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MIRA INFORM REPORT
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Report No. : |
483316 |
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Report Date : |
01.01.2018 |
IDENTIFICATION DETAILS
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Name : |
JAPAN STEEL WORKS LTD |
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Registered Office : |
Gate City Osaki-West Tower, 1-11-1 Osaki Shinagawaku Tokyo 141-0032 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Dec., 1950 |
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Com. Reg. No.: |
0107-01-019531 (Tokyo-Shinagawaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Plastics Machines, Steel Castings & Forgings. |
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No. of Employees : |
2,266 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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
JAPAN
STEEL WORKS LTD
REGD
NAME: Nihon Seikosho KK
MAIN
OFFICE: Gate City Osaki-West Tower, 1-11-1
Osaki Shinagawaku Tokyo 141-0032 JAPAN
Tel:
03-5745-2001 Fax: 03-5745-2025
E-Mail
address: info_steel_forging@jsw.co.jp
ACTIVITIES
Mfg of plastics machines, steel castings
& forgings
BRANCHES
Osaka, Nagoya, Shizuoka, Fukuoka, Sapporo,
other (Tot 15)
OVERSEAS
USA, India, China,
Singapore, Indonesia, Philippines, Thailand, Malaysia, Hong Kong, Taiwan (21
locations)
FACTORIES
Muroran, Hiroshima, Yokohama (Tot 3)
OFFICERS
NAOTAKA MIYAUCHI, PRES Yutaka Higashiizumi v pres
Kenji Watanabe, s/mgn dir Hisashi
Shibata, mgn dir
Masao Ooshita, mgn dir Toshio Matsuo, mgn dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 166,722 M
PAYMENTS SLOW
BUT CORRECT CAPITAL Yen 19,694 M
TREND SLOW WORTH Yen 88,837 M
STARTED 1950 EMPLOYES 2,266
COMMENT
MFR OF PLASTIC MACHINES, LARGE STEEL CASTINGS & FORGING. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company is one of world’s leading
mfrs of plastic machines and large steel castings & forging bound for
electric power & general plants. Renowned for resin machinery. Ranked in 2nd
group in the field of injection machines in Japan. Also makes defense equipment
including guns, tanks, missile launchers & antiaircraft gun systems. French
nuclear firm, Areva, acquired 1.3% stake in the subject firm and signed a long
term purchase contract for large forged-steel parts for nuclear power plants,
reported in Nov 2008. The long term
contract likely covers the purchasing of forged-steel parts for 20 or more
nuclear reactors between 2012 & 2016, as reported. Partially amending capacity investment plan
for Muroran plant, with focus put on enhancing output of N-power materials to
address abundant order backlog. The company intends to boost new demand for
forges & foundries from other sectors than N-power plants and with the
development of offshore wind power systems and large wind mills and tie-up with
overseas. It also aims to boost sales of excimer laser annealing equipment for
high resolution LCDs and organic ELs. It has strong technological capabilities
in plastic injection molding machines & magnesium alloy injection machines.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term
amounted to Yen 166,722 million, a 5% fall from Yen 176,116 million in the
previous term. The recurring profit was posted at Yen 6,734 million and the net
losses at Yen 8,250 million, respectively, compared with Yen 9,545 million
recurring profit and Yen 18,719 million net losses, respectively, a year ago.
For the current term ending Mar 2018 the
recurring profit is projected at Yen 8,500 million and the net profit at Yen
7,500 million, on a 3% rise in turnover, to Yen 171,730 million. .
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Dec 1950
Regd No.:
0107-01-019531
(Tokyo-Shinagawaku)
Legal
Status: Limited Company (Kabushiki
Kaisha)
Authorized: 1,000
million shares
Issued: 371,463,036
shares
Sum: Yen
19,694 million
Major shareholders (% ): Master
Trust Bank of Japan T (7.5), Japan Trustee Services Bank (6.1), Mitsui
Life
Ins (3.8), other; foreign owners (25.8)
No. of shareholders: 21,950
Listed
on the S/Exchange (s) of:
Tokyo
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: Nikko Trading,
Nikko Tokki, Nikko Techno, other
OPERATION
Activities: Manufactures plastic machines and large
casting & forgings bound for electric power and general plants:
(Sales breakdown by Divisions):
Steel Product-related (24%): steel forgings & castings, clad steel
products, pressure vessel;
Machinery-related (75%): magnesium process equipment & products,
injection molding machine, polyolefin extruders, auto screen changer,
compounding extruders, microcellular foam processing technology, reciprocating
compressors labyrinth piston type, film & sheet production systems;
Regional Development-related (1%): wind turbine system, commercial building
development, Fuchu intelligent park, shopping center, other;
Overseas sales ratio (48%)
Clients: [Mfrs, wholesalers] Marubeni-Itochu Steel Inc, Mitsui & Co, JSW
Plastics, IHI Corp, Nikko YKK Trading, Nikko Techno, Yodogawa Steel Works,
Ministry of Self Defense, Japan Coast Guard, Mitsubishi Heavy Ind, Toshiba
Corp, Sumitomo Corp, Mitsui Bussan Plant Systems, Shibaura Holdings Inc, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsui & Co Steel Ltd, Allegheny Technologies
Japan, Coherent Japan Inc, Shibaura Iron Works, Tanaka Electric Ind, Tetsugen
Corp, Nikko YKK Trading, other.
Payment record: Slow but correct
Location: Business area in Tokyo. Office
premises at the caption address are leased and maintained satisfactorily.
Bank
References:
SMBC
(H/O)
MUFG
(H/O)
Relations:
Satisfactory
FINANCES
(Non-Consolidated
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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171,730
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166,722
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176,116
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153,455
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Recur. Profit |
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8,500 |
6,734 |
9,545 |
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Net Profit |
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7,500 |
-8,260
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-18,719
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-5,658
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Total Assets |
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242,353
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263,112
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291,793
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Current Assets |
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152,865
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154,993
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Current Liabs |
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99,368
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109,368
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Net Worth |
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88,837
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97,107
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124,381
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Capital, Paid-Up |
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19,694
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19,694
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19,694
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Div.Ttl in Million (¥) |
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1,837 |
1,653 |
1,666 |
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<Analytical
Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.00 |
-5.33 |
14.77 |
-1.13 |
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Current Ratio |
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153.84
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141.72
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.. |
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N.Worth Ratio |
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36.66 |
36.91 |
42.63 |
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R.Profit/Sales |
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4.95 |
4.04 |
5.42 |
.. |
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N.Profit/Sales |
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4.37 |
-4.95 |
-10.63
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-3.69 |
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Return On Equity |
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.. |
-9.30 |
-19.28
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-4.55 |
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 63.93 |
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1 |
INR 86.07 |
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Euro |
1 |
INR 76.39 |
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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
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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.