MIRA
INFORM REPORT
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Report Date : |
25.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHOWA KOSAN CO LTD |
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Registered Office : |
6-13-18 Akasaka Minatoku Tokyo 107-8452 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 1943 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of
industrial chemicals, synthetic resins |
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 1471.5 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
SHOWA KOSAN CO LTD
REGD NAME
Showa Kosan KK
MAIN OFFICE
6-13-18 Akasaka Minatoku Tokyo 107-8452 JAPAN
Tel : 03-3584-9111
Fax : 03-3584-9555
URL : http://www.showakosan.co.jp
E-Mail address: mori-ken@showakosan.co.jp
ACTIVITIES
Import, export, wholesale of industrial chemicals, synthetic
resins
BRANCHES
Osaka, Nagoya, Fukui (2), Toyama, Sapporo, Fukuoka,
Matsuyama
OVERSEAS
Bangkok, Hong Kong, Shanghai (--subsidiaries):
Showa Kosan (Thailand) Co Ltd; Showa Kosan (Hong Kong) Co
Ltd;
Showa Kosan (Shanghai) Co Ltd
OFFICERS
MASANOBU MURANISHI, PRES Kazuo
Sawakata, s/mgn dir
Takehiro Terada, mgn dir Tetsunori
Satoh, mgn dir
Hirofumi Kawahara, mgn dir Haruo
Murai, mgn dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 70,223 M
PAYMENTS REGULAR CAPITAL Yen 550 M
TREND STEADY WORTH Yen 10,524 M
STARTED 1943 EMPLOYES 121
COMMENT
TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS. FINANCIAL SITUATION CONSIDERED FAIR AND
GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,471.5 MILLION, 30 DAYS NORMAL
TERMS. .
Note:
Estimated for the 31/12/2007 fiscal term.
HIGHLIGHTS
The subject company is a trading house specializing in synthetic resins and industrial chemicals, established as JV by Kao Corp and Sumitomo Chemical Co Ltd (see REGISTRATION). Specializes in import, export and wholesale of synthetic resins, organic & inorganic chemicals, industrial materials, electronics & information materials, eco-friendly chemicals, etc.
Overseas operations are active, with three overseas
subsidiaries in Bangkok, Hong Kong and Shanghai. Closed Singapore subsidiary in 2003 with business transferred to
Bangkok. Actively advancing into IT
& infrastructure fields. Clients
are major chemicals, cosmetics, etc mfrs nationwide.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 70,223 million, an 8.3% up from Yen 64,863 million. Rise in materials costs pushed the sales amount upward. Synthetic resins fared well, including special chemicals for environmental protection use. The recurring profit was posted at Yen 841 million and the net profit at Yen 272 million, respectively, compared with Yen 666 million recurring profit and Yen 260 million net profit, respectively, a year ago.
For the current term ending Dec 2007 the recurring profit is
projected at Yen 860 million and the net profit at Yen 280 million,
respectively, on a 5% rise in turnover, to Yen 74,000 million. Business continues rising.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 1,471.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: May
1943
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 33
million shares
Issued: 8.4
million shares
Sum: Yen
550 million
Major shareholders (%): Kao Corp*(20.8), Sumitomo Chemical Co**(20.8), ADEKA***(14.9), Ryosuke Oka (7.5),
Employees’ S/Holding Assn (3.7), Hideki Oka (3)
No. of shareholders: 114
Nothing detrimental is known as to the commercial morality
of executives.
*.. Kao Corp, largest mfr of personal-care & sanitary
products, Tokyo, founded 1940, listed Tokyo S/E, capital Yen 85,424 million,
turnover Yen 971,230 million, recurring profit Yen 121,956 million, net profit
Yen 71,140 million, total assets Yen 1,220,564 million, net worth Yen 509,676
million, employees 29,908, pres Motoki Ozaki
**.. Sumitomo Chemical Co Ltd, major comprehensive chemicals
mfr, Tokyo, founded 1925, listed Tokyo & Osaka S/E’s, capital Yen 89,699
million, turnover Yen 1,556,606 million, recurring profit Yen 141,127 million,
net profit Yen 90,665 million, total assets Yen 2,178,377 million, net worth
Yen 719,760 million, employees 24,160, pres Hiromasa Yonekura
***.. Formerly Asahi Denka Co Ltd (ADEKA), caustic soda mfr,
founded 1917, Tokyo, listed Tokyo S/E, capital Yen 22,713 million, turnover Yen
165,043 million, recurring profit Yen 17,391 million, net profit Yen 9,133
million, total assets Yen 190,424 million, net worth Yen 110,745 million,
employees 2,248, pres Kunihiko Sakurai
OPERATION
Activities: Imports, exports and wholesales synthetic resins,
organic/inorganic chemicals, construction & housing materials, electronics
materials, etc:
(Sales
breakdown by divisions):
Synthetic Resins Div (46.1%): general purpose resins, high-functional resins, plasticizers, additive agents, synthetic resins intermediates & products, molds, other;
Chemicals Div (28.5%): organic/inorganic chemicals, surfactant, biotechnological raw materials, functional chemicals, other;
Industrial & Housing
Materials Div (17.2%): slope protective chemicals, cement & concrete
materials, additive agents, repairing materials, plasticizers, adhesives, floorings,
aluminum sashes, doors, heat insulating agents, other;
Information & Electronics Materials Div (4.4%): semiconductor-related chemicals, LCD parts & components, IC-related products, adhesives, printer & copier parts, office computers, color copiers, DVD players, other;
Environmental Materials
Div, others (3.8%): biomass plastics, CFC-free chemicals, cleaning agents,
synthetic resin wastes recycling chemicals, solar cells, modules & systems, other recycling chemicals.
Overseas
Sales (2%)
Clients: [Mfrs, wholesalers] Kao Corp, ADEKA, Sumitomo Chemical, Mitsubishi Chemical group firms, Aisin Seiki, ST Products, Fukuvi Chemical Ind, Showa Kasei Kogyo, Sumitomo Joint Electric Power, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Kao Corp, Sumitomo Chemical,
ADEKA, Nippon Shokubai, Nippon Polyethylene, Showa Kasei Kogyo, Tsutsunaka
Plastic Ind, Ajinomoto Fine Techno, Honda Metal Ind, other
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
SMBC (Tokyo)
Mizuho Bank (Nihombashi)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Non-Consolidated
in million yen) |
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Terms Ending: |
31/12/2006 |
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INCOME STATEMENT |
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Annual Sales |
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70,223 |
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Cost of Sales |
67,365 |
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GROSS PROFIT |
2,857 |
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Selling & Adm Costs |
2,137 |
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OPERATING PROFIT |
719 |
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Non-Operating P/L |
122 |
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RECURRING PROFIT |
841 |
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NET PROFIT |
272 |
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BALANCE SHEET |
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Cash |
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2,317 |
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Receivables |
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19,605 |
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Inventory |
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Securities, Marketable |
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Other Current Assets |
1,148 |
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TOTAL CURRENT ASSETS |
23,070 |
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Property & Equipment |
485 |
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Intangibles |
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41 |
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Investments, Other Fixed Assets |
16,552 |
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TOTAL ASSETS |
40,148 |
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Payables |
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20,549 |
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Short-Term Bank Loans |
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Other Current Liabs |
2,936 |
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TOTAL CURRENT LIABS |
23,485 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
475 |
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Other Debts |
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5,664 |
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TOTAL LIABILITIES |
29,624 |
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MINORITY INTERESTS |
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Common
stock |
550 |
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Additional
paid-in capital |
207 |
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Retained
earnings |
3,315 |
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Evaluation
p/l on investments/securities |
6,456 |
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Others |
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(4) |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
10,524 |
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TOTAL EQUITIES |
40,148 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2006 |
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Net
Worth (S/Holders' Equity) |
10,524 |
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Current
Ratio (%) |
98.23 |
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Net
Worth Ratio (%) |
26.21 |
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Recurring
Profit Ratio (%) |
1.20 |
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Net
Profit Ratio (%) |
0.39 |
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Return
On Equity (%) |
2.58 |
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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%)