MIRA INFORM REPORT

 

 

Report Date :

21.05.2014

 

IDENTIFICATION DETAILS

 

Name :

THK CO LTD

 

 

Registered Office :

3-11-6 Nishi-Gotanda Shinagawaku Tokyo 141-8503

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 1971

 

 

Com. Reg. No.:

(Tokyo-Shinagawaku) 006176

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures linear motion systems (e.g. LM guide & ball spline), ball screw, XY tables, link balls & rod ends, seismic isolation devices other

 

 

No. of Employees

9,284

 

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 :

Good

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

 

THK CO Ltd

REGD NAME:    THK KK

MAIN OFFICE:  3-11-6 Nishi-Gotanda Shinagawaku Tokyo 141-8503 JAPAN

                                    Tel: 03-5434-0300-

 

URL:                 http://www.thk.co.jp

E-Mail address: info@thk.co.jp

 

 

ACTIVITIES  

 

Mfg of linear motion systems

 

 

BRANCHES   

 

Osaka, Nagoya, Yamagata, Mie, Gifu, Yamaguchi, other (Tot 45)

 

 

OVERSEAS   

 

USA (6), Europe (11), China (34), Korea (15), Asia, other (Tot 75 offices)

 

 

FACTORIES  

 

Yamagata (2), Sendai, Niigata, Fukushima, Mishima, Kofu, Gifu, Mie, Yamaguchi,

Shizuoka, Oita;

USA (2), Mexico, France, Ireland, China (5), Korea (3), Malaysia, Thailand,

Vietnam

 

 

CHIEF EXEC 

 

AKIHIRO TERAMACHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY    

 

FINANCES                    FAIR                  A/SALES       Yen 185,466 M

PAYMENTS      REGULAR          CAPITAL        Yen 34,606 M

TREND             UP                     WORTH         Yen 222,148 M

STARTED                     1971                  EMPLOYES   9,284

 

 

COMMENT    

 

MFR OF LINEAR MOTION SYSTEMS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

190,661

21,631

13,959

(%)

167,937

(Consolidated)

31/03/2012

196,866

19,072

12,641

3.25

175,516

 

31/03/2013

168,366

14,765

9,808

-14.48

189,058

 

31/03/2014

185,466

23,618

15,590

10.16

222,148

 

31/03/2015

210,000

28,000

19,000

13.23

..

                        Notes: Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the pioneer mfr of linear motion systems (LMS), mainly for semiconductor-mfg equipment & machine tools.  Commands world’s largest market share of over 50%.  Emphasizing products for semiconductor-mfg equipment.  Has newly-developed LM guide and ball spline.  Stepping up sales base in China & India.  It plans to set up three sales bases and one R&D center in China.  It is also considering expansion of production/sales bases in India, Thailand and Vietnam.  It is pushing ahead with R&D of automobile parts and quake-absorbing equipment.  The three production bases in Tohoku area was hurt by the recent Earthquake & Tsunami but resumed operation on 01/04/2011, reports the firm.  To eliminate the deficit at its plant in France, the company transferred production of low-profitable automobile parts from France to Japan and the US.  In China, it is planning to strengthen sales through agencies.

 

 

 

 

 

 

 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2014 fiscal term amounted to Yen 185,466 million, a 10.2% up from Yen 168,366 million in the previous term.  Sales of linear motion systems grew, led by those in China, supported by increased production of semiconductor-mfg equipment and small machine tools for smartphone makers.  Orders for automobile parts also fared well.  The recurring profit was posted at Yen 23,618 million and the net profit at Yen 15,590 million, respectively, compared with Yen 14,765 million recurring profit and Yen 9,808 million net profit, respectively, a year ago. 

 

            For the current term ending Mar 2015 the recurring profit is projected at Yen 28,000 million and the net profit at Yen 19,000 million, respectively, on a 13.2% rise in turnover, to Yen 210,000 million.  Sales of automobile parts in North America, etc, will lead the sales growth.  Weaker Yen will also contribute to raise sales in Yen terms.

 

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

 

 

REGISTRATION

           

Date Registered: Apr 1971

Regd No.:         (Tokyo-Shinagawaku) 006176

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       467,877,700 shares

Issued:                133,856,903 shares

Sum:                   Yen 34,606 million

 

Major shareholders (%): Master Trust Bank of Japan T (6.5), Company’s Treasury Stock (5.4), Japan Trustee Services T (4.4), FTC Co (3.1), State Street Bank & Trust 505224 (2.9), Akihiro Teramachi (2.7), Mellon Bank Mellon Omnibus US P (2.5), Japan Trustee Services T9 (2.1), CS Sec USALLC SP for Excel Bene (1.7), Northern Trust (AVFC) British (1.6); foreign owners (47.5)

 

No. of shareholders: 18,807

 

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

 

Managements: Akihiro Teramachi, pres; Toshihiro Teramachi, v pres, Hiroshi Konno, v pres; Takashi Okubo, dir; Tetsuya Hayashida, dir; Jun’ichi Kuwahara, dir; Kiyonobu Hoshino, dir; Nobuyuki Maki, dir; Hideyuki Kiuchi, dir; Jun’ichi Sakai, dir; Hirokazu Ishikawa, dir

 

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

 

Related companies: THK America, THK Europe, other.

 

 

 

 

 

 

OPERATION

           

Activities: Manufactures linear motion systems (e.g. LM guide & ball spline), ball screw, XY tables, link balls & rod ends, seismic isolation devices other (--100%):

 

For Industrial equipment-related (73%), transportation equipment (27%).

Overseas Sales Ratio (40%): USA (13%), Europe (9%), China (8%), Asia, others (10%)

           

Clients: Mfrs, wholesalers, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

           

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Shinjuku)

MUFG (Gotanda)

Relations: Satisfactory

 

 


FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

185,466

168,366

 

  Cost of Sales

132,562

124,067

 

      GROSS PROFIT

52,903

44,298

 

  Selling & Adm Costs

35,533

32,605

 

      OPERATING PROFIT

17,370

11,692

 

  Non-Operating P/L

6,248

3,073

 

      RECURRING PROFIT

23,618

14,765

 

      NET PROFIT

15,590

9,808

BALANCE SHEET

 

 

 

 

  Cash

 

138,343

115,967

 

  Receivables

 

52,557

46,116

 

  Inventory

 

28,765

24,098

 

  Securities, Marketable

 

 

 

  Other Current Assets

8,225

7,759

 

      TOTAL CURRENT ASSETS

227,890

193,940

 

  Property & Equipment

94,838

87,697

 

  Intangibles

 

4,213

2,767

 

  Investments, Other Fixed Assets

9,475

8,741

 

      TOTAL ASSETS

336,416

293,145

 

  Payables

 

25,411

20,846

 

  Short-Term Bank Loans

 

20,000

 

 

 

 

 

 

  Other Current Liabs

29,079

14,810

 

      TOTAL CURRENT LIABS

54,490

55,656

 

  Debentures

 

50,000

40,000

 

  Long-Term Bank Loans

 

 

 

  Reserve for Retirement Allw

127

3,122

 

  Other Debts

 

9,650

5,309

 

      TOTAL LIABILITIES

114,267

104,087

 

      MINORITY INTERESTS

 

 

 

Common stock

34,606

34,606

 

Additional paid-in capital

44,584

44,584

 

Retained earnings

141,474

128,416

 

Evaluation p/l on investments/securities

801

740

 

Others

 

14,617

(5,360)

 

Treasury stock, at cost

(13,934)

(13,928)

 

      TOTAL S/HOLDERS` EQUITY

222,148

189,058

 

      TOTAL EQUITIES

336,416

293,145

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

23,664

20,395

 

Cash Flows from Investment Activities

-9,553

-15,284

 

Cash Flows from Financing Activities

-2,790

-5,387

 

Cash, Bank Deposits at the Term End

 

138,343

115,967

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

222,148

189,058

 

 

Current Ratio (%)

418.22

348.46

 

 

Net Worth Ratio (%)

66.03

64.49

 

 

Recurring Profit Ratio (%)

12.73

8.77

 

 

Net Profit Ratio (%)

8.41

5.83

 

 

Return On Equity (%)

7.02

5.19

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.74

UK Pound

1

Rs.98.77

Euro

1

Rs.80.52

 

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.