MIRA
INFORM REPORT
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Report Date : |
27.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHOKO CO LTD |
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Registered Office : |
2-4-1 Shibakoen Minatoku Tokyo 105-8432 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 1947 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of
chemicals, synthetic resins, metals, electronics |
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 2584.6 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name
SHOKO CO LTD
REGD NAME
Shoko Tsusho KK
MAIN OFFICE
2-4-1 Shibakoen Minatoku Tokyo 105-8432 JAPAN
Tel : 03-3459-5111
Fax : 03-3459-5390
URL : http://www.shoko.co.jp/
E-Mail address: info@shoko.co.jp
ACTIVITIES
Import, export, wholesale of chemicals, synthetic resins,
metals, electronics
BRANCHES
Osaka, Nagoya, Fukuoka, Sendai, Oita
OVERSEAS
Lianyunguan Zhoahua Minerals Co Ltd, Shoko (Shanghai) Co Ltd (--China); Shoko America Inc (USA) (--affiliates)
FACTORY(IES)
Chiba
CHIEF EXEC
HIROSHI NISHIMOTO, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
157,319 M
PAYMENTS REGULAR CAPITAL Yen 8,021 M
TREND STEADY WORTH Yen 15,549 M
STARTED 1945 EMPLOYES 421
COMMENT
TRADING HOUSE SPECIALIZING IN CHEMICALS & SYNTHETIC RESINS,
AFFILIATED TO SHOWA DENKO KK. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,584.6 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/12/2007 fiscal term
HIGHLIGHTS
The subject company was established by Showa Denko KK, a comprehensive
chemicals mfr, Tokyo (see REGISTRATION). As a trading firm primarily dealing in
chemicals and fertilizers. Since
incorporated, the firm has expanded operations into synthetic resins, light
metals, iron/steel products, construction materials and recently
electronics. Synthetic resins &
chemicals account for nearly 50% of total sales. Emphasis on fine chemicals.
Actively diversifying into pharmaceuticals, reagents, computers,
etc. Moving into toward a general
trader on R&D, with mfg division in fertilizers, molding, soil improvement
agents, etc domestically, and heavy nitrogen compounds, calium arsenic boards,
etc in USA. Clients are Showa Denko
group mfrs and other major chemicals mfrs nationwide.
(Brief History):
(1947) established as a trading firm by Showa Denko KK for import & wholesale of chemicals & fertilizers; (1953) advanced into mfg fertilizer; (1962) listed on Tokyo S/E (Second section) and in 1981 First Section; (1972) diversified into chemicals & petrochemicals fields; (1982) renamed as caption from Hikari Kogyo Co Ltd; (1982) advanced into fine chemicals products, new-ceramic electronic materials & precision instruments; (1987) advanced into real estate industry; (2000) moved the headquarter to Shibakoen from Nishishimbashi Minatoku, Tokyo, and in May 2006 to the caption address. (During the time merged 3 sister firms to integrate operations.)
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 157,319 million, a 15% up from Yen 137,367 million in the previous term. Sales were steady and solid, backed up by surge in materials costs leading to higher sales prices. By divisions, chemicals up 4.7% to Yen 28,397 million; synthetic resins up 27.1% to Yen 48,727 million, spurred by robust demand for automobiles and packaging materials; metals up 13.7% to Yen 52,295 million, building materials up 8.9% to Yen 15,607 million, electronics & others up 6.0% to Yen 12,291 million. Metals spurred by steady growth of steel-use fire-resistant materials. Synthetic resins and chemicals rose on domestic market. The recurring profit was posted at Yen 2,002 million and the net profit at Yen 895 million, respectively, compared with Yen 11,690 million recurring profit and Yen 861 million net profit, respectively, a year ago.
For the current term ending Dec 2007 the recurring profit is
projected at Yen 1,800 million and the net profit at Yen 950 million,
respectively, on a shade down in turnover, to Yen 156,000 million. Metals rather weak. Construction materials sluggish as large lot
condominium projects not in sight.
Focusing on really profitable businesses.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 2,584.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: May
1947
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 400
million shares
Issued: 112,714,687
shares
Sum: Yen
8,021 million
Major shareholders (%): Showa Denko*(42.0), Mizuho Corporate Bank (2.7), Master Trust Bank of Japan, T (1.1),
Japan Securities Finance (1.1), Japan Trustee Services Bank, T (0.9), Sompo Japan Ins
(0.9), Showa Highpolymer (0.9), Mitsubishi UFJ Trust (0.6), Fukoku Life Ins (0.5),
Employees’ S/Holding Assn (0.5)
*.. Major comprehensive chemical mfr, Tokyo, founded 1939,
listed Tokyo S/E, capital Yen 110,451 million, sales Yen 914,500 million,
recurring profit Yen 57,500 million, net profit Yen 28,800 million, total
assets Yen 1,0378,000 million, net worth Yen 265,500 million, employees 11,118,
pres Kyohei Takahashi
No. of shareholders: 13,681
Listed on the S/Exchange (s) of: Tokyo
Managements: Hiroshi Nishimoto, pres & CEO; Masatake Oriyama, mgn dir; Masaoki Matsuki, mgn dir;
Yoshitaka Ito, mgn
dir; Nobuo Takahashi, dir; Morio Sato, dir; Noritoshi Osuga, dir;
Yasuaki
Kamei, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
Mie Kasei, Showa Baido, Cosmo Kasei Kogyo, Shoko Tsusho (Shanghai), other (Tot 7 as of Dec/2006)
OPERATION
Activities: A trading house for import, export and wholesale of
(Sales breakdown):
Chemicals Div (18%): (organic chemicals) raw materials for resins & organic synthesis, solvents & cleaning agents, resin additives, adhesives, synthetic rubber, food/feed additives, (inorganic chemicals) ammonia products, acid, alkalis & salts, chemicals for plating, minerals, water treatment agents, other;
Synthetic Resins Div (31%): LDPE, HDPE, PP, PS, other plastic raw materials, plastic sheets, films & multi-layered products, plastic molding & packing materials, other;
Light Metals Div (33%): aluminum ingots & alloy, aluminum scraps, aluminum sheets, extrusions, electrolytic foils, rare metals, ceramics, other;
Commodities & Construction
Materials Div (10%): storage tanks, food refrigeration units, industrial
containers, reactors, heat exchangers, pumps, cement, plaster materials &
waterproofing agents, aluminum construction materials, housing fixtures, other;
Electronics & Other
Div (8%): LED chips, modules, polymer aluminum electrolytic capacitors,
semiconductors; real estate management, sale of condominiums, land &
houses, including designing, planning, construction services; property &
life insurance broking, other.
Clients: [Mfrs, wholesalers] Showa Denko, Showa Aluminum Can, Showa Highpolymer, Nippon Chemi-Con, Kojundo Chemical Laboratory, Summit Alumi, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Showa Denko, Japan Polyolefins,
Japan Polyethylene, Showa Highpolymer, Showa Denko Kenzai, Showa Light Metal,
Cabot Super Metals, San Aroma, Kurimoto Ltd, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned by the parent,
Showa Denko, and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (Ohtemachi)
Mizuho Trust Bank (H/O)
Relations: Satisfactory
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FINANCES (Consolidated
in million yen) |
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Terms Ending: |
31/12/2006 |
31/12/2005 |
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INCOME STATEMENT |
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Annual Sales |
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157,319 |
137,367 |
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Cost of Sales |
148,708 |
129,415 |
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GROSS PROFIT |
8,611 |
7,951 |
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Selling & Adm Costs |
6,462 |
6,240 |
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OPERATING PROFIT |
2,148 |
1,710 |
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Non-Operating P/L |
-146 |
-20 |
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RECURRING PROFIT |
2,002 |
1,690 |
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NET PROFIT |
895 |
861 |
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BALANCE SHEET |
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Cash |
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3,521 |
4,273 |
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Receivables |
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42,255 |
37,421 |
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Inventory |
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3,859 |
4,340 |
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Securities, Marketable |
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Other Current Assets |
13,039 |
10,935 |
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TOTAL CURRENT ASSETS |
62,674 |
56,969 |
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Property & Equipment |
6,086 |
6,211 |
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Intangibles |
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229 |
213 |
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Investments, Other Fixed Assets |
5,563 |
6,633 |
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TOTAL ASSETS |
74,552 |
70,026 |
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Payables |
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44,845 |
39,858 |
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Short-Term Bank Loans |
4,025 |
7,060 |
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Other Current Liabs |
2,401 |
2,711 |
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TOTAL CURRENT LIABS |
51,271 |
49,629 |
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Debentures |
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3,000 |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
1,250 |
1,256 |
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Other Debts |
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6,481 |
801 |
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TOTAL LIABILITIES |
59,002 |
54,686 |
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MINORITY INTERESTS |
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Common
stock |
8,021 |
8,021 |
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Additional
paid-in capital |
1 |
0 |
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Retained
earnings |
5,945 |
5,499 |
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Evaluation
p/l on investments/securities |
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1,765 |
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Others |
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1,620 |
85 |
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Treasury
stock, at cost |
(38) |
(30) |
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TOTAL S/HOLDERS` EQUITY |
15,549 |
15,340 |
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TOTAL EQUITIES |
74,552 |
70,026 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2006 |
31/12/2005 |
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Cash
Flows from Operating Activities |
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1,751 |
1,144 |
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Cash
Flows from Investment Activities |
437 |
253 |
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Cash
Flows from Financing Activities |
-493 |
-1,117 |
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Cash,
Bank Deposits at the Term End |
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6,946 |
5,245 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2006 |
31/12/2005 |
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Net
Worth (S/Holders' Equity) |
15,549 |
15,340 |
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Current
Ratio (%) |
122.24 |
114.79 |
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Net
Worth Ratio (%) |
20.86 |
21.91 |
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Recurring
Profit Ratio (%) |
1.27 |
1.23 |
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Net
Profit Ratio (%) |
0.57 |
0.63 |
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Return
On Equity (%) |
5.76 |
5.61 |
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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%)