MIRA INFORM REPORT

 

 

Report No. :

299792

Report Date :

15.01.2015

 

IDENTIFICATION DETAILS

 

Name :

HITACHI HIGH-TECHNOLOGIES CORPORATION

 

 

Registered Office :

Hitachi High-Tech Bldg., 1-24-14, Nishi-Shinbashi, Minato-Ku, Tokyo 105-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

12.04.1947

 

 

Com. Reg. No.:

0104-01-021648

 

 

Legal Form :

Listed

 

 

Line of Business :

Manufacturer of Electronic Products and Components.

 

 

No. of Employees :

10,387

 

 

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

 

 

Maximum Credit Limits :

US$ 120 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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. 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

 

HITACHI HIGH-TECHNOLOGIES CORPORATION

 

 

OUTLINE

 

Country:                                    Japan

Company name:                        HITACHI HIGH-TECHNOLOGIES CORPORATION

Name in local language:             HITACHI HIGH-TECHNOLOGIES, K.K.

Office address:                         Hitachi High-Tech Bldg., 1-24-14, Nishi-shinbashi, Minato-ku,

                                                Tokyo 105-0003

Office tel:                                 03-3504-7111

Website:                                   www.hitachi-hitec.com/

Business type:                          Manufacturer

Industry:                                   Electronic Products & Components

Established:                              April 12, 1947

Capital:                                     Jp. 7,938,480,525 yen

Employees:                              10,387 (as of September 30, 2014, consolidated)

Corporate formation:                 Listed

Corporation No.:                       0104-01-021648 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

As of March 31, 2014:

Paid in capital :                                                 Jp. 7,938,480,525 yen

Number of authorized shares :                           350,000,000 shares

Number of outstanding shares :                         137,738,730 shares

Number of shareholders :                                  6,290

 

 

Major shareholders                                          Number of shares (%)

----------------------------------------------------------------------------------------------------------------

Hitachi Limited                                                  71,135,619 shares (51.64)

Master Trust Bank of Japan, Ltd.                         5,236,600 shares ( 3.80)

Japan Trustee Services Bank, Ltd.(trust unit)        4,606,100 shares ( 3.34)

Employees Shareholders Fund                                       2,131,478 shares ( 1.54)

Nomura Lux Multi Currency(Luxembourg)             1,758,900 shares ( 1.27)

The Bank of New York(Belgium)                          1,338,613 shares ( 0.97)

CMBL SA Ltd.(UK)                                             1,268,300 shares ( 0.92)

Trust & Custody Bank of Japan, Ltd.                   1,250,000 shares (0.90)

Japan Trustee Services Bank, Ltd.(trust unit #1)  1,247,900 shares ( 0.90)

Japan Trustee Services Bank, Ltd. (trust unit #6)  1,191,900 shares (0.86)

----------------------------------------------------------------------------------------------------------------

Total                                                                91,165,410 shares (66.19)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity             Product/Service Description

-------------------------------------------------------------------------------

Manufacturing               Equipment for electronic devices & systems    

Manufacturing               Equipment for fine technology devices & systems    

Manufacturing               Measuring devices for scientific and medical applications 

Manufacturing               Assembly systems & other industrial and IT equipment      

Manufacturing               Advance materials    

Service                         Design, Installation and maintenance services

 

Brands & Trade marks

====================

Hitachi High-Tech

 

 

COMPANY MANAGEMENT

 

Chairman                      Mr. KAZUHIRO MORI

Nationality:                    Japan

 

Director                        Mr. MASAO HISADA

Nationality:                    Japan

 

Director                        Mr. YOSHIKAZU OHRAKU

Nationality:                    Japan

 

Director                        Mr. HIDEYO HAYAKAWA

Nationality:                    Japan

 

Director                        Mr. HIROMICHI TODA

Nationality:                    Japan

 

Director                        Mr. TOYOAKI NAKAMURA

Nationality:                    Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

*Key Personnel*

=============

Mr. Masao Hisada

Representative executive officer & president since April 2011

Born on December 16, 1948

Business career:

  Apr. 1972: Employed by Hitachi Limited

  Feb. 2004: President of Hitachi America, Inc.

  Apr. 2007: Managing director of Hitachi Limited.

Apr. 2010: Vice president of the subject.

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

------------------------------------------------------------------------------

 Year |         Sales          |       Net Income      

------------------------------------------------------------------------------

2009

774,950,000,000

7,075,000,000

2010

616,877,000,000

loss 2,827,000,000

2011

653,431,000,000

17,752,000,000

2012

645,865,000,000

14,265,000,000

2013

575,468,000,000

12,166,000,000

2014

639,116,000,000

18,032,000,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

March 31st

 

*Financials*

==========

Consolidated Balance Sheet

 

 

 

Unit: millions of Jp yen

 

 

 

                

03/31/2012

03/31/2013

03/31/2014

Current assets               

353,765

330,623

377,031

    Cash & deposits          

23,293

21,088

22,548

    Accounts receivable       

130,038

110,722

135,067

    Inventory                

68,562

70,250

75,166

    Deferred tax assets       

8,927

9,453

9,974

    Deposits at affiliates receivable 

98,831

97,041

112,139

    Others        

24,114

22,069

22,137

Fixed assets          

88,397

103,016

117,903

    Tangible fixed assets 

59,685

66,331

75,110

    Intangible fixed assets    

6,275

13,956

12,993

    Investment & others     

22,437

22,729

29,800

Total Assets           

442,162

433,639

494,934

 

 

 

 

Current liabilities   

161,545

137,265

170,891

    Accounts payable  

105,484

84,426

105,683

    Short-term loans

0

1,650

0

 

 

    Outstanding taxes  

8,489

3,572

8,069

    Outstanding expenses 

18,175

17,268

19,822

    Received in advance payable  

11,532

10,188

21,048

    Others         

17,865

20,161

16269

Fixed liabilities        

27,605

29,185

51,076

    Retirement benefits 

26,865

26,767

49,527

    Others           

740

2,418

1,549

Shareholders' equity    

254,416

263,830

276,751

    Paid up capital     

7,938

7,938

7,938

    Capital reserves     

35,745

35,745

35,745

    Retained earnings  

211,059

220,474

233,402

    Treasury stock    

-326

-327

-334

Adjustment & others        

-1,642

2,968

-4,293

Minority interest        

237

392

511

Total Net Assets       

253,012

267,189

272,968

Total Liabilities & Net Assets          

442,162

433,639

494,934

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

Unit: millions of Jp yen

 

 

 

               

03/31/2012

03/31/2013

03/31/2014

Sales     

645,865

575,468

639,116

Cost of goods sold    

532,894

470,599

515,752

Gross profit(loss)      

112,971

104,868

123,364

Selling. general & admin. expenses   

87,512

85,917

92,933

Operating profit(loss)     

25,459

18,951

30,431

Non operating income        

1,625

1,844

1,452

Non operating expenses      

852

698

781

Ordinary profit(loss)          

26,233

20,098

31,102

Special profit            

6,171

1,025

4

Special loss          

4,090

4,156

3,127

Pretax profit(loss)     

28,314

16,967

27,979

Provision(returns) for taxes     

13,952

4,639

9,649

Minority interest            

98

162

299

Net profit(loss)          

14,265

12,166

18,032

 

 

 

 

 

 

 

*Latest Financials *

================

On October 23, 2014, the subject released the following business results and forecast:

As of September 30, 2014(2Q Mar. 2015 term)

Unit: millions of PY

 

Year term

Sales 

Operating profit

Ordinary profit

Net profit

2Q 2014       

290,669

6,307

6,634

3,589

2Q 2015       

313,492

22,254

21,588

15,121

FY 2015 (F)    

650,000

38,500

37,700

25,600

 

Current assets;

383,502

Fixed assets;

118,743

Total assets;

502,245

Current liabilities;

162,568

Fixed liabilities;

50,685

Total liabilities;

213,253

Shareholders’ equity;

289,118

  Retained earnings;

245,772

Total net assets;

288,992

Total liabilities and net assets;

502,245

 

 

*Bank Details*

============

Bank Name:      Mizuho Bank, Ltd.

Branch:             Shinbashi

 

Bank Name:      Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch:             Shinbashi

 

Bank Name:      Sumitomo Mitsui Banking Corp.

Branch:             Hibiya

 

 

*Credit Opinion*

=============

Subject originally started as a trading firm but now acting as a manufacturer of measuring and semiconductor-making equipment etc.

While semiconductor-related business has been slow, medical systems in China and USA have been supporting the whole performance.

Fine tech system reached a break-even point.

Further growth of medical systems and rebounding semiconductor-related business are expected to boost the performance for Mar. 2016 term.

 

Unprofitable business of chip-mounter will be sold to Yamaha Motor Corp.

The subject is known for self-financing.

Negative factors are not observed in particular at present.

Our standard suggestion would be up to US$ 120 million on terms of 90 days.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:         HOKKAIDO - SAPPORO-SHI                                                        

----------------------------------------------------------------------------------------------------

Branch name:         GOSHOGAWARA – AOMORI PREFECTURE                                                                                                                               

----------------------------------------------------------------------------------------------------

Branch name:         TOHOKU - SENDAI-SHI                                                           

----------------------------------------------------------------------------------------------------

Branch name:         NAKA – IBARAKI PREFECTURE              

----------------------------------------------------------------------------------------------------

Branch name:         IBARAKI - HITACHI-SHI                                                          

----------------------------------------------------------------------------------------------------

Branch name:         HITACHI-NAKA - HITACHINAKA-SHI                                                

----------------------------------------------------------------------------------------------------

Branch name:         TOCHIGI – TOCHIGI PREFECTURE                                                                                                                                    

----------------------------------------------------------------------------------------------------

Branch name:         SAITAMA - SAITAMA PREFECTURE                                                                                                                          

----------------------------------------------------------------------------------------------------

Branch name:         TOKYO TECHNICAL CENTER - TOKYO                                                

----------------------------------------------------------------------------------------------------

Branch name:         TOKYO SOLUTION LABO - KAWASAKI-SHI                                            

----------------------------------------------------------------------------------------------------

Branch name:         HINO - HINO-SHI                                                               

----------------------------------------------------------------------------------------------------

Branch name:         FUJISAWA - FUJISAWA-SHI

------------------------------------------------------------------------------------------

Branch name:         CHUBU - NAGOYA-SHI                                                            

----------------------------------------------------------------------------------------------------

Branch name:         YOKKAICHI - YOKKAICHI-SHI                                                     

----------------------------------------------------------------------------------------------------

Branch name:         KANSAI - OSAKA-SHI                                                            

----------------------------------------------------------------------------------------------------

Branch name:         KANSAI APP LLABO - OSAKA-SHI                                                   

----------------------------------------------------------------------------------------------------

Branch name:         KASADO - SHIMOMATSU-SHI                                                       

----------------------------------------------------------------------------------------------------

Branch name:         KYUSHU - FUKUOKA-SHI                                                          

----------------------------------------------------------------------------------------------------

Branch name:         OHMUTA CENTER – OHMUTA-SHI           

 

 


PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Business*

==============

Development, manufacture, sales and maintenance of the following systems and equipment:

 

Electronic devices systems

- Semiconductor manufacturing equipment

 

Fine technology systems

- Fine technology systems

 

Science & medical systems

- Life science

- TEM/SEM/FIB/Nano-probing system

 

Industrial & IT systems

- Industrial & IT systems

 

Advanced industrial products

- Advance industrial products

 

Service

- Installation and maintenance

- Semiconductor manufacturing equipment

- Electron microscopes

- Analytical equipment

- Instrumental equipment-related products

 

For Mar. 2014:

-       Electronic devices (18%)

-       Fine technology (3%)

-       Science and medical (23%)

-       Industrial & IT (14%)

-       Advanced materials (41%)

 

Overseas business (58%)

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

The registered address is same as that of the operational head office.

 

*Company History*

================

Date                 Development

---------------------------------------------------------------------------

April 1947         Established in Chuo-ku, Tokyo, as Hinode Shokai Co., Ltd.

October 1947    Company name changed to Nissei Sangyo

May 1960          New York branch office opened (now Hitachi High-Technologies America,

                        Inc.)

July 1960          Dusseldorf branch office opened (now Hitachi High-Technologies Europe

                        GmbH)

September 1962 The San Paulo liaison office (now Hitachi High-Technologies do Brasil Ltda.)

                        is established.

March 1964       Hong Kong representative office opened (now Hitachi High-Technologies

                        Hong Kong Ltd.)

April 1965         Hitachi Instruments Service Co., Ltd. Established(now Hitachi High-Tech

                        Fielding Corporation)

October 1971    Company listed on the Second Section of the Tokyo Stock Exchange

March 1972       Singapore branch office opened (now Hitachi High-Technologies (Singapore)

                        Pte. Ltd.)

April 1972         Nissei Oil Sales Co., Ltd. established (now Hitachi High-Tech Materials

                        Corp.)

May 1972          Nissei Sangyo Brazil established (now Hitachi High-Technologies do Brasil

                        Ltda.) France S.A.R.L.)

October 1972    Company listed on the Second Section of the Osaka Securities Exchange

July 1973          Nissei Electronics Co., Ltd. Established (now Hitachi High-Tech Trading

                        Corp.)

August 1978      Nissei Sangyo France S.A.R.L. established (now Hitachi High-Technologies

                        France S.A.R.L.)

April 1980         Nissei Sangyo Canada, Inc. established (now Hitachi High-Technologies

                        Canada, Inc.)

September 1983            The Company lists on the First Section of the Tokyo Stock Exchange and

                        Osaka Securities Exchange.

October 1983    Nissei Software, Inc. (now Hitachi High-Tech Solutions Corporation) is

                        established.

April 1987         Nissei Service Inc. established (now Hitachi High-Tech Support Corp.)

 

October 1987    Nissei Engineering Co., Ltd. established (now Hitachi High-Tech Trading

                        Corp.)

January 1992     Nissei Sangyo Malaysia Sdn. Bhd. established (now Hitachi

                        High-Technologies IPC(Malaysia) Sdn. Bhd.)

January 1994     Nissei Sangyo Thailand Ltd. established (now Hitachi High-Technologies

                        (Thailand) Ltd.)

October 1994    Nissei Sangyo Shanghai Co., Ltd. established (now Hitachi

                        High-Technologies (Shanghai) Co., Ltd.)

March 1994       Nissei Sanyo service Pte. Ltd.(now Hitachi High-Tech Instruments service

                        (Asia) PTE. Ltd.)

October 2001    Company name changed to Hitachi High-Technologies Corp. following the

                        integration of Hitachi's Instruments Group and Semiconductor

                        Manufacturing Equipment Group; Hitachi Science Systems, Ltd., Hitachi

                        Naka Electronics Co., Ltd. and Naka Instruments Co., Ltd. (now Hitachi

                        High-Tech Manufacturing & Service Corp.) made subsidiaries

January 2002     Nissei Sangyo Trading (Shenzhen) Co., Ltd. established (now Hitachi

                        High-Technologies (Shenzhen) Co., Ltd.)

March 2002       Giesecke & Devrient established

April 2003         SANYO High Technology Co., Ltd. (now Hitachi High-Tech Instruments Co.,

                        Ltd.) and SANYO High-Tech Service Co., Ltd. (now Hitachi High-Tech

                        Instruments Service Co., Ltd.) made subsidiaries

June 2003         Corporate shift to “committee-based” organizational model.

March 2004       Hitachi Electronics Engineering Co., Ltd. made a subsidiary (Hitachi

                        High-Tech Electronics Engineering Co., Ltd.)

April 2004         Hitachi High-Tech Trading Corporation Established

July 2004          Hitachi High-Tech Manufacturing & Service Corp. Established

April 2005         Nissei Science, Ltd. absorbed by Hitachi High-Technologies Corp.

April 2005         Hitachi High-Technologies Korea Co., Ltd. Established

May 2005          Hitachi High-Technologies (China) Co., Ltd. Established

September 2005 Hitachi High-Technologies Taiwan Corporation Established

April 2006         Hitachi High-Tech Electronics Engineering Co., Ltd. absorbed by Hitachi

                        High-Technologies Corp.

April 2007         Hitachi High-Tech Science Systems Corp. absorbed by Hitachi

                        High-Technologies Corp.

June 2007         Hitachi High Tech DE Technology name changed to Hitachi High-Tech

                        Engineering Service Corporation

April 2010         Hitachi High-Tech Instruments Co., Ltd. Merged Semiconductor

                        manufacturing equipment business of Renesas Eastern Japan

                        Semiconductor, Inc.

March 2011       Hitachi High-Technologies (China) Co., Ltd. absorbed by Hitachi

                        High-Technologies(Shanghai) Co., Ltd.

 

 

TRADE REFERENCES

 

*Suppliers*

=========

Shinetsu Chemical Industry

Casio Computer

Asahi Glass

Hitachi Global Storage Technologies(Japan & Singapore)

Censorta Technologies Japan

Toyo Aluminum

Renesas Electronics

Hitachi Maxcel

Eastern

 

 

*Customers*

==========

Samsung Japan

Hitachi Limited

Renesas Electronics

Panasonic Corp.

Taiwan Semiconductor Mfg.

Hinix Semiconductor Japan

Dai Nippon Printing

Hitachi Appliances

Panasonic LCD

Hitachi Displays

 

 

RELATED PARTIES DESCRIPTION

 

*Major subsidiaries & affiliates*

=========================

Domestic:

- Hitachi High Tech Solutions

- Hitachi High Tech Materials

- Hitachi High Tech Support

- Hitachi High Tech Fielding

- Hitachi High Tech Engineering Service

- Hitachi High Tech Control Systems

- Hitachi High Tech Manufacture & Service

- Hitachi High tech Instruments

 

Overseas:

- Hitachi High Technologies America, Inc.

- Hitachi High-Technologies Canada, Inc.

- Hitachi High-Technologies do Brasil Ltda.

- Hitachi High-Technologies Europe GmbH

- Hitachi High Technologies Ireland Limited

- H.H.T.A. Semiconductor Equipment Israel, Ltd.

- Hitachi High-Technologies(Singapore) Pte. Ltd.

- Hitachi High-Technologies IPC(Malaysia) Sdn. Bhd.

- Hitachi High-Technologies (Thailand) Ltd.

- PT. Hitachi High-technologies Indonesia

- Hitachi High-Technologies(Shanghai) Co., Ltd.

- Hitachi High-Technologies Hong Kong Limited

- Hitachi High-Technologies(Shenzhen) Co., Ltd.

- Hitachi High-Technologies Korea Co., Ltd.

- Hitachi High-Technologies Taiwan Corporation

- Hitachi Instrument (Suzhou), Ltd.

- Hitachi Instrument (Dalian) Co., Ltd.

 

As of March 31, 2014 the subject owns and controls a total of 31 subsidiaries and one affiliate at home and abroad.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.15

UK Pound

1

Rs.94.24

Euro

1

Rs.73.30

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.