MIRA INFORM REPORT
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Report No. : |
315689 |
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Report Date : |
15.04.2015 |
IDENTIFICATION DETAILS
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Name : |
HITACHI METALS LTD |
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Registered Office : |
1-2-1 Shibaura Minatoku Tokyo 105-8614 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
April, 1956 |
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Com. Reg. No.: |
(Tokyo-Minatoku) 038783 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of High-Quality Special Steel, Electronics & IT
Device. |
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No. of Employees : |
30,731 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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. Since the
complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami
disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused
the economy to contract during the 2nd and 3rd quarters of 2014. The economy
has largely recovered in the three years since the disaster, but reconstruction
in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a
longstanding debate on restructuring the economy and reining in Japan's huge
government debt, which amounts to more than 240% 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 2015, although the government
in 2014 decided to postpone the final phase of the increase until 2017 to give
the economy time to recover from the 2014 increase. 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.
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Source
: CIA |
Company
Name and address
HITACHI METALS Ltd
REGD NAME: Hitachi Kinzoku KK
MAIN OFFICE: 1-2-1 Shibaura
Minatoku Tokyo 105-8614 JAPAN
Tel: 03-5765-4000 -
URL: http://www.hitachi-metals.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of
high-quality special steel, electronics & IT device
BRANCHES
Osaka, Nagoya,
Fukuoka, Kumagaya, other (Tot 17)
OVERSEAS
USA (5), Germany
(2), Italy, UK, France, Thailand, China (3), Taiwan, Korea
FACTORIES
Fukuoka, Shimane,
Osaka, Tottori, Wakayama, other (Tot 15 factories)
CHIEF
EXEC
HIDEAKI TAKAHASHI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 807,952 M
PAYMENTSNO COMPLAINTS CAPITAL Yen 26,284 M
TREND STEADY WORTH Yen 373,198 M
STARTED 1956 EMPLOYES 30,731
COMMENT
MFR OF HIGH-QUALITY SPECIAL STEEL, ELECTRONICS & IT DEVICE.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million
Yen
Forecast figures
for the 31/03/2015 fiscal term
HIGHLIGHTS
The subject
company was established on the basis of an iron & steel division separated
from Hitachi Ltd (See REGISTRATION). This is a major mfr of high-quality special steel. Now this is the
leading strategic company of
Hitachi group. Expanded into diverse electronic materials and new materials. World’s top maker of magnetic materials. Also engaged in overseas production.
FINANCIAL
INFORMATION
The sales volume
for Mar/2014 fiscal term amounted to Yen 807,952 million, a 50.8% up from Yen
535,779 million in the previous term.
The global economy registered an overall tone of recovery. The recurring profit was posted at Yen 60,898
million and the net profit at Yen 39,417 million, respectively, compared with
Yen 21,251 million recurring profit and Yen 12,955 million net profit,
respectively, a year ago. .
(Apr/Dec/2014
results): Sales Yen 716,950 million (up 24.3%), operating profit Yen 54,013
million (up 31.2%), recurring profit Yen 54,722 million (up 28.5%), net profit
Yen 43,317 million (up 87.9%). (% as
compared with the corresponding period a year ago)
For the term that ended
Mar 2011 the recurring profit was projected at 72,500 million and the net
profit at Yen 46,000 million, respectively, on a 22.5% rise in turnover, to Yen
990,000 million. Former Hitachi Cable
and new subsidiary in the US pushed up sales for 3 months & 5 months,
respectively. Final results are yet to
be released.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: Apr 1956
Regd
No.: (Tokyo-Minatoku)
038783
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
500 million shares
Issued: 428,904,352
shares
Sum: Yen
26,284 million
Major shareholders
(%):
Hitachi Ltd (52.7), Japan Trustee Service Bank (5.8), State Street Bank &
Trust (2.8), Master Trust Bank of Japan (2.4), Company’s Treasury Stock (3.8),
State Street Bank & Trust (2.5), Northern Trust Co (1.6), JP Morgan Chase
Bank (1.1), Trust & Custody Service Bank (1.0), JP Morgan Chase Bank (2)
(0.9), Daido Steel (0.8), Mellon Bank (0.7); foreign owners (21.9)
No. of shareholders: 11,624
Listed on the S/Exchange (s) of: Tokyo
Managements: Kazuyuki
Konishi, ch; Hideaki Takahashi, pres; Yorihiko Shima, mgn dir; Taiji Yamada,
dir; Yasunori Noguchi, dir; Hisashi Machida, dir; Koji Tanaka, dir; Juichi
Nishino, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Hitachi Metals Techno Ltd, Hitachi Tool, Hitachi Metals Admet Ltd,
other.
OPERATION
Activities: Manufactures:
High-Grade
Metal Products & Materials (29%): molds & tool sheets, alloys for
electronic products (display-related, semiconductor & other packages),
industrial equipment & energy-related materials, rolls for steel, nonferrous
& non-metal applications, injection molding machine parts, structural
ceramic products, steel-flame joints for construction, cutting tools;
Electronics
& IT Devices (17%): magnets (rare-earth magnets, ferrite magnetic
materials, and applied products), components for information &
telecommunications equipment (multilayered devices, isolators), IT components
& materials, soft magnetic materials (soft ferrite cores & applied
products, nanocrystaline magnetic materials, and applied devices, amorphous metals,
and applied products);
High-Grade
Functional Components & Equipment (23%): high-grade casting components for
automobiles (high-grade ductile iron products, heat-resistant exhaust casting
components, aluminum wheels, other aluminum components), piping &
infrastructure components (pipe fittings, stainless steel & plastic piping
components, water cooling equipment, precision mass flow control devices),
construction components (access floor systems, structural systems, material
handling systems).
Cable
Materials (31%)
Overseas
Sales Ratio (42%)
Clients: [Mfrs,
wholesalers] Nissan Motors, Samsung Electronics Co, Tokyo Gas, Hitachi Admet, Hitachi Metals Europe,
other
No. of accounts:
800
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo Metal Mining,
Hitachi Ltd, Advanced Materials Japan, Hitachi Hi-Tech Materials, other
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Corporate 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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807,952 |
535,779 |
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Cost of Sales |
638,872 |
440,680 |
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GROSS PROFIT |
169,080 |
95,095 |
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Selling & Adm Costs |
109,544 |
74,016 |
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OPERATING PROFIT |
59,536 |
21,079 |
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Non-Operating P/L |
1,362 |
172 |
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RECURRING PROFIT |
60,898 |
21,251 |
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NET PROFIT |
39,417 |
12,955 |
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BALANCE SHEET |
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Cash |
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46,289 |
28,395 |
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Receivables |
210,503 |
99,265 |
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Inventory |
142,890 |
117,060 |
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Securities, Marketable |
1,058 |
49 |
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Other Current Assets |
107,038 |
30,978 |
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TOTAL CURRENT ASSETS |
507,778 |
275,747 |
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Property & Equipment |
234,666 |
185,027 |
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Intangibles |
46,125 |
41,738 |
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Investments, Other Fixed Assets |
52,173 |
38,774 |
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TOTAL ASSETS |
840,742 |
541,286 |
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Payables |
167,436 |
67,942 |
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Short-Term Bank Loans |
42,949 |
38,085 |
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Other Current Liabs |
107,657 |
43,213 |
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TOTAL CURRENT LIABS |
318,042 |
149,240 |
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Debentures |
35,000 |
30,000 |
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Long-Term Bank Loans |
53,879 |
67,153 |
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Reserve for Retirement Allw |
47,939 |
22,573 |
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Other Debts |
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12,684 |
12,455 |
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TOTAL LIABILITIES |
467,544 |
281,421 |
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MINORITY INTERESTS |
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Common
stock |
26,284 |
26,284 |
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Additional
paid-in capital |
115,692 |
42,463 |
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Retained
earnings |
239,530 |
192,500 |
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Evaluation
p/l on investments/securities |
4,802 |
3,849 |
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Others |
(12,100) |
(4,398) |
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Treasury
stock, at cost |
(1,010) |
(833) |
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TOTAL S/HOLDERS` EQUITY |
373,198 |
259,865 |
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TOTAL EQUITIES |
840,742 |
541,286 |
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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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100,557 |
62,975 |
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Cash
Flows from Investment Activities |
-30,906 |
-28,718 |
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Cash
Flows from Financing Activities |
-30,914 |
-31,278 |
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Cash,
Bank Deposits at the Term End |
|
95,543 |
34,102 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net Worth
(S/Holders' Equity) |
373,198 |
259,865 |
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Current
Ratio (%) |
159.66 |
184.77 |
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Net
Worth Ratio (%) |
44.39 |
48.01 |
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Recurring
Profit Ratio (%) |
7.54 |
3.97 |
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Net
Profit Ratio (%) |
4.88 |
2.42 |
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Return
On Equity (%) |
10.56 |
4.99 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.37 |
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1 |
Rs.91.60 |
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Euro |
1 |
Rs.66.49 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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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 |
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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 |
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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.