MIRA INFORM REPORT

 

 

Report Date :

31.08.2007

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CHEMICAL ENGINEERING CORPORATION

 

 

Registered Office :

Sumitomo Fudosan Mita Twin Bldg East 5F, 4-2-8 Shibaura Minatoku Tokyo 108-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Dec 1957

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Plant engineering works of petrochemical, medical, food, pharmaceuticals, other

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 1458.8 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name

 

MITSUBISHI CHEMICAL ENGINEERING CORPORATION

 

 

REGD NAME

 

Mitsubishi Kagaku Engineering KK

 

 

MAIN OFFICE

 

Sumitomo Fudosan Mita Twin Bldg East 5F, 4-2-8 Shibaura Minatoku Tokyo 108-0023 JAPAN

Tel        : 03-3456-9006

Fax       : 03-3456-9010

URL      : http://www.mitsubishi-chem-eng.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Plant engineering works of petrochemical, medical, food, pharmaceuticals, other

 

 

BRANCHES

 

Kitakyushu, Okayama, Yokkaichi, Yokohama, Niigata, Osaka, Nagoya, other (Tot 15)

 

 

OVERSEAS

 

China (2), Taiwan, Indonesia, Malaysia, USA, Thailand, Singapore, S Africa (--subsidiaries)

 

 

OFFICERS

 

TAKAYASU GONDA, PRES                   Ken’ichi Mizuma, v pres

Keizo Fujiyama, mgn dir                         Tadayoshi Yamamoto, mgn dir

Takahisa Fukao, mgn dir                        Takafumi Oguri, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 154,170 M

PAYMENTS      REGULAR                     CAPITAL           Yen 1,405 M

TREND             STEADY                       WORTH            Yen 11,297 M

STARTED         1957                             EMPLOYES      1620

 

 

COMMENT

 

ENGINEERING WORKS, WHOLLY OWNED BY MITSUBISHI CHEMICAL CORP. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,458.8 MILLION, 30 DAYS NORMAL TERMS.  .

 

                                    Note: Forecast for the 31/03/2008 fiscal term.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of an engineering division separated from Mitsubishi Chemical Corp, mfr of petrochemicals, Tokyo (See REGISTRATION).  Originally started petrochemical plant engineering works, and later by mergers, has expanded operations into such fields as pharmaceuticals, food, plastic resins, distribution systems, Information & Telecommunications, other.        Clients are major mfrs in these fields.  Operates 9 overseas subsidiaries to cover overseas markets, centrally in China, S/E Asia, with one in USA.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2007 fiscal term amounted to Yen 154,170 million, a 9% up from Yen 141,085 million in the previous term.  Works including maintenance, repairing, substitution works expanded in S/E Asia and China.  The recurring profit was posted at Yen 2,670 million and the net profit at Yen 1,768 million, respectively, compared with Yen 2,503 million recurring profit and Yen 1,230 million net profit, respectively, a year ago.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 2,700 million and the net profit at Yen 1,800 million, respectively, on a 7% rise in turnover, to Yen 165,000 million.  Works in China continues growing.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,458.8 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Dec 1957

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    1.4 million shares

Issued:                          1.4 million shares

Sum:                            Yen 1,405 million

Major shareholders (%): Mitsubishi Chemical Corp*(100)

*.. Major petrochemical mfr, Tokyo, under Mitsubishi Chemical Holding Corp, founded 1950, capital Yen 145,086 million, listed Tokyo, Osaka S/E’s by the name of Mitsubishi Chemical Holding Corp, sales Yen 2,622,820 million, recurring profit Yen 141,296 million, net profit Yen 100,338 million, total assets Yen 2,318,832 million, net worth Yen 712,160 million, employees 33,447, pres Ryuichi Tomizawa 

           

(Overseas subsidiaries):

Shanghai Lingyang Engineering Consulting Co Ltd; Tianjin Lingyang Engineering Consulting Co Ltd; Ling-Young International Engineering Corp (Taiwan); PT MC Engineering Indonesia; Dia Engineering (Malaysia) Sdn Ltd; MCE (USA) Inc; Mitsubishi Chemical Engineering (Thailand); Dia Engineering (Singapore) Pte Ltd; M Chemical Engineering SA Pty Ltd (S Africa).

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Plant engineering works covering: petrochemicals, plastic & resins, pharmaceuticals, food, Information & Telecommunications, distribution systems, others (--100%).

 

Clients: [Mfrs, wholesalers] Mitsubishi Chemical, Osaka Gas, Kokuyo Co, Mitsubishi Pharma Corp, Yupo Corp, Japan Polychem Corp, Daio Chemicals, Ismic Co, other. 

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Kajima Corp, Toda Corp, Shimizu Corp, Mitsubishi Electric, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

MUFG (H/O)

Mizuho Corporate Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

FINANCES: (Non-Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

154,170

141,085

 

  Cost of Sales

148,104

134,689

 

      GROSS PROFIT

6,065

6,396

 

  Selling & Adm Costs

3,699

4,201

 

      OPERATING PROFIT

2,366

2,194

 

  Non-Operating P/L

304

309

 

      RECURRING PROFIT

2,670

2,503

　

      NET PROFIT

1,768

1,230

BALANCE SHEET

 

 

 

 

  Cash

　

945

7

 

  Receivables

 

56,026

48,029

 

  Inventory

 

4,832

4,830

 

  Securities, Marketable

　

　

 

  Other Current Assets

27,705

15,544

 

      TOTAL CURRENT ASSETS

89,508

68,410

 

  Property & Equipment

1,406

1,297

 

  Intangibles

 

304

422

 

  Investments, Other Fixed Assets

4,359

4,396

 

      TOTAL ASSETS

95,577

74,525

 

  Payables

 

50,691

39,066

 

  Short-Term Bank Loans

　

796

 

　

 

　

　

 

  Other Current Liabs

30,756

21,748

 

      TOTAL CURRENT LIABS

81,447

61,610

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

22

23

 

  Reserve for Retirement Allw

2,808

2,712

 

  Other Debts

　

2

2

 

      TOTAL LIABILITIES

84,279

64,347

 

      MINORITY INTERESTS

 

 

 

Common stock

1,405

1,405

 

Additional paid-in capital

　

　

 

Retained earnings

9,732

8,596

 

Evaluation p/l on investments/securities

134

176

 

Others

 

26

1

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

11,297

10,178

　

      TOTAL EQUITIES

95,577

74,525

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

11,297

10,178

 

 

Current Ratio (%)

109.90

111.04

 

 

Net Worth Ratio (%)

11.82

13.66

 

 

Recurring Profit Ratio (%)

1.73

1.77

 

 

Net Profit Ratio (%)

1.15

0.87

 

 

Return On Equity (%)

15.65

12.08

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions