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MIRA INFORM REPORT
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Report No. : |
517115 |
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Report Date : |
26.06.2018 |
IDENTIFICATION DETAILS
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Name : |
YOKOGAWA ELECTRIC CORPORATION |
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Registered Office : |
2-9-32 Nakacho Musashino City Tokyo-Metrop 180-0006 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2018 |
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Date of Incorporation : |
December 1920 |
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Com. Reg. No.: |
0124-01-012569 (Tokyo-Musashino) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures Industrial Instruments: Control Equipment (89%), Measuring Instruments (6%), Others (5%) |
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No. of Employees : |
2,608 |
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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Maximum Credit Limit : |
Yen 14,311.4 Million |
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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 (31.12.2017) |
Current Rating (01.04.2018) |
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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 - averaging 10% 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 resulted in several years of economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is 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.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. 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). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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Source
: CIA |
Company name & address
YOKOGAWA ELECTRIC CORPORATION
REGD NAME: Yokogawa
Denki KK
MAIN OFFICE: 2-9-32
Nakacho Musashino City Tokyo-Metrop 180-0006 Japan
Tel:
0422-52-5555 Fax: 0422-52-0461 -
URL: http://www.yokogawa.co.jp
E-Mail address: (thru
the URL)
ACTIVITIES: Mfg
of industrial instruments (control equipment, measuring instruments)
BRANCHES: Nagoya,
Osaka, Hiroshima, Kurashiki, Fukuoka, other (Tot 7)
OVERSEAS: Europe
(7), N/S Americas (8), Asia (9), Mid East (7), Africa (4), other
FACTORIES: At
the caption address, Kofu, Kanazawa, Akiruno, Ome, Nagano (Tot 6)
OFFICERS: TAKASHI
NISHIJIMA, PRES Satoshi Kurozu,
s/mgn dir
Satoshi Nara,
s/mgn dir Masatoshi Nakahara,
s/mgn dir
Jun’ichi
Anabuki, mgn dir Shuzo
Kaihori, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 406,590 M
PAYMENTS REGULAR CAPITAL Yen 43,401 M
TREND UP WORTH Yen 271,877 M
STARTED 1920 EMPLOYES 2,608
COMMENT: MFR OF INDUSTRIAL INSTRUMENTS FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 14,311.4 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
This is the top-ranked mfr of industrial instruments, with control equipment and measuring instruments as 2 mainlines. Boasts strong share in control equipment for petroleum, chemical, steel and other industrial plants. Putting more emphasis on overseas business. .The company also mfrs positioning equipment for mfg LC panels, digital oscilloscopes and others. Withdrew from the semiconductor tester & photonics businesses. Exploring business opportunities in shale gas-related projects.
FINANCIAL
INFORMATION
The sales volume for Mar/2018 fiscal term amounted to Yen 406,590 million, a 3.87% up from Yen 391,443 million in the previous term. The recurring profit was posted at Yen 33,333 million and the net profit at Yen 21,449 million, respectively, compared with Yen 33,014 million recurring profit and Yen 25,759 million net profit, respectively, a year ago.
For the current term ending Mar 2019 the recurring profit is projected at Yen 32,000 million and the net profit at Yen 21,500 million, respectively, on a 0.39% fall in turnover, to Yen 405,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 14,311.4 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1920
Regd
No.: 0124-01-012569 (Tokyo-Musashino)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
600 million shares
Issued: 268,624,510
shares
Sum: Yen
43,401 million
Major
shareholders (%): Master Trust Bank of Japan T (12.3), Dai-ichi Life Ins (5.8), Japan
Trustee Services T (5.6), Nippon Life Ins (5.0), Japan Trustee Services T9
(4.3), TCSB (Mizuho Bank) (4.1), State Street State Bank (2.7), Company’s
S/Holding Assn (2.4), other; foreign owners (33.0)
No.
of shareholders: 14,910
Listed on the S/Exchange (s) of: Tokyo
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Yokogawa Mfg, other.
OPERATION
Activities: Manufactures industrial instruments: control equipment (89%), measuring instruments (6%), others (5%)
Overseas
Sales Ratio (67%)
Clients: [Mfrs,
wholesalers] Yokogawa & Co, Tokyo Denki Sangyo Co, Sumitomo
Chemical, Shinkawa Electric, Sumisho Aero-Systems,
Chiyoda Corp, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Yokogawa Mfg, Yokogawa Solution Service, Yokogawa Electric Asia, Hitachi Ltd, other
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank
(Ohtemachi)
Aozora Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/03/2019 |
31/03/2018 |
31/03/2017 |
31/03/2016 |
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Annual
Sales |
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405,000 |
406,590 |
391,443 |
413,732 |
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Recur.
Profit |
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32,000 |
33,333 |
33,014 |
40,717 |
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Net
Profit |
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21,500 |
21,449 |
25,759 |
30,161 |
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Total
Assets |
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448,809 |
440,498 |
412,722 |
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Net
Worth |
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271,877 |
256,408 |
240,444 |
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Capital,
Paid-Up |
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43,401 |
43,401 |
43,401 |
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Div.P.Share(¥) |
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30.00 |
25.00 |
25.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-0.39 |
3.87 |
-5.39 |
1.96 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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60.58 |
58.21 |
58.26 |
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N.Profit/Sales |
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5.31 |
5.28 |
6.58 |
7.29 |
Notes: Forecast (or estimated) figures for the 31/03/2019
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 68.15 |
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1 |
INR 90.27 |
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Euro |
1 |
INR 79.35 |
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YEN |
1 |
INR 0.62 |
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
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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.