MIRA INFORM REPORT
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Report Date : |
22.02.2014 |
IDENTIFICATION DETAILS
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Name : |
THE JAPAN STEEL WORKS LTD |
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Registered Office : |
Gate City Osaki-West Tower, 1-11-1 Osaki Shingawaku Tokyo 141-0032 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
December, 1950 |
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Com. Reg. No.: |
0107-01-019531 |
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Legal Form : |
Limited Company |
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Line of Business : |
Mfg of plastics machines,
steel castings & forgings |
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No. of Employees : |
2,099 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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.
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Source
: CIA |
Company
name
THE JAPAN STEEL WORKS LTD
REGD
NAME
Nihon Seikosho KK
MAIN
OFFICE
Gate City
Osaki-West Tower, 1-11-1 Osaki Shingawaku Tokyo 141-0032 JAPAN
Tel:
03-5745-2001 Fax: 03-5745-2025
URL: Error! Hyperlink reference not valid.
E-Mail address: info_steel_forging@jsw.co.jp;
wesmaster@jsw.co.jp
ACTIVITIES
Mfg of plastics
machines, steel castings & forgings
BRANCHES
Osaka, Nagoya,
Shizuoka, Fukuoka, Sapporo, other (Tot 17)
FACTORIES
Muroran,
Hiroshima, Yokohama
CHIEF
EXEC
IKUO SATO, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 220,653 M
PAYMENTSREGULAR CAPITAL Yen
19,694 M
TREND STEADY WORTH Yen 134,368 M
STARTED 1950 EMPLOYES 2,099
COMMENT
MFR OF PLASTIC MACHINES, LARGE STEEL CASTINGS & FORGING.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Notes: Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2014
fiscal term
HIGHLIGHTS
The subject company is one of world’s leading mfrs of plastic machines and
large steel castings & forging bound for electric power & general
plants. Renowned for resin
machinery. Ranked in 2nd
group in field of injection machines in Japan.
Also makes defense equipment including guns, tanks, missile launchers
& antiaircraft gun systems. French
nuclear firm, Areva, acquired 1.3% stake in the subject firm and signed a long
term purchase contract for large forged-steel parts for nuclear power plants,
reported in Nov 2008. The long term
contract likely covers the purchasing of forged-steel parts for 20 or more
nuclear reactors between 2012 & 2016, as reported. Partially amending capacity investment plan
for Muroran plant, with focus put on enhancing output of N-power materials to
address abundant order backlog. The
company intends to boost new demand for forges & foundries from other
sectors than N-power plants and with the development of offshore wind power
systems and large wind mills and tie-up with overseas. It also aims to boost sales of excimer laser
annealing equipment for high resolution LCDs and organic ELs.
FINANCIAL
INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 220,653
million, a 0.3% down from Yen 221,368 million in the previous term. Sales of industrial machinery were
buoyant. But sales of forges &
foundries for electric power plants were slack.
Formed & fabricated products and Energy was down 15.9% to Yen 88,275
million, as orders declined 21.4% from the previous year; Industrial Machinery
up 14.2% to Yen 130,138 million as injection molding machines rose. Operating profits weighed down by
extraordinary loss in the fourth quarter.
The recurring profit was posted at Yen 17,108 million and the net profit
at Yen 8,281 million, respectively, compared with Yen 23,360 million recurring
profit and Yen 12,591 million net profit, respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is projected
at Yen 8,600 million and the net profit at Yen 5,000 million, on a 9.4% fall in
turnover, to Yen 200,000 million. Operating
rate of forges & foundries will remain low.
Profit margin will narrow, badly affected by shipment of low-profit
projects for industrial machinery.
Weaker Yen may push sales upwards..
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Dec 1950
Regd No.:
0107-01-019531
(Tokyo-Shinagawaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,000
million shares
Issued: 371,463,036 shares
Sum: Yen 19,694 million
Major
shareholders (%): Master Trust Bank of Japan T (5.2), Japan Trustee Services Bank (5.2),
Mitsui Life Ins (3.8), SMBC (3.3), Mitsui Sumitomo Ins (2.3), Sumitomo Mitsui
Trust Bank (2.1), Morgan Stanley & Co (1.8), Juniper (1.7), Hitachi Ltd
(1.3), Mitsubishi Heavy Ind (1.3); foreign owners (23.5)
No.
of shareholders: 31,055
Listed on the S/Exchange (s) of: Tokyo
Managements: Ikuo Sato, pres;
Yoshitomo Tanaka, v pres; Etsuo Murai, dir; Takao Ishido, dir; Toshio Iwashita,
dir; Atsushi Igarashi, dir; Hiroo Sudo, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Nikko Trading, Nikko Tokki, Nikko Techno,
other
OPERATION
Activities: Manufactures
plastic machines and large casting & forgings bound for electric power and
general plants:
(Sales
breakdown by Divisions):
Steel
Product-related (47%): steel forgings & castings, clad steel products,
pressure vessel;
Machinery-related
(51%): magnesium process equipment & products, injection molding machine,
polyolefin extruders, auto screen changer, compounding extruders, microcellular
foam processing technology, reciprocating compressors labyrinth piston type,
film & sheet production systems;
Regional
Development-related (1%): wind turbine system, commercial building
development, Fuchu intelligent park, shopping center, other;
Overseas
sales ratio (53%)
Clients: [Mfrs,
wholesalers] Mitsui & Co, JSW Plastics, Nikko Trading, Nikko Techno, Yodogawa
Steel Works, Ministry of Self Defense, Mitsubishi Heavy Ind, other
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui & Co Steel Ltd, Allegheny Technologies Japan, Coherent Japan
Inc, Shibaura Iron Works, Nippoh Co, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
SMBC (H/O)
Mizuho Corporate
Bank (Nihombashi)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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220,653 |
221,368 |
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Cost of Sales |
176,172 |
169,733 |
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GROSS PROFIT |
44,480 |
51,634 |
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Selling & Adm Costs |
27,799 |
27,723 |
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OPERATING PROFIT |
16,680 |
23,911 |
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Non-Operating P/L |
428 |
-551 |
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RECURRING PROFIT |
17,108 |
23,360 |
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NET PROFIT |
8,281 |
12,591 |
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BALANCE SHEET |
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Cash |
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51,005 |
48,148 |
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Receivables |
51,970 |
46,520 |
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Inventory |
59,514 |
79,347 |
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Securities, Marketable |
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Other Current Assets |
11,535 |
10,637 |
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TOTAL CURRENT ASSETS |
174,024 |
184,652 |
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Property & Equipment |
94,476 |
106,541 |
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Intangibles |
789 |
934 |
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Investments, Other Fixed Assets |
34,681 |
33,526 |
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TOTAL ASSETS |
303,970 |
325,653 |
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Payables |
42,216 |
41,672 |
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Short-Term Bank Loans |
12,703 |
12,885 |
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Other Current Liabs |
56,377 |
75,092 |
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TOTAL CURRENT LIABS |
111,296 |
129,649 |
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Debentures |
10,000 |
10,000 |
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Long-Term Bank Loans |
17,805 |
23,865 |
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Reserve for Retirement Allw |
9,419 |
9,695 |
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Other Debts |
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21,081 |
23,830 |
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TOTAL LIABILITIES |
169,601 |
197,039 |
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MINORITY INTERESTS |
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Common
stock |
19,694 |
19,694 |
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Additional
paid-in capital |
5,425 |
5,425 |
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Retained
earnings |
107,861 |
103,288 |
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Evaluation
p/l on investments/securities |
1,475 |
385 |
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Others |
326 |
229 |
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Treasury
stock, at cost |
(413) |
(408) |
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TOTAL S/HOLDERS` EQUITY |
134,368 |
128,613 |
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TOTAL EQUITIES |
303,970 |
325,653 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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23,735 |
32,507 |
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Cash
Flows from Investment Activities |
-5,832 |
-18,601 |
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Cash
Flows from Financing Activities |
-15,259 |
-6,846 |
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Cash,
Bank Deposits at the Term End |
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50,972 |
48,107 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
134,368 |
128,613 |
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Current
Ratio (%) |
156.36 |
142.42 |
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Net
Worth Ratio (%) |
44.20 |
39.49 |
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Recurring
Profit Ratio (%) |
7.75 |
10.55 |
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Net
Profit Ratio (%) |
3.75 |
5.69 |
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Return
On Equity (%) |
6.16 |
9.79 |
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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.62.16 |
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|
1 |
Rs.103.44 |
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Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.