MIRA INFORM REPORT
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Report No. : |
337005 |
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Report Date : |
18.08.2015 |
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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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 an 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. Scarce in many natural resources,
Japan has long been dependent on imported raw materials. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become even more dependent than it was
previously on imported fossil 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
impressive - 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 aftereffects 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. 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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out
nuclear power with a new policy of seeking to restart nuclear power plants that
meet strict new safety standards, and emphasizing nuclear energy’s importance
as a base-load electricity source. Japan joined the Trans-Pacific Partnership
(TPP) 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 first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
|
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.
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.
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)
|
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 |
|
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 |
|
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 |
|
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.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
|
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 |
|
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.