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MIRA INFORM REPORT
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Report No. : |
493419 |
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Report Date : |
24.02.2018 |
IDENTIFICATION DETAILS
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Name : |
FUJIKURA LTD |
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Registered Office : |
1-5-1 Kiba Kotoku Tokyo 135-8512 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
March,1910 |
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Com. Reg. No.: |
0106-01-007861 (Tokyo-Kotoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Electric Wires &
Cables. |
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No. of Employees : |
2,530 |
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 (30.09.2017) |
Current Rating (31.12.2017) |
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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 first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name and address
FUJIKURA LTD
REGD NAME: KK
Fujikura
MAIN OFFICE: 1-5-1
Kiba Kotoku Tokyo 135-8512 JAPAN
Tel:
03-5606-1030 Fax: 03-5606-1539
URL: http://www.fujikura.co.jp
E-Mail address: info@fujikura.co.jp
ACTIVITIES
Mfg of electric
wires & cables
BRANCH
(ES)
Osaka, Nagoya,
Fukuoka, Sendai (Miyagi) (Tot 5)
OVERSEAS
USA, Europe, Russia, Malaysia, Singapore, China, Taiwan, Korea, Thailand, Vietnam, Mexico, Morocco
(--subsidiaries/affiliates)
FACTORIES
Sakura (Chiba),
Suzuka, Numazu
(Overseas): USA,
UK, Singapore, Malaysia, Thailand, China, Vietnam, India, Russia
OFFICERS
MASAHIKO ITO, PRES Yoichi Nagahama, ch
Takashi Sato, v
pres Akira Wada, mgn dir
Akira Sasagawa,
mgn dir Hideyuki Hosoya, mgn dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 653,795 M
PAYMENTS REGULAR CAPITAL Yen 53,075 M
TREND SLOW WORTH Yen
202,723 M
STARTED 1910 EMPLOYES 2,530
COMMENT
MFR SPECIALIZING IN ELECTRIC WIRES & CABLES, OTHER.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company
was established on the basis of electric cable division spun off from Fujikura
Electric Cables & Rubber in 1910 as Fujikura Cable Works (renamed as captioned in 1992). Later diversified
into optical cables,
communications systems, etc. One of
big 3 wire suppliers for NTT. World’s second largest maker of flexible printed wiring boards. Optical cables
& optical parts at high level at home and in US. Operates overseas mfg plants in US, Europe,
Asia, other. Anticipating an expansion
in demand for OPWs in South America, the company set up a JV in Brazil in Aug 2013. Mass production of
automobile-use harnesses started in India in summer 2014. It is streamlining production of power- and
construction-use electric wires
thru JV’s with peer firms. Leasing of buildings & commercial facilities on
former HQ plant site in Kiba, Tokyo, generates annual profit of Yen 5 billion,
serving as stable revenue source.
FINANCIAL
INFORMATION
The sales volume
for Mar/2017 fiscal term amounted to Yen 653,795 million, a 3.65% fall from Yen
678,528 million in the previous term. The recurring profit was posted at Yen
32,555 million and the net profit at Yen 12,900 million, respectively, compared
with Yen 24,629 million recurring profit and Yen 11,317 million net losses,
respectively, a year ago.
For the current
term ending ended Mar 2018 the recurring profit is projected at Yen 36,000
million and the net profit at Yen 20.000 million, on an 11.66% rise in
turnover, to Yen 730,000 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Mar 1910
Regd
No.: 0106-01-007861
(Tokyo-Kotoku)
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 1,190 million
shares
Issued: 360,863,421 shares
Sum:
Yen 53,075 million
Major shareholders
(%): Master Trust Bank of Japan T (9.0), Japan Trustee Service T (7.7),
Mitsui Life Ins (3.4), Company’s Treasury Stock (3.1), SMBC (2.8), Shizuoka
Bank (2.6), JTSB (Sumitomo Mitsui Trust Bank (2.2), DOWA Material &
Marketing Co (2.2), Employees’ S/Holding Assn (1.6), Japan Trustee Services t5
(1.5); foreign owners (26.9)
No. of shareholders: 19,024
Listed on the S/Exchange (s) of: Tokyo
Nothing detrimental
is known as to the commercial morality of executives.
Related companies: Yonezawa Electric
Wire, Fujikura America Inc, Nishi Nippon Electric Wire & Cable, DDK Ltd,
Tohoku Fujikura Ltd, other.
OPERATION
Activities: Manufactures
electric wires, optical transmission systems, network systems, power systems, coated wires, others:
(Sales
Breakdown by Divisions):
Telecommunication
Products Div (53%): optical fiber & optical fiber cables, optical
con-nectors & connection components, optical devices, optical fusion
splicers, optical network monitoring systems, optical transmission equipment,
optical wiring systems, telecommuni-cations-related installation products;
Electronic &
Electric Equipment Div (24%): flexible printed circuit boards (FPC), con-nectors,
automotive wire harnesses, automotive components, sensors, electronic wiring,
hard disk drive components, micro heat pipes & heat sinks;
Metal
Cables & Systems Div (20%): industrial cables, metal telecommunications
cables, overhead power transmission cables, distribution wires, magnet wires,
electrical wires, all kinds of cable accessory products, and cable laying
works;
Real
Estate, others (2%)
Others
(1%);
Overseas
Sales Ratio (61%)
Clients: [Electric powers, telecommunications carriers]
Fujikura Dia Cable, Fujikura Shoji
Co,
Watanabe Dengyo Corp, Inaba Denki Sangyo, Tokyo Electric Power, Fuji Heavy Ind, Kansai Electric Power, NTT East, NTT
West, Mazda Motor, Fujiden Co,
Unimac Ltd, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsui Bussan Metals,
Pan Pacific Copper, JSR, Dowa bMining, SWCC Showa
Holdings, Mitsui & Co, Viscas Corp, Fujikura Automotive Asia, Fujikura Dia Cable, Unimac Ltd, DDK Ltd, A
Priori Inc, JCU, other. .
Payment
record: Regular
Location: Business area in Tokyo. Office premises at
the caption address are owned and maintained satisfactorily.
Bank References:
SMBC (H/O)
MUFG (Tokyo)
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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730,000 |
653,795 |
678,528 |
661,510 |
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Recur.
Profit |
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36,000 |
32,555 |
24,629 |
21,082 |
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Net
Profit |
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20,000 |
12,900 |
11,317 |
12,201 |
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Total
Assets |
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588,626 |
552,678 |
577,567 |
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Current
Assets |
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296,526 |
282,438 |
294,677 |
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Current
Liabs |
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180,754 |
178,818 |
192,772 |
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Net
Worth |
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202,723 |
198,574 |
218,581 |
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Capital,
Paid-Up |
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53,075 |
53,075 |
53,075 |
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Div.Ttl
in Million (¥) |
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2,636 |
2,303 |
2,118 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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11.66 |
-3.65 |
2.57 |
11.93 |
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Current Ratio |
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.. |
164.05 |
157.95 |
152.86 |
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N.Worth Ratio |
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34.44 |
35.93 |
37.85 |
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R.Profit/Sales |
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4.93 |
4.98 |
3.63 |
3.19 |
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N.Profit/Sales |
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2.74 |
1.97 |
1.67 |
1.84 |
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Return On Equity |
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.. |
6.36 |
5.70 |
5.58 |
Notes: Forecast 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 64.82 |
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1 |
INR 90.40 |
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Euro |
1 |
INR 79.76 |
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Yen |
1 |
INR 0.61 |
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 : |
NIT |
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.