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MIRA INFORM REPORT
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Report No. : |
492519 |
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Report Date : |
16.02.2018 |
IDENTIFICATION DETAILS
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Name : |
HITACHI METALS LTD |
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Registered Office : |
Shinagawa Season Terrace, 1-2-70 Konan Minatoku Tokyo 108-0075 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
April, 1956 |
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Com. Reg. No.: |
0104-01-038783 (Tokyo-Minatoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of High-Quality Special
Steel, Electronics & It Device. |
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No. of Employees : |
5.075 |
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 2016 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
HITACHI
METALS LTD
REGD
NAME: Hitachi Kinzoku KK
MAIN
OFFICE: Shinagawa Season Terrace, 1-2-70
Konan Minatoku Tokyo 108-0075 JAPAN
Tel:
03-6774-3001 Fax:
03-6774-4326 -
URL: http://www.hitachi-metals.co.jp
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of high-quality special steel,
electronics & IT device
BRANCHES
Osaka, Nagoya, Fukuoka, Kumagaya, other (Tot
15)
OVERSEAS
USA, Germany, Italy,
UK, France, Canada, Thailand, China, Taiwan, Korea, Singapore, other
(--Subsidiaries)
FACTORIES
Fukuoka, Shimane, Osaka, Tottori, Saitama,
other (Tot 10 works & 6 R&D bases)
CHIEF
EXEC
AKITOSHI HIRAKI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 910,486 M
PAYMENTS REGULAR CAPITAL Yen
26,284 M
TREND SLOW WORTH Yen
536,563 M
STARTED 1956 EMPLOYES 5.075
COMMENT
MFR OF
HIGH-QUALITY SPECIAL STEEL, ELECTRONICS & IT DEVICE.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
HIGHLIGHTS
The subject company was established on the
basis of an iron & steel division separated from Hitachi Ltd. This is a major mfr of high-quality special
steel. Now this is the leading strategic company of Hitachi group. Expanded into diverse electronic materials
and new materials. World’s top maker of magnetic materials. Also engaged in overseas production. The
parent firm, Hitachi Ltd, controls 50%-plus of voting right, but the firm
rather enjoys independent corporate management from the parent. It merged with
Hitachi Cable, a Hitachi Group firm, in July 2013. It is accelerating set-up of
overseas bases on automobile products, which account for more than 40% of all
sales. A merger with Hitachi Metals MMC Superalloy Ltd is scheduled in April
2018.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term
amounted to Yen 910,486 million, a 10.52% fall from Yen 1,017,584 million in
the previous term. The recurring profit
was posted at Yen 66.010 million and the net profit at Yen 50,593 million,
respectively, compared with Yen 96,223 million recurring profit and Yen 69,056
million net profit, respectively, a year ago.
For the current term ending Mar 2018 the
recurring profit is projected at 63,000 million and the net profit at Yen
45,000 million, respectively, on a 4.34% rise in turnover, to Yen 950,000
million.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Apr 1956
Regd
No.: 0104-01-038783
(Tokyo-Minatoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 500 million shares
Issued: 428,904,352
shares
Sum:
Yen
26,284 million
Major shareholders (%): Hitachi Ltd (52.7), Japan Trustee Services
Bank (3.1), JP Morgan Chase Bank (2.5), Master Trust Bank of Japan (2.1), State
Street Bank & Trust (0.8), Northern Trust (AVFC) UCTTS Non L15 (0.8), JP
Morgan Chase Bank 385632 (0.8), MSCO Customer Securities (0.6), Japan Trustee
Services T7 (0.6), Nippon life Ins (0.6); foreign owners (23.6)
No. of shareholders: 23,141
Listed on the S/Exchange (s) of: Tokyo
Managements: Hideaki Takahashi, ch; Akitoshi Hiraki, pres; Masaru Igarashi, dir;
Toshiko Oka, dir; Takashi Shimada, dir; Jun’ichi Kamata, dir; Toshitake
Hasunuma, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Hitachi Metals Techno Ltd, Hitachi Tool,
Hitachi Metals Admet Ltd, other.
OPERATION
Activities: Manufactures:
High-Grade Metal Products & Materials
(26%): molds & tool
sheets, alloys for electronic products (display-related, semiconductor &
other packages), industrial equipment & energy-related materials, rolls for
steel, nonferrous & non-metal applications, injection molding machine
parts, structural ceramic products, steel-flame joints for construction,
cutting tools;
Electronics & IT Devices (11%): magnets (rare-earth magnets, ferrite
magnetic materials, and applied products), components for information &
telecommunications equipment (multilayered devices, isolators), IT components
& materials, soft magnetic materials (soft ferrite cores & applied
products, monocrystalline magnetic materials, and applied devices, amorphous
metals, and applied products);
High-Grade Functional Components &
Equipment (37%): high-grade
casting components for automobiles (high-grade ductile iron products,
heat-resistant exhaust casting components, aluminum wheels, other aluminum
components), piping & infrastructure components (pipe fittings, stainless
steel & plastic piping components, water cooling equipment, precision mass
flow control devices), construction components (access floor systems,
structural systems, material handling systems).
Cable Materials (26%)
Overseas Sales Ratio (56%)
Clients: [Mfrs, wholesalers] Hitachi Metals Trading Co, Nissan Motors, Toyota
Motors, Honda Motors, Samsung Electronics Co, Tokyo Gas, Hitachi Admet, Hitachi
Metals Europe, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo Metal Mining,
Hitachi Ltd, Advanced Materials Japan, Hitachi Hi-Tech Materials, other
Payment
record: Regular
Location: Business area in Tokyo. Office premises at
the caption address are leased and maintained satisfactorily.
Bank
References:
MUFG (Tokyo)
Mizuho Bank (H/O)
Relations: Satisfactory
FINANCES
(In
Million Yen)
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Terms
Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual Sales |
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950,000
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910,486
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1,017,584
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1,004,373
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Recur. Profit |
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63,000
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66,010
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96,223
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86,591
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Net Profit |
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45,000
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50,593
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69,056
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70,569
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Total Assets |
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1,040,390
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1,033,311
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1,083,450
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Current Assets |
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491,895
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483,855
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544,620
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Current Liabs |
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283,585
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276,714
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330,378
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Net Worth |
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536,563
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495,865
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466,359
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Capital, Paid-Up |
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26,284
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26,284
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26,284
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Div.Ttl in Million (¥) |
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11.118 |
11,118 |
8,534 |
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<Analytical
Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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4.34 |
-10.52
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1.32 |
24.31 |
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Current Ratio |
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.. |
173.46
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174.86
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164.85
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N.Worth Ratio |
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.. |
51.57 |
47.99 |
43.04 |
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R.Profit/Sales |
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6.63 |
7.25 |
9.46 |
8.62 |
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N.Profit/Sales |
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4.74 |
5.56 |
6.79 |
7.03 |
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Return On Equity |
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.. |
9.43 |
13.93 |
15.13 |
Notes: Forecast (or estimated) figures for the 31/03/2018 fiscal term
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.92 |
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1 |
INR 89.55 |
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Euro |
1 |
INR 79.68 |
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Yen |
1 |
INR 0.57 |
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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PRA |
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Report Prepared
by : |
TPT |
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
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
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.