MIRA INFORM REPORT

 

 

Report Date :

12.10.2013

 

IDENTIFICATION DETAILS

 

Name :

MEIKO ELECTRONICS CO LTD

 

 

Registered Office :

5-14-15 Ogami Ayase Kanagawa-Pref 252-1104

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

November 1975

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Manufacturing, designing of PCBs (cryLayeer IDI9, electronic circuit substrate, electronic equipment)

·         Manufacturer of video components

 

 

No. of Employees :

10,784

 

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 1,594.2 Million

Status :

Satisfactory

Payment Behaviour :

Slow but Correct 

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

 

MEIKO ELECTRONICS CO LTD

 

 

REGD NAME

 

KK Meiko

 

 

MAIN OFFICE

 

5-14-15 Ogami Ayase Kanagawa-Pref 252-1104 JAPAN

 

Tel:                              0467-76-6001        

 

URL:                 http://www.meiko-elec.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of electronic circuit substrate, electronic devices

 

 

BRANCHES

 

Osaka, Nagoya, Omiya, Ebina

 

 

OVERSEAS

 

China (4), Taiwan, Hong Kong, USA, Germany

 

 

FACTORIES

 

At the caption address, Fukushima, Miyagi, Yamagata

 

 

OVERSEAS   

 

China (2), Vietnam

 

 

CHIEF EXEC

 

YUKIHIRO NAYA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 60,709 M

PAYMENTS      Slow but Correct               CAPITAL           Yen 10,545 M

TREND             SLOW                                       WORTH            Yen 36,726 M

STARTED         1975                                         EMPLOYES      10,784

 

 

COMMENT

 

MFR OF ELECTRONIC CIRCUIT SUBSTRATE 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,594.2 MILLION, 30 DAYS NORMAL TERMS

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading designer/mfr of PCBs.  Also engaged in development/mfg of video components.  Noted for strong cost competitiveness backed by volume-production plant in China.  Operates production bases in China and Vietnam..

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 60,709 million, a 3.6% down from Yen 62,972 million in the previous term.  Sales were greatly affected by the growth in auto-related sales, which, however, failed to offset stagnant demand in the domestic electronics industry and the adverse effect of production adjustments by mfrs focused on smartphones.  Operating losses were posted at Yen 606 million.  The recurring loss was posted at Yen 386 million and the net losses at Yen 1,567 million, respectively, compared with Yen 222 million recurring profit and Yen 1,158 million net profit, respectively, a year ago. 

 

(Apr/Jun/2013 results): Sales Yen 18,259 million (up 29.1%), operating profit Yen 236 million (down 27.5%), recurring profit Yen 1,077 million (previously Yen 710 million loss), net profit Yen 462 million (previously Yen 924 million loss).  (% & figures compared with the corresponding period a year ago)

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 2,700 million and the net profit at Yen 1,000 million, on a 26.8% rise in turnover, to Yen 77,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,594.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　Nov 1975

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:       83.2 million shares

Issued:                19,403,320 shares

Sum:                   Yen 10,545 million

 

Major shareholders (%): Yuichiro Naya (24.2), Pleasant Valley (3.2), Company’s Treasury Stock (3.2), Meiko Kosan (3.1), Japan Trustee Services T (2.8), Yuho Ltd (2.6), Chase London SL Omnibus Acct (2.6), Haruyuki Naya (2.5), Seiichi Naya (2.2), Hilleret LP (1.9); foreign owners (1.5)

 

No. of shareholders: 5,898

 

Listed on the S/Exchange (s) of: JASDAQ

 

Managements: Yuichiro Naya, pres; Seiichi Naya, s/mgn dir; Tetsuro Suzuki, mgn dir; Haruuki Naya, dir

 

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

 

Related companies: Meiko China, Meiko Yamagata, other.

 

 

OPERATION

           

Activities: Manufactures, designs PCBs (cryLayeer IDI9, electronic circuit substrate (97%), electronic equipment (3%)

 

Exports (60%)

           

Clients: [Mfrs, wholesalers] Kuroda Electric Co, Toshiba Hong Kong, Toshiba Philippine, Clarion, Mitsubishi Electric, Fuji Xerox, Hitachi Automotive Systems, Panasonic, IPA Alpha Technology, other

           

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Meiko Yamagata, Meiko Electric, Kuroda Electric, Shinwa Denzai, Sekisui Chemical Ind, MD Systems, other

Imports from China, Taiwan, Hong Kong (--subsidiary factories)

 

Payment record: Slow but Correct  

 

Location: Business area in Ayase City, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (Yamato)

Mizuho Bank (Yamato)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

60,709

62,972

 

  Cost of Sales

53,155

54,769

 

      GROSS PROFIT

7,553

8,203

 

  Selling & Adm Costs

8,159

7,391

 

      OPERATING PROFIT

-605

812

 

  Non-Operating P/L

219

-590

 

      RECURRING PROFIT

-386

222

　

      NET PROFIT

-1,567

1,158

BALANCE SHEET

 

 

 

 

  Cash

　

9,007

3,970

 

  Receivables

 

12,128

12,634

 

  Inventory

 

10,486

9,069

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,480

2,771

 

      TOTAL CURRENT ASSETS

35,101

28,444

 

  Property & Equipment

61,772

56,427

 

  Intangibles

 

488

589

 

  Investments, Other Fixed Assets

4,684

5,645

 

      TOTAL ASSETS

102,045

91,105

 

  Payables

 

7,242

6,297

 

  Short-Term Bank Loans

13,971

3,097

 

　

 

　

　

 

  Other Current Liabs

18,964

17,222

 

      TOTAL CURRENT LIABS

40,177

26,616

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

22,557

26,749

 

  Reserve for Retirement Allw

1,517

1,323

 

  Other Debts

　

1,067

1,390

 

      TOTAL LIABILITIES

65,318

56,078

 

      MINORITY INTERESTS

 

 

 

Common stock

10,545

10,545

 

Additional paid-in capital

12,467

12,467

 

Retained earnings

13,827

15,517

 

Evaluation p/l on investments/securities

(116)

(178)

 

Others

 

399

(2,928)

 

Treasury stock, at cost

(396)

(396)

 

      TOTAL S/HOLDERS` EQUITY

36,726

35,027

　

      TOTAL EQUITIES

102,045

91,105

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

3,594

9,252

 

Cash Flows from Investment Activities

-5,075

-10,377

 

Cash Flows from Financing Activities

5,357

2,359

　

Cash, Bank Deposits at the Term End

　

8,788

3,751

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

36,726

35,027

 

 

Current Ratio (%)

87.37

106.87

 

 

Net Worth Ratio (%)

35.99

38.45

 

 

Recurring Profit Ratio (%)

-0.64

0.35

 

 

Net Profit Ratio (%)

-2.58

1.84

 

 

Return On Equity (%)

-4.27

3.31

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.97.77

Euro

1

Rs.82.78

 

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%)

 

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.