MIRA
INFORM REPORT
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Report Date : |
9th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
OTSUKA CHEMICAL CO LTD |
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Registered Office : |
3-2-27 Otedori Chuoku Osaka 540-0021, Japan |
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Country : |
Japan |
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Financials (as on) : |
28.02.2007 (Estimated) |
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Date of Incorporation : |
September 2002 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacture of
industrial chemicals, agricultural chemicals. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 1,632.5 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
Company Name
OTSUKA CHEMICAL CO LTD
REGD NAME
Otsuka Kagaku KK
MAIN OFFICE
3-2-27 Otedori Chuoku Osaka 540-0021 JAPAN
Tel :
06-6943-7711
Fax :
06-6496-0860
URL : http://www.otsukac.co.jp
E-Mail address :
info@otsukac.co.jp
ACTIVITIES
Mfg of industrial chemicals, agricultural chemicals
BRANCHES
Tokyo, Osaka, Nagoya, Sendai, Fukuoka, Sapporo, other (Tot
7)
OVERSEAS
New York, Barcelona, Shanghai
FACTORY(IES
Tokushima, Naruto, Matsushige
OVERSEAS
Spain (Barcelona), Korea, Indonesia
OFFICERS
Masatoshi Taniguchi, ch AKIHEI
MORI, PRES & CEO
Takashi Hoshino, mgn dir Jun’ya
Otsuka, dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 18,952 M*
PAYMENTS REGULAR CAPITAL Yen 1,000 M
TREND STEADY WORTH Yen 35,453 M
STARTED 2002 EMPLOYES 731
*.. For irregular 6 months due to change in accounting term.
COMMENT
MFR SPECIALIZING IN INDUSTRIAL & AGRICULTURAL CHEMICALS,
WHOLLY OWNED BY OTSUKA CHEMICAL HOLDINGS CO LTD...
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,632.5 MILLION, 30 DAYS NORMAL
TERMS. .
HIGHLIGHTS
The subject company was established originally in 1950 when
Otsuka Pharmaceutical Factory Inc separated its Organic Chemicals Division as
Otsuka Kagaku Yakuhin KK (which later in
1984 renamed Otsuka Chemical Co Ltd). In
Sept 2002, renamed as captioned, and then separated two divisions into
independent entities: Otsuka Chemical Co Ltd (as captioned) and Otsuka
Furniture Mfg & Sales Ltd. Both firms became consolidated subsidiaries of
Otsuka Chemical Holdings Co Ltd (see
REGISTRATION). The subject firm succeeded the mfg opera- tions of industrial chemicals, agrochemicals and fertilizers
divisions.
FINANCIAL INFORMATION
The sales volume for Feb/2006 fiscal term for irregular 6
months amounted to Yen 18,952 million, a 9% down on a 12-month adjusted basis
from Yen 41,467 million in the previous term.
Part of business was transferred to a sister company. The recurring profit was posted at Yen 1,201
million and the net profit at Yen 502 million, respectively, compared with Yen
3,564 million recurring profit and Yen 2,162 million net profit, respectively,
a year ago.
Consolidated
financials of the parent, Otsuka Chemical Holdings Co Ltd, are attached
herewith.
For the term just ended Feb 2007 the recurring profit was
projected and believed posted at Yen 3,350 million and the net profit at Yen
2,000 million, respectively, on a 3% rise in turnover, to Yen 39,000 million.
The financial situation is considered FAIR to EXCELLENT and
good for ORDINARY business engagements.
Max credit limit is estimated at Yen 1,632.5 million, on 30 days normal
terms.
Max credit limit of the parent, Otsuka Chemical Holdings Co
Ltd: Yen 1,296.8 million, on 30 days normal term.
FINANCIALS
(In Million Yen)
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Terms Ending: |
28/02/2007 |
28/02/2006 |
31/08/2005 |
31/08/2004 |
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Annual
Sales |
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39,000 |
18,952 |
41,467 |
42,908 |
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Recur.
Profit |
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3,350 |
1,201 |
3,564 |
2,792 |
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Net
Profit |
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2,000 |
502 |
2,152 |
159 |
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Total
Assets |
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49,407 |
47,707 |
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Current
Assets |
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29,651 |
29,649 |
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Current
Liabs |
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9,786 |
9,557 |
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Net
Worth |
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35,453 |
35,657 |
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Capital,
Paid-Up |
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1,000 |
1,000 |
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Div.P.Share(Ą) |
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200,000.00 |
700,000.00 |
500,000.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
2.89 |
-8.59 |
-3.36 |
3.51 |
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Current Ratio |
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.. |
302.99 |
310.23 |
.. |
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N.Worth Ratio |
.. |
71.76 |
74.74 |
.. |
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R.Profit/Sales |
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8.59 |
6.34 |
8.59 |
6.51 |
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N.Profit/Sales |
5.13 |
2.65 |
5.19 |
0.37 |
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Return On Equity |
.. |
1.42 |
6.04 |
.. |
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Note: The 28/02/2006 fiscal term was for irregular 6 months
due to the change in accounting term
to Mar/Feb from Sept/Aug. Growth rates
are adjusted on a 12-month basis.
Forecast for the 28/03/2007 fiscal term.
REGISTRATION
Date Registered : Sept
2002
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
40,000 shares
Issued :
20,000 shares
Sum :
Yen 1,000 million
Major shareholders (%)
Otsuka Chemical Holdings Co Ltd*(100)
*.. Holding company & mfr of pharmaceuticals (Oronamin
C) at the caption address, founded 1950, capital Yen 3,300 million,
turnover Yen 42,396 million (6 months), recurring profit Yen 1,849 million, net
profit Yen 481 million, total assets Yen126,222 million, net worth Yen 69,831
million, employees 1,848, pres Sadanobu Tobe
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities: Manufactures
Industrial
chemicals (80%): mineral salts, bromides, foaming agents, catalysts, drug
raw materials, anti-rust chemicals, others;
Agrochemicals
(20%): insecticides, bactericides, herbicides; fertilizers for
use in farming, horticulture, golf courses, plants, other.
Exports
(38%).
Clients
[Mfrs, farm coops, wholesalers] Zen-Noh, Taiho
Pharmaceutical, Moriroku Co, Maruzen Chemicals, Itochu Chemical Frontier Corp,
other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Mitsui & Co, Mitsubishi Corp, Otsuka
Pharmaceutical Factory, Sankyo Shoji
Corp, Sumitomo Corp, Arysta Lifescience Corp, Tosoh Ltd, Syngenta Japan, Naruto
Salt Mfg, Daisho Glass, other.
Payment record
Regular
Location
Business area in Osaka.
Office premises at the caption address are owned by the group and
maintained satisfactorily.
Bank References
Resona Bank (Kitahama)
SMBC (Osaka H/O)
Relations: Satisfactory
CONSOLIDATED FINANCES OF THE
PARENT, OTSUKA CHEMICAL HOLDINGS CO LTD
FINANCES: (Consolidated in million yen)
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Terms Ending: |
28/02/2006 |
31/08/2005 |
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INCOME STATEMENT |
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Annual Sales |
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42,396 |
97,271 |
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Cost of Sales |
28,129 |
62,604 |
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GROSS PROFIT |
14,267 |
34,666 |
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Selling & Adm Costs |
12,607 |
28,598 |
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OPERATING PROFIT |
1,659 |
6,068 |
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Non-Operating P/L |
190 |
639 |
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RECURRING PROFIT |
1,849 |
6,707 |
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NET PROFIT |
481 |
3,584 |
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BALANCE SHEET |
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Cash |
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13,732 |
11,953 |
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Receivables |
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21,337 |
28,484 |
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Inventory |
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13,510 |
13,118 |
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Securities, Marketable |
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Other Current Assets |
2,835 |
2,925 |
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TOTAL CURRENT ASSETS |
51,414 |
56,480 |
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Property & Equipment |
31,303 |
31,769 |
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Intangibles |
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2,128 |
2,145 |
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Investments, Other Fixed Assets |
41,377 |
37,892 |
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TOTAL ASSETS |
126,222 |
128,286 |
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Payables |
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11,586 |
12,888 |
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Short-Term Bank Loans |
12,412 |
11,629 |
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Other Current Liabs |
8,098 |
12,383 |
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TOTAL CURRENT LIABS |
32,096 |
36,900 |
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Debentures |
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Long-Term Bank Loans |
17,048 |
15,237 |
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Reserve for Retirement Allw |
5,358 |
5,213 |
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Other Debts |
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571 |
420 |
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TOTAL LIABILITIES |
55,073 |
57,770 |
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MINORITY INTERESTS |
1,318 |
1,283 |
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Common
stock |
33,000 |
33,000 |
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Additional
paid-in capital |
9,126 |
9,126 |
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Retained
earnings |
59,121 |
59,238 |
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Evaluation
p/l on investments/securities |
1,349 |
721 |
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Others |
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(31,339) |
(31,427) |
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Treasury
stock, at cost |
(1,426) |
(1,426) |
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TOTAL S/HOLDERS` EQUITY |
69,831 |
69,232 |
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TOTAL EQUITIES |
126,222 |
128,286 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
28/02/2006 |
28/02/2005 |
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Cash
Flows from Operating Activities |
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3,582 |
5,283 |
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Cash
Flows from Investment Activities |
-3,913 |
-3,789 |
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Cash
Flows from Financing Activities |
2,013 |
-5,753 |
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Cash,
Bank Deposits at the Term End |
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13,022 |
11,293 |
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ANALYTICAL RATIOS Terms
ending: |
28/02/2006 |
31/08/2005 |
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Net
Worth (S/Holders' Equity) |
69,831 |
69,232 |
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Current
Ratio (%) |
160.19 |
153.06 |
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Net Worth
Ratio (%) |
55.32 |
53.97 |
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Recurring
Profit Ratio (%) |
4.36 |
6.90 |
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Net
Profit Ratio (%) |
1.13 |
3.68 |
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Return
On Equity (%) |
0.69 |
5.18 |
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Note: Financials are only partially disclosed.
Forecast (or estimated) for the ^ fiscal term. (*) Pretax profits disclosed from the Taxation Office.
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%)