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MIRA INFORM REPORT
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Report No. : |
507583 |
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Report Date : |
05.05.2018 |
IDENTIFICATION DETAILS
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Name : |
THE JAPAN STEEL WORKS LTD |
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Registered Office : |
Gate City Osaki-West Tower 23F, 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 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures plastic machines
and large casting & forgings bound for electric power and general plants: |
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No. of Employees : |
2,291 |
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 - 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 And Address
THE JAPAN STEEL WORKS LTD
REGD NAME: Nihon Seikosho KK
MAIN OFFICE: Gate City Osaki-West Tower 23F, 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
CHIEF EXEC: NAOTAKA MIYAUCHI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 212,469 M
PAYMENTS REGULAR CAPITAL Yen 19,694 M
TREND SLOW WORTH Yen
106,300 M
STARTED 1950 EMPLOYES 2,291
COMMENT
MFR OF PLASTIC MACHINES, LARGE STEEL CASTINGS & FORGING.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The
subject company is well-known for large-size casting/forging technologies, a
member firm of Mitsui Group. It produces
artilleries for Self Defense Forces.
Core business consisted of large cast/forged products, such as nuclear
reactor pressure vessel-related items & oil refinery-use reactors, which
enjoy a high sales share in the world market.
Today’s profit-earner is Industrial machinery, plastic molding machines
& magnesium alloy injection machines, with strong technological
capabilities.
FINANCIAL
INFORMATION
The sales
volume for Mar/2017 fiscal term amounted to Yen 212,469 million, a 4.85% down
from Yen 223.301 million in the previous term.
The recurring profit was posted at Yen 12,111 million and the net losses
at Yen 4,968 million, respectively, compared with Yen 14,125 million recurring
profit and Yen 16,600 million net losses, respectively, a year ago.
For the term that ended Mar 2018 the
recurring profit was projected at Yen 20,000 million and the net profit at Yen
13,500 million, on a 1.16% fall in turnover, to Yen 210,000 million. Final results are yet released.
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 (7.9), Japan Trustee Services
T (7.4), Mitsui Life Ins (3.8), SMBC (2.9), Mitsui Sumitomo Ins (2.1), others;
foreign owners (28.0)
No. of shareholders: 29,012
Listed on the S/Exchange (s) of: Tokyo
Managements:
Naotaka Miyauchi, pres; Yoshinobu Azuma, v pres; Kenji Watanabe, s/mgn dir;
Hisashi Shibata, mgn dir; Masao Ohshita, mgn dir; Toshio Matsuo, mgn dir;
Motonobu Sato, dir; Nobuo Mochida, dir
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 (51%)
Clients: [Mfrs, wholesalers] Nikko YPK
Trading, Japan Display, Toray Inc, IHI Corp, Japan Wind Development, Defense Ministry,
Japan Coast Guard, Sumitomo Heavy Ind, Sharp Corp, 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, other.
Payment record:
Regular
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References:
SMBC
(H/O)
Sumitomo
Mitsui Trust Bank (Nihombashi)
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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210,000 |
212,469 |
223,301 |
194,674 |
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Recur. Profit |
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20,000 |
12,111 |
14,125 |
9,221 |
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Net Profit |
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13,500 |
-4,968 |
-16,600 |
-5,327 |
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Total Assets |
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275,402 |
293,213 |
319,735 |
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Current Assets |
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186,565 |
195,574 |
190,976 |
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Current Liabs |
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108,390 |
118,475 |
145,520 |
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Net Worth |
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106,300 |
110,022 |
136,588 |
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Capital, Paid-Up |
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19,694 |
19,694 |
19,694 |
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Div.P.Share(¥) |
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25.00 |
5.00 |
4.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-1.16 |
-4.85 |
14.71 |
3.16 |
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Current Ratio |
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172.12 |
165.08 |
131.24 |
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N.Worth Ratio |
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.. |
38.60 |
37.52 |
42.72 |
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R.Profit/Sales |
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9.52 |
5.70 |
6.33 |
4.74 |
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N.Profit/Sales |
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6.43 |
-2.34 |
-7.43 |
-2.74 |
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Return On Equity |
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-4.67 |
-15.09 |
-3.90 |
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 66.77 |
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1 |
INR 90.58 |
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Euro |
1 |
INR 79.97 |
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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 : |
KET |
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
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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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.