MIRA INFORM REPORT

 

 

Report Date :

15.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MEISEI INDUSTRIAL CO LTD

 

 

Registered Office :

Meisei Bldg, 1-8-5 Kyomachibori Nishiku Osaka 550-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

July 1947

 

 

Com. Reg. No.:

(Osaka-Nishiku) 049032

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Thermal insulation engineering firm.

 

 

No. of Employees

317

 

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 :

Regular 

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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 and address

 

MEISEI INDUSTRIAL CO LTD

REGD NAME:    Meisei Kogyo KK

MAIN OFFICE:  Meisei Bldg, 1-8-5 Kyomachibori Nishiku Osaka 550-0003 JAPAN

                                    Tel: 06-6447-0271     Fax: 06-6448-5321

 

URL:                 http://www.meisei-kogyo.co.jp/

E-Mail address: info@meisei-kogyo.co.jp

 

 

ACTIVITIES  

 

Thermal insulation engineering firm.

 

 

BRANCHES   

 

Tokyo, Sapporo, Sendai, Kashima, Niigata, Chiba, Kawasaki, Nagoya, Himeji,

Hiroshima, Fukuoka, Kagoshima, other (Tot 41 domestic)

 

 

OVERSEAS

 

New Guinea, Singapore, Indonesia, Nigeria, Thailand, Saudi Arabia, Malaysia

(--subsidiaries)

 

 

FACTORY

 

Hamamatsu

 

 

CHIEF EXEC

 

TOSHITERU OHTANI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 43,813 M

PAYMENTS      REGULAR         CAPITAL           Yen 6,889 M

TREND             UP                    WORTH            Yen 32,485 M

STARTED                     1947                 EMPLOYES      317

 

 

COMMENT

 

THERMAL INSULATION ENGINEERING COMPANY

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY                                                BUSINESS ENGAGEMENTS.

           

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

32,504

1,494

672

(%)

27,016

(Consolidated)

31/03/2012

37,178

1,861

2,116

14.38

28,660

 

31/03/2013

41,629

2,997

2,075

11.97

30,110

 

31/03/2014

43,813

3,883

2,240

5.25

32,485

 

31/03/2015

44,000

3,900

2,300

0.43

..

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

           

            This is the largest thermal insulation engineering company.  Stressing works related to LNG tanks and petrochemical plants.  Domestic leader in liquid LNG-related construction.  Also builds clean rooms.  Emphasizing peripheral businesses of electrolytic anticorrosion and heat exchanger cleaning, such as ultra-light calcium silicate insulation (Keical Ace).  Also makes boilers and other machines thru subsidiaries.  Strong in overseas projects (LNG facilities, refineries & petrochemicals) with presence in S/E Asia, Middle East, Africa, Eastern Europe, Australia, S America, etc.  The firm is going all-out for the fostering of refrigeration and cold storage equipment works, a new line.  In heat insulation works, it will intensify proposal-backed sales to develop new customers.  Overseas, the company lays stress on S/E Asia.  The firm aims to boost the overseas sales ratio to 20% in the medium term, and will stress marketing of heat insulation works in Southeast Asia, Middle East, etc.  It intends to focus on biomass-related boiler works in Japan

 

 

 

 

 

 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2014 fiscal term amounted to Yen 43,813 million, a 5.2% up from Yen 41,629 million in the previous term.  The recurring profit was posted at Yen 3,883 million and the net profit at Yen 2,240 million, respectively, compared with 2,997 million recurring profit and Yen 2,075 million net profit, respectively, a year ago.  Profit margin on construction works improved, thanks to large-lot orders.  

           

            For the current term ending Mar 2015 the recurring profit is projected at Yen 3,900 million and the net profit at Yen 2,300 million, on a 0.4% rise in turnover, to Yen 44,000 million.  Heat insulation woks will continue increasing in Japan and overseas, led by LNG-related projects and plant maintenance works.  Biomass-related boiler projects will grow. 

 

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

 

 

REGISTRATION

 

Date Registered:  Jul 1947

Regd No.:         (Osaka-Nishiku) 049032

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         190 million shares

Issued:                66,386,718 shares

Sum:                   Yen 6,889 million

           

Major shareholders (%): Company’s Treasury Stock (14.1), Daido Life Ins (6.3), Tomimoto Scholarship Society (4.2), SMBC (4.1), Mizuho Bank (4.1), Master Trust Bank of Japan T (3.9), Japan Trustee Services T (3.4), Nippon Life Ins (3.0), Dai-ichi Life Ins (3.0), Customers’ S/Holding Assn (2.7); foreign owners (11.8)

           

No. of shareholders: 3,221

 

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

 

Managements: Toshiteru Ohtani, pres & CEO; Shigeru Asakura, mgn dir; Hiroshi Inda, dir; Hideaki Nishimura, dir; Hideyuki Hayashi, dir

 

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

 

Related companies: Nippon Keical Co, Meisei Kenko Co, Meisei Real Estate Co, Yoshimine, other.

           

 

 

 

 

 

 

 

 

 

OPERATION

 

Activities: Thermal insulation engineering works:

           

(Sales breakdown by divisions):

 

Construction Div (90%): Thermal insulation (ultra-light calcium silicate insulation, hot &      cold insulation, furnace & refractory, fire proofing, nuclear power, LNG/LPG facilities, oil            refineries, other); Environmental business (concrete repairing, incinerator facilities, stack lining, acoustic insulation, other);

Overseas business (thermal insulation & fireproofing construction of LNG facilities,

oil refineries, petrochemical plants, including cryogenic insulation, other).

Machinery & Equipment Div (10%): Manufactures: metal insulation, vacuum insulation panels, composite insulation panel for LNG carriers, molded PUF pipe section, molded polyurethane foam, industrial boilers for plants, ultra-light weight calcium silicate insulation, precision electro device, biotechnology & medical treatment, other);

Overseas sales ratio (15%).

 

 

Clients: [Ship builders, engineering firms, refineries, wholesalers] Mitsubishi Heavy Ind, Kawasaki Shipyard, NGC Corp, Sumitomo Chemical, Mitsubishi Chemical Engineering,Cosmo Engineering, Shikoku Electric Power Engineering, Kansai Electric Power, Polyplastics Co, Japan Energy, Chiyoda-JGC JV, Sankyu Inc, Idemitsu Kosan, JGC Plant Solutions, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sumitomo Shoji Plastics, Nippon Keical Ltd, KK Sunmei, Meisei Koji Works, Yoshikawa Kogyo Co, Katayama & Co, Tanaka Industry, KK Seishin, Nakahara Kogyo Co, Nisshinbo Chemical Inc, other.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Osaka-Chuo)

Mizuho Bank (Umeda)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

　

43,813

41,629

 

  Cost of Sales

36,301

34,976

 

      GROSS PROFIT

7,512

6,652

 

  Selling & Adm Costs

3,827

3,859

 

      OPERATING PROFIT

3,684

2,793

 

  Non-Operating P/L

199

204

 

      RECURRING PROFIT

3,883

2,997

　

      NET PROFIT

2,240

2,075

BALANCE SHEET

 

 

 

 

  Cash

　

11,350

8,244

 

  Receivables

 

15,354

16,114

 

  Inventory

 

435

523

 

  Securities, Marketable

9

　

 

  Other Current Assets

4,477

4,111

 

      TOTAL CURRENT ASSETS

31,625

28,992

 

  Property & Equipment

14,261

14,514

 

  Intangibles

 

52

41

 

  Investments, Other Fixed Assets

3,838

2,828

 

      TOTAL ASSETS

49,776

46,375

 

  Payables

 

3,661

3,751

 

  Short-Term Bank Loans

1,098

1,415

 

　

 

　

　

 

  Other Current Liabs

7,488

6,153

 

      TOTAL CURRENT LIABS

12,247

11,319

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

578

800

 

  Reserve for Retirement Allw

　

1,060

 

  Other Debts

　

4,466

3,085

 

      TOTAL LIABILITIES

17,291

16,264

 

      MINORITY INTERESTS

 

 

 

Common stock

6,889

6,889

 

Additional paid-in capital

1,000

999

 

Retained earnings

24,566

22,652

 

Evaluation p/l on investments/securities

869

555

 

Others

 

1,525

1,382

 

Treasury stock, at cost

(2,364)

(2,367)

 

      TOTAL S/HOLDERS` EQUITY

32,485

30,110

　

      TOTAL EQUITIES

49,776

46,375

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

　

4,447

905

 

Cash Flows from Investment Activities

-970

-914

 

Cash Flows from Financing Activities

-863

-1,497

　

Cash, Bank Deposits at the Term End

　

9,530

6,877

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

32,485

30,110

 

 

Current Ratio (%)

258.23

256.14

 

 

Net Worth Ratio (%)

65.26

64.93

 

 

Recurring Profit Ratio (%)

8.86

7.20

 

 

Net Profit Ratio (%)

5.11

4.98

 

 

Return On Equity (%)

6.90

6.89

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.87

UK Pound

1

Rs.100.98

Euro

1

Rs.82.40

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.