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MIRA INFORM REPORT
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Report No. : |
499572 |
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Report Date : |
22.03.2018 |
IDENTIFICATION DETAILS
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Name : |
MITSUI ENGINEERING & SHIPBUILDING CO
LTD |
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Registered Office : |
Hamarikyu Mitsui Bldg, 5-6-4 Tsukiji Chuoku Tokyo 104-8439 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
July, 1937 |
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Com. Reg. No.: |
0100-01-034946 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Shipbuilding & Heavy Machinery. |
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No. of Employees : |
3,714 |
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 : |
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 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
MITSUI ENGINEERING & SHIPBUILDING CO LTD
REGD NAME: Mitsui
Zosen KK
MAIN OFFICE: Hamarikyu
Mitsui Bldg, 5-6-4 Tsukiji Chuoku Tokyo 104-8439 JAPAN
Tel:
03-3544-3147 Fax: 03-3544-3050
URL: http://www.mes.co.jp
E-Mail address: prdept@mes.co.jp
ACTIVITIES
Shipbuilding &
heavy machinery mfg
BRANCHES
Osaka, Nagoya,
Hiroshima, Fukuoka, other (Tot 15)
OVERSEAS
Singapore, Beijing, Shanghai, Jakarta, London, New York, Hong Kong,
Hanoi (overseas subsidiaries & offices)
FACTORIES
Tamano (Okayama),
Ichihara (Chiba), & Oita (Tot 4)
CHIEF
EXEC
TAKAO TANAKA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 732,464 M
PAYMENTS REGULAR CAPITAL Yen 44,384 M
TREND SLOW WORTH Yen
250,370 M
STARTED 1937 EMPLOYES 3,714
COMMENT
SHIPBUILDING & MFG OF HEAVY ELECTRIC MACHINERY.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
This is a leading
shipbuilder & heavy machinery mfr. In shipbuilding business, builds mainly bulk carriers, but also military
vessels for the Self Defense Forces & patrol boats for the Japan Coast
Guard. The largest domestic mfr of diesel
engines for ships, and also supplies other domestic shipbuilders, including
local firms. Engaged also in the mfg of
bridges & steel structures, as well as plant engineering for petrochemical
& other facilities. Made Showa
Aircraft Industry Co., Ltd, engaged in production of tank lorries, aircraft
components & others, a subsidiary in 2014.
In recent years, MODEC Inc, an engineering subsidiary manufacturing
storage facilities for offshore oil production, has shown market growth. The corporate name will be changed to
Mitsui E&S Holding Co., Ltd. in April 2018.
FINANCIAL
INFORMATION
The sales volume
for Mar/2017 fiscal term amounted to Yen 732,464 million, a 9% fall from Yen
805,413 million in the previous
term.
The recurring profit was posted at Yen 14,359 million and the net profit at Yen
12,194 million, respectively, compared with Yen 15,078 million recurring profit
and Yen 7,599 million net profit, respectively, a year ago.
For the current
term ending Mar 2018 the recurring profit is projected at Yen 17,000 million
and the net profit at Yen 3,000 million, on a 4% fall in turnover, to Yen
700,000 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Jul 1937
Regd
No.: 0100-01-034946
(Tokyo-Chuoku)
Legal
Status: Limited Company (Kabushiki
Kaisha)
Authorized: 1,500 million shares
Issued: 830,987,176 shares
Sum:
Yen 44,384 million
Major shareholders
(%):
Master Trust Bank of Japan T (5.1), Japan Trustee Services Bank T (4.1), Japan
Trustee Services T9 (3.3), Mitsui & Co (3.0), Hyakujushi Bank (3.0), JTSB
(Chuo Mitsui Trust & Banking) (2.8), Company’s Treasury Stock (2.7), Japan
Trustee Services T4 (2.0), Japan Trustee Services T9 (1.9), Mitsui Life Ins
(1.9), SMBC (1.6); foreign owners (20.2)
No. of
shareholders: 48,400
Listed
on the S/Exchange (s) of: Tokyo
Managements: Takao Tanaka,
pres; Takaki Yamamoto, v pres; Shinsuke Minoda, mgn dir; Akira Nishihata, mgn
dir; Shinsuke Niho, mgn dir; Tetsuro Koga, mgn dir; Ryoichi Oka, mgn dir;
Yuichi Shiomi, mgn dir; Tohru Tokuhisa, dir; Neichi Tanaka, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: MODEC Inc, Mitsui
Babcock Energy (UK), Mitsui Zosen Plant Engineering, PACECO Corp (USA),
Brumeister & Wain Scandinavian Contractor A/S (Denmark), other
OPERATION
Activities: Shipbuilding and
heavy electrical machinery mfr:
(Sales breakdown
by Divisions): Shipbuilding (17%), Ocean development (31%), machinery (24%), engineering (22%), others (6%)
Overseas
Sales Ratio (68%)
Products list:
Ships & Oceans: LNG carriers,
bulk carriers (grain, ore, coal, lumber), Oil tankers, FPSO (facility for
production, storage and offloading of crude oil drilled from submarine oil
field), Underwater TV vehicles, R-One robot (autonomous underwater vehicle to
search wide underwater area), Techno super liner, destroyer (equipped with
anti-aircraft missile), patrol ship (for Japan Coast Guard), ship handling
simulator, dynamic positioning system (automatically keep position of ships),
other;
Energy systems: marine diesel
engines, nuclear fuel cycles, radioactive waste treatment, cask &
containers, diesel generating plant, gas turbine combined cycle power plants,
gas turbine co-generation system, steam turbine generating system, process
compressors, top pressure recovery turbine (TRT) generating system, natural gas
hydrate project;
Environment—Recycling:
Mitsui
Recycling 21 (thermal dioxin decomposition system for ash from incinerators),
Diobreaker, Mitsui Fluidized bed waste incinerator, Templar 21 (recycling of
kitchen garbage), Expanded polystyrene recycling system, biogas plant,
fluidized bed sludge incinerator, ultra activated sludge water treatment
process;
Plant Engineering:
inorganic
chemistry plant, seawater desalination plant;
IT-Related
Activities: MapInfo (mapping system for PC version covering all kinds of map &
statistic data), NeoShip (computational fluid dynamics (CFD) system for ship
design);
Logistics Systems:
Quayside
container crane, transfer crane in container yard, container terminal
management system;
Construction of
Social Infrastructure: bridges, Watergates & penstocks, radar
detectors, elementary particle (neutrino) detectors, floating piers &
pontoons;
Advanced Machinery
Systems: power electronics equipment, ion implanter for low-temp poly-silicon
TFT, testing system/prober for FPD, CVD-SiC coating (semiconductor mfg
equipment using CVD)
Clients: [Mfrs,
wholesalers] Defense Ministry, Itochu Crop, MES Technoservice Co , Gearbulk
Ship Owning, Kanax Corp, Mitsubishi Corp, Mitsui & Co, Imabari
Shipbuilding, Tsuneishi Shipyard, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui & Co, IHI, Okaya & Co, Mitsubishi Corp, Shinsho
Corp, Hitachi Ltd, Daido Metal Ind, Nakata Mac Corp, Miyahara Mfg, 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)
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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700,000 |
732,464 |
805,413 |
816,520 |
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Recur.
Profit |
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17,000 |
14,859 |
15,078 |
14,899 |
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Net
Profit |
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3,000 |
12,194 |
7,599 |
9,463 |
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Total
Assets |
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1,096,735 |
1,094,042 |
1,074,563 |
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Current
Assets |
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537,372 |
537,822 |
542,551 |
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Current
Liabs |
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429,483 |
472,508 |
482,848 |
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Net
Worth |
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250,370 |
234,777 |
236,724 |
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Capital,
Paid-Up |
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44,384 |
44,384 |
44,384 |
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Div.Ttl
in Million (¥) |
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3,232 |
1,616 |
1,655 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-4.43 |
-9.06 |
-1.36 |
21.86 |
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Current Ratio |
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.. |
125.12 |
113.82 |
112.36 |
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N.Worth Ratio |
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.. |
22.83 |
21.46 |
22.03 |
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R.Profit/Sales |
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2.43 |
2.03 |
1.87 |
1.82 |
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N.Profit/Sales |
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0.43 |
1.66 |
0.94 |
1.16 |
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Return On Equity |
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.. |
4.87 |
3.24 |
4.00 |
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 65.22 |
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1 |
INR 91.33 |
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Euro |
1 |
INR 79.96 |
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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
: |
NIS |
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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.