MIRA INFORM REPORT

 

 

Report Date :

30.07.2014

 

IDENTIFICATION DETAILS

 

Name :

HITACHI HIGH-TECHNOLOGIES CORPORATION

 

 

Registered Office :

1-24-14 Nishishimbashi Minatoku Tokyo 105-8717

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

April 1947

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

·         Engaged in Dealing semiconductor manufacturing equipment and Measuring Instruments. 

Manufacturer, Importer, Exporter and Wholesaler of Electronic Devices, Finetech, Science & Medical-Use, Industrial Products & IT as well as High-Tech Materials

 

 

No of Employees :

10,504

 

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 23,704.1 Million

 

 

Status :

Satisfactory 

 

 

Payment Behaviour :

No Complaints

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 


Company name

 

HITACHI HIGH-TECHNOLOGIES CORPORATION

 

 

REGD NAME

 

KK Hitachi High Technologies

 

 

MAIN OFFICE

 

1-24-14 Nishishimbashi Minatoku Tokyo 105-8717 JAPAN

Tel: 03-3504-7111     Fax: 03-3504-7122

 

*.. The given address is its Ibaraki Branch Office    

 

URL:                 http://www.hitachi-hitec.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

·         Engaged in Dealing semiconductor manufacturing equipment and Measuring Instruments. 

Manufacturer, Importer, Exporter and Wholesaler of Electronic Devices, Finetech, Science & Medical-Use, Industrial Products & IT as well as High-Tech Materials

 

 

BRANCHES

 

Osaka, Sendai, Ibaragi, Yokohama, Chiba, other (Tot 19)

 

 

OVERSEAS

 

USA (5), Europe (4), Asia (11) in 26 countries (--subsidiaries)

 

 

FACTORIES

 

Hitachi, Kudamatsu, Saitama; China (2)

 


CHIEF EXEC

 

MASAO HISADA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 639,116 M

PAYMENTSNo Complaints    CAPITAL           Yen 7,938 M

TREND UP                                WORTH            Yen 272,968 M

STARTED         1947                             EMPLOYES      10,504

 

 

COMMENT

 

MFR OF SEMICONDUCTOR MFG EQUIPMENT 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 23,704.1 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

653,431

29,475

17,752

(%)

242,845

(Consolidated)

31/03/2012

645,865

26,233

14,265

-1.16

253,012

 

31/03/2013

575,468

20,098

12,166

-10.90

267,189

 

31/03/2014

639,116

31,102

18,032

11.06

272,968

 

31/03/2015

860,000

35,000

25,600

34.56

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a Hitachi-affiliated trading firm dealing in semiconductor-mfg equipment and measuring instruments.  Also makes these products.  It is highly competitive in in high-tech area.  Excels in obtaining orders for system products thru sales operations by engineers.  Fostering sales of medical-use equipment.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 639,116 million, an 11.1% up from Yen 575,468 million in the previous term.  Semiconductor equipment sales improved rapidly, backed by robust investment by makers of memories and logic semiconductors.  Medical equipment sales also recovered overseas.  The recurring profit was posted at Yen 31,102 million and the net profit at Yen 18,032 million, respectively, compared with Yen 20098 million recurring profit and Yen 12166 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 35,000 million and the net profit at Yen 25,600 million, respectively, on a 3.3% rise in turnover, to Yen 660,000 million.  Semiconductor equipment sales will further increase.  Medical equipment sales will rise steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 23,704.1 million, on 30 days normal terms.

 

 

REGISTRATION

 

      Date Registered: Apr 1947

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:                   350 million shares

Issued:                137,738,730 shares

Sum:                   Yen 7,938 million

 

Major shareholders (%): Hitachi Ltd (51.6), Japan Trustee Services T (4.0), Master Trust Bank of Japan T (2.4), Employees’ S/Holding Assn (1.5), Nomura Lux Multi Currency JS818517 (1.2), Bank of New York Treaty Jasdec (1.1), Nippon Vest (1.1), Chase Manhattan GTS Escrow (0.7), Goldman Sachs (Regular) Acct (0.7); foreign owners (23.5)

 

No. of shareholders: 6,823

 

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

 

Managements: Kazuhiro Mori, ch; Masao Hisada, pres; Takashi Matsuzaka, v pres; Toshio Kajimoto, s/mgn dir; Naoki Mitarai, s/mgn dir; Masahiro Miyazaki, s/mgn dir; Norihiro Nishida, mgn dir; hun’ichi Uno, mgn dir; Katsutaka Kimura, mgn dir

 

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

 

Related companies: Hitachi Hi-Tech Fielding, Hitachi Hi-Tech America, other.

 

 

OPERATION

           

Activities: Manufactures, imports, exports and wholesales: electronic devices (18%), Finetech (2%), Science & Medical-use (23%), Industrial products & IT (16%), High-tech materials (41%)

 

Overseas Sales Ratio (56%)

           

Clients: [Mfrs, wholesalers] Hitachi Hi-Tech America, Hitachi Hi-Tech Fielding, Hitachi Ltd, other

 

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Shin-Etsu Chemical Ind, Hitachi Hi-Tech Manufacture & Service, Tohoku Pioneer EG, Asahi Glass, Hitachi Ltd, other

 

Payment record: No Complaints 

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Shimbashi)

MUFG (Shimbashi)

Relations: Satisfactory

 

 

FINANCES

(Consolidated in million yen)

                                                                                                                                         

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

639,116

575,468

 

  Cost of Sales

515,752

470,599

 

      GROSS PROFIT

123,364

104,868

 

  Selling & Adm Costs

92,933

89,917

 

      OPERATING PROFIT

30,431

14,951

 

  Non-Operating P/L

20,671

5,147

 

      RECURRING PROFIT

31,102

20,098

 

      NET PROFIT

18,032

12,166

BALANCE SHEET

 

 

 

 

  Cash

 

22,548

21,088

 

  Receivables

 

135,067

110,722

 

  Inventory

 

75,166

45,042

 

  Securities, Marketable

1,002

85

 

  Other Current Assets

143,248

153,686

 

      TOTAL CURRENT ASSETS

377,031

330,623

 

  Property & Equipment

75,110

66,331

 

  Intangibles

 

12,993

13,956

 

  Investments, Other Fixed Assets

29,800

22,729

 

      TOTAL ASSETS

494,934

433,639

 

  Payables

 

195,683

84,426

 

  Short-Term Bank Loans

 

1,650

 

 

 

 

 

 

  Other Current Liabs

(24,792)

41,189

 

      TOTAL CURRENT LIABS

170,891

127,265

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

 

 

 

  Reserve for Retirement Allw

49,303

26,536

 

  Other Debts

 

1,772

12,649

 

      TOTAL LIABILITIES

221,966

166,450

 

      MINORITY INTERESTS

 

 

 

Common stock

7,938

7,938

 

Additional paid-in capital

35,745

35,745

 

Retained earnings

233,402

220,474

 

Evaluation p/l on investments/securities

5,744

5,094

 

Others

 

(9,527)

(1,735)

 

Treasury stock, at cost

(334)

(327)

 

      TOTAL S/HOLDERS` EQUITY

272,968

267,189

 

      TOTAL EQUITIES

494,934

433,639

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

36,334

10,974

 

Cash Flows from Investment Activities

-24,674

-4,424

 

Cash Flows from Financing Activities

-4,664

-8,013

 

Cash, Bank Deposits at the Term End

 

133,599

123,485

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

272,968

267,189

 

 

Current Ratio (%)

220.63

259.79

 

 

Net Worth Ratio (%)

55.15

61.62

 

 

Recurring Profit Ratio (%)

4.87

3.49

 

 

Net Profit Ratio (%)

2.82

2.11

 

 

Return On Equity (%)

6.61

4.55

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.