MIRA
INFORM REPORT
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Report Date : |
14.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
NIPPON KAYAKU CO LTD |
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Registered Office : |
Tokyo Fujimi Bldg, 1-11-2 Fujimi Chiyodaku Tokyo 102-8172 |
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Country : |
Japan |
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Financials (as on) : |
31.05.2006 |
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Date of Incorporation : |
Jun 1916 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of chemicals |
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 4490.4 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
NIPPON KAYAKU CO LTD
REGD NAME
Nippon Kayaku KK
MAIN OFFICE
Tokyo Fujimi Bldg, 1-11-2 Fujimi Chiyodaku Tokyo 102-8172 JAPAN
Tel : 03-3237-5046
Fax : 03-3237-5085
URL : http://www.nipponkayaku.co.jp/
E-Mail address: kouho@nipponkayaku.co.jp
ACTIVITIES
Mfg of chemicals
BRANCHES
Osaka
OVERSEAS
Euro Nippon Kayaku GmbH (Germany); Nippon Kayaku America Inc (NY); Taiwan Nippon Kayaku Co Ltd (--subsidiaries)
FACTORY(IES)
Fukuyama, Tokyo, Takasaki, Asa (Yamaguchi), Himeji
CHIEF EXEC
KOICHIRO SHIMADA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 140,026 M
PAYMENTS REGULAR CAPITAL Yen 14,932 M
TREND STEADY WORTH Yen 127,030 M
STARTED 1916 EMPLOYES 4,252
COMMENT
COMPREHENSIVE CHEMICAL PRODUCER. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 4,490.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/05/2006 fiscal term
HIGHLIGHTS
This is comprehensive chemicals producer, with its history dating back to 1916 as Japan’s first explosives mfr. Originally explosives maker and has expanded its operations into drugs, dyes, functional chemicals, catalysts, inflators, agrochemicals, auto parts, other. Pharmaceuticals grew into largest profit earner with wider profit lineups. Highly competitive in cancer treatments.
FINANCIAL INFORMATION
The sales volume for May/2006 fiscal term amounted to Yen
140,026 million, a 4.3% up from Yen 134,205 million in the previous term. Sales of functional chemicals were
robust. Sluggish demand for
agrochemicals and other fine chemicals was more than offset by 13% increase in
sales of functional chemicals.
Pharmaceutical sales stayed roughly flat. The firm recorded income from a technology transfer and a foreign
exchange gain as non-operating revenue.
The recurring profit was posted at Yen 14,366 million and the net profit
at Yen 9,641 million, respectively, compared with Yen 10,399 million recurring
profit and Yen 5,315 million net profit, respectively, a year ago.
For the current term ending May 2007 the recurring profit is
projected at Yen 16,000 million and the net profit at Yen 8,000 million, on a
7% rise in turnover, to Yen 150,000 million.
Pharmaceuticals may feel impact of NHI drug price revision, but
functional chemicals holding strong.
Profits will advance.
Intra-division collaboration and ratio of new products improving with
startup of general research lab.
(Jun/Nov/2006 results): Sales Yen 74,267 million (up 8.6%), operating profit Yen 7,856 million (up 23.0%), recurring profit Yen 8,891 million (up 17.9%), net profit Yen 6,540 million (up 40.8%).
(% compared with the same period the previous term).
Information / communications, health care, and safety systems sectors performed
strongly. By divisions, functional
chemicals up 10.8% to Yen 3,897,000 million; pharmaceuticals up 6.2% to Yen
1,213,000 million, thanks to the introduction of new products; fine chemicals up 7.4% to Yen 832 million, due to
strong sales of agrochemicals both at home and abroad (exports).
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 4,490.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun
1916
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 700
million shares
Issued: 182,503,570
shares
Sum: Yen
14,932 million
Major shareholders (%): Japan Trustee Services Bank T (7.7), Master Trust Bank of Japan T (6.7), Mizuho Bank
(4.5), MUFG (2.9), Meiji Yasuda Life Ins (2.7), Joyo Bank (2.7), Customers’ S/Holding
Assn (2.5), Nippon Life Ins (1.7), Employees ‘ S/Holding Assn (1.5), Mitsubishi UFJ Trust
Bank (1.3); foreign owners (17.7)
No. of shareholders: 17,412
Listed on the S/Exchange (s) of: Tokyo
Managements: Koichiro Shimada, pres; Hedetoshi Kitazawa, s/mgn dir; Koichi Chiba, mgn dir; Yoshiaki
Fukushima, mgn dir; Akira Mandai, mgn dir; Yoshiyuki Ikeda, mgn dir; Keizo Shimomiya,
mgn
dir; Koichi Takase, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Polatechno Co, LifeSparc Inc, Kayaku Chemical (Wux) Co,
other (Tot 19 as of May/06)
OPERATION
Activities: Manufactures comprehensive chemicals: functional chemicals (48%); Pharmaceuticals (30%), chemicals (20%), others (2%).
Overseas sales ratio 30.2%: Asia (Taiwan, Korea, China) 18.4%;
Others (USA, Germany, Switz) 11.8%).
Products lineups:
special epoxy resins, epoxy resin curers, LCD sealants, colors for color inkjet
printers, optical films, catalysts, pharmaceuticals, diagnostics,
pharmaceutical intermediates, airbag inflators, pesticides, dyestuffs, dyeing
auxiliaries, industrial explosives, pyrotechnics, other.
Clients: [Mfrs, wholesalers] Nagase & Co, Suzuken Co,
Mediceo Paltac Holdings, OG Corp, Naigai Co, other
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Toyota Tsusho
Corp, Sumisho Pharma International, Arysta Life Science, Sugai Chemical Ind,
other
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
MUFG (Marunouchi)
Mizuho Bank (Marunouchi)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/05/2006 |
31/05/2005 |
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INCOME STATEMENT |
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Annual Sales |
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140,026 |
134,205 |
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Cost of Sales |
87,091 |
86,076 |
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GROSS PROFIT |
52,935 |
48,129 |
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Selling & Adm Costs |
39,715 |
37,963 |
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OPERATING PROFIT |
13,219 |
10,166 |
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Non-Operating P/L |
1,147 |
233 |
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RECURRING PROFIT |
14,366 |
10,399 |
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NET PROFIT |
9,641 |
5,315 |
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BALANCE SHEET |
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Cash |
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17,979 |
12,632 |
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Receivables |
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45,627 |
46,523 |
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Inventory |
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26,649 |
24,144 |
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Securities, Marketable |
8,985 |
4,585 |
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Other Current Assets |
9,404 |
4,832 |
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TOTAL CURRENT ASSETS |
108,644 |
92,716 |
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Property & Equipment |
62,754 |
57,533 |
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Intangibles |
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7,608 |
7,789 |
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Investments, Other Fixed Assets |
26,302 |
23,326 |
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TOTAL ASSETS |
205,308 |
181,364 |
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Payables |
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16,881 |
16,749 |
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Short-Term Bank Loans |
4,868 |
4,750 |
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Other Current Liabs |
19,870 |
14,010 |
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TOTAL CURRENT LIABS |
41,619 |
35,509 |
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Debentures |
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Long-Term Bank Loans |
7,175 |
9,785 |
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Reserve for Retirement Allw |
8,086 |
8,419 |
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Other Debts |
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21,398 |
17,034 |
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TOTAL LIABILITIES |
78,278 |
70,747 |
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MINORITY INTERESTS |
11,653 |
6,805 |
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Common
stock |
14,932 |
14,932 |
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Additional
paid-in capital |
17,264 |
17,260 |
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Retained
earnings |
77,201 |
68,109 |
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Evaluation
p/l on investments/securities |
5,216 |
3,231 |
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Others |
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12,815 |
572 |
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Treasury
stock, at cost |
(398) |
(294) |
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TOTAL S/HOLDERS` EQUITY |
127,030 |
103,810 |
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TOTAL EQUITIES |
205,308 |
181,364 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/05/2006 |
31/05/2005 |
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Cash Flows
from Operating Activities |
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11,791 |
12,160 |
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Cash
Flows from Investment Activities |
-7,102 |
-7,765 |
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Cash
Flows from Financing Activities |
-1,182 |
-4,473 |
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Cash,
Bank Deposits at the Term End |
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21,424 |
17,191 |
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ANALYTICAL RATIOS Terms
ending: |
31/05/2006 |
31/05/2005 |
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Net
Worth (S/Holders' Equity) |
127,030 |
103,810 |
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Current
Ratio (%) |
261.04 |
261.11 |
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Net
Worth Ratio (%) |
61.87 |
57.24 |
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Recurring
Profit Ratio (%) |
10.26 |
7.75 |
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Net
Profit Ratio (%) |
6.89 |
3.96 |
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Return
On Equity (%) |
7.59 |
5.12 |
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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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)