MIRA INFORM REPORT
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Report Date : |
12th May 2006 |
IDENTIFICATION DETAILS
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Name : |
NAGASE
& CO LTD |
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Registered Office : |
1-1-17 Shinmachi
Nishiku Osaka 550-8668, Japan |
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Date of Incorporation : |
1917 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Import,
export and wholesale of chemicals. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 21332.5 million |
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Status : |
Fair |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
NAGASE & CO LTD
REGD NAME
Nagase Sangyo KK
MAIN OFFICE
1-1-17 Shinmachi Nishiku Osaka 550-8668 JAPAN
Tel :
06-6535-2114
Fax :
06-6535-2160
*.. The given address is its Tokyo Headquarter
Office
URL : http://www.nagase.co.jp/
E-Mail address: info@nagase.co.jp
ACTIVITIES
Import, export, wholesale of chemicals
BRANCHES
Tokyo, Nagoya, Fukuoka, Hiroshima,
Takamatsu, other
OVERSEAS
USA (6), Canada, UK, Germany, China (14), Taiwan (2), Korea (2), Thailand (2), Malaysia (3), Singapore (3), VIETNAM(3), India, Indonesia, UAE, other
CHIEF EXEC
HIROSHI NAGASE, PRES & CEO
Yen Amount : In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
575,636 M
PAYMENTS REGULAR CAPITAL Yen 9,699 M
TREND STEADY WORTH Yen 167,092 M
STARTED 1917 EMPLOYES 3,465
COMMENT
TOP-RANKED TRADING HOUSE
SPECIALIZING IN INDUSTIRAL CHEMICALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 21,332.5 MILLION,
NORMAL 30 DAYS TERMS.
Forecast
(or estimated) figures for 31/03/2006 fiscal term
HIGHLIGHTS
The subject company is top-ranked trading house specializing in industrial chemicals, founded originally in 1832 by a certain Nagase as a dyestuff merchant in Kyoto. In 1900, established business ties with Bassel Chemical of Switz (now Chiba Specialty Chemicals) and since diversified into various other industrial chemicals. The firm has been succeeded by the founder’s descendants. Excels in dyestuffs, synthetic resins, etc. Actively engaged in new technological sector such as pharmaceuticals raw materials, specialty resins, biotechnology, electronics and other new materials. In Oct 2003 the firm set up JV’s in Taiwan and China for offering CAD auto-parts design services, following the one set up in USA. The Chinese venture will start production in 2006. The firm developed a system to mass-produce chiral unnatural amino acids and started selling them in 2005 to pharmaceutical firms for use in drug intermediates. The firm is reported purchased Pac Tec GmbH, a German producer of semiconductor mfg equipment. Nagase is taking steps to expand its business in latter-stage semiconductor mfg and is planning to use Pac Tech’s technologies to gain ground in supplying equipment and materials. Since 2000, the firm has served as an agent for Pac Tech, selling the firm’s equipment and licensing technology in Japan.
The
sales volume for Mar/2005 fiscal term amounted to Yen 575,636 million, a 7.9%
up from Yen 533,301 million in the previous term. Electronic materials for LCD makers sold robust and synthetic
resins for automakers also enjoyed strong sales on the back of robust exports
of automobiles. The recurring profit
was posted at Yen 15,158 million and the net profit at Yen 10,384 million,
respectively, compared with Yen 13,110 million recurring profit and Yen 7,010
million net profit, respectively, a year ago.
For
the current term ending Mar 2006 the recurring profit is projected at Yen
18,500 million and the net profit at Yen 12,300 million, respectively, on an
8.6% rise in turnover, to Yen 625,000 million.
The firm reported financials for the third quarter ending Dec/2005:
sales Yen 474,068 million (up 11.3%), recurring profit Yen 15,710 million (up
29.7%), net profit Yen 10,702 million (up 46.3%). (% compared with the corresponding period last year). The firm booked extraordinary income from
the disposal of fixed assets.
Functional chemicals continued to grow, including areas influenced by
the automotive industry, such as paint materials and urethane materials. Specialty chemicals also remained strong
including raw materials for specialty chemical products such as industrial oil
solutions. In the plastic segment,
overseas sales in China, Hong Kong & Taiwan continued to expand strongly.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 21,332.5 million, on normal 30 days terms.
REGISTRATION
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Date Registered |
Dec 1917 |
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Legal Status |
Limited Company (Kabushiki Kaisha) |
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Authorized |
346,990,000 shares |
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Issued |
138,408,285 shares |
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Sum |
Yen 9,699 million |
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Major shareholders (%) |
4,629 |
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No. of shareholders |
Company’s Treasure Stock (7.9), Master Trust Bank of Japan
(7.2), Japan Trustee Services Bank T (6.2), Sumitomo Trust Bank (4.1),
Hiroshi Nagase (3.0), Nippon Life Ins (2.8), Reiko Nagase (2.8), Mitsui
Sumitomo Ins (2.1), Bank of Tokyo-Mitsubishi UFJ (2.0); foreign owners (11.2) |
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Listed on the S/Exchange (s) of |
Tokyo, Osaka |
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Managements |
Hideo Nagase, ch; Hiroshi Nagase, pres & CEO; Reiji
Nagase, mgn dir; Yoshizo Shibata, mgn dir; Kyoichi Zushi, dir; Makoto
Tsuruoka, dir; Eiji Asama, dir Kazuo Nagashima, dir; Haruyuki Niimi, dir;
Takuya Gotoh, dir |
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Nothing detrimental is known as to the commercial morality
of executives. |
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Related companies |
Nagase Chemtex, Totaku Ind, Hoei Sangyo, Nagase Logistics,
other (Tot 43 as of Sept/2005) |
OPERATION
Activities
Specialized trading house for import, export, wholesale of industrial chemicals (Sales breakdown by divisions): dyestuffs, pigments, other industrial chemicals (44%), synthetic resins (33%), electronic materials & equipment (21%), health-care products, foodstuffs, others (2%). (Overseas sales ratio 36.8%: N America 3.0%; Asia 31.4%; other region 2.4%).
Clients
[Chemical mfrs, wholesalers] Sekisui Chemical, Nippon Paint, Dainippon Ink & Chemicals, Sumitomo Chemical, Mitsubishi Motors, Otsuka Pharmaceutical, Shinto Paint, Fujitsu Ltd, Toshiba Matsushita Display Technology, Kansai Paint, Mitsubishi Electric Trading, Kasai Kogyo, other.
No. of accounts: 3,000
Domestic areas of activities:
Nationwide
Suppliers
[Mfrs, wholesalers] Sumitomo Chemical, Daicel Chemical Ind, Nippon Shokubai, Mitsubishi Chemical, Tottori Sanyo Electric, other.
Payment record: Regular
Location
Business area in Osaka. Office premises at the caption address are leased and maintained satisfactorily.
Bank References
SMBC Bank (H/O)
Mizuho Corporate Bank (Ohtemachi)
Relations: Satisfactory
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FINANCES (Consolidated in million yen) |
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Terms
Ending: |
31/03/2005 |
31/03/2004 |
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INCOME
STATEMENT |
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Annual Sales |
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575,636
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533,301
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Cost of Sales |
513,675
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479,807
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GROSS PROFIT |
61,960
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53,494
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Selling & Adm Costs |
48,704
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43,250
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OPERATING PROFIT |
13,256
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10,244
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Non-Operating P/L |
1,902 |
2,866 |
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RECURRING PROFIT |
15,158
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13,110
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NET PROFIT |
10,384
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7,010 |
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BALANCE
SHEET |
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Cash |
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17,853
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21,636
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Receivables |
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173,318
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159,200
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Inventory |
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36,316
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27,369
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Securities, Marketable |
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Other Current Assets |
7,173 |
6,623 |
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TOTAL CURRENT ASSETS |
234,660
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214,828
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Property & Equipment |
29,674
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26,994
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Intangibles |
|
520 |
818 |
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Investments, Other Fixed Assets |
70,436
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68,153
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TOTAL ASSETS |
335,290
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310,793
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Payables |
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110,648
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99,036
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Short-Term Bank Loans |
10,532
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7,657 |
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Other Current Liabs |
20,067
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24,734
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TOTAL CURRENT LIABS |
141,247
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131,427
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Debentures |
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Long-Term Bank Loans |
3,487 |
1,759 |
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Reserve for Retirement Allw |
7,406 |
8,474 |
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Other Debts |
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11,212
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8,726 |
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TOTAL LIABILITIES |
163,352
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150,386
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MINORITY INTERESTS |
4,844 |
4,197 |
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Common
stock |
9,699 |
9,699 |
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Additional
paid-in capital |
9,648 |
9,635 |
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Retained
earnings |
134,778
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125,116
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Evaluation
p/l on investments/securities |
20,431
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18,933
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Others |
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(1,556) |
(1,195) |
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Treasury
stock, at cost |
(5,908) |
(5,979) |
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TOTAL S/HOLDERS` EQUITY |
167,092
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156,210
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TOTAL EQUITIES |
335,290
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310,793
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CONSOLIDATED CASH FLOWS |
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Terms
ending: |
31/03/2005 |
31/03/2004 |
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Cash
Flows from Operating Activities |
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1,716 |
6,431 |
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Cash
Flows from Investment Activities |
-1,412
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-1,689
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Cash
Flows from Financing Activities |
-5,119
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-1,832
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Cash,
Bank Deposits at the Term End |
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17,215
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21,033
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ANALYTICAL RATIOS Terms
ending: |
31/03/2005 |
31/03/2004 |
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Net
Worth (S/Holders' Equity) |
167,092
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156,210
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Current
Ratio (%) |
166.13
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163.46
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Net
Worth Ratio (%) |
49.84 |
50.26 |
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Recurring
Profit Ratio (%) |
2.63 |
2.46 |
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Net
Profit Ratio (%) |
1.80 |
1.31 |
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Return
On Equity (%) |
6.21 |
4.49 |
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Following is an article from The
Chemical Daily dated 06/02/2006.
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Nagase Focuses on Enhancing China Network and Considers
Establishing New Offices in Chongqing, Tsingtao and Beijing Sales Target
under Greater China Project Now within Striking Distance |
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Nagase & Co., Ltd. is set to accelerate the
construction of its network in China. The Company is looking into
establishing offices in Chongqing, Tsingtao and Beijing, and will start enhancing
its existing bases in Tianjin, Dalian, etc. The aim is to re-strengthen its
platform, now that its 2006 sales target of 150 billion yen in the Greater
China region (consisting of mainland China, Hong Kong and Taiwan) is within
striking distance, having already generated 139 billion yen in the region in
2005. Nagase will also press ahead with efforts to enhance its business
constitution, switching from its existing sales-oriented strategy. |
RATING EXPLANATIONS
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |