MIRA
INFORM REPORT
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Report Date : |
16.06.2007 |
IDENTIFICATION DETAILS
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Name : |
DOWA HOLDINGS CO LTD |
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Registered Office : |
Akihabara UDX Bldg, 4-14-1 Sotokanda Chiyodaku |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Mar 1937 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Holding firm of nonferrous
metals manufacturing |
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 12803.5 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name
DOWA HOLDINGS CO LTD
REGD NAME
Dowa Holdings KK
MAIN OFFICE
Akihabara UDX
Bldg, 4-14-1 Sotokanda Chiyodaku
Tel : 03-6847-1100
Fax : 03-6847-1210
URL : http://www.dowa.co.jp/
E-Mail
address: info@dowa.co.jp
ACTIVITIES
Holding
firm of nonferrous metals mfg
BRANCHES
FACTORY(IES)
Shiojiri,
Mooka,
OVERSEAS
(Associated): Dowa Int’l Corp (
CHIEF EXEC
HIROKAZU
YOSHIKAWA, CH & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 458,701 M
PAYMENTS REGULAR CAPITAL Yen 36,436 M
TREND STEADY WORTH Yen
141,276 M
STARTED 1937 EMPLOYES 3,920
COMMENT
HOLDING COMPANY OF NONFERROUS METALS MFG OPERATIONS. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 12,803.5 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was established originally as Dowa Kogyo KK
for mfg nonferrous metals and in Oct 2006 became Holding Company of Dowa group
firms & operations. Specializes in
mfg, with smelting, nonferrous metals, environmental management & recycling
electronics materials, metal-processing, and heat treatment businesses.
Has 5 principle business segments (operating companies in parenthesis):
Nonferrous
Metals Segment (Dowa Metals & Mining);
Environmental
Management & Recycling Segment (Dowa Eco-System);
Electronic
Materials Segment (Dowa Electronics Materials);
Metal
Processing Segment (Dowa Metaltech);
Heat
Treatment Segment (Dowa Thermotech)
(Brief
History)
Established originally in 1989 by Denzaburo Fujita for producing nonferrous metals, such as zing, iron alloys, aluminum and nickel. Incorporated in 1937 as Dowa Mining KK the firm expanded into semiconductor materials fabrication. In 2000, introduced in-house company system, nonferrous metals smelting & refining, environmental services & recycling, electrical & electronic materials, heat treatment, etc. In Oct 2006, changed the corporate title to Holding Company.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen
458,701 million, a 45% rise from Yen 316,388 million in the previous term. Robust demand from
For the current term ending Mar 2008 the recurring profit is projected at Yen 41,000 million and the net profit at Yen 20,000 million, on a 10.6% fall in turnover, to Yen 410,000 million. The projection is based on anticipated decline in major metal prices, and the foreign exchange rate of Yen 118 to the US Dollar.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 12,803.5 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Mar 1937
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 795,073,000 shares
Issued: 303,790,809 shares
Sum: Yen 36,436 million
Major shareholders (%): Japan Trustee Services Bank T (11.9), Master Trust Bank of Japan T (7.3), Fujita Kanko
(4.5), Mizuho Corporate Bank (2.4), ECSB (Marubeni) (2.3), Resona Bank (2.2),
Nipponkoa
Ins (1.9),
Bank & Trust (1.4); foreign owners (30.3)
No. of
shareholders: 14,195
Listed
on the S/Exchange (s) of:
Managements: Hirokazu Yoshikawa, ch; Masaki Kohno, pres; Kazumasa Suezawa, v pres; Yuji Saeki,
dir, Satoru Mihara, dir, Yoshito Koga, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies
Dowa Metals & Mining, Dowa Eco-System, Dowa Electronics, Dowa Metaltech, other (Tot 37 as of Sept/06)
OPERATION
Activities: Manufactures nonferrous metals with smelting operations:
(Sales breakdown by segments):
Nonferrous Metals Segment (45%): gold, silver, copper, zinc, lead, zinc alloy, indium, platinum, and other nonferrous metals;
Environmental Management & Recycling Segment (13%): waste treatment, soil remediation, metal recycling, consulting, final waste treatment & disposal facilities, and freight transport;
Electronic Materials Segment (12%): high-purity gallium for compound semiconductor mfg, compound semiconductors for electronic and optical devices, LEDs for transmission & medical sensors, metal powders for data storage tape & other electronic materials;
Metal Processing Segment (17%): mfg of copper, brass, copper alloy strips and other copper strip products, strip plating, brass bars & forged parts;
Heat Treatment Segment (7%): heat treatment, surface treatment, surface modification treatment, and the design, mfg, sale and maintenance of facilities for heat treatment;
Others (6%): civil
engineering, construction, real estate leasing, geothermal business.
Clients: [Metal dealers, mfrs, wholesalers] Marubeni Corp, Tanaka Kikinzoku Kogyo, Fujikura Ltd, Fuji Photo Film, Yazaki Corp, other.
No. of
accounts: 2,000
Domestic
areas of activities: Nationwide
Suppliers: [Wholesalers, mfrs] Sumitomo Corp, Marubeni Corp, Mitsui & Co, Mitsubishi Corp, other.
Payment
record: Regular
Location: Business area in
Bank References
Mizuho
Corporate Bank (H/O)
Resona
Bank (
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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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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458,701 |
316,388 |
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Cost of Sales |
383,136 |
253,389 |
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GROSS PROFIT |
75,564 |
62,998 |
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Selling & Adm Costs |
26,830 |
26,101 |
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OPERATING PROFIT |
48,733 |
36,897 |
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Non-Operating P/L |
984 |
-3,720 |
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RECURRING PROFIT |
49,717 |
33,177 |
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NET PROFIT |
26,337 |
14,532 |
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BALANCE SHEET |
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Cash |
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4,814 |
5,815 |
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Receivables |
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75,722 |
46,414 |
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Inventory |
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81,160 |
69,706 |
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Securities, Marketable |
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Other Current Assets |
9,614 |
18,324 |
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TOTAL CURRENT ASSETS |
171,310 |
140,259 |
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Property & Equipment |
97,492 |
92,907 |
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Intangibles |
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2,425 |
2,275 |
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Investments, Other Fixed Assets |
81,072 |
73,874 |
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TOTAL ASSETS |
352,299 |
309,315 |
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Payables |
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37,537 |
29,397 |
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Short-Term Bank Loans |
55,551 |
41,965 |
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Other Current Liabs |
44,366 |
37,233 |
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TOTAL CURRENT LIABS |
137,454 |
108,595 |
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Debentures |
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10,021 |
10,028 |
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Long-Term Bank Loans |
39,178 |
44,652 |
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Reserve for Retirement Allw |
13,265 |
13,009 |
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Other Debts |
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11,104 |
11,876 |
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TOTAL LIABILITIES |
211,022 |
188,160 |
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MINORITY INTERESTS |
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3,833 |
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Common
stock |
36,436 |
36,436 |
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Additional
paid-in capital |
26,368 |
26,368 |
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Retained
earnings |
57,052 |
35,079 |
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Evaluation
p/l on investments/securities |
19,177 |
22,112 |
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Others |
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2,579 |
(426) |
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Treasury
stock, at cost |
(336) |
(2,249) |
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TOTAL S/HOLDERS` EQUITY |
141,276 |
117,320 |
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TOTAL EQUITIES |
352,299 |
309,315 |
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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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13,700 |
17,783 |
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Cash
Flows from Investment Activities |
-24,387 |
-15,616 |
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Cash
Flows from Financing Activities |
9,634 |
-1,758 |
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Cash,
Bank Deposits at the Term End |
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4,792 |
5,813 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
141,276 |
117,320 |
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Current
Ratio (%) |
124.63 |
129.16 |
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Net
Worth Ratio (%) |
40.10 |
37.93 |
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Recurring
Profit Ratio (%) |
10.84 |
10.49 |
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Net
Profit Ratio (%) |
5.74 |
4.59 |
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Return
On Equity (%) |
18.64 |
12.39 |
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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%)