MIRA INFORM REPORT

 

 

Report Date :

02.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

JUKI CORPORATION

 

 

Registered Office :

2-11-1 Tsurumaki Tama City Tokyo-Metrop 206-8551

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

December 1938

 

 

Com. Reg. No.:

(Tokyo-Metrop-Tama Shi) 006169

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures, imports and exports industrial sewing machines, household sewing machines, industrial equipment, electronics, precision instruments

 

 

No. of Employees :

5,872

 

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 :

Slow but correct

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

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 and address

 

JUKI CORPORATION

REGD NAME:    JUKI KK

MAIN OFFICE:  2-11-1 Tsurumaki Tama City Tokyo-Metrop 206-8551 JAPAN

Tel: 042-357-2211     Fax: 042-357-2540

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of industrial sewing machines, industrial machinery

 

 

BRANCHES   

 

Domestic 122 locations; globally 79 locations

 

 

OVERSEAS   

 

China, Singapore, India, Sri Lanka, Vietnam, Bangladesh, UAE, Cambodia, Thailand, Myanmar, Poland, Germany, Italy, Romania, Russia, Belarus, Turkey, USA, Brazil, other (including subsidiaries).

 

 

FACTORIES  

 

Ohtawara (Tochigi), other; China, Vietnam, India, other

 

 

CHIEF EXEC 

 

AKIRA KIYOHARA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 94,385 M

PAYMENTSSlow but correct       CAPITAL           Yen 15,950 M

TREND UP                                WORTH            Yen 11,806 M

STARTED         1938                             EMPLOYES      5,872

 

 

COMMEN 

 

MFR OF INDUSTRIAL SEWING MACHINES. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

           

                        Unit: In Million Yen

Forecast (or estimated) figures for 31/12/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally as a rifle mfr, shifted into home sewing machines after WW2 and succeeded in production of nation’s first machine in 1947.  Now the firm is the largest producer of industrial sewing machines in the world and third largest in home-use machines in Japan.  Also expanding electronic equipment including chip mounter production (2nd mainline).  Boosting output in China.  Highly competitive in Asia including China.  Also produces chip mounters as 2nd mainline.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Dec/2013 fiscal term amounted to Yen 94,385 million, a24.5% up from Yen 75,831 million in the previous term.  Sales of sewing machines for apparel makers showed a favorable growth in newly emerging countries.  Orders increased for products for non-apparel firms such as automobile and shoes makers increased by 40%.  The recurring profit was posted at Yen 3,878 million and the net profit at Yen 3,006 million, respectively, compared with Yen 2,996 million recurring loss and Yen 8,342 million net losses, respectively, a year ago

 

            (Jan/Jun/2014 results): Sales Yen 50,734 million (up 8.1%), operating profit Yen 3,681 million (up 144.9%), recurring profit Yen 3,509 million ‘up 847.8%), net profit Yen 2,568 million (previously Yen 1,369 million loss).  (% & figures compared with the corresponding period a year ago)

 

r           For the current term ending Dec 2014 the recurring profit is projected at Yen 6,300 million and the net profit at Yen 4,600 million, respectively, on a 10.2% rise in turnover, to Yen 104,000 million.  Sales volume of sewing machines will continue expanding.

 

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

 

 

REGISTRATION

 

Date Registered:  Dec 1938

Regd No.:         (Tokyo-Metrop-Tama Shi) 006169

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         400 million shares

Issued:                129,370,899 shares

Sum:                   Yen 15,950 million

           

Major shareholders (%): Japan Trustee Services T (4.3), Mizuho Bank (3.6), Master Trust Bank of Japan T (3.2), Nippon Life Inc (3.0), BONY Mellon SANY Client MPCS Japan (2.9), BONY GCM Client JPRDISGFEAC (2.4), KBL EPB Ordinary Account 107501 (2.3), Asahi Life Ins (2.1), Dai-ichi Life Ins (1.9), Trust & Custody Services Inv T (1.8); foreign owners (26.3).

           

No. of shareholders: 9,028

 

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

 

Managements: Akira Kiyohara, pres; Hiroshi Nakamura, mgn dir; Naotake Miyashita, mgn dir; Hirokazu Nagashima, dir; Toshihiko Ozaki, dir; Kazumi Nagasaki, dir

 

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

 

Related companies: JUKI Denshi Kogyo, JUKI Singapore, other

 

 

OPERATION

           

Activities: Manufactures, imports and exports industrial sewing machines, household sewing machines, industrial equipment, electronics, precision instruments:

 

(Sales breakdown by divisions):

Sewing Machines (73%)

Industrial Sewing Machines (20%)

Others (7%)

Overseas sales ratio (84%)

 

Clients: [Mfrs, wholesalers] JUKI Hong Kong, JUKI Singapore, JUKI Automation Systems, JUKI European Holdings, JUKI Union Special, JUKI China Co, JUKI Shanghai, JUKI Household Sewing Machine, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] JUKI Matsue, JUKI Denshi Kogyo, JUKI Hiroshima                          Seisakusho, JUKI Shanghai, other.

 

Payment record: Slow but correct

 

Location: Business area in Tama City, Tokyo-Metrop.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Shinjuku)

Mizuho Trust Bank (Shinjuku)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/12/2013

31/12/2012

INCOME STATEMENT

 

　

　

  Annual Sales

　

94,385

75,831

　

  Cost of Sales

68,094

56,868

　

      GROSS PROFIT

26,291

18,963

　

  Selling & Adm Costs

21,139

20,414

　

      OPERATING PROFIT

5,151

-1,451

　

  Non-Operating P/L

4,727

-1,545

　

      RECURRING PROFIT

9,878

-2,996

　

      NET PROFIT

3,006

-8,342

BALANCE SHEET

 

 

　

　

  Cash

　

6,254

8,066

　

  Receivables

 

24,879

21,193

　

  Inventory

 

44,327

43,591

　

  Securities, Marketable

　

　

　

  Other Current Assets

4,045

2,791

　

      TOTAL CURRENT ASSETS

79,505

75,641

　

  Property & Equipment

26,614

28,471

　

  Intangibles

 

1,579

1,492

　

  Investments, Other Fixed Assets

5,491

4,737

　

      TOTAL ASSETS

113,189

110,341

　

  Payables

 

11,875

10,112

　

  Short-Term Bank Loans

53,074

53,981

　

　

 

　

　

　

  Other Current Liabs

7,901

8,397

　

      TOTAL CURRENT LIABS

72,850

72,490

　

  Debentures

 

　

10

　

  Long-Term Bank Loans

21,655

25,167

　

  Reserve for Retirement Allw

5,217

6,571

　

  Other Debts

　

1,660

1,169

　

      TOTAL LIABILITIES

101,382

105,407

　

      MINORITY INTERESTS

 

　

　

Common stock

15,950

15,950

　

Additional paid-in capital

　

　

　

Retained earnings

(2,304)

(5,310)

　

Evaluation p/l on investments/securities

630

220

　

Others

 

(2,410)

(5,867)

　

Treasury stock, at cost

(60)

(59)

　

      TOTAL S/HOLDERS` EQUITY

11,806

4,934

　

      TOTAL EQUITIES

113,189

110,341

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/12/2013

31/12/2012

　

Cash Flows from Operating Activities

　

6,405

-1,841

　

Cash Flows from Investment Activities

293

283

　

Cash Flows from Financing Activities

-9,445

3,233

　

Cash, Bank Deposits at the Term End

　

6,239

7,960

ANALYTICAL RATIOS            Terms ending:

31/12/2013

31/12/2012

　

 

Net Worth (S/Holders' Equity)

11,806

4,934

　

 

Current Ratio (%)

109.14

104.35

　

 

Net Worth Ratio (%)

10.43

4.47

　

 

Recurring Profit Ratio (%)

10.47

-3.95

　

 

Net Profit Ratio (%)

3.18

-11.00

　

　

Return On Equity (%)

25.46

-169.07

 

           

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.42

Euro

1

Rs.79.39

 

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%)

 

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.