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MIRA INFORM REPORT
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Report No. : |
508992 |
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Report Date : |
14.05.2018 |
IDENTIFICATION DETAILS
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Name : |
THK CO LTD |
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Registered Office : |
2-12-10 Shibaura Minatoku Tokyo 108-0023 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
April 1971 |
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Com. Reg. No.: |
0107-01-006176 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures linear motion systems (e.g. LM guide & ball spline),
ball screw, XY tables, link balls & rod ends, seismic isolation devices
other |
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No. of Employees : |
3,581 |
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
summary
THK
CO LTD
REGD
NAME: THK KK
MAIN
OFFICE: 2-12-10 Shibaura Minatoku Tokyo
108-0023 JAPAN
Tel:
03-5730-3911 Fax: 03-5730-3915
*..
Moved to the caption address in Oct/2017 from the one as given
URL: http://www.thk.co.jp
E-Mail address: info@thk.co.jp
ACTIVITIES: Mfg of linear motion systems
BRANCHES: Osaka, Nagoya, Yamagata, Mie, Gifu, Yamaguchi,
other (Tot 40)
OVERSEAS: USA (6), Europe (11), China (31), Korea
(14), Asia, other (Tot 79 offices)
FACTORIES: Yamagata, Sendai, Niigata, Fukushima,
Mishima, Kofu, Gifu, Mie, Yamaguchi, Shizuoka, Oita (Tot 11); USA (2), Mexico,
Canada, Germany, France, Ireland, Czech, China (5), Korea (3), Malaysia,
Thailand, Vietnam (Tot 19)
CHIEF
EXEC: AKIHIRO TERAMACHI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 286,603 M
PAYMENTS REGULAR CAPITAL Yen 34,606 M
TREND UP WORTH Yen 270,948 M
STARTED 1971 EMPLOYES 3,581
COMMENT
MFR OF LINEAR
MOTION SYSTEMS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
HIGHLIGHTS
This is a world’s
leading linear motion device mfr.
Hiroshi Teramachi, a founder of Nippon Thomson, retired from Thompson
and established the company in 1971. A
global pioneer in the production of linear motion devices, such as linear
guides & ball screws. Its products
are mainly used in semiconductor mfg equipment & machine tools. Also focusing on the development of unit-type
linear motion devices. Acquired Rhythm
Corp (current name THK Rhythm), an automotive component mfr formally affiliated
with Nissan Motor Co Ltd, in 2007, to boost its business for the automobile
industry. Purchased an automotive
components business handling such as linkages & suspensions from TRW
Automotive Inc of the US in 2015.
FINANCIAL
INFORMATION
The sales volume for
Dec/2017 fiscal term amounted to Yen 286,603 million, a 4.76% up from Yen
273,577 million in the previous term.
The recurring profit was posted at Yen 31,254 million and the net profit
at Yen 25,729 million, respectively, compared with Yen 23,398 million recurring
profit and Yen 16,731 million net profit, respectively, a year ago.
For the current
term ending Dec 2018 the recurring profit is projected at Yen 46,900 million
and the net profit at Yen 34,100 million, respectively, on a 22.12% rise in turnover,
to Yen 350,000 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Apr 1971
Regd No.: 0107-01-006176 (Tokyo-Shinagawaku)
Legal
Status: Limited Company (Kabushiki Kaisha
Authorized: 467,877,700 shares
Issued:
133,856,903 shares
Sum: Yen 34,606 million
Major shareholders
(%):
Japan Trustee Services T (8.2), Master Trust Bank of Japan T (5.9), Company’s
Treasury Stock (5.4), JP Morgan Chase Bank 385632 (3.2), Akihiro Teramachi
(2.6), FTC Co (2.0), Government of Norway (2.0), Japan Trustee Services T5
(1.7), Northern Trust (AVFC) Re SSD00 (1.7), Chase Manhattan GTS Escrow (1.5);
foreign owners (46.0)
No.
of shareholders: 16,730
Listed
on the S/Exchange (s) of: Tokyo
Managements: Akihiro
Teramachi, pres; Toshihiro Teramachi, v pres, Hiroshi Konno, v pres; Nobuyuki
Maki, s/mgn dir; Takeshi Teramachi, s/mgn dir; Junji Shimomaki, mgn dir; Jun’ichi Sakai, dir; Masaaki Kaisho, dir;
Masakatsu Hioki, dir; Tomitoshi Omura, dir; Yoshiki Ueda, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: THK America, THK Europe, other.
OPERATION
Activities: Manufactures
linear motion systems (e.g. LM guide & ball spline), ball screw, XY tables,
link balls & rod ends, seismic isolation devices other (--100%):
LM system: Japan (37%), US (23%), Europe 20%), China (14%), others (6%)
Overseas Sales
Ratio (60%)
Clients: [Mfrs,
wholesalers] Daido Corp, THK, Yamazen Corp, Mimasu THK, Takatsu Corp, Disco Corp, THK America, Ueno Kogyo
Corp, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Koyo Giken Co, Toyota Tsusho Corp, Netsuren Co, Nose Seiko, Sanko Mfg, Kokoku Intech Co, Suzuhide Kogyo, Yamato Special Steel, Allied Material, other
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank
References:
Mizuho
Bank (Shinjuku)
MUFG
(Toranomon-Chuo)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
31/12/2018 |
31/12/2017 |
31/12/2016 |
31/12/2015 |
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Annual Sales |
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350,000 |
286,603 |
273,577 |
240,478 |
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Recur. Profit |
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46,900 |
31,254 |
23,398 |
19,140 |
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Net Profit |
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34,100 |
25,729 |
16,731 |
13,575 |
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Total Assets |
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436,664 |
414,931 |
407,808 |
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Current Assets |
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270,975 |
259,827 |
248,858 |
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Current Liabs |
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93,195 |
80,880 |
59,572 |
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Net Worth |
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270,948 |
248,940 |
247,348 |
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Capital, Paid-Up |
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34,606 |
34,606 |
34,606 |
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Div.P.Share(¥) |
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62.00 |
41.00 |
50.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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22.12 |
4.76 |
13.76 |
10.47 |
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Current Ratio |
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.. |
290.76 |
321.25 |
417.74 |
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N.Worth Ratio |
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62.05 |
60.00 |
60.65 |
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R.Profit/Sales |
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13.40 |
10.90 |
8.55 |
7.96 |
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N.Profit/Sales |
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9.74 |
8.98 |
6.12 |
5.65 |
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Return On Equity |
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.. |
9.50 |
6.72 |
5.49 |
Notes: Forecast (or estimated) figures for
the 31/12/2018 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 67.22 |
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1 |
INR 90.88 |
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Euro |
1 |
INR 80.09 |
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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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DIV |
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Report Prepared
by : |
SYL |
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.