MIRA INFORM REPORT

 

 

Report No. :

343561

Report Date :

16.10.2015

 

IDENTIFICATION DETAILS

 

Name :

MIMAKI ENGINEERING CO LTD

 

 

Registered Office :

2182-3 Shigeno-Otsu Tomi City Nagano-Pref 389-0512

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015 (Consolidated)

 

 

Date of Incorporation :

May 1981

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Manufactures ink-jet printers, cutting plotters, modeling plotters, software: for SG (Sign & Graphic) market (51%), for IP (Industrial Product) market (27%), for TA (Textile & Apparel) market (12%), others (10%)

 

 

No. of Employee :

1,378

 

 

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 Limit :

Yen 692.1 Million

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

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 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

 

MIMAKI ENGINEERING CO LTD

 

REGD NAME:               KK Mimaki Engineering

MAIN OFFICE:              2182-3 Shigeno-Otsu Tomi City Nagano-Pref 389-0512 JAPAN

                                                Tel: 0268-64-2281     Fax: 0268-64-2285

 

*.. The given address is its Tokyo Branch Office

 

URL:                             http://www.mimaki.co.jp

E-Mail address:             (thru the URL)

 

 

ACTIVITIES

 

Mfg of ink-jet printers for use in advertisement & billboard

 

 

BRANCHES

 

Tokyo, Osaka, Sapporo, Nagoya, Kyoto, Kobe, Hiroshima, other (Tot 14)

 

 

OVERSEAS

 

USA, Netherlands, Taiwan, Germany, China (2), Mexico, Indonesia, Singapore,

Australia, Spain (--subsidiaries), India (JV)

 

 

FACTORIES

 

At the caption address, Kazawa (Nagano-Pref); China (Zhejiang)

 

 

CHIEF EXEC

 

HISAYUKI KOBAYASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 46,637 M

PAYMENTSREGULAR   CAPITAL           Yen 4,357 M

TREND STEADY           WORTH            Yen 15,193 M

STARTED         1981                 EMPLOYES      1,378

 

 

COMMENT

 

MFR OF INK-JET PRINTERS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 692.1 MILLION, 30 DAYS NORMAL TERMS

 

                       

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the world’s top-class mfr of ink-jet printers for use in advertisement and billboards.  Placing more emphasis on development of industrial-use application to textiles, apparel and industrial products.  It has, thus, three markets to cover: SG market (Sign & Graphics), IP market (Industrial Products) and TA market (Textile & Apparel).  Overseas sales account for over around 70% of the total sales. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 46,637 million, a 15.5% up from Yen 40,362 million in the previous term.   Sales of inkjet printers for advertising and signboards advanced, boosted by the positive impact of the weaker Yen.  The recurring profit was posted at Yen 3,753 million and the net profit at Yen 2,522 million, respectively, compared with Yen 1,668 million recurring profit and Yen 884 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 3,100 million and the net profit at Yen 2,300 million, on a 9.4% rise in turnover, to Yen 51,000 million.  Sales of printers will continue expanding, led by high-end models bound for Europe, the US and Asia, as well as launch of new low-priced models.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 692.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   May 1981

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              40,080,000 shares

Issued:                         16,020,000 shares

Sum:                            Yen 4,357 million

 

Major shareholders (%): Ikeda Holdings (13.8), Japan Trustee Services T (9.2), Tanaka Kikaku (7.4), Noriyuki Tanaka (6.3), Employees’ S/Holding Assn (5.3), 8.8), TYO Sm & Med Bus Inv & Cons (4.7), Bank of New York Mellon 140030 (3.0), Hachijuni Bank (2.6), Akira Ikeda (2.5), Company’s Treasury Stock (2.3); foreign owners (6.6)

 

No. of shareholders: 5,717

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Akira Ikeda, ch; Hisayasu Kobayashi, pres; Sakae Sagane, v pres; Masaaki Fujita, s/mgn dir; Kazuaki Ikeda, mgn dir; Kazuyuki Takeuchi, mgn dir; Noriyuki Tanaka, counselor; Makoto Tanaka, dir

 

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

 

Related companies: Mimaki USA Inc, Mimaki Europe BV, other

 

 

OPERATION

           

Activities: Manufactures ink-jet printers, cutting plotters, modeling plotters, software: for SG (Sign & Graphic) market (51%), for IP (Industrial Product) market (27%), for TA (Textile & Apparel) market (12%), others (10%)

Overseas Sales Ratio (77%)

           

Clients: [Mfrs, wholesalers] Mimaki Europe BV, Mimaki USA Inc, Mimaki Brazil, Mimaki

China, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Dai Nippon Toryo Co, Epson Sales, Ricoh Industry, Tanaka

Kikai Kogyosho, Niimura Co, other

 

Payment record: Regular

 

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

 

Bank References:

Hachijuni Bank (Tanaka)

MUFG (Shinjuku-Chuo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

46,637

40,362

　

  Cost of Sales

23,769

21,516

　

      GROSS PROFIT

22,868

18,846

　

  Selling & Adm Costs

18,377

15,889

　

      OPERATING PROFIT

4,491

2,957

　

  Non-Operating P/L

-738

-1,289

　

      RECURRING PROFIT

3,753

1,668

　

      NET PROFIT

2,522

884

BALANCE SHEET

　

　

  Cash

　

7,037

4,946

　

  Receivables

7,726

7,042

　

  Inventory

16,194

9,940

　

  Securities, Marketable

　

　

　

  Other Current Assets

2,814

2,152

　

      TOTAL CURRENT ASSETS

33,771

24,080

　

  Property & Equipment

8,135

6,266

　

  Intangibles

291

289

　

  Investments, Other Fixed Assets

1,282

1,432

　

      TOTAL ASSETS

43,479

32,067

　

  Payables

7,535

6,029

　

  Short-Term Bank Loans

6,157

5,759

　

　

　

　

　

  Other Current Liabs

8,072

6,756

　

      TOTAL CURRENT LIABS

21,764

18,544

　

  Debentures

　

　

　

  Long-Term Bank Loans

5,910

4,766

　

  Reserve for Retirement Allw

254

372

　

  Other Debts

　

358

506

　

      TOTAL LIABILITIES

28,286

24,188

　

      MINORITY INTERESTS

　

　

Common stock

4,357

2,015

　

Additional paid-in capital

4,266

1,913

　

Retained earnings

6,524

4,088

　

Evaluation p/l on investments/securities

12

2

　

Others

158

24

　

Treasury stock, at cost

(124)

(163)

　

      TOTAL S/HOLDERS` EQUITY

15,193

7,879

　

      TOTAL EQUITIES

43,479

32,067

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

-2,145

1,802

　

Cash Flows from Investment Activities

-2,738

-1,235

　

Cash Flows from Financing Activities

6,642

739

　

Cash, Bank Deposits at the Term End

　

6,989

4,869

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

15,193

7,879

　

Current Ratio (%)

155.17

129.85

　

Net Worth Ratio (%)

34.94

24.57

　

Recurring Profit Ratio (%)

8.05

4.13

　

Net Profit Ratio (%)

5.41

2.19

　

　

Return On Equity (%)

16.60

11.22

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.82

UK Pound

1

Rs.100.41

Euro

1

Rs.74.50

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

 

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.