MIRA
INFORM REPORT
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Report Date : |
9th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SUMITOMO SHOJI CHEMICALS CO LTD |
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Registered Office : |
Harumi Island Toriton Square Office Tower Z 23/24 F’s, 1-8-12 Harumi Chuoku
Tokyo 104-0053, Japan |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 (Estimated) |
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Date of Incorporation : |
February 1998 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of inorganic chemicals, electronics & functional chemicals & materials, organic chemicals, fine chemicals, others, Import/Export. |
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 1,122 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
Company Name
SUMITOMO SHOJI CHEMICALS CO LTD
REGD NAME
Sumitomo Shoji Chemical KK
MAIN OFFICE
Harumi Island Toriton Square Office Tower Z 23/24 F’s, 1-8-12 Harumi
Chuoku Tokyo 104-0053 JAPAN
Tel :
03-5166-9300
Fax :
03-5166-9303
URL : http://www.sc-chem.co.jp/
E-Mail address :
info@sc-chem.co.jp
ACTIVITIES
Import, export, wholesale of plastics, industrial chemicals
BRANCHES
Osaka, Nagoya, Takaoka
OFFICER(S
KAZUHIKO YAMAZAKI, PRES Tetsuhiko
Tsuji, v pres
Yasuo Akiyama, mgn dir Toshio
Matsuki, mgn dir
Tomoyuki Kondo, mgn dir Heizo
Suzuki, mgn dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 188,029 M
PAYMENTS REGULAR CAPITAL Yen 900 M
TREND STEADY WORTH Yen 6,757 M
STARTED 1998 EMPLOYES 321
COMMENT
TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, WHOLLY
OWNED BY SUMITOMO CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,122 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was established on the basis of Chemical
Business Unit Plastic Division separated from Sumitomo Corp (see REGISTRATION),
named Sumitomo Shoji Plastics Co Ltd, dealing mainly in construction materials,
industrial & wrapping materials. In
Jul 2004 acquired Organic Chemicals Division from a sister company, Sumitomo
Shoji Chemicals Co Ltd, handling functional chemical products. In Oct 2005, merged with Sumitomo Shoji
Chemicals Co Ltd and Sumitomo Chemicals & Plastics Nagoya Co Ltd, with
Sumitomo Shoji Plastics Co Ltd as a surviving entity and then renamed as
captioned. A specialized trader for
import, export and wholesale of plastics and chemicals (see OPERATION). The merger was conducted in order to
integrate and streamline chemicals & plastics operations of the Sumitomo
Group.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen
188,029 million, a 31% continuous hike from Yen 143120 million in the previous
term. This is attributed to the merger
of the said three chemical firms.
Handling items have expanded.
Hike in chemical materials prices, fueled by the oil & other
materials price hike, also contributed.
The recurring profit was posted at Yen 2,510 million and the net profit
at Yen 1,546 million, respectively, compared with Yen 1,840 million recurring
profit and Yen 1,038 million net profit, respectively, a year ago. Profits improved sharply. We have attached financials of the parent,
Sumitomo Corp.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 2,530 million and the net profit at Yen 1,600 million,
respectively, on a 4% rise in turnover, to Yen 195,000 million. Business continues on the uptrend. Hike in materials prices will
contribute. Weaker Yen will also help
uplift sales in Yen terms.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 1,122.0 million, on normal 30 days terms.
Max credit limit of the parent, Sumitomo Corp: Yen 155,902.1
million, 30 days normal terms.
FINANCIALS
(In Million Yen)
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Terms Ending: |
31/03/2007 |
31/03/2006 |
31/03/2005 |
31/03/2004 |
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Annual
Sales |
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195,000 |
188,029 |
143,120 |
115,130 |
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Recur.
Profit |
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2,530 |
2,510 |
1,840 |
813 |
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Net
Profit |
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1,600 |
1,546 |
1,038 |
598 |
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Total
Assets |
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94,275 |
67,230 |
64,454 |
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Current
Assets |
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80,692 |
57,479 |
41,443 |
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Current
Liabs |
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84,651 |
60,571 |
43,778 |
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Net
Worth |
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6,757 |
3,833 |
2,990 |
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Capital,
Paid-Up |
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900 |
900 |
900 |
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Div.P.Share(¥) |
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48,400.00 |
24,200.00 |
14,000.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
3.71 |
31.38 |
24.31 |
9.19 |
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Current Ratio |
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.. |
95.32 |
94.90 |
94.67 |
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N.Worth Ratio |
.. |
7.17 |
5.70 |
4.64 |
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R.Profit/Sales |
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1.30 |
1.33 |
1.29 |
0.71 |
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N.Profit/Sales |
0.82 |
0.82 |
0.73 |
0.52 |
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Return On Equity |
.. |
22.88 |
27.08 |
20.00 |
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Note: Forecast for the 31/03/2007 fiscal term.
REGISTRATION
Date Registered : Feb 1998
Legal Status : Limited Company (Kabushiki Kaisha)
Authorized : 36,000 shares
Issued : 9,000 shares
Sum : Yen 900 million
Major shareholders (%)
Sumitomo Corp*(100)
*.. One of leading general trading houses, nucleus of Sumitomo group, founded 1919, listed Tokyo, Osaka, Nagoya, Frankfurt S/E’s, capital Yen 219,279 million, turnover Yen 10,336,265 million, recurring profit Yen 247,807 million, net profit Yen 160,237 million, total assets Yen 6,711,894 million, net worth Yen 1,303,975 million, employees 51,700, pres Motoyuki Oka
Nothing detrimental is knows as to the commercial morality of executives.
OPERATION
Activities: Import, export, wholesale of inorganic chemicals (22%), electronics & functional chemicals & materials (22%), organic chemicals (11%), fine chemicals, others (45%). Import/Export 20%.
Plastics: construction materials, resin materials & subsidiary materials, plastic film/sheet molding, electronics materials, FRP products, packaging materials, agricultural materials, plastic processing machinery, metal molds, other;
Chemicals: aromatics & organic solvents, industrial organic chemicals, resin/rubber materials & fibers, coal chemical products, organic halides, organic resin additives, catalytic agents, inorganic chemicals, minerals, industrial gases, fine chemicals, polyurethane raw materials, epoxy resin, life science, raw materials for cosmetics, electronics parts, semi conductor materials, fine ceramics, other.
Clients
[Mfrs, wholesalers] Sumitomo Corp, Sumitomo Corp (Hong Kong), Lilycolor Co, Sumitomo Electric Ind, Sumitomo Chemical, Interflex, Dainippon Ink & Chemicals, Samsung Japan, Mitsubishi Electric, Taoka Chemical, Tenma Corp, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Sumitomo Corp, Sumitomo Chemical, Daikin Ind, Arisawa Mfg, Sumitomo Bakelite, Takeda Chemical Ind, Toyobo Co, Asahi Kasei Chemicals, Sumika Bayer Urethane, Sumitomo Mitsubishi Silicon Corp, Asahi Glass, Sumitomo Metal Ind, Sumitomo Metal Mining, Sumitomo Seika Chemicals, Toyo Styrene, Japan Polypropylene Corp, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are owned by the parent, Sumitomo Corp, and maintained satisfactorily.
Bank References
SMBC (Tokyo)
Sumitomo Trust Bank (Tokyo)
Relations: Satisfactory
CONSOLIDATED FINANCIALS OF THE
PARENT, SUMITOMO CORPORATION.
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME STATEMENT |
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Annual Sales |
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10,336,265 |
9,898,598 |
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Cost of Sales |
9,629,618 |
9,335,468 |
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GROSS PROFIT |
706,647 |
563,130 |
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Selling & Adm Costs |
530,514 |
450,745 |
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OPERATING PROFIT |
176,133 |
112,385 |
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Non-Operating P/L |
71,674 |
47,852 |
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RECURRING PROFIT |
247,807 |
160,237 |
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NET PROFIT |
160,237 |
85,073 |
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BALANCE SHEET |
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Cash |
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522,000 |
453,891 |
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Receivables |
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1,994,091 |
1,736,718 |
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Inventory |
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705,257 |
503,767 |
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Securities, Marketable |
22,087 |
23,154 |
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Other Current Assets |
400,905 |
377,503 |
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TOTAL CURRENT ASSETS |
3,644,340 |
3,095,033 |
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Property & Equipment |
819,503 |
720,392 |
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Intangibles |
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259,264 |
113,567 |
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Investments, Other Fixed Assets |
1,988,787 |
1,604,135 |
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TOTAL ASSETS |
6,711,894 |
5,533,127 |
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Payables |
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1,193,912 |
998,953 |
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Short-Term Bank Loans |
968,112 |
850,751 |
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Other Current Liabs |
460,490 |
348,354 |
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TOTAL CURRENT LIABS |
2,622,514 |
2,198,058 |
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Debentures |
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Long-Term Bank Loans |
2,447,170 |
2,213,651 |
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Reserve for Retirement Allw |
13,180 |
11,782 |
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Other Debts |
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230,364 |
85,708 |
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TOTAL LIABILITIES |
5,313,228 |
4,509,199 |
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MINORITY INTERESTS |
94,691 |
89,037 |
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Common
stock |
219,279 |
219,279 |
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Additional
paid-in capital |
279,470 |
238,859 |
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Retained
earnings |
596,913 |
480,316 |
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Evaluation
p/l on investments/securities |
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Others |
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213,767 |
(2,917) |
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Treasury
stock, at cost |
(5,454) |
(646) |
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TOTAL S/HOLDERS` EQUITY |
1,303,975 |
934,891 |
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TOTAL EQUITIES |
6,711,894 |
5,533,127 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Cash
Flows from Operating Activities |
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-62,752 |
-20,831 |
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Cash
Flows from Investment Activities |
-141,428 |
-55,833 |
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Cash
Flows from Financing Activities |
262,145 |
115,825 |
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Cash,
Bank Deposits at the Term End |
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522,000 |
453,891 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net Worth
(S/Holders' Equity) |
1,303,975 |
934,891 |
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Current
Ratio (%) |
138.96 |
140.81 |
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Net
Worth Ratio (%) |
19.43 |
16.90 |
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Recurring
Profit Ratio (%) |
2.40 |
1.62 |
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Net
Profit Ratio (%) |
1.55 |
0.86 |
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Return
On Equity (%) |
12.29 |
9.10 |
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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%)