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MIRA INFORM REPORT
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Report No. : |
491094 |
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Report Date : |
07.02.2018 |
IDENTIFICATION DETAILS
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Name : |
UBE MACHINERY CORPORATION LTD |
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Registered Office : |
1980 Okinoyama Kogushi Ube City Yamaguchi-Pref 755-8633 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
September 1999 |
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Com. Reg. No.: |
2500-01-003050 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is engaged in Manufactures industrial machinery:
die casting machines (58%), injection molding, extrusion press, vertical
mill, kiln (25%), bulk handling machines, water screening equipment, bridges,
floodgate, steel structure, other (7%), other industrial equipment |
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No. of Employees : |
1,006 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company
name and address
UBE MACHINERY CORPORATION LTD
REGD NAME: Ube
Kosan Kikai KK
MAIN OFFICE: 1980
Okinoyama Kogushi Ube City Yamaguchi-Pref 755-8633 JAPAN
Tel:
0836-22-0072 Fax: 0836-22-6457
URL: http://www.ubemachinery.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg
of industrial machinery
BRANCHES: Tokyo,
Omiya, Shizuoka, Nagoya, Osaka (2), Hiroshima, Okinawa (Tot 17)
OVERSEAS: Korea,
Taiwan, China, USA, Mexico, Thailand, India, Germany, Brazil
FACTORIES: At
the caption address
OFFICERS: YUKIO HISATSUGU, PRES Tokuhisa Okada, ch
Tetsumi Shirabe,
mgn dir Shin’ichi Furuta, mgn
dir
Hiroaki Furuya, mgn dir Hironori
Miyauchi, dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 40,666 M
PAYMENTS REGULAR CAPITAL Yen 6,700 M
TREND SLOW WORTH Yen
36,107 M
STARTED 1999 EMPLOYES 1,006
COMMENT
MFR OF INDUSTRIAL MACHINERY, OWNED BY UBE INDUSTRIE LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was
established on the basis of a division separated from Ube Industries Ltd (See REGISTRATION). This is a specialized mfr of industrial
machinery: die casting machine, injection molding, extrusion press, other (See OPERATION). In 2012 went into mfg tie-up of die casting
machines with Toyo Machinery & Metal Co Ltd. In Oct 2013 merged into a sister company, Ube
Techno End Co. Clients include major car
makers, government agencies, other
FINANCIAL
INFORMATION
The sales volume for
Mar/2017 fiscal term amounted to Yen 40,666 million, a 10% fall from Yen 45,077
million in the previous term. The recurring
profit was posted at Yen 3,637 million and the net profit at Yen 2,715 million,
respectively, compared with Yen 3,476 million recurring profit and yen 2,279
million net profit, respectively, a year ago.
For the current term
ending Mar 2018 the recurring profit is projected at Yen 3,700 million and the
net profit at Yen 2,800 million, respectively, on a 3% rise in turnover, to Yen
41,900 million. Final results are yet to
be released.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,541.5
million, on 30 days normal terms.
REGISTRATION
Date Registered:
Sept 1999
Regd No.: 2500-01-003050 (Yamaguchi-Ube)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 88,000 shares
Issued: 22,000 shares
Sum: Yen 6,700 million
Major
shareholders (%): Ube Industries Ltd* (100)
*.. Diversified
mfr of chemicals & cement, Tokyo, founded 1942, listed Tokyo S/E, capital Yen 58,435 million, sales Yen 616,563
million, operating profit Yen 34,960 million, recurring profit Yen 33,348
million, net profit Yen 24,185 million, total assets Yen 722,314 million, net
worth Yen 300,614 million, employees 10,998, pres Yuzuru Yamamoto
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Manufactures industrial machinery: die casting machines (58%), injection molding, extrusion press, vertical mill, kiln (25%), bulk handling machines, water screening equipment, bridges, floodgate, steel structure, other (7%), other industrial equipment (10%)
Clients: Auto makers, aluminum makers, Government agencies, local governments, cement makers, electric powers, other
Exports to overseas makers.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Ube Steel, TU Electronics, Nippon Steel & Sumikin Metal Corp, Metso Minerals Inc, JFE Steel, Yokoyama Haguruma, Fuji Conveyor, other
Payment Record: Regular
Location: Business area in
Ube City, Yamaguchi-Pref. Office
premises at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Bank (H/O)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
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31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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41,900 |
40,666 |
45,077 |
47,564 |
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Recur.
Profit |
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3,700 |
3,637 |
3,476 |
4,011 |
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Net
Profit |
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2,800 |
2,715 |
2,279 |
2,683 |
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Total
Assets |
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57,252 |
50,166 |
49,784 |
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Net
Worth |
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36,107 |
34,319 |
33,291 |
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Capital,
Paid-Up |
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6,700 |
6,700 |
6,700 |
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Div.Ttl
in Million (¥) |
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1,142 |
1,344 |
2,533 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.03 |
-9.79 |
-5.23 |
24.20 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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63.07 |
68.41 |
66.87 |
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N.Profit/Sales |
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6.68 |
6.68 |
5.06 |
5.64 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.72 |
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1 |
INR 89.72 |
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Euro |
1 |
INR 79.52 |
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YEN |
1 |
INR 0.59 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.