MIRA INFORM REPORT
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Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
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Name : |
MITSUI ENGINEERING & SHIPBUILDING CO
LTD |
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Registered Office : |
Hamarikyu Mitsui Bldg, 5-6-4 Tsukiji
Chuoku Tokyo 104-8439 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
July 1937 |
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Com. Reg. No.: |
0100-01-034946 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is engaged in Shipbuilding and
heavy electrical machinery mfr: |
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No of Employees : |
12,065 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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 & address
MITSUI ENGINEERING & SHIPBUILDING CO LTD
REGD
NAME
Mitsui Zosen KK
MAIN
OFFICE
Hamarikyu Mitsui
Bldg, 5-6-4 Tsukiji Chuoku Tokyo 104-8439 Japan
Tel: 03-3544-3147
Fax: 03-3544-3050
URL: http://www.mes.co.jp
E-Mail address: prdept@mes.co.jp
ACTIVITIES
Shipbuilding &
heavy machinery mfg
BRANCHES
Osaka, Nagoya,
Hiroshima, Fukuoka, other (Tot 6)
OVERSEAS
Singapore,
Beijing, Shanghai, Jakarta, London, New York, Hong Kong, Hanoi
FACTORIES
Tamano (Okayama), Ichihara
(Chiba), Oita (as given)
CHIEF
EXEC
TAKAO TANAKA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 670,067 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
44,384 M
TREND STEADY WORTH Yen
323,608 M
STARTED 1937 EMPLOYES 12,065
COMMENT
SHIPBUILDING & MFG OF HEAVY ELECTRIC MACHINERY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
Notes: Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2015 fiscal term
HIGHLIGHTS
The subject company was founded originally in 1917 as Shipbuilding Division of Mitsui & Co Ltd, leading general trading house of Japan, Tokyo, in Tamano City, Okayama-Pref. In 1926, entered into technical licensing agreement with Burmeister & Wain A/S of Denmark for marine diesel engine production. In 1937, separated from Mitsui & Co Ltd to become Tama Shipyard Co Ltd, and in 1942 renamed as captioned.
This is one of major mfrs in shipbuilding and heavy electric machinery. Ranked top in marine diesel engine production in Japan. One of core members of Mitsui Group firms. Shipbuilding is the core which alone accounts for about over 50% of total sales. Group shipping firm, Mitsui-OSK Lines, is aggressively ordering dry bulkers of 50/60,000 ton size, on the back of robust transportation needs into and from China. Actively advancing into new businesses, including cogeneration, environment-related business & IT sector including clean rooms. The company is pushing forward to win new orders in view of the scarcity of orders on hand in mid 2014 onward. In the engineering business, it won an order for shale gas-related works in US.
FINANCIAL
Information
The sales volume for Mar/2014 fiscal term amounted to Yen 670,067 million, a 16.1% up from Yen 577,093 million in the previous term. MODEC (subsidiary) business expanded. Gains on foreign exchange at MODEC expanded and special loss on impairment assets at shipyards was absent. The recurring profit was posted at Yen 12,854 million and the net profit at Yen 42,854 million, respectively, compared with Yen 26,162 million recurring profit and Yen 8,207 million net loss, respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen 172,497 million (up 28.9%), operating profits Yen 1,944 million (down 69.2%), recurring profit Yen 2,673 million (down 66.9%), net profit Yen 626 million (down 81.4%). (% compared with the corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is projected at Yen 20,000 million and the net profit at Yen 10,000 million, on a 13.4% up in turnover, to Yen 760,000 million. Consolidation of Showa Aircraft Industry will boost operating profit by Yen 2 billion-minus. Business performance of MODEC will get stronger. Onshore plant business will contribute to earnings in the full scale. .
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Jul
1937
Regd No.:
0100-01-034946 (Tokyo-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,500 million shares
Issued:
830,987,176 shares
Sum: Yen
44,384 million
Major
shareholders (%): Mitsui & Co (5.1), Master Trust Bank of Japan T (5.1), Japan
Trustee Services Bank T (3.2), Hyakujushi Bank (3.0), JTSB (Chuo Mitsui Trust
& Banking) (2.8), Mitsui Life Ins (1.9), Nomura Trust Inv T (1.6), SMBC
(1.6), Mitsui Sumitomo Marine Ins (1.5); foreign owners (256,388
Listed on the S/Exchange (s) of: Tokyo
Managements: Yasuhiko Kato,
ch; Takao Tanaka, pres; Masafumi Okada, v pres; Takaki Yamamoto, mgn dir;
Hiroyuki Komine, mgn dir; Shinsuke Minoda, mgn dir; Norihisa Fukuda, mgn dir;
Takahiro Hiraiwa, dir; Nobuo Doi, dir; Akira Nishihata, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Modec Inc, Mitsui Babcock Energy (UK), Mitsui Zosen Plant Engineering,
PACECO Corp (USA), Brumeister & Wain Scandinavian Contractor A/S (Denmark),
other
OPERATION
Activities: Shipbuilding and
heavy electrical machinery mfr:
(Sales
breakdown by Divisions): Shipbuilding (56%), Steel structure construction, engineering
(17%), Machinery (23%), Plants, others (4%)
Products
list:
Ships
& Oceans: LNG carriers, bulk carriers (grain, ore, coal, lumber), Oil tankers,
FPSO (facility for production, storage and offloading of crude oil drilled from
submarine oil field), Underwater TV vehicles, R-One robot (autonomous
underwater vehicle to search wide underwater area), Techno super liner,
destroyer (equipped with anti-aircraft missile), patrol ship (for Japan Coast
Guard), ship handling simulator, dynamic positioning system (automatically keep
position of ships), other;
Energy
systems: marine diesel engines, nuclear fuel cycles, radioactive waste treatment,
cask & containers, diesel generating plant, gas turbine combined cycle
power plants, gas turbine co-generation system, steam turbine generating
system, process compressors, top pressure recovery turbine (TRT) generating
system, natural gas hydrate project;
Environment—Recycling:
Mitsui
Recycling 21 (thermal dioxin decomposition system for ash from incinerators), Diobreaker,
Mitsui Fluidized bed waste incinerator, Templar 21 (recycling of kitchen
garbage), Expanded polystyrene recycling system, biogas plant, fluidized bed
sludge incinerator, ultra activated sludge water treatment process;
Plant
Engineering: inorganic chemistry plant, seawater desalination plant;
IT-Related
Activities: MapInfo (mapping system for PC version covering all kinds of map &
statistic data), NeoShip (computational fluid dynamics (CFD) system for ship
design);
Logistics
Systems: Quayside container crane, transfer crane in container yard, container
terminal management system;
Construction
of Social Infrastructure: bridges, Watergates & penstocks, radar
detectors, elementary particle (neutrino) detectors, floating piers &
pontoons;
Advanced
Machinery Systems: power electronics equipment, ion implanter for
low-temp poly-silicon TFT, testing system/prober for FPD, CVD-SiC coating
(semiconductor mfg equipment using CVD)
Overseas
trading ratio (66%)
Clients: [Mfrs,
wholesalers] Mitsubishi Corp, Mitsui & Co, Imabari Shipbuilding, Tsuneishi
Shipyard, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui & Co, IHI, Okaya & Co, Mitsubishi Corp, Shinsho
Corp, other.
Payment record: No Complaints
Location: Business area in Tokyo.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
SMBC (H/O)
Mizuho Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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670,067 |
577,093 |
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Cost of Sales |
606,749 |
510,950 |
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GROSS PROFIT |
63,317 |
66,142 |
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Selling & Adm Costs |
43,348 |
42,141 |
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OPERATING PROFIT |
19,969 |
24,001 |
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Non-Operating P/L |
6,210 |
2,161 |
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RECURRING PROFIT |
26,179 |
26,162 |
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NET PROFIT |
42,851 |
-8,207 |
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BALANCE SHEET |
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Cash |
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89,238 |
86,578 |
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Receivables |
211,462 |
161,089 |
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Inventory |
36,809 |
42,354 |
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Securities, Marketable |
500 |
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Other Current Assets |
68,976 |
63,569 |
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TOTAL CURRENT ASSETS |
406,985 |
353,590 |
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Property & Equipment |
379,683 |
191,926 |
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Intangibles |
11,824 |
11,863 |
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Investments, Other Fixed Assets |
134,404 |
103,018 |
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TOTAL ASSETS |
932,896 |
660,397 |
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Payables |
178,835 |
136,160 |
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Short-Term Bank Loans |
21,876 |
11,809 |
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Other Current Liabs |
167,758 |
154,077 |
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TOTAL CURRENT LIABS |
368,469 |
302,046 |
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Debentures |
30,000 |
25,000 |
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Long-Term Bank Loans |
101,986 |
75,486 |
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Reserve for Retirement Allw |
10,275 |
5,487 |
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Other Debts |
|
98,557 |
45,065 |
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TOTAL LIABILITIES |
609,287 |
453,084 |
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MINORITY INTERESTS |
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Common
stock |
44,384 |
44,384 |
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Additional
paid-in capital |
18,178 |
18,178 |
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Retained
earnings |
136,288 |
95,549 |
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Evaluation
p/l on investments/securities |
7,360 |
6,263 |
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Others |
118,252 |
43,682 |
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Treasury
stock, at cost |
(854) |
(743) |
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TOTAL S/HOLDERS` EQUITY |
323,608 |
207,313 |
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TOTAL EQUITIES |
932,896 |
660,397 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash Flows
from Operating Activities |
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14,499 |
47,182 |
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Cash
Flows from Investment Activities |
-37,312 |
-12,100 |
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Cash
Flows from Financing Activities |
15,531 |
-4,793 |
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Cash,
Bank Deposits at the Term End |
|
111,926 |
106,192 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
323,608 |
207,313 |
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Current
Ratio (%) |
110.45 |
117.06 |
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Net
Worth Ratio (%) |
34.69 |
31.39 |
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Recurring
Profit Ratio (%) |
3.91 |
4.53 |
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Net
Profit Ratio (%) |
6.40 |
-1.42 |
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Return
On Equity (%) |
13.24 |
-3.96 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
|
|
1 |
Rs.98.15 |
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Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.