MIRA
INFORM REPORT
|
Report Date : |
14.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
LION CORPORATION |
|
|
|
|
Registered Office : |
1-3-7 Honjo Sumidaku Tokyo 130-8644 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
September, 1918 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Mfr of oral-care, detergent, beauty-care products,
chemicals, other |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
YEN 5,888.8 MILLION |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name of the company
LION CORPORATION
REGD NAME : Raion KK
MAIN OFFICE : 1-3-7 Honjo Sumidaku Tokyo 130-8644
JAPAN
Tel:
03-3621-6211
URL : http://www.lion.co.jp/
E-Mail address : info@lion.co.jp
ACTIVITIES : Mfg of oral-care goods,
pharmaceuticals, chemicals
BRANCH(ES) : Sapporo, Sendai, Tokyo, Nagoya,
Osaka, Fukuoka
OVERSEAS : China, Korea, Taiwan, Thailand,
Malaysia, Indonesia, other (Tot 8)
FACTORY(IES): Chiba,
Odawara, Akashi, Osaka
CHIEF EXEC : SADAYOSHI FUJISHIGE, PRES
Yen Amount : In million Yen, unless otherwise
stated
SUMMARY : FINANCES FAIR A/SALES Yen 330380 M
PAYMENTS REGULAR CAPITAL Yen 34,433 M
TREND STEADY WORTH Yen
105,133 M
STARTED 1918 EMPLOYES 5,711
COMMENT : MFR
OF TOOTHPASTE/POWDER AND OTHER HEALTH-CARE PRODUCTS.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 5,888.8 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/12/2007 fiscal term
HIGHLIGHTS
The subject was formed originally
in 1980 through merger of two sister companies, Lion Fat Oil and Lion
Dentifrice. Top-class mfr of toothpaste/powder and one of largest in synthetic
detergent. Third-ranked in home use
toiletries. Also engaged in eyedrops, seasonings, chemicals and analgesic
“Buffarin”. Setting up product/sales
sub in Malaysia for MES (vegetable-based material of detergent, starting
operation in Dec 2008, selling to major mfrs overseas.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 330,380 million, a 0.4% down from Yen 331,798 million in the previous term. The decline is referred to harsh competition among the trade. By divisions, Oral-care up 3.4% to Yen 52,167 million; Beauty-care down 6.5% to Yen 33,558 million; Chemicals down 4.6% to Yen 47,981 million, as eyedrops, health-care drinks, insecticides, etc were down by competition. The recurring profit was posted at Yen 2,427 million and the net profit at Yen 5,540 million, respectively, compared with Yen 8,514 million recurring profit and Yen 5,473 million net profit, respectively, a year ago. Sales decline and fuel oil costs hikes worsened the profits.
(Jan/Sept/2007 results): Sales Yen 244,991 million (up 4.5%), operating profit Yen 4,679 million (up from Yen 4,222 million loss), recurring profit Yen 5,899 million (up from Yen 2,542 million loss), net profit Yen 3,640 million (up from 960 loss). (% & figures compared with the same period last year).
Sales up are attributed to variety of factors including launch of new products in Japan and positive impact of overseas market expansion, particularly in Korea and Thailand.
For the current term ending Dec 2007 the recurring profit is projected at Yen 10,000 million and the net profit at Yen 4,500 million, on a 2.9% rise in turnover, to Yen 340,000 million. Distribution inventory cuts nearly completed. New products in kitchen-use cleaners and clothing-use detergents leased in the term’s start will contribute.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,888.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered : Sept 1918
Legal
Status : Limited Company
(Kabushiki Kaisha)
Authorized : 1,185,600 shares
Issued : 298,115,346 shares
Sum : Yen 34,433
million
Major shareholders (%): Company’s Treasury Stock (9.6%), TCSB (Mizuho Bank ( (5.0), MUFG (4.0), Mizuho Corporate Bank (3.6), Mellon Bank Treaty Cl. Omnibus (3.6), Tokio Marine & Nichido Fire Ins (2.1), Mitsubishi Trust Bank (2.0), Sompo Japan Ins (1.9), Meiji Yasuda Life Ins (1.7); foreign owners (8.1).
No. of shareholders: 35,312
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Sadayoshi Fujishige, pres; Makoto Imai, s/mgn dir; Kazuo Oobu, s/mgn dir; Tetsuo Yamada, mgn dir; Naoichi Kubo, mgn dir; Haruo Iwasaki, mgn dir; Yasunobu Horiguchi, mgn dir; Teruhisa Satsuki, mgn dir; Mitsuo Obayashi, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: Lion Engineering, Lion Distribution Service, other
OPERATION
Activities: Mfr of oral-care, detergent, beauty-care products, chemicals, other.
(Sales Breakdown by Divisions):.
Health-care Products (71%):
Oral-care (toothpastes, toothbrushes, mouth washes & breath fresheners, foods, etc); Beauty-care (shampoo, conditioners & treatment, hair-styling products, hair nourishment, men’s hair-care products, beauty soaps, liquid hand soaps, body washes, facial cleansing products, anti-perspirants, deodorants);
Pharmaceuticals (14%): a
nalgesics, cold syrup, tonics & nutrients, internal medicine for joint pain & neuralgis, anti-diarrheic drugs, allergy-care products, eyedrops, insecticides, etc;
Chemicals (10%);
Households, others (5%).
Overseas Sales ratio (15.9%): Asia 14.7%, others 1.2%
Clients: [Mfrs, wholesalers] Mediceo Paltac Holdings, Arata Corp, Chuo Bussan Corp, Lion Dental Products, Kobashou KK, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Bristol-Meyers Lion Corp, Lion Chemical, Lion Packaging, Lion Akzo Co, Oji Kinocloth, other..
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank (Nihombashi)
MUFG (Ohdenmacho)
Relations: Satisfactory
Financials
|
FINANCES: (Consolidated in million yen) |
|
|||
|
|
|
Terms Ending: |
31/12/2006 |
31/12/2005 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
330,380 |
331,798 |
|
|
Cost of Sales |
165,570 |
163,154 |
|
|
|
GROSS PROFIT |
164,810 |
168,644 |
|
|
|
Selling & Adm Costs |
164,467 |
162,577 |
|
|
|
OPERATING PROFIT |
343 |
6,066 |
|
|
|
Non-Operating P/L |
2,084 |
2,448 |
|
|
|
RECURRING PROFIT |
2,427 |
8,514 |
|
|
|
NET PROFIT |
5,540 |
5,473 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
26,995 |
15,943 |
|
|
Receivables |
|
64,138 |
68,282 |
|
|
Inventory |
|
26,387 |
27,399 |
|
|
Securities, Marketable |
|
500 |
|
|
|
Other Current Assets |
5,488 |
5,575 |
|
|
|
TOTAL CURRENT ASSETS |
123,008 |
117,699 |
|
|
|
Property & Equipment |
65,606 |
68,570 |
|
|
|
Intangibles |
|
9,428 |
10,481 |
|
|
Investments, Other Fixed Assets |
48,285 |
52,553 |
|
|
|
TOTAL ASSETS |
246,327 |
249,303 |
|
|
|
Payables |
|
50,185 |
53,995 |
|
|
Short-Term Bank Loans |
7,612 |
8,088 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
40,578 |
39,319 |
|
|
|
TOTAL CURRENT LIABS |
98,375 |
101,402 |
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
13,599 |
6,284 |
|
|
|
Reserve for Retirement Allw |
24,214 |
25,779 |
|
|
|
Other Debts |
|
5,005 |
3,946 |
|
|
TOTAL LIABILITIES |
141,193 |
137,411 |
|
|
|
MINORITY INTERESTS |
|
2,789 |
|
|
|
Common stock |
34,433 |
34,433 |
|
|
|
Additional paid-in capital |
31,499 |
31,584 |
|
|
|
Retained earnings |
46,600 |
51,834 |
|
|
|
Evaluation p/l on investments/securities |
4,727 |
7,654 |
|
|
|
Others |
|
3,787 |
41 |
|
|
Treasury stock, at cost |
(15,913) |
(16,443) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
105,133 |
109,103 |
|
|
|
TOTAL EQUITIES |
246,327 |
249,303 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/12/2006 |
31/12/2005 |
|
|
Cash Flows from Operating Activities |
|
3,343 |
1,865 |
|
|
Cash Flows from Investment Activities |
11,092 |
-9,262 |
|
|
|
Cash Flows from Financing Activities |
-3,610 |
-1,514 |
|
|
|
Cash, Bank Deposits at the Term End |
|
26,782 |
15,788 |
|
ANALYTICAL RATIOS Terms ending: |
31/12/2006 |
31/12/2005 |
||
|
|
|
Net Worth (S/Holders' Equity) |
105,133 |
109,103 |
|
|
|
Current Ratio (%) |
125.04 |
116.07 |
|
|
|
Net Worth Ratio (%) |
42.68 |
43.76 |
|
|
|
Recurring Profit Ratio (%) |
0.73 |
2.57 |
|
|
|
Net Profit Ratio (%) |
1.68 |
1.65 |
|
|
|
Return On Equity (%) |
5.27 |
5.02 |
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%)