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MIRA INFORM REPORT
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Report No. : |
509900 |
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Report Date : |
17.05.2018 |
IDENTIFICATION DETAILS
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Name : |
JUKI CORPORATION |
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Registered Office : |
2-11-1 Tsurumaki Tama City Tokyo-Metrop 206-8551 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
December 1938 |
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Com. Reg. No.: |
(Tokyo-Metrop-Tama Shi) 006169 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures, imports and exports industrial sewing
machines, household sewing machines, industrial equipment, electronics,
precision instruments. |
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No. of Employees : |
6,021 |
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 - 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 first country to ratify the TPP in
December 2016; the United States signaled its withdrawal from the TPP in
January 2017, and 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).
|
Source
: CIA |
Company
name & address
JUKI CORPORATION
REGD NAME: JUKI
KK
MAIN OFFICE: 2-11-1
Tsurumaki Tama City Tokyo-Metrop 206-8551 JAPAN
Tel:
042-357-2211 Fax: 042-357-2540
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of industrial
sewing machines, industrial machinery
BRANCHES
Domestic 122
locations; globally 79 locations
OVERSEAS
China, Singapore, India, Sri Lanka, Vietnam, Bangladesh, UAE, Cambodia, Thailand, Myanmar, Poland, Germany, Italy, Romania, Russia, Belarus, Turkey, USA, Brazil, other (including subsidiaries).
FACTORIES
Ohtawara
(Tochigi), other; China, Vietnam, India, other
CHIEF
EXEC
AKIRA KIYOHARA,
PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 103,659 M
PAYMENTS REGULAR CAPITAL Yen 18,044 M
TREND STEADY WORTH Yen
32,726 M
STARTED 1938 EMPLOYES 6,021
COMMENT
MFR OF INDUSTRIAL SEWING MACHINES.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established originally as a rifle mfr, shifted into home sewing machines after WW2 and succeeded in production of nation’s first machine in 1947. Now the firm is the largest producer of industrial sewing machines in the world and third largest in home-use machines in Japan. Has various models of industrial sewing machines with prices ranging from less than Yen 1 million to Yen 10 million or over. Although used to focus on the Chinese market, shifted its priority to countries such as Vietnam & Indonesia in recent years as clothing plants are increasingly relocating to South East Asia. Boasts a broad lineup of industrial chip mounters, form low-priced model to general-purpose models, in addition to high-speed types. Co-developed with YKK Corp the sewing machines for fasteners.
FINANCIAL
INFORMATION
The sales volume for Dec/2017 fiscal term amounted to Yen 103,659 million, a 6.07% up from Yen 97,724 million in the previous term. The recurring profit was posted at Yen 7,839 million and the net profit at Yen 5,642 million, respectively, compared with Yen 5,728 million recurring profit and Yen 1,833 million net profit, respectively, a year ago
For the current term ending Dec 2018 the recurring profit is projected at Yen 4,900 million and the net profit at Yen 7,200 million, respectively, on a 0.64% fall in turnover, to Yen 103,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered:
Dec 1938
Regd No.:
(Tokyo-Metrop-Tama
Shi) 006169
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 80
million shares
Issued: 29,874,179
shares
Sum: Yen
18,044 million
Major shareholders
(%):
Master Trust Bank of Japan T (3.5), Japan Trustee Services T (3.2), Mizuho Bank
(3.1), BNP Paribus (Lux) J FIM Lux F (2.9), Nippon Life Inc (2.4), JP Morgan
Chase Bank 380634 (2.3), Company’s Treasury Stock (1.9), Asahi Life Ins
(1.9), Dai-ichi Life Holdings (1.7),
State Street B&T OM02 505002 (1.6);; foreign owners (22.9).
No.
of shareholders: 9,551
Listed
on the S/Exchange (s) of: Tokyo
Managements: Akira Kiyohara,
pres; Naotake Miyashita, mgn dir; Minoru Wada, mgn dir; Shinsuke Uchinashi, mgn
dir; Hirofumi Gotoh, mgn dir; Katsumi Nihei, mgn dir; Kimio Honma, dir;
Toshimasa Minura, dir; Toshinobu Shinozuka, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: JUKI Denshi Kogyo, JUKI Singapore, other
OPERATION
Activities: Manufactures, imports and exports industrial sewing machines, household sewing machines, industrial equipment, electronics, precision instruments:
(Sales breakdown by divisions):
Sewing Machines (78%)
Industrial Sewing Machines (16%)
Others (7%)
Overseas sales ratio (84%)
Clients: [Mfrs, wholesalers] JUKI Hong Kong, JUKI Singapore, JUKI Automation Systems, JUKI European Holdings, JUKI Union Special, JUKI China Co, JUKI Shanghai, JUKI Household Sewing Machine, JUKI Central Europe, JUKI Sales, other.
No. of accounts:
2,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] JUKI Matsue, JUKI Denshi Kogyo, JUKI Hiroshima Seisakusho, JUKI Shanghai, other.
Payment record: Regular
Location: Business area in Tama City, Tokyo-Metrop. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank (Shinjuku)
Mizuho Trust Bank (H/O)
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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103,000 |
103,659 |
97,724 |
112,865 |
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Recur.
Profit |
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4,900 |
7,839 |
3,022 |
5,728 |
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Net
Profit |
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4,200 |
5,642 |
1,883 |
3,853 |
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Total
Assets |
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110,554 |
111,415 |
119,492 |
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Current
Assets |
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79,102 |
80,066 |
86,958 |
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Current
Liabs |
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55,589 |
61,254 |
64,436 |
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Net
Worth |
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32,726 |
27,006 |
27,678 |
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Capital,
Paid-Up |
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18,044 |
18,044 |
18,044 |
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Div.P.Share(¥) |
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35.00 |
20.00 |
20.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-0.64 |
6.07 |
-13.42 |
4.91 |
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Current Ratio |
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.. |
142.30 |
130.71 |
134.95 |
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N.Worth Ratio |
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.. |
29.60 |
24.24 |
23.16 |
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R.Profit/Sales |
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4.76 |
7.56 |
3.09 |
5.08 |
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N.Profit/Sales |
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4.08 |
5.44 |
1.93 |
3.41 |
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Return On Equity |
|
.. |
17.24 |
6.97 |
13.92 |
Notes: Forecast (or estimated) figures for the
3112/2018 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 67.83 |
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1 |
INR 91.68 |
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Euro |
1 |
INR 80.29 |
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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
: |
NIS |
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Report Prepared
by : |
NIT |
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.