MIRA INFORM REPORT

 

 

Report Date :

15.06.2007

 

IDENTIFICATION DETAILS

 

Name :

IHARA CHEMICAL CO LTD

 

 

Registered Office :

1080 Takagicho Fuchu City Hiroshima-Pref 726-8632

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Feb 1959

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturers of terpene chemicals

 

 

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 467.9 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

IHARA CHEMICAL CO LTD

 

 

REGD NAME

 

Ihara Chemical KK

 

 

MAIN OFFICE

 

1080 Takagicho Fuchu City Hiroshima-Pref 726-8632 JAPAN

Tel        : 0847-45-3530

Fax       : 0847-45-3530

*.. The given address is its Osaka Branch at: 1-2—2-1100 Umeda Kitaku Osaka

URL      : http://www.yschem.co.jp/

E-Mail address: info@yschem.co.jp

 

 

ACTIVITIES

 

Mfr of terpene chemicals

 

 

BRANCHES

 

Tokyo, Osaka

 

 

FACTORY(IES)

 

Takagi, Fuchu, Fukuyama, Shohara (--Hiroshima), Niihama, Sendai (Kagoshima)

 

 

CHIEF EXEC

 

TEIJI YASUHARA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 11,357 M

PAYMENTS      REGULAR                     CAPITAL           Yen 1,789 M

TREND             STEADY                       WORTH            Yen 14,943 M

STARTED         1959                             EMPLOYES      303

COMMENT

 

TERPENE CHEMICALS MFR.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 467.9 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

 

The subject company is natural terpene chemical products mfr, only one in Japan.  Started to produce terpene, rosin and pineter from terpeneline oil.  In 1949 constructed terpene oil refining plant in Fuchu City and expanded its product lines.  Controls 90% of domestic market share.  Strength with its derivative synthesizing technology.  Originally named Yasuhara Yushi Kogyo Co Ltd and in1989 renamed as captioned.  Overseas the terpene resins are much used for road paving.  In 1997, took over Hirodine Kogyo Co Ltd, a hot melt type adhesive mfr, Osaka, and merged the firm in 2005.  Hence, the firm has no consolidated subsidiaries.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 11,357 million, a 6% up from Yen 10,716 million in the previous term.  Exports were robust in all areas.  Terpene chemicals grew to beverage industries as sealing agents and to poly-olefin film industries.  Polymer resins for IT industry also grew.  By divisions, adhesives up 8.5% to Yen 4,516 million; terpene chemicals up 11.3% to Yen 2,673 million.  The recurring profit was posted at Yen 1,057 million and the net profit at Yen 682 million, respectively, compared with Yen 1,145 million recurring profit and Yen 671 million net profit, respectively, a year ago.

           

For the current term ending Mar 2008 the recurring profit is projected at Yen 508 million and the net profit at Yen 302 million, on a 4.5% fall in turnover, to Yen 10,850 million.  Material cost-ups will likely eat into profits.

 

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements. Max credit limit is estimated at Yen 467.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Feb 1959

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    22 million shares

Issued:                          10,839,663 shares

Sum:                            Yen 1,789 million

Major shareholders (%): YS Kosan (11.4), Teiji Yasuhara (10.9), Chugoku Bank (4.9), Toru Makimoto (4.6),

                                     Taeko Okitsu (4.3), Customers’ S/Holding Assn (3.9), YK Soko (3.4), YK Maki (3.4),

                                     Employees’ S/Holding Assn (3.2), Kenji Shikita (3.2); foreign owners (2.0)

No. of shareholders:        2,886

Listed on the S/Exchange (s) of: Tokyo (Second Section)

Managements:               Teiji Yasuhara, pres; Hiroyuki Okitsu, mgn dir; Kenji Shikita, dir; Ryohei Sakakibara, dir;

                                    Masanori Yamamoto, dir

           

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

 

 

Related companies

 

Nil (Absorbed the only subsidiary, Hirodine Co Ltd, in 2005.

 

 

OPERATION

           

Activities: Manufactures terpene chemical products from turpeneline oil:

 

(Sales breakdown by divisions):

Resin Division (39%): terpene resin, terpene phenolic resin, modified terpene resin, Styrene resin, hydrogenated terpene resin, liquid resin, other;

Chemicals Div (22%): orange oil, terpene oil (pinene) terpene chemicals, terpene Solvents, wax, paper sizing agents, other;

Hot Melt Adhesives Div (19%): multipurpose hot melt, hot melt for extrusion, adhesive type hot melt, hot melt for assembly, other;

Lamination Div (14%): OPP base material gloss processing film, PET base material gloss processing film, non-woven materials gloss processing products, others;

Other Div (6%): water treatment (FRP tanks, valves, automatic valves, etc), others.

Exports (20%).

 

Clients: [Mfrs, wholesalers] NSC Japan, Takasago International Corp, Nippon NSC, Kanematsu Chemical, Claygate, Chiyoda Yoshi, Chuetsu Pulp & Paper, Samsung SDI, Aica Kogyo, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Chori Co, Azuchi Sangyo, Miyako Koeki, Meisei & Co, Citrosco, Chiyoda Yoshi, Mitsubishi Corp, Sumitomo Shoji Chemical, other.

           

Payment record: Regular

 

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

 

 

Bank References

 

Chugoku Bank (Fuchu)

MUFG (Fukuyama)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Non-Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

10,771

10,111

 

  Cost of Sales

7,606

7,029

 

      GROSS PROFIT

3,165

3,082

 

  Selling & Adm Costs

2,168

2,043

 

      OPERATING PROFIT

996

1,039

 

  Non-Operating P/L

61

106

 

      RECURRING PROFIT

1,057

1,145

　

      NET PROFIT

682

671

BALANCE SHEET

 

 

 

 

  Cash

　

2,132

2,646

 

  Receivables

 

2,874

2,451

 

  Inventory

 

4,679

3,999

 

  Securities, Marketable

662

1,110

 

  Other Current Assets

1,459

1,046

 

      TOTAL CURRENT ASSETS

11,806

11,252

 

  Property & Equipment

7,435

6,596

 

  Intangibles

 

42

50

 

  Investments, Other Fixed Assets

958

1,038

 

      TOTAL ASSETS

20,241

18,936

 

  Payables

 

843

917

 

  Short-Term Bank Loans

2,000

2,000

 

　

 

　

　

 

  Other Current Liabs

1,542

1,049

 

      TOTAL CURRENT LIABS

4,385

3,966

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

493

26

 

  Reserve for Retirement Allw

409

398

 

  Other Debts

　

(5,287)

(4,390)

 

      TOTAL LIABILITIES

 

 

 

      MINORITY INTERESTS

5,297

4,464

 

Common stock

1,789

1,789

 

Additional paid-in capital

1,728

1,728

 

Retained earnings

11,292

10,757

 

Evaluation p/l on investments/securities

269

330

 

Others

 

1

3

 

Treasury stock, at cost

(136)

(136)

 

      TOTAL S/HOLDERS` EQUITY

14,943

14,471

　

      TOTAL EQUITIES

20,241

18,936

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

-557

1,364

 

Cash Flows from Investment Activities

-225

-625

 

Cash Flows from Financing Activities

428

-209

　

Cash, Bank Deposits at the Term End

　

2,442

2,781

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

14,943

14,471

 

 

Current Ratio (%)

269.24

283.71

 

 

Net Worth Ratio (%)

73.83

76.42

 

 

Recurring Profit Ratio (%)

9.81

11.32

 

 

Net Profit Ratio (%)

6.33

6.64

 

 

Return On Equity (%)

4.56

4.64

 

 

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/normal.

 

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