MIRA
INFORM REPORT
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Report Date : |
03.05.2007 |
IDENTIFICATION DETAILS
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Name : |
KANSAI PAINT CO LTD |
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Registered Office : |
4-3-6 Fushimimachi Chuoku |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
May 1918 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Manufacturing of paints &
coatings |
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 6943.1 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name
KANSAI PAINT CO LTD
REGD NAME
Kansai Paint KK
MAIN OFFICE
4-3-6 Fushimimachi
Chuoku
Tel: 06-6203-5531
Fax: 06-6203-5725
E-Mail
address: info@kansai.co.jp
ACTIVITIES
Mfg of
paints & coatings
BRANCHES
OVERSEAS:
FACTORY(IES)
CHIEF EXEC
SHOJU
KOBAYASHI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 210,964 M
PAYMENTS REGULAR CAPITAL Yen 25,658 M
TREND STEADY WORTH Yen
152,175 M
STARTED 1918 EMPLOYES 6,770
COMMENT
MFR OF PAINTS & COATINGS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 6,943.1 MILLION, 30 DAYS NORMAL TERMS
Forecast (or estimated)
figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established by Katsujiro Iwai in order
to mfg pigments & paints. These
products had been imported and he ventured to produce them in
Recent overseas projects include:
1. Reported the firm invested Yen 500
million to build a new factory in
make 300-400 tons of paints/year for
personal computers and construction materials.
The factory is
slated to begin operations in June
2007.
2. In
to expand the total capacity by
40%. The plant will begin operations in
2008, when the firm will shift
automotive paint production there
and use the older facility to make paints for consumer electronics &
colored steel plates for home
roofing.
3. The firm will build a new factory in
produce
construction paints in anticipation of projected economic development in
southern
production
will be 6,000 tons paint, investing Yen 6-7 billion. The new factory will begin operations in late
Mar 2009,
the firm’s production capacity will be doubled in
production
capacity in
(News excerpt from Nikkei
Shimbun)
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen
210,964 million, a 7.2% up from Yen 196,785 million in the previous term. Sales edged up in
For the term just ended Mar 2007 the recurring profit was
projected and believed posted at Yen 25,000 million and the net profit at Yen
13,500 million, respectively, on a 4.3% rise in turnover, to Yen 220,000
million. Domestic demand was flat. Overseas construction/automotive-us paints
rose further via startup of new plants in
(Apr/Dec/2006 results): Sales Yen 171,459 million (up 10.0%),
operating profit Yen 16,313 million (up 16.8%), recurring profit Yen 18,411
million (up 11.9%), net profit Yen 10,280 million (up 15.7%). (% compared with the same period the previous
term). Sales of automotive coatings
& industrial-use coatings were brisk and rose particularly in
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 6,943.1 million, on 30 days normal terms.
REGISTRATION
Date
Registered: May 1918
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 793,476,000 shares
Issued: 272,623,270 shares
Sum: Yen 25,658 million
Major shareholders (%): Master Trust Bank of Japan T (6.1), Japan Trustee Services Bank T (5.5), Nippon Life
Ins (3.9), Dai-ichi Life Ins (3.4), Toyota Motor (3.0), State Street Bank & Trust (3.0),
Material Suppliers’ S/Holding Assn (2.8), Daido Life Ins (2.7), Tokio Marine Nichido Fire
Ins (2.5), Goldman Sachs Int’l (2.3); foreign owners (21.2)
No. of shareholders: 24,011
Listed on the S/Exchange (s) of:
Managements: Shoju Kobayashi, pres & CEO; Toshinobu Otani, s/mgn dir; Kazuhiro Fujita, mgn dir;
Shin’ichi
Isozaki, mgn dir; Yuzo Kawamori, mgn dir; Koji Yamamoto, dir; Kozo Sasaki, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies
Kansai
Paint Sales, Kanpei Trading, other (Tot 33 as of Sept/06)
OPERATION
Activities: Manufactures paints & coatings (97%), others (3&)::
(Sales breakdown by
divisions):
Automotive coatings (52%): Core business area of coating for new cars, including automotive parts, and automotive refinish paints;
Industrial coatings (22%): coatings for construction materials (pre-coated metals coating, electrodepositing coatings for aluminum sashes), industrial machinery and equipment, machine tools, beverage cans (PET bottles, home electric appliances;
Decorative coatings, others (21%): coatings for housing, commercial buildings, public facilities, consisting of two markets: for repairs & maintenance, and for new buildings.
Marine & Protective coatings (5%): coatings for marine containers, steel structures;
Overseas sales ratio
32.5%: Asia 30.1% (
Clients: [Wholesalers, mfrs] Kansai Paint Sales, Kanpei Trading, Ohgi Paint Trading, Eguchi Iwao Shoten, Ueda KK, other.
No. of
accounts: 2,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] NN Chemical, Nagase Corp, Moriroku Co, Kohyo Co, Matsuo Sangyo, other.
Payment
record: Regular
Location: Business area in
Bank References
MUFG (
Mizuho
Corporate Bank (
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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210,964 |
196,785 |
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Cost of Sales |
146,122 |
133,242 |
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GROSS PROFIT |
64,842 |
63,543 |
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Selling & Adm Costs |
45,939 |
46,014 |
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OPERATING PROFIT |
18,903 |
17,528 |
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Non-Operating P/L |
3,139 |
1,998 |
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RECURRING PROFIT |
22,042 |
19,526 |
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NET PROFIT |
12,048 |
10,196 |
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BALANCE SHEET |
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Cash |
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37,148 |
29,742 |
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Receivables |
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67,053 |
61,382 |
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Inventory |
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19,751 |
16,529 |
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Securities, Marketable |
806 |
7 |
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Other Current Assets |
6,283 |
5,575 |
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TOTAL CURRENT ASSETS |
131,041 |
113,235 |
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Property & Equipment |
45,983 |
45,461 |
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Intangibles |
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953 |
1,178 |
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Investments, Other Fixed
Assets |
88,909 |
59,865 |
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TOTAL ASSETS |
266,886 |
219,739 |
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Payables |
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48,569 |
44,928 |
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Short-Term Bank Loans |
2,140 |
1,328 |
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Other Current Liabs |
18,266 |
14,070 |
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TOTAL CURRENT LIABS |
68,975 |
60,326 |
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Debentures |
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Long-Term Bank Loans |
7,028 |
7,060 |
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Reserve for Retirement Allw |
8,095 |
8,565 |
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Other Debts |
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19,212 |
8,611 |
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TOTAL LIABILITIES |
103,310 |
84,562 |
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MINORITY INTERESTS |
11,401 |
9,209 |
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Common stock |
25,658 |
25,658 |
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Additional paid-in capital |
27,157 |
27,156 |
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Retained earnings |
70,664 |
61,017 |
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Evaluation p/l on investments/securities |
30,642 |
15,563 |
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Others |
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(1,290) |
(2,891) |
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Treasury stock, at cost |
(656) |
(537) |
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TOTAL S/HOLDERS` EQUITY |
152,175 |
125,966 |
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TOTAL EQUITIES |
266,886 |
219,739 |
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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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20,174 |
10,087 |
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Cash Flows from Investment Activities |
-10,668 |
-6,772 |
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Cash Flows from Financing Activities |
-3,175 |
-3,686 |
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Cash, Bank Deposits at the Term End |
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36,268 |
29,316 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2006 |
31/03/2005 |
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Net Worth (S/Holders' Equity) |
152,175 |
125,966 |
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Current Ratio (%) |
189.98 |
187.71 |
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Net Worth Ratio (%) |
57.02 |
57.33 |
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Recurring Profit Ratio (%) |
10.45 |
9.92 |
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Net Profit Ratio (%) |
5.71 |
5.18 |
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Return On Equity (%) |
7.92 |
8.09 |
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%)