MIRA
INFORM REPORT
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Report Date : |
08.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
NAGASE & CO LTD |
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Registered Office : |
1-1-17 Shinmachi Nishiku Osaka 550-8668 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
December 1917 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of chemicals |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 26,183.4 MILLION |
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Status : |
Good |
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Payment Behaviour : |
Regular |
COMPANY NAME &
ADDRESS
NAGASE & CO LTD
REGD NAME: Nagase Sangyo KK
ADDRESS
MAIN OFFICE: 1-1-17 Shinmachi
Nishiku Osaka 550-8668 JAPAN
Tel : 06-6535-2114
Fax : 06-6535-2160
URL : http://www.nagase.co.jp/
E-Mail : info@nagase.co.jp
TOKYO OFFICE
5-1 Nihombashi-Kobunacho Chuoku Tokyo, as given
ACTIVITIES
Import, export, wholesale of chemicals
BRANCHES
Tokyo, Nagoya, Fukuoka, Hiroshima, Takamatsu, other
OVERSEAS
USA (6), Canada, UK, Germany, China (14), Taiwan (2), Korea (2),
Thailand (2), Malaysia (3), Singapore
(3), Vietnam (3), India, Indonesia, UAE, other
CHIEF EXEC
HIROSHI NAGASE, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 701,321 M
PAYMENTS REGULAR CAPITAL Yen 9,699 M
TREND STEADY WORTH Yen 211,672 M
STARTED 1917 EMPLOYES 3,865
COMMENT
TOP-RANKED TRADING HOUSE SPECIALIZING IN INDUSTIRAL CHEMICALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 26,183.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or
estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company is top-ranked trading house specializing in
industrial chemicals, founded originally in 1832 by a certain Nagase as a
dyestuff merchant in Kyoto. In 1900,
established business ties with Bassel Chemical of Switz (now Chiba Specialty
Chemicals) and since diversified into various other industrial chemicals. Excels in dyestuffs, synthetic resins,
etc. Actively engaged in new
technological sector such as pharmaceuticals raw materials, specialty resins,
biotechnology, electronics and other new materials. In Oct 2003 the firm set up JV’s in Taiwan and China for offering
CAD auto-parts design services, following the one set up in USA. The firm is reported purchased Pac Tec
GmbH, a German producer of semiconductor mfg equipment. Nagase is taking steps to expand its
business in latter-stage semiconductor mfg and is planning to use Pac Tech’s
technologies to gain ground in supplying equipment and materials. Since 2000, the firm has served as agent for
Pac Tech, selling the firm’s equipment and licensing technology in Japan. Aggressive in investment, including M&A
activities, in electronics, automobile and healthcare areas. In July 2007, started lab center for
materials and additive agents. Business
in India and Vietnam expanding.
(Recent News from the Nikkei Shimbun):
The firm issued on July 11 voluntary recall for some 460,000 DVD players
and other products made in China due to a “risk of fire”. By this, the firm will cease sales of these
DVD in Japan. The incident is expected
to cost the firm some Yen 14,000 million, nearly matching the firm’s initial
projection for group net profit for the term ending Mar 2008. The group net profit may shrink to about Yen
7,000 million, according to reports.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 701,321
million, an 8.2% up from Yen 648,022 million in the previous term. Sales in China expanded mainly in the
automotive sector. Chemical products
and synthetic resins continued growth, mainly for automobiles both at home and
abroad. Materials prices also
rose. Electronics parts and healthcare
goods similarly grew. By divisions,
Chemicals up by 11.2% to Yen 247,090 million; Plastics up by 6.7% to Yen 244,680
million; Electronics up by 14.2% to Yen 150,790 million. The recurring profit was posted at Yen
23,231 million and the net profit at Yen 13,567 million, respectively, compared
with Yen 18,798 million recurring profit and Yen 12,892 million net profit, respectively,
a year ago.
(Apr/Sept/2007 results): Sales Yen 369,256 million (up 7.6%), Operating
profit Yen 10,626 million (up 0.2%), ordinary profit Yen 11,657 million (up
1.9%), net loss Yen 642 million. (%
compared with the same period last year).
The net loss is referred to extraordinary loss of Yen 14,300 million
coming from the recall of portable DVD players and other products sold by the
company, as reported in the HIGHLIGHT..
For the current term ending Mar 2008 the recurring profit is projected
at Yen 23,600 million and the net profit at Yen 7,100 million, respectively, on
a 7.2% rise in turnover, to Yen 752,000
million. Synthetic resins
advancing on firm Asia-bound demand.
Business in India and Vietnam is expected to grow. Net profit deterioration is referred to the
sail recall..
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 26,183.4 million, on 30 days normal terms.
REGISTRATION
Date Registered : Dec 1917
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
346,990,000 shares
Issued :
138,408,285 shares
Sum : Yen 9,699 million
Major shareholders (%): Master Trust Bank of Japan (7.4), Japan Trustee
Services Bank T (7.4), Sumitomo Trust Bank (4.4), SMBC (3.1), Hiroshi Nagase
(3.0), Nippon Life Ins (2.8), Reiko Nagase (2.5), Mitsui Sumitomo Ins (2.1),
MUFG (2.0); foreign owners (14.3)
No. of shareholders: 4,489
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Hideo Nagase, ch; Hiroshi Nagase, pres & CEO; Yoshizo
Shibata, dir; Kyoichi Zushi, dir; Makoto Tsuruoka, dir; Reiji Nagase, dir, Eiji
Asama, dir; Kazuo Nagashima, dir; Haruyuki Niimi, dir; Takuya Gotoh, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Nagase Chemtex, Totaku Ind, Hoei Sangyo, Nagase
Logistics, other
OPERATION
Activities: Specialized trading house for import, export, wholesale of
industrial chemicals (Sales breakdown by
divisions): dyestuffs, pigments, other industrial chemicals (35%),
synthetic resins (35%), electronic materials & equipment (21%), health-care
products, foodstuffs, others (9%).
(Overseas sales ratio 41.4%: N America 3.2%; Asia 36.0%; other region
2.1%).
Clients: [Chemical mfrs, wholesalers] Sekisui Chemical, Nippon Paint,
Dainippon Ink & Chemicals,
Sumitomo Chemical, Mitsubishi Motors, Otsuka Pharmaceutical, Shinto Paint,
Fujitsu Ltd, Toshiba Matsushita Display Technology, Kansai Paint, Mitsubishi
Electric Trading, Kasai Kogyo, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo Chemical, Daicel Chemical Ind,
Nippon Shokubai, Mitsubishi Chemical, Tottori Sanyo Electric, other.
Payment record
Regular
Location
Business area in Osaka. Office
premises at the caption address are leased and maintained satisfactorily.
Bank References
SMBC Bank (H/O)
Mizuho Corporate Bank (Ohtemachi)
Relations: Satisfactory
FINANCES: (Consolidated
in million yen)
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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701,321
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648,023
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Cost of Sales |
627,681
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580,383
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GROSS PROFIT |
73,639
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67,640
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Selling & Adm Costs |
51,970
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50,043
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OPERATING PROFIT |
21,669
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17,596
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Non-Operating P/L |
1,562
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1,202
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RECURRING PROFIT |
23,231
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18,798
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NET PROFIT |
13,567
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12,892
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BALANCE SHEET |
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Cash |
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21,922
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23,539
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Receivables |
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218,037
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194,664
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Inventory |
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43,372
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40,268
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Securities, Marketable |
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Other Current Assets |
8,295
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7,828
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TOTAL CURRENT ASSETS |
291,626
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266,299
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Property & Equipment |
31,834
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30,819
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Intangibles |
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2,944
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1,506
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Investments, Other Fixed Assets |
96,455
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98,149
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TOTAL ASSETS |
422,859
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396,773
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Payables |
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141,461
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118,810
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Short-Term Bank Loans |
14,207
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14,311
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Other Current Liabs |
21,446
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27,126
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TOTAL CURRENT LIABS |
177,114
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160,247
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Debentures |
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Long-Term Bank Loans |
6,284
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5,523
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Reserve for Retirement Allw |
6,851
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5,902
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Other Debts |
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20,938
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22,724
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TOTAL LIABILITIES |
211,187
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194,396
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MINORITY INTERESTS |
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5,755
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Common stock |
9,699
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9,699
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Additional paid-in capital |
9,926
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9,725
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Retained earnings |
156,749
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145,709
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Evaluation p/l on
investments/securities |
32,348
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36,504
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Others |
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8,363
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587 |
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Treasury stock, at cost |
(5,413) |
(5,604) |
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TOTAL S/HOLDERS` EQUITY |
211,672
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196,620
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TOTAL EQUITIES |
422,859
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396,773
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash Flows from Operating Activities |
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10,855
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-2,341
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Cash Flows from Investment
Activities |
-5,203
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-3,809
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Cash Flows from Financing Activities |
-8,420
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9,330
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Cash, Bank Deposits at the Term End |
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21,919
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22,936
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
211,672
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196,620
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Current Ratio (%) |
164.65
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166.18
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Net Worth Ratio (%) |
50.06
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49.55
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Recurring Profit Ratio (%) |
3.31 |
2.90 |
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Net Profit Ratio (%) |
1.93 |
1.99 |
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Return On Equity (%) |
6.41 |
6.56 |
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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. |
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%)