MIRA
INFORM REPORT
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Report Date : |
31st
May 2006 |
IDENTIFICATION
DETAILS
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Name : |
DOWA MINING CO LTD |
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Registered Office : |
Akihabara UDX Bldg, 4-14-1 Sotokanda Chiyodaku
Tokyo 101-8617 Japan |
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Country : |
Japan |
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Financials (as on) : |
31/03/2006 |
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Date of Incorporation : |
Mar 1937 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Manufacturers of nonferrous metals. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 8,009 MILLION |
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Status : |
Fair |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
NAME
DOWA
MINING CO LTD
REGD NAME
Dowa
Kogyo KK
MAIN OFFICE
Akihabara
UDX Bldg, 4-14-1 Sotokanda Chiyodaku Tokyo 101-8617 JAPAN
Tel:
03-6847-1100
Fax:
03-6847-1210
*..
Moved to the caption address from the former address, as given.
E-Mail address: info@dowa.co.jp
ACTIVITIES
Mfg of nonferrous metals
BRANCHES
Osaka, Fukuoka, Nagoya
FACTORY(IES)
Shiojiri, Mooka, Okayama, Yokohama, Hamamatsu, Toyota, Toyohashi,
Shiga, etc
OVERSEAS
Mexico, Vancouver, Shanghai
ASSOCIATED
Dowa Int’l Corp (New York), Dowa THT America (Ohio), Minera Tizapa
(Mexico),
Nichiben Magnetics (Singapore), Dongwoo Heat Treating (Korea),
Dowa Advanced Materials (Shanghai)
CHIEF EXEC
HIROKAZU YOSHIKAWA, CH & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
316,388 M
PAYMENTS REGULAR CAPITAL Yen
36,436 M
TREND STEADY WORTH Yen 117,320 M
STARTED 1937 EMPLOYES 3,591
COMMENT
MFR OF NONFERROUS METALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 8,009 MILLION, NORMAL 30 DAYS TERMS.
Forecast (or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company is a leading mfr of copper smelting, founded
originally in 1989 by Denzaburo Fujita, on his account, engaged in production
of such products as zinc, iron alloys, aluminum and nickel. Incorporated in 1937, the nonferrous metals
operations were succeeded and additionally the firm launched semiconductor
materials fabrication. By setting up Semiconductor Materials Laboratory at
Okayama Works in 1982. In 1983, started
mfg magnetic iron powders used in 8mm videotapes. In 2000, introduced in-house company system: nonferrous metal
smelting & refining, environmental services & recycling, electrical
& electronic materials, heat treatment and other (see OPERATION). More emphasis put on electronic materials
and recycling business. Planning
aggressive capital investment of Yen 20,000 million in recycling furnaces and
industrial waste disposal facilities this term. The firm owns the mining right at Tizapa mine in Mexico (39%
mining share) jointly with Sumitomo Corp and plans to double its production
capacity to 100,000 tons/month this year.
The sales volume for Mar/2006 fiscal term amounted to Yen 316,388
million, a 24.5% up from Yen 254,192 million in the previous term. Refinery division benefited from higher
nonferrous metal prices. By divisions, smelting
div grew 31% to Yen 170,101 million, thanks to rising demand for gold, silver,
copper, platinum, etc, driven by strong automotive & electronics
components. Environmental recycling div
rose by 26% to Yen 58,626 million, spurred by industrial wastes disposal directly
consigned from electronics/electric and chemical industries. Electronic materials div was up by 22% to
Yen 10,387 million, as demand for magnetic iron powder for video tapes and
other recording media (one of largest producer in this business line). Heat treatment div was up by 9% to Yen 3,284
million, aided by rising surface treatment on automotive/motorcycle gears and
other parts, supported by expanded exports to USA and others. The recurring profit was posted at Yen
33,177 million and the net profit at Yen 14,542 million, respectively, compared
with Yen 26,102 million recurring profit and Yen 10,609 million net profit, respectively,
a year ago.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 34,000 million and the net profit at Yen 15,000 million,
respectively, on a 1.1% fall in turnover, to Yen 313,000 million. The skyrocketing oil prices and economic
outlook for US and China remain uncertain, in addition to uncertain
price/demand movement for the core nonferrous metal prices and electronics/metal
processing businesses, according to the firm.
The firm plans to take up the slack by strengthening its electronics
materials and recycling divisions.
Foreign currency exchange rates are set at average Yen 113 to the
Dollar.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 8,009 million, on normal 30 days terms.
REGISTRATION
Date Registered: Mar
1937
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 795,073,000 shares
Issued: 303,790,809 shares
Sum: Yen 36,436 million
Major shareholders (%): Japan Trustee Services Bank T (12.5),
Master Trust Bank of Japan, T (9.3),
Fujita Kanko (4.5), Mizuho Corporate Bank (2.7), Chase London SL
Omnibus Acct (2.3), ECSB (Marubeni
Corp) (2.3), Resona Bank (2.2), Nipponkoa Ins (1.9), Trust &
Custody Services, Ann T (1.9): foreign
owners (31.2)
No. of shareholders: 11,823
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, Sapporo,
Fukuoka
Managements: Hirokazu Yoshikawa, ch & CEO; Masaki Kono, pres;
Seiichi Hisano, dir; Kazumasa Suezawa, dir; Ken’ichi Watanabe, dir; Jun’ichi
Nagao, dir; Yuji Saeki, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Akita Zinc Co, Kosaka Smelting & Refining
Co, Dowa Metal Co, Dowa Hightech, Dowa Engineering, other (Tot 35 as of
Sept/05)
OPERATION
Activities: Nonferrous metals manufacturer (sales breakdown by
items):
Nonferrous metal smelting &
refining (45.6%): copper, zinc, silver, gold,
lead, other;
Environmental services & recycling (15.7%): industrial waste-treatment service, soil remediation,
scrap metal recycling, waste transportation:
Electrical & Electronic
materials & metal production/fabrication
(26.8%): metal powder, ultra-pure
gallium, gallium arsenide wafers, LED’s, metal/ceramics
substrates, copper & copper alloy sheet and
coils, brass strips & castings:
Heat treatment (5.9%): metal heat treatment, metal surface treatment,
Others (6.5%): civil engineering, construction, real estate leasing,
geothermal business.
Clients: [Metal dealers, mfrs, wholesalers] Marubeni Corp, Tanaka
Kikinzoku Kogyo, Fujikura Ltd, Fuji Photo Film, Yazaki Corp, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Wholesalers] Sumitomo Corp, Marubeni Corp, Mitsui
& Co, Mitsubishi Corp, etc.
Payment record: Regular
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Mizuho Corporate Bank (H/O)
Resona Bank (Tokyo)
Relations: Satisfactory
FINANCES
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(Consolidated in million yen) |
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME STATEMENT |
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Annual
Sales |
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316,388 |
254,192 |
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Cost of
Sales |
253,389 |
202,447 |
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GROSS PROFIT |
62,998 |
51,744 |
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Selling
& Adm Costs |
26,101 |
24,102 |
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OPERATING PROFIT |
36,897 |
27,642 |
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Non-Operating P/L |
-3,720 |
-1,540 |
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RECURRING PROFIT |
33,177 |
26,102 |
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NET
PROFIT |
14,532 |
10,609 |
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BALANCE SHEET |
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Cash |
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5,815 |
5,292 |
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Receivables |
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46,414 |
46,977 |
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Inventory |
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69,706 |
50,569 |
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Securities, Marketable |
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Other
Current Assets |
18,324 |
10,326 |
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TOTAL CURRENT ASSETS |
140,259 |
113,164 |
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Property
& Equipment |
169,055 |
148,287 |
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Intangibles |
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2,275 |
1,077 |
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Investments, Other Fixed Assets |
(2,274) |
(1,067) |
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TOTAL ASSETS |
309,315 |
261,461 |
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Payables |
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29,397 |
21,122 |
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Short-Term Bank Loans |
41,965 |
38,893 |
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Other
Current Liabs |
37,233 |
25,367 |
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TOTAL CURRENT LIABS |
108,595 |
85,382 |
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Debentures |
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10,028 |
13,000 |
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Long-Term Bank Loans |
44,652 |
45,816 |
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Reserve
for Retirement Allw |
13,009 |
12,435 |
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Other
Debts |
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11,876 |
5,388 |
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TOTAL
LIABILITIES |
188,160 |
162,021 |
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MINORITY INTERESTS |
3,833 |
4,769 |
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Common stock |
36,436 |
36,436 |
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Additional paid-in capital |
26,368 |
26,377 |
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Retained earnings |
35,079 |
23,357 |
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Evaluation p/l on investments/securities |
22,112 |
11,420 |
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Others |
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(426) |
(666) |
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Treasury stock, at cost |
(2,249) |
(2,254) |
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TOTAL S/HOLDERS` EQUITY |
117,320 |
94,670 |
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TOTAL EQUITIES |
309,315 |
261,461 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Cash Flows from Operating Activities |
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17,783 |
17,432 |
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Cash Flows from Investment Activities |
-15,616 |
-7,636 |
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Cash Flows from Financing Activities |
-1,758 |
-8,917 |
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Cash, Bank Deposits at the Term End |
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5,813 |
5,286 |
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ANALYTICAL RATIOS
Terms ending: |
31/03/2006 |
31/03/2005 |
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Net Worth (S/Holders' Equity) |
117,320 |
94,670 |
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Current Ratio (%) |
129.16 |
132.54 |
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Net Worth Ratio (%) |
37.93 |
36.21 |
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Recurring Profit Ratio (%) |
10.49 |
10.27 |
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Net Profit Ratio (%) |
4.59 |
4.17 |
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Return On Equity (%) |
12.39 |
11.21 |
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RATING EXPLANATIONS
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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 |