MIRA INFORM REPORT
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Report Date : |
19th May 2006 |
IDENTIFICATION DETAILS
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Name : |
KANSAI PAINT CO LTD |
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Registered Office : |
4-3-6 Fushimimachi
Chuoku Osaka 541-8523 Japan |
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Date of Incorporation : |
May 1918 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Manufacturers
of paints & coatings |
RATING & COMMENTS
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MIRA’s Rating : |
A |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 6,365.1 MILLION |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
KANSAI PAINT CO LTD
REGD NAME
Kansai Paint KK
MAIN OFFICE
4-3-6 Fushimimachi Chuoku Osaka 541-8523 JAPAN
Tel: 06-6203-5531
Fax: 06-6203-5725
E-Mail address: info@kansai.co.jp
ACTIVITIES
Mfg of paints & coatings
BRANCHES
Tokyo, Nagoya, Sapporo, Sendai,
Saitama, Chiba, Shizuoka, Hamamatsu,
Suzuka, Okayama, Hiroshima, Kitakyushu,
Fukuoka, other (Tot 22)
OVERSEAS
UK (2), USA (2), Canada, China (7),
Thailand (2), Singapore (2), Taiwan,
Philippines, Indonesia, Malaysia,
Korea, India, Mexico (--subsidiaries/affiliated)
FACTORY(IES)
Amagasaki, Ono (--Hyogo), Nishikamogun
(Aichi), Hiratsuka, Kanuma (Tochigi)
CHIEF EXEC
SHOJU KOBAYASHI, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
196,785 M
PAYMENTS REGULAR CAPITAL Yen 25,658 M
TREND STEADY WORTH Yen 125,966 M
STARTED 1918 EMPLOYES 6,299
COMMENT
MFR OF PAINTS &
COATINGS. FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: JPY 50,000,000.00
MAX CREDIT LIMIT: YEN 6,365.1 MILLION,
NORMAL 30 DAYS TERMS
Forecast (or estimated) figures for
31/03/2006 fiscal term
HIGHLIGHTS
The subject company was
established by Katsujiro Iwai in order to mfg pigments & paints. These products had been imported and he
ventured to produce them in Japan. The
firm has since been focusing on mfg of paints & coatings and has made the
firm the largest paint mfr with highest sales ratio to carmakers in domestic
market and Asia. Manufactures paints
& coatings for cars, machines, marines, electronic goods, other. Automotive coatings are the core products,
highly competitive in new car coating films.
Promoting application of photo-resists, car paint protective films and
external coverings for fiber-optic cables.
Tied up with PPG Industries, USA.
Active in operations in China, India, Thailand, other S/E Asian
countries.
Overseas operations
Reported the firm plans to invest a total of Yen 2-3 billion
to hike production in India, where the firm already operates five
factories. At its existing factory in
Delhi, the firm intends to bolster production by 150% to 6,000 tons/month
within a few years to supply more car & building paints. Additionally, the firm aims to build a new
factory near Bangalore in response to the construction of a car factory there
by Toyota Motor Corp. Also, major paint
firms, such as Dai-Nippon Toryo Co and Nippon Paint Co both plan to set up
paint factories in India. These major
paint makers see India as the next promising market after China, as demand for
car paint in the South Asian nation grows and vehicle production increases by
30% a year.
In China, where the firm operates 7 factories, opened a new
factory, with the goal of beginning operations in 2006 to coincide with the
launch of Toyota Motor Corp’s plant there.
Secondly, the firm will jointly build a new plant in Zhuhai,
Guangdong, to produce paints for use in shipping containers jointly with China
Ocean Shipping (Group) Co (Cosco).
Investment in the plant will be around Yen 700 million. The plant is slated to go into operation in
June 2007. Kansai will provide 35.29%
of the funds and Cosco group will provide the remainder.
(News release dated 04/04/2006):
The firm agreed with PPG Industries, USA to market its products, auto repairing
paints & coatings, in Japan. The
two firm has been already tied up in the production of OEM auto paints, and
expanded handling items to these products.
The sales volume for Mar/2005 fiscal term amounted to Yen
196,785 million, a 5.9% up from Yen 185,777 million in the previous term. Sales of core automotive coatings grew in
India & Thailand on the strength of robust demand. The firm attributes the sales growth to its
inclusion of group firms in China and Malaysia in its consolidated
results. Construction & industrial-use
paints were down. The recurring profit
was posted at Yen 19,526 million and the net profit at Yen 10,196 million,
respectively, compared with Yen 14,634 million recurring profit and Yen 9,050
million net profit, respectively, a year ago.
Operating profit, recurring profit and net profit scored all-time highs
for a third straight year. The firm’s
domestic market share is also poised to grow.
For the term just ended Mar 2006
the recurring profit was projected at Yen 22,000 million and the net profit at
Yen 13,000 million, respectively, on a 4.2% rise in turnover, to Yen 205,000 million. The firm released the third quarter results
ending Dec/2005: Sales Yen 155,855 million (up 6.1%), operating profit Yen
13,970 million (up 7.9%), recurring profit Yen 16,451 million (up11.7%) and net
profit Yen 8,884 million (up 21.9%) (%
compared with corresponding period last year).
The firm says sales of automotive coatings & industrial-use coatings
were up domestically and in Asian countries; construction coatings grew
particularly in Asian region. The rise
in industrial paints is thanks to stronger demand for China-bound
machinery. Rising oil & material
costs were absorbed by efforts in reducing overheads & other expenses, the
firm added.
The financial situation is
considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 6,365.1
million, on normal 30 days terms. The
proposed amount is considered well within the firm’s financial capabilities.
REGISTRATION
Date Registered: May 1918
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 793,476,000 shares
Issued: 272,623,270
shares
Sum: Yen 25,658 million
Major shareholders (%): Master
Trust Bank of Japan T (8.1), Japan Trustee Services Bank T (5.4), Nippon Life
Ins (4.3), Dai-ichi Life Ins (3.4), Toyota Motor (3.0), Material Suppliers’
S/Holding Assn (2.8), Daido Life Ins (2.7), Tokio Marine Nichido Fire Ins
(2.5), UFJ Trust Bank (2.2), Mizuho Corporate Bank (1.8); foreign owners (16.1)
No. of shareholders: 16,237
Listed on the S/Exchange (s) of: Tokyo,
Osaka
Managements: Shoju Kobayashi,
pres & CEO; Toshinobu Otani, s/mgn dir; Kazuhiro Fujita, mgn dir; Shin’ichi
Hamamatsu, mgn dir; Akifumi Fujita, mgn dir; Koichi Imada, mgn dir; Satoru Isozaki,
mgn dir; Yuzo Kawamori, mgn dir; Koji Yamamoto, dir; Kozo Sasaki, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Kansai Paint Sales,
Kanpei Trading, other (Tot 31 as of
Sept/05)
OPERATION
Activities: Manufactures automotive
coatings (core business area: coating for new cars, including automotive parts,
and automotive refinish paints), industrial coatings, decorative coatings,
marine & protective coatings, others (--97%), others (3%).
(Overseas sales ratio 26.5%: Asia 24.5%
(India, Thailand, Taiwan), US 1.2%,
Europe 0.8%)
Clients: [Wholesalers, mfrs]
Kansai Paint Sales, Kanpei Trading, Ohgi Paint Trading, Eguchi Iwao Shoten,
Ueda KK, other.
No. of accounts: 2,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers]
NN Chemical, Nagase Corp, Moriroku Co, Kohyo Co, Matsuo Sangyo, other.
Payment record: Regular
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ (Osaka)
Mizuho Corporate Bank (Osaka)
Relations: Satisfactory
FINANCES
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(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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196,785
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185,777
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Cost of Sales |
133,242
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125,791
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GROSS PROFIT |
63,543
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59,985
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Selling & Adm Costs |
46,014
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47,577
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OPERATING PROFIT |
17,528
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12,407
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Non-Operating P/L |
1,998 |
2,227 |
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RECURRING PROFIT |
19,526
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14,634
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NET PROFIT |
10,196
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9,050 |
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BALANCE
SHEET |
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Cash |
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29,742
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29,815
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Receivables |
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61,382
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58,748
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Inventory |
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16,529
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15,123
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Securities, Marketable |
7 |
7 |
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Other Current Assets |
5,575 |
5,588 |
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TOTAL CURRENT ASSETS |
113,235
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109,281
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Property & Equipment |
45,461
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42,774
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Intangibles |
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1,178 |
1,501 |
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Investments, Other Fixed Assets |
59,865
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55,176
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TOTAL ASSETS |
219,739
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208,732
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Payables |
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44,928
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43,487
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Short-Term Bank Loans |
1,328 |
1,798 |
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Other Current Liabs |
14,070
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14,675
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TOTAL CURRENT LIABS |
60,326
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59,960
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Debentures |
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Long-Term Bank Loans |
7,060 |
7,392 |
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Reserve for Retirement Allw |
8,565 |
12,439
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Other Debts |
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8,611 |
5,375 |
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TOTAL LIABILITIES |
84,562
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85,166
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MINORITY INTERESTS |
9,209 |
6,966 |
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Common
stock |
25,658
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25,658
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Additional
paid-in capital |
27,156
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27,154
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Retained
earnings |
61,017
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52,943
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Evaluation
p/l on investments/securities |
15,563
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13,951
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Others |
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(2,891) |
(2,670) |
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Treasury
stock, at cost |
(537) |
(437) |
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TOTAL S/HOLDERS` EQUITY |
125,966
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116,599
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TOTAL EQUITIES |
219,739
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208,732
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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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10,087
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15,235
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Cash
Flows from Investment Activities |
-6,772
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-8,306
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Cash
Flows from Financing Activities |
-3,686
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-2,531
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Cash,
Bank Deposits at the Term End |
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29,316
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29,456
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ANALYTICAL RATIOS Terms
ending: |
31/03/2005 |
31/03/2004 |
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Net
Worth (S/Holders' Equity) |
125,966
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116,599
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Current
Ratio (%) |
187.71
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182.26
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Net
Worth Ratio (%) |
57.33 |
55.86 |
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Recurring
Profit Ratio (%) |
9.92 |
7.88 |
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Net
Profit Ratio (%) |
5.18 |
4.87 |
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Return
On Equity (%) |
8.09 |
7.76 |
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RATING EXPLANATIONS
RATING
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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 |