MIRA INFORM REPORT
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Report No. : |
319626 |
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Report Date : |
27.04.2015 |
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 manufacturing of shipbuilding and
heavy electrical machinery |
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No. of Employee : |
12,065 |
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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Maximum Credit Limit : |
Yen 17,539.4 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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
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 REGULAR 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.
MAX CREDIT
LIMIT: YEN 17,539.4 MILLION, 30 DAYS NORMAL TERMS.
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
INFORMATIIN
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.
For the term that ended Mar 2015 the recurring profit was
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.
Final results are yet to be released.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 17,539.4 million, on 30 days normal terms.
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:
Regular
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
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.40 |
|
|
1 |
Rs.95.42 |
|
Euro |
1 |
Rs.68.49 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
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 |
|
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.