MIRA INFORM REPORT
|
Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
JGC CORPORATION |
|
|
|
|
Registered Office : |
Queen Tower A, 2-3-1 Minatomirai Nishiku Yokohama 220-6001 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
October 1928 |
|
|
|
|
Com. Reg. No.: |
(Tokyo-Chiyodaku) 008732 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Plant engineering works |
|
|
|
|
No. of Employees : |
7,005 |
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 24,924.7 Million |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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. 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
JGC CORPORATION
REGD NAME: Nikki
KK
MAIN OFFICE: Queen
Tower A, 2-3-1 Minatomirai Nishiku Yokohama 220-6001 JAPAN
Tel:
045-682-1111 Fax: 045-682-1112
E-Mail
address: webmaster@jgc.co.jp
ACTIVITIES
Plant
engineering works
BRANCHES
Tokyo,
Osaka, Yokohama, other (Tot 15)
OVERSEAS
Beijing,
Singapore, Paris, London, Jakarta, Bangkok, Abu Dhabi, Algiers, Teheran, Arzew
(Algeria)
(Affiliated): China, Philippines,
Singapore, Korea, Malaysia, Indonesia, Pakistan, Saudi Arabia (2), UAE, Qatar,
UK (2), Netherlands, Nigeria, Algeria, USA, Venezuela
CHIEF
EXEC
KOICHI
KAWANA, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 675,821 M
PAYMENTSREGULAR CAPITAL Yen
23,511 M
TREND UP WORTH Yen 379,882 M
STARTED 1928 EMPLOYES 7,005
COMMENT
INDUSTRIAL PLANT ENGINEERING COMPANY.
FINANCIAL SITUATION CONSIDERED
FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 24,924.7
MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2015 fiscal term
HIGHLIGHTS
This
is an independent general engineering company, founded originally in 1928 as
producer of oil products, on acquisition of license of Dubbs’ thermal cracking
process from old Universal Oil Products, USA.
Strong in oil refining, petrochemicals, LNG & nuclear fuel
processing lines. Overseas sales ratio
about 60%. With no production division,
all materials, machinery & plants are outsourced including
subsidiaries. Works cover industrial
plants, such as crude oil, lube oil, LNG, LPG, ethylene, power generation,
nuclear power facilities, food processing, hospitals, shopping centers,
airports, non-ferrous metal smelting, pharmaceuticals & R&D facilities,
information & telecommunications facilities, medical & welfare
facilities, other. Has close association
with Shell. The company won orders for
ethylene facility projects in the southern US.
It has made a bid for 2 LNG plant construction contracts valued several
hundreds of billion Yen in the US and Canada, with bidding results to be
informed by the end of the current term.
FINANCIAL
INFORMATION
The sales volume for Mar/2014
fiscal term amounted to Yen 675,821 million, an 8.2% up from Yen 624,637
million in the previous term. Work
completions continued growing, led by those for LNG facilities. Net profits hit a record high
consecutively. Plant construction works
increased in North America due to shale gas revolution. The recurring profit was posted at Yen 83,675
million and the net profit at Yen 47,178 million, respectively, compared with
Yen 72,489 million recurring profit and Yen 46,179 million net profit,
respectively, a year ago.
(Apr/Jun/2014 results): Sales
Yen 170,459 million (up 10.6%), operating profit Yen 12,920 million (down
15.6%), recurring profit Yen 12,843 million (down 43.0%), net profit Yen 9,615
million (down 30.9%). (% as compared
with the corresponding period a year ago).
For
the current term ending Mar 2015 the recurring profit is projected at Yen
59,000 million and the net profit at Yen 42,000 million, respectively, on a
15.4% rise in turnover, to Yen 780,000 million.
The term’s order backlog is ample at Yen 1.5 trillion. Large-scale works for natural gas and
petroleum refining plants including ultralarge-scale Ichthy7s LNG project in
Australia have been underway, which will contribute in the full term. Overall sales are anticipated to advance, but
operating profit will take a downturn, weighed down by fading-out of
high-profitable orders. Foreign exchange
gains will vanish in the non-operating account.
The financial situation is
considered FAIR to GOOD and responsible for ORDINARY business engagements. MAX CREDIT LIMIT: YEN 24,924.7 MILLION, 30
DAYS NORMAL TERMS
REGISTRATION
Date Registered: Oct
1928
Regd No.: (Tokyo-Chiyodaku) 008732
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 600 million shares
Issued: 259,052,929 shares
Sum: Yen 23,511
million
Major shareholders (%): Master Trust Bank of Japan T
(8.2), Japan Trustee Services T (7.2), JGC Trading & Services (4.6), SMBC
(4.2), JGC Scholarship Foundation (3.2), Company’s Treasury Stock (2.5), Mizuho
Bank (2.2), Northern Trust (AVFC) American Nontreaty (1.6), CBNY Scout
International Fund (1.3), BNP Paribus Securities (1.2); foreign owners (39.8)
No. of shareholders: 6,023
Listed on the S/Exchange (s) of:
Tokyo
Managements: Masayuki Sato, ch; Koichi Kawana,
pres: Tadashi Ishizuka, v pres; Hiroshi Yamazaki, v pres; Tsutomu Akabane,
s/mgn dir; Hideaki Miura, mgn dir; Satoshi Sato, mgn dir; Hiroyuki Miyoshi, mgn
dir; Masanori Suzuki, dir; Shigeru Endo, dir (outside)
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: JGC Catalysts & Chemicals Ind,
JGC Information Systems, JGC Projects Services, Japan Fine Ceramics, JGC
Plantech, other . .
OPERATION
Activities: General engineering works (sales breakdown
by divisions): Comprehensive engineering works* (92%), catalysts &
chemicals** (--6%), others (2%).
Overseas sales ratio (83%)
*.. Detailed breakdown by industrial areas:
oil/gas/resources (15%), petroleum refining (17%), LNG (15%), chemicals (34%),
power generation (8%), others (11%). (%
are all about).
** Products: catalysts-related (FCC catalysts, hydraulic treatment
catalysts, de-sulfurization catalysts, catalysts for petrochemicals); new
functional-related products (colloidal silica, CRT/FPD surface treatment
agents, LCD’s materials, semiconductor materials, batteries, cosmetics,
optical, other materials, antibacterial agents, other)
Clients: [Oil refineries, chemical mfrs, other
mfrs] Cosmo Oil, Nippon Petrochemicals, Nippon Petroleum Refining, Kyushu Oil,
Japan Energy, Esso Highland, Saudi Aramco, Sonatrach (Algeria), Terumo Corp,
other.
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsui
Engineering & Shipbuilding, Mitsubishi Heavy Ind, Hitachi Ltd, Yokogawa
Electric, Kobe Steel, Shinko Planning, Sanki Engineering, JGC Plant Innovation,
Mitsubishi Heavy Ind Compressor Corp, other.
Payment record:
Regular
Location:
Business area in Yokohama. Office
premises at the caption address are leased and maintained satisfactorily.
Bank References:
MUFG
(H/O)
SMBC
(H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
||||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
||||
|
Annual Sales |
|
675,821 |
624,637 |
|
|
Cost of Sales |
587,437 |
540,164 |
||
|
GROSS PROFIT |
88,384 |
84,473 |
||
|
Selling & Adm Costs |
20,130 |
20,349 |
||
|
OPERATING PROFIT |
68,253 |
64,123 |
||
|
Non-Operating P/L |
15,422 |
8,366 |
||
|
RECURRING PROFIT |
83,675 |
72,489 |
||
|
|
NET PROFIT |
47,178 |
46,179 |
|
|
BALANCE SHEET |
||||
|
Cash |
|
354,199 |
259,777 |
|
|
Receivables |
102,170 |
96,570 |
||
|
Inventory |
46,885 |
42,264 |
||
|
Securities, Marketable |
31,052 |
25,000 |
||
|
Other Current Assets |
41,580 |
36,620 |
||
|
TOTAL CURRENT ASSETS |
575,886 |
460,231 |
||
|
Property & Equipment |
70,290 |
71,708 |
||
|
Intangibles |
16,757 |
12,780 |
||
|
Investments, Other Fixed Assets |
83,169 |
84,038 |
||
|
TOTAL ASSETS |
746,102 |
628,757 |
||
|
Payables |
107,450 |
93,335 |
||
|
Short-Term Bank Loans |
|
|
||
|
|
|
|
||
|
Other Current Liabs |
225,903 |
169,104 |
||
|
TOTAL CURRENT LIABS |
333,353 |
262,439 |
||
|
Debentures |
|
|
||
|
Long-Term Bank Loans |
13,001 |
9,363 |
||
|
Reserve for Retirement Allw |
11,436 |
12,355 |
||
|
Other Debts |
|
8,430 |
8,517 |
|
|
TOTAL LIABILITIES |
366,220 |
292,674 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
23,511 |
23,511 |
||
|
Additional
paid-in capital |
25,007 |
25,603 |
||
|
Retained
earnings |
327,775 |
291,781 |
||
|
Evaluation
p/l on investments/securities |
6,868 |
5,417 |
||
|
Others |
3,198 |
(3,899) |
||
|
Treasury
stock, at cost |
(6,477) |
(6,330) |
||
|
TOTAL S/HOLDERS` EQUITY |
379,882 |
336,083 |
||
|
|
TOTAL EQUITIES |
746,102 |
628,757 |
|
|
CONSOLIDATED CASH FLOWS |
||||
|
Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Cash
Flows from Operating Activities |
|
120,576 |
85,010 |
|
|
Cash
Flows from Investment Activities |
-18,728 |
-28,370 |
||
|
Cash
Flows from Financing Activities |
-10,687 |
-2,695 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
385,252 |
284,777 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Net
Worth (S/Holders' Equity) |
379,882 |
336,083 |
||
|
Current
Ratio (%) |
172.76 |
175.37 |
||
|
Net
Worth Ratio (%) |
50.92 |
53.45 |
||
|
Recurring
Profit Ratio (%) |
12.38 |
11.60 |
||
|
Net
Profit Ratio (%) |
6.98 |
7.39 |
||
|
Return
On Equity (%) |
12.42 |
13.74 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.10 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.