MIRA
INFORM REPORT
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Report Date : |
19.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
RIKEN TECHNOS CORPORATION |
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Registered Office : |
Marusan Bldg, 3-11-5 Nihombashi-Honcho Chuoku Tokyo 103-8438 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Mar 1951 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of PVC compounds |
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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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
RIKEN TECHNOS CORPORATION
REGD NAME
Riken Technos KK
MAIN OFFICE
Marusan Bldg, 3-11-5 Nihombashi-Honcho Chuoku Tokyo 103-8438 JAPAN
Tel : 03-3663-7991
URL : http://www.rikentechnos.co.jp
E-Mail address: info@rikentechnos.co.jp
ACTIVITIES
Mfg of PVC compounds
BRANCHES
Osaka, Nagoya, Fukuoka
OVERSEAS
Shanghai
(Affiliated): Riken (Thailand) Co Ltd; Rimtec Corporation
(USA); PT Riken Asahi Plastics Indonesia; Riken USA Corporation; Riken Technos
Europe BV (Netherlands); Shanghai Riken Technos Corp; Riken Technos (Jiang Su)
Corp
FACTORY(IES)
Saitama, Mie, Gunma
CHIEF EXEC
KOICHI KINOSHITA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 68,413 M
PAYMENTS REGULAR CAPITAL Yen 8,514 M
TREND STEADY WORTH Yen 37,331 M
STARTED 1951 EMPLOYES 1,603
COMMENT
MFR SPECIALIZING IN PVC COMPOUNDS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
This is the largest manufacturer of PVC compounds used as electric wire covering and other molding materials. PVC calendared films for building materials are main profit earner. Controls 35% of the market share in the PVC compounds. Also produces extruding films for food wrapping using PVC compounds as materials. Actively expanding non-PVC products and business expansion overseas. Operates 7 overseas subsidiaries: USA (2), China (2), Netherlands, Indone- sia, and Thailand,
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen
68,413 million, a 4.8% up from Yen 65,289 million in the previous term. PVC compounds continued in good demand. Elastomers expanded due to robust demand
from automakers. Bi divisions,
compounds rose 4.7% to Yen 19,218 million.
Calendared films for building up by 4.7% to Yen 19,218 million. Extruded films for food industry rose 1.4%
to Yen 5,097 million. The recurring
profit was posted at Yen 3,035 million and the net profit at Yen 2,443 million,
respectively, compared with Yen 2,246 million recurring profit and Yen 1,566
million net profit, respectively, a year ago.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 3,200 million and the net profit at Yen 1,700 million, on a
6.7% rise in turnover, to Yen 73,000 million.
PVC compounds expanding, mainly in S/E Asia. Domestically new materials are firm. Operating profit will grow despite higher materials costs and
heavier depreciation. Net profit will
hit another high. Focusing on optical
films for flat-screen TVs in new medium-term plan. Expanding mfg capacity for PVC compounds and wrapping films in
China.
(Fourth quarterly results ending Dec/2006): Sales Yen 54,853
million (up 7.9%), operating profit Yen 1,593 million (down 26%), recurring
profit Yen 1,736 million (down 26.8%), net profit Yen 995 million (down
13.2%). (% compared with the same
period last year). Film exports rose to Europe
with PVC compounds faring well overseas.
Food wrapping films expanded in China.
Profits, on the other hand, worsened due to rising materials costs and
increasing investment on new factories and depreciation costs.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered: Mar
1951
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 236
million shares
Issued: 66,113,819
shares
Sum: Yen
8,514 million
Major shareholders (%): Sompo Japan Ins (6.8), Shin-Etsu Chemical (4.9), Mizuho Corpo rate Bank (4.7), Resona
Bank (4.7), Mitsui Chemical (4.2), Company’s Treasury Stock (3.6), Marubeni Corp (3.5),
Mitsubishi
Corp (3.4), Mitsui & Co (3.1), SMBC (3.0); foreign owners (4.0)
No. of shareholders: 3,226
Listed on the S/Exchange (s) of: Tokyo
Managements: Koichi Kinoshita, pres; Teruyuki Takahashi, s/mgn dir; Masao Suzuki, mgn dir; Shusuke
Matsuo,
dir; Hiroshi Shimizu, dir; Toshikazu Shimohara, dir; Hidekazu Yonezawa,
dir;
Fumiyoshi
Murakami, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Rimtech Corp, Riken (Thailand) Co Ltd, Shinko Electric Wire Co,
Kyoei Plastic Mfg, Kanekon Co, other (Tot 10 as of Mar/06)
OPERATION
Activities: Manufactures compounds (63%), calendared films
(28%), extruded films (8%), others
(1%).
Overseas sales ratio 33.1%: Asia 18.2%; N America 12.0%;
Europe 2.9%
(Products):
Automobile vehicles: window mall, roof mall, interior materials, door frame film, mud guard, heat screening sheet, other;
Building materials/Furniture: adhesive sheet, film for grazing, compound containing wood powder, sash containing wood powder, window sheet, cabinet door, table edge, high gloss sheet, sashes, other for commercial spaces, kitchen and bathroom;
Food
Wrapping Films: by using unique features of PVC resin with
superior clarity, adhesion and elasticity.
Electric Appliances: CD damper, dials, speakers, polyester base films, laminating poly wood, steel plates, packing & wheels;
Life Materials: Stationery (pen grips), toys (dolls), leisure (golf balls, fishing kits), medical treatment (medical tools), other;
Electric Wire Field: electric
wires for automobiles, plug/code for TV & AV equipment, plug/code for
copiers, digital cameras, DVDs, call phones, other.
Clients: [Mfrs, wholesalers] Sumitomo Chemical, Mitsubishi
Corp, Riken USA Corp, Marubeni Corp, Toppan Printing, Chori Co, Mitsui &
Co, Nichimo Co, Inabata & Co, Tokai Kogyo, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Shin-Etsu Chemical, Sumitomo
Chemical, Mitsubishi Corp, Marubeni Corp, Mitsui & Co, Inabata & Co,
Kaneka Corp, Dainippon Ink & Chemicals, Adeka, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Mizuho Corporate Bank (Ohtemachi)
Resona Bank (Muromachi)
Relations: Satisfactory
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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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68,413 |
65,289 |
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Cost of Sales |
58,358 |
55,319 |
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GROSS PROFIT |
10,054 |
9,969 |
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Selling & Adm Costs |
7,317 |
7,785 |
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OPERATING PROFIT |
2,737 |
2,183 |
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Non-Operating P/L |
298 |
63 |
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RECURRING PROFIT |
3,035 |
2,246 |
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NET PROFIT |
2,443 |
1,566 |
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BALANCE SHEET |
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Cash |
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5,416 |
10,172 |
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Receivables |
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19,913 |
19,589 |
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Inventory |
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9,036 |
7,787 |
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Securities, Marketable |
3,900 |
1,801 |
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Other Current Assets |
3,483 |
554 |
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TOTAL CURRENT ASSETS |
41,748 |
39,903 |
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Property & Equipment |
19,554 |
17,014 |
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Intangibles |
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440 |
334 |
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Investments, Other Fixed Assets |
10,117 |
7,438 |
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TOTAL ASSETS |
71,859 |
64,689 |
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Payables |
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16,778 |
15,232 |
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Short-Term Bank Loans |
4,168 |
2,553 |
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Other Current Liabs |
6,267 |
5,622 |
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TOTAL CURRENT LIABS |
27,213 |
23,407 |
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Debentures |
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Long-Term Bank Loans |
669 |
286 |
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Reserve for Retirement Allw |
2,509 |
3,415 |
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Other Debts |
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322 |
286 |
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TOTAL LIABILITIES |
30,713 |
27,394 |
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MINORITY INTERESTS |
3,814 |
2,926 |
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Common
stock |
8,514 |
8,514 |
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Additional
paid-in capital |
6,535 |
6,535 |
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Retained
earnings |
21,809 |
19,871 |
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Evaluation
p/l on investments/securities |
2,153 |
1,008 |
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Others |
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(760) |
(653) |
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Treasury
stock, at cost |
(920) |
(906) |
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TOTAL S/HOLDERS` EQUITY |
37,331 |
34,369 |
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TOTAL EQUITIES |
71,859 |
64,689 |
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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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2,277 |
3,756 |
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Cash
Flows from Investment Activities |
-4,970 |
-3,133 |
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Cash
Flows from Financing Activities |
1,635 |
-1,484 |
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Cash,
Bank Deposits at the Term End |
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9,697 |
1,007 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
37,331 |
34,369 |
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Current
Ratio (%) |
153.41 |
170.47 |
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Net
Worth Ratio (%) |
51.95 |
53.13 |
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Recurring
Profit Ratio (%) |
4.44 |
3.44 |
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Net
Profit Ratio (%) |
3.57 |
2.40 |
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Return
On Equity (%) |
6.54 |
4.56 |
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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%)