MIRA INFORM REPORT

 

 

 

 

Report Date :

21.07.2014

 

IDENTIFICATION DETAILS

 

Name :

DAIDO KOGYO CO LTD

 

 

Registered Office :

1-197 Kumasakacho Kaga Ishikawa-Pref 922-8686

 

 

Country :

Japan

 

 

Financials (as on) :

3.03.2013

 

 

Date of Incorporation :

May 1933

 

 

Com. Reg. No.:

2200-01-013264

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures motorcycle & auto parts (motorcycle & automotive chains, industrial machinery chains, rims/wheels, conveyor systems, welfare equipment, other);

 

 

No. of Employees :

2,424

 

 

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

 

DAIDO KOGYO CO LTD

REGD NAME:    Daido Kogyo KK

MAIN OFFICE:  1-197 Kumasakacho Kaga Ishikawa-Pref 922-8686 JAPAN

Tel: 0761-72-6064     Fax: 0761-72-1754     -

 

URL:                 http://www.did-daido.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of motorcycle chains, other

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Hamamatsu, Kumamoto

 

 

OVERSEAS   

 

Thailand (4), Indonesia, China, USA, Vietnam, India, Brazil, Italy

 

 

FACTORIES  

 

At the caption address, Ishikawa (2); Thailand

 

 

CHIEF EXEC

 

KOZO ARAYA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 37,851 M

       PAYMENTS           No complaints   CAPITAL           Yen 2,726 M

TREND UP                    WORTH            Yen 19,955 M

STARTED         1933                 EMPLOYES      2,424

 

 

COMMENT    

 

MFR OF MOTORCYCLE CHAINS  

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                                               

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the major chain mfr maintaining highest domestic share in motorcycle and bicycle chains.  Advanced to motorcycle rims, farm machinery wheels and conveyors after WWII.  Honda Motor main client.  Other products include chair/wheelchair lifts for stairways.  Sister company of Araya Industrial, largest bicycle rim maker.  The company will expand its facilities at its subsidiary in India that manufactures chains in motorcycles, in a bid to introduce an integrated production system doing all processes from parts procurement to assembly locally.  As the distribution base in Thailand started operations, the company will strengthen production and sales in the overseas market. 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2013 fiscal term amounted to Yen 37,851 million, a 1.4% down from Yen 38,393 million in the previous term.   Sales of chains for motorcycles, mainstay, slowed down in emerging countries including Vietnam, hit by the impact stricter financing regulations, and not covered by the growth in orders for chains for four-wheelers.  The recurring profit was posted at Yen 992 million and the net profit at Yen 695 million, respectively, compared with Yen 993 million recurring profit and Yen 424 million net profit, respectively, a year ago. 

 

            (Apr/Jun/2013 results): Sales Yen 10,168 million (up 11.3%), operating profit Yen 654 million (up 473.8%), recurring profit Yen 868 million (up 304.0%), net profit Yen 532 million (up 453.4%).  (% compared with the corresponding period a year ago).

           

            For the current term ending Mar 2014 the recurring profit is projected at Yen 2,000 million and the net profit at Yen 1,100 million, on a 9.6% rise in turnover, to Yen 41,500 million.  Orders for chains for motorcycles, mainstay, will grow, mainly in Thailand, and will cover slump in South America and Indonesia.  Orders for chains for four wheelers will expand in various countries.  Overseas sales will advance, thanks to increase in exports under the weaker Yen.  Its subsidiary in Thailand, which manufactures and sells distribution/conveyor systems, will make a full-term contribution.  Operating profit will significantly rise.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

           

       Date Registered:    May 1933

       Regd No.:                  2200-01-013264 (Ishikawa-Kaga)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:                   160 million shares

Issued:                47,171,006 shares

Sum:                   Yen 2,726 million

 

Major shareholders (%): Hokkoku Bank (4.8), Iida Co (4.4), Master Trust Bank of Japan T (2.9), Nippon Life Ins (2.9), Kaga Shoko Ltd (2.7), Daido Life Ins (2.7), MUFG (2.7), Mizuho Bank (2.7), Mariko Araya (2.7), Sumitomo Mitsui Trust Bank (2.4); foreign owners (3.1)

 

No. of shareholders: 3,843

 

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

 

Managements: Kozo Araya, pres; Yasuyuki Tatsuta, s/mgn dir; Kin’ichiro Nakano, mgn dir; Shin’ichi Hirano, mgn dir; Hirofumi Araya, mgn dir; Katsuyuki Kikuchi, dir; Toshihiro Shimizu, dir

 

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

 

Related companies: Daido General Service, DID, other.

 

 

OPERATION

           

Activities: Manufactures motorcycle & auto parts (motorcycle & automotive chains, industrial machinery chains, rims/wheels, conveyor systems, welfare equipment, other);

(Sales in areas): Japan (63%), Asia (22%), North America (6%), South America (7%), Europe (2%)

           

Clients: [Mfrs, wholesalers] DID, Honda Motors, Bridgestone Tire Sales Kinki/Shikoku,

Suzuki Motors, Yamaha Motor, Daido Corp of America, Daido Sittipol, Toyota Motor, Hyundai Motor Co, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Metal One, Daido Techno, Daido General Service, DID, JFE Shoji Trading, Honda Motor, Tsukiboshi Mfg Co, Shinsho Corp, other

 

Payment record: No complaints

 

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

 

Bank References:

Hokkoku Bank (Daishoji)

MUFG (Kanazawa-Chuo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

37,851

38,393

 

  Cost of Sales

31,151

31,640

 

      GROSS PROFIT

6,699

6,753

 

  Selling & Adm Costs

5,994

5,842

 

      OPERATING PROFIT

704

911

 

  Non-Operating P/L

288

82

 

      RECURRING PROFIT

992

993

　

      NET PROFIT

695

424

BALANCE SHEET

 

 

 

 

  Cash

　

3,294

3,069

 

  Receivables

 

9,425

9,080

 

  Inventory

 

7,608

8,036

 

  Securities, Marketable

　

　

 

  Other Current Assets

772

675

 

      TOTAL CURRENT ASSETS

21,099

20,860

 

  Property & Equipment

15,382

14,814

 

  Intangibles

 

390

160

 

  Investments, Other Fixed Assets

13,563

11,826

 

      TOTAL ASSETS

50,434

47,660

 

  Payables

 

4,032

4,878

 

  Short-Term Bank Loans

10,175

7,603

 

　

 

　

　

 

  Other Current Liabs

2,761

7,363

 

      TOTAL CURRENT LIABS

16,968

19,844

 

  Debentures

 

4,500

　

 

  Long-Term Bank Loans

3,867

5,194

 

  Reserve for Retirement Allw

3,286

3,630

 

  Other Debts

　

1,857

1,281

 

      TOTAL LIABILITIES

30,478

29,949

 

      MINORITY INTERESTS

 

 

 

Common stock

2,726

2,726

 

Additional paid-in capital

2,060

2,060

 

Retained earnings

7,180

6,626

 

Evaluation p/l on investments/securities

4,634

3,928

 

Others

 

3,373

2,388

 

Treasury stock, at cost

(18)

(17)

 

      TOTAL S/HOLDERS` EQUITY

19,955

17,711

　

      TOTAL EQUITIES

50,434

47,660

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

1,367

1,466

 

Cash Flows from Investment Activities

-1,223

-2,015

 

Cash Flows from Financing Activities

-3

-1,623

　

Cash, Bank Deposits at the Term End

　

2,732

2,314

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

19,955

17,711

 

 

Current Ratio (%)

124.35

105.12

 

 

Net Worth Ratio (%)

39.57

37.16

 

 

Recurring Profit Ratio (%)

2.62

2.59

 

 

Net Profit Ratio (%)

1.84

1.10

 

 

Return On Equity (%)

3.48

2.39

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.33

UK Pound

1

Rs.103.18

Euro

1

Rs.81.58

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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