MIRA INFORM REPORT
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Report Date : |
16.11.2013 |
IDENTIFICATION DETAILS
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Name : |
DAITO ELECTRON CO LTD |
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Registered Office : |
4-6-11 Miyahara Yodogawaku Osaka 532-0003 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
June, 1952 |
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Com. Reg. No.: |
1200-01-083156 (Osaka-Yodogawaku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of electronic
equipment & parts |
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No. of Employees : |
655 |
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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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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 and address
DAITO ELECTRON CO LTD
REGD NAME: Daito
Electron KK
MAIN OFFICE: 4-6-11
Miyahara Yodogawaku Osaka 532-0003 Japan
Tel:
06-6399-5041 Fax: 06-6399-6014 -
URL: http://www.daitron.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Import, export,
wholesale of electronic equipment & parts
BRANCHES
Tokyo, Yokohama,
Nagoya, Nagano, Kyoto, Kobe, Hiroshima, other (Tot 16)
OVERSEAS
USA, Taiwan,
China, Malaysia, Hong Kong, Korea, Thailand
CHIEF
EXEC
ISAYUKI MAE, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 36,067 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen 2,200 M
TREND SLOW WORTH Yen
11,525 M
STARTED 1952 EMPLOYES 655
COMMENT
TRADING FIRM SPECIALIZING IN ELECTRONIC EQUIPMENT & PARTS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/12/2013 fiscal term.
HIGHLIGHTS
This is a medium-sized wholesaler of electronic parts and semiconductor
mfg systems. Emphasis put on opt-electronics
such as organic EL display-use mfg systems and wafer for opt-devices. Also stressing development of original
products. .Has subsidiaries in Oregon
(the US), Taiwan, Korea, China (2), Thailand and Malaysia. The company aims to raise the ratio of
overseas sales and own-brand sales by 30% each, from the present 17% and
22%. In the mfg equipment business it
will focus on maintenance and inspection services.
FINANCIAL
INFORMATION
The sales volume for Dec/2012 fiscal term amounted to Yen 36,067
million, an 11.1% down from Yen 40,552 million in the previous term. Sales of mfg equipment, including for LCD
panels and semiconductors, slumped. The
recurring profit was posted at Yen 466 million and the net profit at Yen 182
million, respectively, compared with Yen 893 million recurring profit and Yen
652 million net profit, respectively, a year ago.
(Jan/Sept/2013 results): Sales Yen 26,096 million (down 3.2%), operating
profit Yen 11 million (down 96.4%), recurring profit Yen 81 million (down 81.1%),
net losses Yen 8 million (previously Yen 242 million profits). (% & figures compared with the
corresponding period a year ago)
For the current term ending Dec 2013 the recurring profit is projected
at Yen 110 million and the net losses at Yen 220 million, on a 3% fall in
turnover, to Yen 35,000 million. The Mfg
equipment segment and the domestic subsidiaries segment remained sluggish
affected by continuingly slow demand for facility investments. As a result, operating income will fall below
due to cost ratio increase, etc. Net
losses will incur due to increased income tax and other taxes posted. The firm revised the forecast as above from
the previous Yen 500 million recurring profit and Yen 270 million net profit,
respectively.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: Jun 1952
Regd
No.: 1200-01-083156
(Osaka-Yodogawaku)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized: 40 million shares
Issued: 11,155,979
shares
Sum: Yen
2,200 million
Major
shareholders (%): Daitron Welfare Foundation (8.9), Employees’ S/Holding Assn (5.8),
Mizuho Bank (3.5), MUFG (3.2), Hiroshi Hamada (3.2), Japan Trustee Services T
(1.8), Motohiro Nakaya (1.7), Nippon Life Ins (1.6), Hirohisa Hamada (1.6),
Hirose Electric (1.2); foreign owners (3.7).
No.
of shareholders: 2,695
Listed on the S/Exchange (s) of: Tokyo
Managements: Kenji Kotani,
ch; Isayuki Mae, pres; Hitoshi Takamoto, dir; Noboru Nonaka, dir; Yasutoshi
Kimura, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Daitron Inc (USA), Daitron (Malaysia),
Daitron Hong Kong, other.
OPERATION
Activities: Imports, exports
and wholesales of: electronic equipment & parts (57%), mfg systems (28%),
domestic subsidiaries (7%), overseas subsidiaries (8%).
Overseas
Sales Ratio (24%)
(Handling
Items): electronic components & assembly goods semiconductors, embedded systems,
power supply equipment, image-related equipment & components, information
systems, opt-device mfg equipment, LSI mfg equipment, flat panel display mfg
equipment, electronic materials mf equipment, energy device mfg equipment, etc
Clients: [Mfrs, wholesalers]
Denso Corp, SSM Co Ltd, Sharp Corp, Panasonic Corp, Nichia Corp, other
No. of accounts:
500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Hirose Electric, Sony
Corp, Daito Denso, Daitron
Technology,
Fujikoshi Machinery Corp, other
Payment record: Slow but correct
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank
(Dojima)
MUFG (Kawaramachi)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms
Ending: |
31/12/2012 |
31/12/2011 |
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INCOME STATEMENT |
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Annual
Sales |
36,067 |
40,552 |
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Cost
of Sales |
28,168 |
31,821 |
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GROSS
PROFIT |
7,898 |
8,731 |
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Selling
& Adm Costs |
7,552 |
7,816 |
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OPERATING
PROFIT |
345 |
914 |
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Non-Operating
P/L |
121 |
-21 |
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RECURRING
PROFIT |
466 |
893 |
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NET
PROFIT |
182 |
652 |
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BALANCE SHEET |
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Cash |
5,748 |
7,324 |
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Receivables |
9,034 |
9,693 |
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Inventory |
2,413 |
1,244 |
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Securities,
Marketable |
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Other
Current Assets |
1,060 |
3,645 |
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TOTAL
CURRENT ASSETS |
18,255 |
21,906 |
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Property
& Equipment |
3,549 |
3,501 |
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Intangibles |
263 |
343 |
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Investments,
Other Fixed Assets |
1,555 |
1,431 |
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TOTAL
ASSETS |
23,622 |
27,181 |
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Payables |
7,367 |
9,166 |
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Short-Term
Bank Loans |
26 |
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Other
Current Liabs |
1,693 |
3,566 |
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TOTAL
CURRENT LIABS |
9,060 |
12,758 |
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Debentures |
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Long-Term
Bank Loans |
1,039 |
1,380 |
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Reserve
for Retirement Allw |
1,643 |
1,514 |
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Other
Debts |
355 |
268 |
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TOTAL
LIABILITIES |
12,097 |
15,920 |
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MINORITY
INTERESTS |
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Common
stock |
2,200 |
2,200 |
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Additional
paid-in capital |
2,482 |
2,482 |
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Retained
earnings |
6,879 |
6,862 |
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Evaluation
p/l on investments/securities |
96 |
(20) |
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Others |
(131) |
(188) |
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Treasury
stock, at cost |
(1) |
(76) |
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TOTAL
S/HOLDERS` EQUITY |
11,525 |
11,260 |
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TOTAL
EQUITIES |
23,622 |
27,181 |
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CONSOLIDATED CASH FLOWS |
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Terms
ending: |
31/12/2012 |
31/12/2011 |
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Cash
Flows from Operating Activities |
-762 |
2,016 |
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Cash
Flows from Investment Activities |
-218 |
-103 |
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Cash
Flows from Financing Activities |
-652 |
-556 |
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Cash,
Bank Deposits at the Term End |
5,718 |
7,294 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2012 |
31/12/2011 |
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Net
Worth (S/Holders' Equity) |
11,525 |
11,260 |
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Current
Ratio (%) |
201.49 |
171.70 |
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Net
Worth Ratio (%) |
48.79 |
41.43 |
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Recurring
Profit Ratio (%) |
1.29 |
2.20 |
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Net
Profit Ratio (%) |
0.50 |
1.61 |
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Return
On Equity (%) |
1.58 |
5.79 |
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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.63.06 |
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|
1 |
Rs.101.15 |
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Euro |
1 |
Rs.84.95 |
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.