MIRA INFORM REPORT

 

 

Report Date :

26.06.2014

 

IDENTIFICATION DETAILS

 

Name :

HAMADA HEAVY INDUSTRIES LTD

 

 

Registered Office :

1-1-36 Makiyama Tobataku Kitakyushu Fukuoka-Pref 804-0053

 

 

Country :

Japan

 

 

Financials (as on) :

31.07.2014 (Estimated)

 

 

Date of Incorporation :

June 1950

 

 

Com. Reg. No.:

2908-01-003064 (Kitakyushu-Tobataku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Subject is an Engineering Company

·         Manufacturer of Steel Products, Engineering Works, Silicon, Silicon Wafers & Recycling of Sludge/Dusts. 

·         Engaged in development and operation of equipment and various tasks involved in the iron and Steel Process Blast Furnace, Converter, such as Electric Furnace

 

 

No of Employees :

1,786

 

 

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

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

HAMADA HEAVY INDUSTRIES LTD

 

 

REGD NAME

 

Hamada Jyuko KK

 

 

MAIN OFFICE

 

1-1-36 Makiyama Tobataku Kitakyushu Fukuoka-Pref 804-0053 JAPAN

Tel: 093-883-0369      Fax: 093-882-2768

                                               

URL:                 http://www.hamada-hi.co.jp

E-Mail address:            info@hamada-hi.co.jp

 

 

ACTIVITIES

 

·         Subject is an Engineering Company

·         Manufacturer of Steel Products, Engineering Works, Silicon, Silicon Wafers & Recycling of Sludge/Dusts. 

·         Engaged in development and operation of equipment and various tasks involved in the iron and Steel Process Blast Furnace, Converter, such as Electric Furnace

 

 

BRANCHES

 

Tokyo, Osaka, Yahata, Hikari, Oita, Kakogawa, Sakai, other (Tot 7)

 

 

OVERSEAS   

 

Malaysia, Taiwan

 

FACTORIES

 

At the caption address, Kitakyushu, Kumamoto (Tot 3)

 


OFFICERS

 

YUTAKA MATSUMOTO, PRES  Michio Shigeki, mgn dir

Hirofumi Isonaga, mgn dir          Takashi Murayama, dir

Yasuyuki Momoi, dir                  Akinori Shin, dir

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 26,135 M

PAYMENTS      No Complaints          CAPITAL           Yen 326 M

TREND             SLOW                           WORTH            Yen 18,796 M

STARTED         1950                             EMPLOYES      1,786

 

 

COMMENT    

 

ENGINEERING WORKS, MFR OF STEEL PRODUCTS, OTHER.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

The subject company was established originally in 1898 by Yonejiro Hamada, on his account, for cutting works of iron steel for the then Yawata Steel (now Nippon Steel & Sumitomo Metal Corp), and was incorporated in 1950 by Misuji Hamada.  Yutaka is his son, who took the pres office in Sept 2004.  This is an engineering company, specializing in mfg of steel products for delivery to steel plants, recycling of sludge/dusts.  Products are exported to China, other S/E Asian countries.  Clients include major steel mfrs, other mfrs.

 

 

FINANCIAL INFORMATION

           

The sales volume for Jul/2013 fiscal term amounted to Yen 26,135 million, a 4% down from Yen 27,233 million in the previous term.  Unit prices of some of the steel products were down. Exports to China, other S/E Asian countries continued increasing.  The recurring profit was posted at Yen 2,666 million and the net profit at Yen 1,698 million, respectively, compared with Yen 1,932 million recurring profit and Yen 1,041 million net profit, respectively, a year ago.

 

For the current term ending Jul 2014 the recurring profit is projected at Yen 2,800 million and the net profit at Yen 1,750 million, respectively, on a 5% rise in turnover, to Yen 27,500 million.  The weaker Yen may raise the earnings in Yen terms.  Exports continue rising. 

 

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

 

 

REGISTRATION

 

Date Registered:  Jun 1950

Regd No.:         2908-01-003064 (Kitakyushu-Tobataku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         2.6 million shares

Issued:                652,000 shares

Sum:                   Yen 326 million

 

Major shareholders (%): Kiku Shoji KK (23), Yohei Hamada (22),Yutaka Matsumoto (19), Takachiho Shoko KK (18), Employees’ S/Holding Assn (13), other

 

No. of shareholders: 7

 

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

 

 

OPERATION

 

Activities: Manufactures steel products (64%), engineering works, silicon, silicon wafers, recycling of sludge, other (36%)

 

(Breakdowns are all about)

 

Clients: [Steel mills, mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, Nippon Steel & Sumikin Stainless Steel Corp, Mitsui Bussan Electronics, Elpida Memory, Nippon-Chemicon Corp, Toshiba Corp, Mitsubishi Heavy Ind, Kobe Steel, Osaka Steel Co, other

 

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hamadatec Malaysia, Transport Approach, Uchimura Sanso Co, Nittetsu Steel & Sumikin Bussan Corp, Suematsu Kyuki Co, Fuyo General Lease Co, Ando Corp, Omori Kogyosho, other

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Bank (Kitakyushu)

MUFG (Kitakyushu)

Relations: Satisfactory

 

 


FINANCES

 

(In Million Yen)

 

       Terms Ending:

31/07/2014

31/07/2013

31/07/2012

31/07/2011

Annual Sales

 

27,500

26,135

27,233

25,778

Recur. Profit

 

2,800

2,666

1,932

1,289

Net Profit

 

1,750

1,698

1,041

1,155

Total Assets

 

 

29,545

29,176

29,981

Current Assets

 

 

15,396

13,542

13,280

Current Liabs

 

 

7,265

7,439

8,195

Net Worth

 

 

18,796

17,188

18,237

Capital, Paid-Up

 

 

326

326

326

Div.Ttl in Million (¥)

 

 

90.4

90.4

90.2

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.22

-4.03

5.64

8.22

    Current Ratio

..

211.92

182.04

162.05

    N.Worth Ratio

..

63.62

58.91

60.83

    R.Profit/Sales

10.18

10.20

7.09

5.00

    N.Profit/Sales

6.36

6.50

3.82

4.48

    Return On Equity

..

9.03

6.06

6.33

 

Notes: Forecast (or estimated) figures for the 31/07/2014 fiscal term.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.28

UK Pound

1

Rs.102.28

Euro

1

Rs.82.05

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.