; Kazuo Sada, mgn dir; Yoshizo Yagi, mgn
dir; Katsuhiko Hamada, mgn dir; Natsuo Hashimoto, dir; Jun Shiraishi, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Nissei
Engineering, Sumisei Techno, Sumisei Sangyo, other.
OPERATION
Activities: Manufactures
aircraft equipment & heat exchangers:
(Sales Breakdown
by divisions)
Aerospace
Hydraulic Machinery (54%), Heat Exchangers & other Industrial Machinery (46%);
Overseas sales
ratio (38%)
(Handling
products): Aerospace products (landing
gear & landing gear control systems, heat management systems, propellers,
hydraulic & pneumatic systems, space products); Heat Control Products (heat exchangers or cryogenic applications,
high-temperatures heat exchangers, industrial heat exchangers, LNG vaporizers);
Hydraulic
Controls (coolant components for machine tools, hydraulic components and
hydraulic control systems); Environmental
Systems (purification of drinking water & treatment of municipal &
industrial wastewater, semiconductor & flat panel display mfg & other
production processes, pulp & textile systems);
Sensors (MEMS Gyro &
systems, wireless sensor networks, other)
Clients: [Ministry, mfrs]
Defense Ministry, Mitsubishi Heavy Ind, other
No. of accounts: 500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers]
Sumitomo Corp, Sumitomo Metal Ind, other
Payment record: Regular
Location: Business area in
Amagasaki, Hyogo-Pref. Office premises
at the caption address are owned and maintained satisfactorily.
Bank
References:
SMBC (Osaka)
Mizuho
Corporate Bank (Osaka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
40,170 |
52,295 |
||
|
|
Cost of Sales |
31,281 |
38,418 |
|||
|
|
GROSS PROFIT |
8,888 |
13,876 |
|||
|
|
Selling & Adm Costs |
8,458 |
9,683 |
|||
|
|
OPERATING PROFIT |
430 |
4,193 |
|||
|
|
Non-Operating P/L |
420 |
-210 |
|||
|
|
RECURRING PROFIT |
850 |
3,913 |
|||
|
|
NET PROFIT |
262 |
6,694 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
12,879 |
13,517 |
||
|
|
Receivables |
|
19,327 |
18,443 |
||
|
|
Inventory |
|
18,688 |
16,934 |
||
|
|
Securities, Marketable |
|
|
|||
|
|
Other Current Assets |
3,012 |
3,494 |
|||
|
|
TOTAL CURRENT ASSETS |
53,906 |
52,388 |
|||
|
|
Property & Equipment |
16,700 |
16,446 |
|||
|
|
Intangibles |
|
336 |
213 |
||
|
|
Investments, Other Fixed Assets |
4,642 |
3,555 |
|||
|
|
TOTAL ASSETS |
75,584 |
72,602 |
|||
|
|
Payables |
|
8,531 |
7,655 |
||
|
|
Short-Term Bank Loans |
13,940 |
16,114 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
7,995 |
6,032 |
|||
|
|
TOTAL CURRENT LIABS |
30,466 |
29,801 |
|||
|
|
Debentures |
|
|
|
||
|
|
Long-Term Bank Loans |
9,792 |
7,383 |
|||
|
|
Reserve for Retirement Allw |
49 |
43 |
|||
|
|
Other Debts |
|
1,660 |
1,990 |
||
|
|
TOTAL LIABILITIES |
41,967 |
39,217 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
10,311 |
10,311 |
|||
|
|
Additional
paid-in capital |
11,332 |
11,332 |
|||
|
|
Retained
earnings |
11,662 |
11,823 |
|||
|
|
Evaluation
p/l on investments/securities |
329 |
203 |
|||
|
|
Others |
|
63 |
(205) |
||
|
|
Treasury
stock, at cost |
(80) |
(79) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
33,617 |
33,385 |
|||
|
|
TOTAL EQUITIES |
75,584 |
72,602 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
|
Cash
Flows from Operating Activities |
|
1,233 |
2,963 |
||
|
|
Cash
Flows from Investment Activities |
-1,933 |
7,889 |
|||
|
|
Cash Flows
from Financing Activities |
-237 |
-7,627 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
12,761 |
13,379 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
33,617 |
33,385 |
||
|
|
|
Current
Ratio (%) |
176.94 |
175.79 |
||
|
|
|
Net
Worth Ratio (%) |
44.48 |
45.98 |
||
|
|
|
Recurring
Profit Ratio (%) |
2.12 |
7.48 |
||
|
|
|
Net
Profit Ratio (%) |
0.65 |
12.80 |
||
|
|
|
Return
On Equity (%) |
0.78 |
20.05 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.64 |
|
UK Pound |
1 |
Rs.90.14 |
|
Euro |
1 |
Rs.77.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.