MIRA INFORM REPORT
|
Report No. : |
341992 |
|
Report Date : |
19.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
THK CO LTD |
|
|
|
|
Registered Office : |
Sun West Yamate Bldg, 3-11-6 Nishi-Gotanda Shinagawaku Tokyo 141-8503 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2015 |
|
|
|
|
Date of Incorporation : |
April, 1971 |
|
|
|
|
Com. Reg. No.: |
(Tokyo-Shinagawaku) 006176 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturer of Linear Motion Systems. |
|
|
|
|
No. of Employees : |
9,494 |
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 : |
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
THK CO Ltd
REGD NAME: THK
KK
MAIN OFFICE: Sun West Yamate Bldg, 3-11-6
Nishi-Gotanda Shinagawaku Tokyo 141-8503
JAPAN
Tel: 03-5434-0300-
URL: http://www.thk.co.jp
E-Mail address: info@thk.co.jp
ACTIVITIES
Mfg of linear
motion systems
BRANCHES
Osaka, Nagoya,
Yamagata, Mie, Gifu, Yamaguchi, other (Tot 39)
OVERSEAS
USA (6), Europe
(11), China (31), Korea (14), Asia, other (Tot 79 offices)
FACTORIES
Yamagata, Sendai,
Niigata, Fukushima, Mishima, Kofu, Gifu, Mie, Yamaguchi,
Shizuoka, Oita
(Tot 11);
USA (2), Mexico,
Canada, Germany, France, Ireland, Czech, China (5), Korea (3), Malaysia,
Thailand, Vietnam (Tot 19)
CHIEF
EXEC
AKIHIRO TERAMACHI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 217,678 M
PAYMENTSREGULAR CAPITAL Yen 34,606 M
TREND UP WORTH Yen 250,498 M
STARTED 1971 EMPLOYES 9,494
COMMENT
MFR OF LINEAR MOTION SYSTEMS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: in Million Yen
Forecast
figures for the 31/03/2016 fiscal term.
HIGHLIGHTS
This is the
pioneer mfr of linear motion systems (LMS), mainly for semiconductor-mfg
equipment & machine tools. Commands world’s
largest market share of over 50%. Emphasizing
products for semiconductor-mfg equipment.
Has newly-developed LM guide and ball spline. Stepping up sales base in
China & India. It plans to set up
three sales bases and one R&D center in China. It is also considering expansion of production/sales bases in India,
Thailand and Vietnam. It is pushing ahead with R&D of automobile parts and quake-absorbing equipment. The three
production bases in Tohoku area was hurt by the recent Earthquake & Tsunami
but resumed operation on
01/04/2011, reports the firm. To eliminate the deficit at its plant in France,
the company transferred production of low-profitable automobile parts from France to Japan and the US. Rapidly expanding
its mfg & sales businesses in China to deal with the growing demand in
Asia.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 217,678 million, a 17.4% up from Yen
185,466 million in the previous term. The
recurring profit was posted at Yen 34,031 million and the net profit at Yen
22,705 million, respectively, compared with Yen 23,618 million recurring profit
and Yen 15,590 million net profit, respectively, a year ago.
(Apr/Jun/2015
results): Sales Yen 54,919 million (up 8.3%), operating profit Yen 6,338
million (down 4.1%), recurring profit Yen 7,542 million (up 21.1%), net profit
Yen 5,188 million (up 11.0%). (% as
compared with the corresponding period a year ago).
For the current
term ending Mar 2016 the recurring profit is projected at Yen 34,100 million
and the net profit at Yen 23,100 million, respectively, on a 10.3% rise in
turnover, to Yen 240,000 million. Demand
for machine tools will remain strong in Japan and overseas markets. Sales of products for medical devices and
aircraft will contribute in the
US and Europe. Weaker Yen will also contribute to raise sales in Yen terms.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Apr 1971
Regd
No.: (Tokyo-Shinagawaku) 006176
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 467,877,700 shares
Issued: 133,856,903 shares
Sum: Yen 34,606 million
Major shareholders
(%):
Japan Trustee Services T (7.8), Company’s Treasury Stock (5.4), Master Trust
Bank of Japan T (4.5), Akihiro Teramachi (2.7), Mellon Bank Mellon Omnibus US P
(2.5), JP Morgan Chase Bank 385632 (2.1), FTC Co (2.0), Bank of New York 132812
(1.6), JPMCBUSA Residents PJ 385051 (1.4), RBC 1ST 15PCT Lending
(1.2); foreign owners (50.1)
No.
of shareholders: 15,756
Listed
on the S/Exchange (s) of: Tokyo
Managements: Akihiro
Teramachi, pres; Toshihiro Teramachi, v pres, Hiroshi Konno, v pres; Nobuyuki
Maki, mgn dir; Takashi Okubo, mgn dir; Tetsuya Hayashida, dir; Jun’ichi Sakai,
dir; Takafumi Teramachi, dir; Masaaki Kaiso, dir; Masakatsu Hioki, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: THK America, THK Europe, other.
OPERATION
Activities: Manufactures
linear motion systems (e.g. LM guide & ball spline), ball screw, XY tables,
link balls & rod ends, seismic isolation devices other (--100%): LM system: Japan (56%), US (16%), Europe (9%),
China (13%), others (6%)
Overseas
Sales Ratio (50%)
Clients: [Mfrs, wholesalers] Daido Corp, THK, Yamazen Corp, Mimasu THK, Takatsu Corp, Disco Corp,
THK America, Ueno Kogyo Corp, other
No. of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Koyo Giken Co, Toyota
Tsusho Corp, Netsuren Co, Nose Seiko,
Sanko Mfg, Kokoku Intech Co, Suzuhide
Kogyo, Yamato Special Steel, Allied Material, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption address
are leased and maintained satisfactorily.
Bank References:
Mizuho Bank (Shinjuku)
MUFG (Toranomon-Chuo)
Relations: Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2015 |
31/03/2014 |
|
INCOME STATEMENT |
|
|||
|
|
Annual Sales |
|
217,678 |
185,466 |
|
|
Cost of Sales |
150,653 |
132,562 |
|
|
|
GROSS PROFIT |
67,024 |
52,903 |
|
|
|
Selling & Adm Costs |
38,636 |
35,533 |
|
|
|
OPERATING PROFIT |
28,388 |
17,370 |
|
|
|
Non-Operating P/L |
5,643 |
16,248 |
|
|
|
RECURRING PROFIT |
34,031 |
33,618 |
|
|
|
NET PROFIT |
22,705 |
15,590 |
|
|
BALANCE SHEET |
|
|||
|
|
Cash |
|
155,239 |
138,343 |
|
|
Receivables |
58,276 |
50,161 |
|
|
|
Inventory |
32,973 |
28,765 |
|
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
13,926 |
10,621 |
|
|
|
TOTAL CURRENT ASSETS |
260,414 |
227,890 |
|
|
|
Property & Equipment |
97,732 |
94,838 |
|
|
|
Intangibles |
4,401 |
4,213 |
|
|
|
Investments, Other Fixed Assets |
11,063 |
9,475 |
|
|
|
TOTAL ASSETS |
373,610 |
336,416 |
|
|
|
Payables |
14,298 |
25,411 |
|
|
|
Short-Term Bank Loans |
|
|
|
|
|
|
|
|
|
|
|
Other Current Liabs |
45,873 |
29,079 |
|
|
|
TOTAL CURRENT LIABS |
60,171 |
54,490 |
|
|
|
Debentures |
43,000 |
50,000 |
|
|
|
Long-Term Bank Loans |
10,000 |
|
|
|
|
Reserve for Retirement Allw |
4,964 |
4,083 |
|
|
|
Other Debts |
|
4,977 |
5,694 |
|
|
TOTAL LIABILITIES |
123,112 |
114,267 |
|
|
|
MINORITY INTERESTS |
|
||
|
|
Common
stock |
34,606 |
34,606 |
|
|
|
Additional
paid-in capital |
44,584 |
44,584 |
|
|
|
Retained
earnings |
158,463 |
141,474 |
|
|
|
Evaluation
p/l on investments/securities |
1,312 |
801 |
|
|
|
Others |
25,476 |
14,617 |
|
|
|
Treasury
stock, at cost |
(13,943) |
(13,934) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
250,498 |
222,148 |
|
|
|
TOTAL EQUITIES |
373,610 |
336,416 |
|
|
CONSOLIDATED CASH FLOWS |
|
|||
|
|
Terms ending: |
31/03/2015 |
31/03/2014 |
|
|
|
Cash
Flows from Operating Activities |
|
23,384 |
23,664 |
|
|
Cash
Flows from Investment Activities |
-8,714 |
-9,553 |
|
|
|
Cash
Flows from Financing Activities |
-4,742 |
-2,790 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
155,239 |
138,343 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
||
|
|
Net Worth
(S/Holders' Equity) |
250,498 |
222,148 |
|
|
|
Current
Ratio (%) |
432.79 |
418.22 |
|
|
|
Net
Worth Ratio (%) |
67.05 |
66.03 |
|
|
|
Recurring
Profit Ratio (%) |
15.63 |
18.13 |
|
|
|
Net
Profit Ratio (%) |
10.43 |
8.41 |
|
|
|
|
Return
On Equity (%) |
9.06 |
7.02 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.93 |
|
|
1 |
Rs.102.75 |
|
Euro |
1 |
Rs.75.13 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.