MIRA
INFORM REPORT
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Report Date : |
17.06.2013 |
IDENTIFICATION DETAILS
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Name : |
HKS CO LTD |
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Registered Office : |
2266 Kamiide Fujinomiya City Shizuoka-Pref 418-0103 |
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Country : |
Japan |
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Financials (as on) : |
31.08.2012 |
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Date of Incorporation : |
October, 1973 |
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Com. Reg. No.: |
0801-01-011279 |
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Legal Form : |
Limited Company |
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Line of Business : |
Mfg of after-market auto components |
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No. of Employees : |
293 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit: |
Yen 301.7 million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
HKS CO LTD
REGD NAME
H. K. S. KK
MAIN OFFICE
2266 Kamiide
Fujinomiya City Shizuoka-Pref 418-0103 JAPAN
Tel:
0544-29-1111
Fax:
0544-29-1234 -
URL: http://www.hks-power.co.jp
E-Mail address: info@hks-power.co.jp
ACTIVITIES
Mfg of
after-market auto components
BRANCHES
Tokyo, Osaka
OVERSEAS
Europe (6), Mid
East (8), China, Korea, Hong Kong, Taiwan, Thailand, Indonesia, Brunei, other
FACTORIES
At the caption
address, Shizuoka; Thailand, China
CHIEF EXEC
HIROYUKI HASEGAWA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 6,618 M
PAYMENTS NO
COMPLAINTS CAPITAL Yen 878 M
TREND UP WORTH Yen 7,599 M
STARTED 1973 EMPLOYES 293
COMMENT
MFR OF AFTER-MARKET AUTO COMPONENTS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 301.7 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/08/2013 fiscal
term.
HIGHLIGHTS
This company is engaged in production of after-market auto components,
including mufflers, and turbo engines.
Originally established to handle development of engines for auto
racing. Stressing area of natural
gas-powered cars. Has mfg bases in
Thailand and China..
FINANCIAL INFORMATION
The sales volume for Aug/2012 fiscal term amounted to Yen 6,618 million,
a 14% up from Yen 5,796 million in the previous term. Sales were robust in China and USA. The recurring profit was posted at Yen 14
million and the net profit at Yen 3 million, respectively, compared with Yen
131 million recurring profit and Yen 58 million net profit, respectively, a
year ago.
(Sept/2012-Feb/2013 results): Sales Yen 3,902 million (up 41.4%),
operating profit Yen 187 million (previously Yen 113 million loss), recurring
profit Yen 318 million (previously Yen 125 million loss), net profit Yen 155
million (previously Yen 159 million loss).
(% & figures compared with the corresponding period a year ago).
For the current term ending Aug 2013 the
recurring profit is projected at Yen 400 million and the net profit at Yen 100
million, on a 9% rise in turnover, to Yen 7,200 million. Business is seen expanding steadily.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
Max credit limit is estimated at Yen 301.7 million, on 30 days normal
terms.
REGISTRATION
Date
Registered: Oct 1973
Regd
No.: 0801-01-011279
(Shizuoka-Fujinomiya)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
19,562,000 shares
Issued: 4,341,000
Sum: Yen
878 million
Major shareholders (%): Hiroyuki Hasegawa (44.7), Company’s Treasury Stock (6.7), Shizuoka Bank (4.3), Tokio Marine & Nichido Fire Ins (3.1), Employees’ S/Holding Assn (2.6), Shizuoka Capital (2.2), Mamoru Yamamoto (2.1), Goichi Kitagawa (2.0), MUFG (1.9), Japan Trustee Services T4 (1.8); foreign owners (0.3)
No.
of shareholders: 396
Listed on the S/Exchange (s) of: JASDAQ
Managements: Hiroyuki Hasegawa,
pres; Toshiaki Ishida, mgn dir; Tatsuki Akaike, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Nissei Ind, other.
OPERATION
Activities: Manufactures
automobile-related parts & equipment (99%), highweight aircraft (1%).
Overseas
Sales Ratio (22%)
(Mfg
Items): muffler, turbo engines, exhaust, suspension, intake, blow-off,
electronics, cooling, superchargers, fuel, power train, brake systems, oil,
plug, support parts, other.
Clients: [Mfrs,
wholesalers] Autobacs Seven Co, HKS USA, HKS Europe, Galaxy International, HKS
Thailand, Autech Japan, Takama Competition Products, Hot Stuff Corporation,
other
No. of accounts: 500
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] Honeywell Turbo Charging System, Sanwa Denchi Co, SPK, Daikei Sangyo, Nippon Chemicals Sales, Inoue Special Steel, Inoue Electric Co, Nissei Kogyo, Nissei Metals, other
Payment record: No Complaints
Location: Business area in
Fujinomiya, Shizuoka-Pref. Office
premises at the caption address are owned and maintained satisfactorily.
Bank References:
Shizuoka Bank
(Fujinomiya)
MUFG (Shizuoka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/08/2012 |
31/08/2011 |
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INCOME STATEMENT |
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Annual Sales |
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6,618 |
5,796 |
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Cost of Sales |
4,390 |
3,549 |
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GROSS PROFIT |
2,227 |
2,246 |
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Selling & Adm Costs |
2,206 |
2,070 |
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OPERATING PROFIT |
21 |
176 |
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Non-Operating P/L |
-7 |
-45 |
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RECURRING PROFIT |
14 |
131 |
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NET PROFIT |
3 |
58 |
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BALANCE SHEET |
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Cash |
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1,382 |
1,088 |
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Receivables |
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1,292 |
996 |
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Inventory |
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1,655 |
1,828 |
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Securities, Marketable |
100 |
650 |
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Other Current Assets |
438 |
225 |
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TOTAL CURRENT ASSETS |
4,867 |
4,787 |
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Property & Equipment |
4,019 |
4,024 |
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Intangibles |
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40 |
51 |
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Investments, Other Fixed Assets |
287 |
356 |
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TOTAL ASSETS |
9,213 |
9,218 |
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Payables |
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667 |
527 |
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Short-Term Bank Loans |
80 |
48 |
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Other Current Liabs |
513 |
488 |
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TOTAL CURRENT LIABS |
1,260 |
1,063 |
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Debentures |
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Long-Term Bank Loans |
24 |
79 |
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Reserve for Retirement Allw |
193 |
166 |
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Other Debts |
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136 |
121 |
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TOTAL LIABILITIES |
1,613 |
1,429 |
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MINORITY INTERESTS |
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Common
stock |
878 |
878 |
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Additional
paid-in capital |
963 |
963 |
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Retained
earnings |
6,070 |
6,110 |
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Evaluation
p/l on investments/securities |
8 |
2 |
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Others |
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(193) |
(163) |
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Treasury
stock, at cost |
(127) |
(1) |
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TOTAL S/HOLDERS` EQUITY |
7,599 |
7,789 |
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TOTAL EQUITIES |
9,213 |
9,218 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/08/2012 |
31/08/2011 |
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Cash
Flows from Operating Activities |
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385 |
232 |
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Cash
Flows from Investment Activities |
-423 |
-126 |
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Cash Flows
from Financing Activities |
-194 |
-313 |
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Cash,
Bank Deposits at the Term End |
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1,451 |
1,686 |
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ANALYTICAL RATIOS Terms ending: |
31/08/2012 |
31/08/2011 |
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Net
Worth (S/Holders' Equity) |
7,599 |
7,789 |
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Current
Ratio (%) |
386.27 |
450.33 |
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Net
Worth Ratio (%) |
82.48 |
84.50 |
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Recurring
Profit Ratio (%) |
0.21 |
2.26 |
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Net
Profit Ratio (%) |
0.05 |
1.00 |
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Return
On Equity (%) |
0.04 |
0.74 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.57.74 |
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1 |
Rs.90.64 |
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Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.