MIRA INFORM REPORT

 

 

Report No. :

326334

Report Date :

15.06.2015

 

IDENTIFICATION DETAILS

 

Name :

JAPAN DISPLAY INC

 

 

Registered Office :

Landic Shimbashi Bldg 2, 3-7-1 Nishi-Shimbashi Minatoku Tokyo 105-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

November 2011

 

 

Com. Reg. No.:

0100-01-142382

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufactures small- & medium-sized LCDs

 

 

No. of Employee :

16,679

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. 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.

 

Source : CIA

 

 

Company name

 

JAPAN DISPLAY INC

 

 

REGD NAME

 

KK Japan Display

 

 

MAIN OFFICE

 

Landic Shimbashi Bldg 2, 3-7-1 Nishi-Shimbashi Minatoku Tokyo 105-0003, JAPAN

Tel: 03-6732-8100   

*.. Registered at: 1-6-5 Marunouchi Chiyodaku Tokyo 

**.. The is Mobara Factory, acquired from Panasonic Corp, one of six factories

 

                                               

URL

 

http://www.j-display.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of small- & medium-sized LCDs

 

 

BRANCHES

 

Chiba, Matsumoto

 

 

OVERSEAS

 

USA, Germany, Taiwan, Hong Kong, Korea, China (3), other;

JDI Display America Inc, JDI Europe GmbH, JDI Korea Inc, JDI China Inc,

Suzhou JDI devices Inc, Suzhou JDI Electronics Inc, Shenzhen JDI Inc, JDI

Hong Kong Limited, JDI Taiwan Inc, Kaohsiung Opto-Electronics Inc

 

FACTORIES

 

Mobara (as given), Tottori, Higashiura, Ishikawa, Noomi, Fukaya; China (3), Taiwan

 

 

CHIEF EXEC

 

SHUICHI OTSUKA, PRES                                             

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 769,304 M

PAYMENTSREGULAR   CAPITAL           Yen 96,857 M

TREND STEADY           WORTH            Yen 402,626 M

STARTED         2011                 EMPLOYES      16,679

           

 

COMMENT

 

MFR OF LCD’s.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                                         

                        Unit: in Million Yen

                                    Forecast for the Mar/2016 fiscal term

 

 

HIGHLIGHTS

           

The subject company is a world’s top-class maker of small 6 medium-sized LCD panels.  Formed 3 Japanese leading mobile display business units in Apr 2012 among Hitachi, Toshiba & SONY.  Under auspice of largest shareholder of Innovation Network Corporation of Japan.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 amounted to Yen 769,305 million, a 25.2% up from Yen 614,567 million in the previous term.  Sales of LCD panels for leading smartphone makers in developed countries and upcoming makes in China rose in the second half.  The recurring profit was posted at Yen 1,864 million and the net losses at Yen 12,270 million, respectively, compared with Yen19,072 million recurring profit and Yen 33,918 million, respectively, in a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 20,000 million and the net profit at Yen 15,000 million, respectively, on a 5% rise in turnover, to Yen 807,770 million.  Demand will strong among smartphone makers in China and will be steady among smartphone makers in developed countries.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 28,790.0 million, on normal 30 days terms.

 

 

REGISTRATION

 

Date Registered:                       Nov 2011

Regd No.:                                 0100-01-142382 (Tokyo-Chiyodaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  18 million shares

Issued:                         4.6 million shares

Sum:                            Yen 230,000 million

 

Major shareholders (%): Innovation Network Corp (35.5), Sony Corp (1.7), Toshiba Corp (1.7), Hitachi Ltd (1.7), Master Trust Bank of Japan T (1.5), JP Morgan Chase Bank (1.2), other; foreign owners (19.3)

 

No. of shareholders: 74,431

 

Listed on the Tokyo S/E (First Section)

 

Management: Shuichi Otsuka, pres; Shuji Ariga, dir; Koichiro Taniyama, dir; Katsuhiko Shirai, dir; Minoru Sugano, dir

 

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

 

 

OPERATION

           

Activities: Manufactures small- & medium-sized LCDs, other (--100%)

Overseas Sales Ratio (83%)

 

Clients: Mfrs, wholesalers, other

No. of accounts: 1,000 (target)

            Domestic areas of activities: Nationwide

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

                        Mizuho Bank (Tokyo)

                        MUFG (H/O)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

769,304

614,567

　

  Cost of Sales

713,587

543,282

　

      GROSS PROFIT

55,717

71,285

　

  Selling & Adm Costs

50,570

43,660

　

      OPERATING PROFIT

5,147

27,624

　

  Non-Operating P/L

-3,283

-8,552

　

      RECURRING PROFIT

1,864

19,072

　

      NET PROFIT

-12,270

33,918

BALANCE SHEET

　

　

  Cash

　

94,643

141,390

　

  Receivables

144,087

97,146

　

  Inventory

113,408

90,583

　

  Securities, Marketable

　

　

　

  Other Current Assets

84,553

49,365

　

      TOTAL CURRENT ASSETS

436,691

378,484

　

  Property & Equipment

348,886

343,780

　

  Intangibles

33,010

34,958

　

  Investments, Other Fixed Assets

13,035

1,753

　

      TOTAL ASSETS

831,622

758,975

　

  Payables

197,103

101,581

　

  Short-Term Bank Loans

　

4,524

　

　

　

　

　

  Other Current Liabs

151,581

148,797

　

      TOTAL CURRENT LIABS

348,684

254,902

　

  Debentures

　

　

　

  Long-Term Bank Loans

8,870

17,354

　

  Reserve for Retirement Allw

31,654

31,232

　

  Other Debts

　

39,787

60,342

　

      TOTAL LIABILITIES

428,995

363,830

　

      MINORITY INTERESTS

　

　

Common stock

96,857

96,857

　

Additional paid-in capital

257,044

257,053

　

Retained earnings

35,220

49,192

　

Evaluation p/l on investments/securities

19,838

10,565

　

Others

(6,263)

(8,219)

　

Treasury stock, at cost

(70)

(304)

　

      TOTAL S/HOLDERS` EQUITY

402,626

405,144

　

      TOTAL EQUITIES

831,622

758,975

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

73,320

39,707

　

Cash Flows from Investment Activities

-96,346

-122,915

　

Cash Flows from Financing Activities

-24,971

151,990

　

Cash, Bank Deposits at the Term End

　

94,643

141,390

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

402,626

405,144

　

Current Ratio (%)

125.24

148.48

　

Net Worth Ratio (%)

48.41

53.38

　

Recurring Profit Ratio (%)

0.24

3.10

　

Net Profit Ratio (%)

-1.59

5.52

　

　

Return On Equity (%)

-3.05

8.37

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.27

Euro

1

Rs.71.90

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.