MIRA
INFORM REPORT
|
Report Date : |
28.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SHOWA DENKO KENSO CO LTD |
|
|
|
|
Registered Office : |
3-1 Nishinomiyacho Toyama 931-8335 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
Oct 1982 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturing of elastic polishing
grindstones |
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 61.2 millions |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name
SHOWA DENKO KENSO CO LTD
REGD NAME
Showa Denko Kenso KK
MAIN OFFICE
3-1 Nishinomiyacho Toyama 931-8335 JAPAN
Tel : 076-438-4083
Fax : 076-438-0959
URL : http://www.sdk.co.jp (Of the parent, Showa Denko KK)
E-mail : info@sdk.co.jp
ACTIVITIES
Mfg of elastic polishing grindstones
BRANCHES
Yokohama (at the parent’s factory)
FACTORY(IES)
At the caption address
OFFICERS
ICHIRO HONMA, PRES
Shigeaki Shiota, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 757 M
PAYMENTS REGULAR CAPITAL Yen 50 M
TREND STEADY WORTH Yen 171 M
STARTED 1982 EMPLOYES 24
COMMENT
MFR SPECIALIZING POLISHING GRINDSTONES, WHOLLY OWNED BY SHOWA
DENKO KK. FINANCIAL SITUATION
CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 61.2 MILLION, 30 DAYS NORMAL
TERMS.
HIGHLIGHTS
The subject company was established on the basis of a section
in Ceramic Division separated from Showa Denko KK, major petrochemical mfr,
Tokyo (See REGISTRATION). This is
virtually a section of the parent, Showa Denko KK, and manufactures elastic
polishing grindstones centrally, other associated parts & components. Goods are gradually being switched to direct
shipment to clients (mostly mfg industries) from the conventional business
transactions through traders.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 757 million, a 7% rise from Yen 708 million in the previous term. Mfg industries recovered and demand continued to increase. The net profit was posted at Yen 106 million, up from Yen 94 million a year ago. Cost reduction efforts contributed to improve profits.
For the current term ending Dec 2007 the net profit is
projected at Yen 110 million, on a 4% rise in turnover, to Yen 790
million. Business is seen steady and
rising.
The financial situation is considered FAIR to GOOD and
responsible for ORDINARY business engagements.
Max credit limit is estimated at Yen 61.2 million, on 30 days normal
terms.
REGISTRATION
Date Registered: Oct
1982
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 4,000
shares
Issued: 1,000
shares
Sum: Yen
50 million
Major shareholders (%): Showa Denko KK*(100)
* Comprehensive chemical mfr, Tokyo, founded 1939, listed Tokyo S/E, capital Yen 110,824 million, sales Yen 924,533 million, operating profit Yen 68,727 million, recurring profit Yen 57,514 million, net profit Yen 28,836 million, total assets Yen 1,037,823 million, net worth Yen 235,410 million, employees 11,184, pres Kyohei Takahashi.
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: Manufactures elastic polishing grindstones,
associated parts & components, others (--100%).
Clients: [Mfrs, wholesalers] Noritake Company Ltd, Marubeni Corp, Hitachi Metals Ltd, Shoko Co, Satoh Shoji Corp, other.
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Showa Denko KK, Shoko Co, Japan
Vilene, Showa Highpolymer
Co, Sanko Keito Boseki, other
Payment record: Regular
Location: Business area in Toyama. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Hokuriku Bank (Iwase)
Mizuho Corporate Bank (Toyama)
Relations: Satisfactory
FINANCES
(In Million Yen)
|
Terms Ending: |
31/12/2007 |
31/12/2006 |
31/12/2005 |
31/12/2004 |
|
|
Annual Sales |
|
790 |
757 |
708 |
692 |
|
Recur. Profit |
|
|
|
|
|
|
Net Profit |
|
110 |
106 |
94 |
91 |
|
Total Assets |
|
|
515 |
505 |
|
|
Current Assets |
|
|
388 |
387 |
|
|
Current Liabs |
|
|
322 |
403 |
|
|
Net Worth |
|
|
171 |
65 |
|
|
Capital, Paid-Up |
|
|
50 |
50 |
50 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
4.36 |
6.92 |
2.31 |
7.29 |
|
|
Current Ratio |
|
.. |
120.50 |
96.03 |
.. |
|
N.Worth Ratio |
.. |
33.20 |
12.87 |
.. |
|
|
R.Profit/Sales |
|
.. |
.. |
.. |
.. |
|
N.Profit/Sales |
13.92 |
14.00 |
13.28 |
13.15 |
|
|
Return On Equity |
.. |
61.99 |
144.62 |
.. |
|
Notes: Forecast (or estimated) for the 31/12/2007 fiscal
term.
SUPPLEMENTS
Consolidated Financials of the parent, Showa Denko KK
|
FINANCES: (Consolidated in million yen) |
|
|||
|
|
|
Terms Ending: |
31/12/2006 |
31/12/2005 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
914,533 |
811,899 |
|
|
Cost of Sales |
762,532 |
672,423 |
|
|
|
GROSS PROFIT |
152,001 |
139,476 |
|
|
|
Selling & Adm Costs |
83,274 |
82,285 |
|
|
|
OPERATING PROFIT |
68,727 |
57,191 |
|
|
|
Non-Operating P/L |
-11,213 |
-102,321 |
|
|
|
RECURRING PROFIT |
57,514 |
46,960 |
|
|
|
NET PROFIT |
28,836 |
15,647 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
55,424 |
37,273 |
|
|
Receivables |
|
176,218 |
161,054 |
|
|
Inventory |
|
86,313 |
77,336 |
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
30,498 |
42,380 |
|
|
|
TOTAL CURRENT ASSETS |
348,453 |
318,043 |
|
|
|
Property & Equipment |
549,991 |
510,904 |
|
|
|
Intangibles |
|
18,408 |
24,278 |
|
|
Investments, Other Fixed Assets |
120,971 |
133,008 |
|
|
|
TOTAL ASSETS |
1,037,823 |
986,233 |
|
|
|
Payables |
|
161,456 |
140,181 |
|
|
Short-Term Bank Loans |
110,348 |
97,773 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
157,021 |
153,430 |
|
|
|
TOTAL CURRENT LIABS |
428,825 |
391,384 |
|
|
|
Debentures |
|
19,000 |
24,000 |
|
|
Long-Term Bank Loans |
183,168 |
195,168 |
|
|
|
Reserve for Retirement Allw |
35,341 |
42,982 |
|
|
|
Other Debts |
|
105,997 |
76,910 |
|
|
TOTAL LIABILITIES |
772,331 |
730,444 |
|
|
|
MINORITY INTERESTS |
|
49,050 |
|
|
|
Common stock |
110,824 |
110,451 |
|
|
|
Additional paid-in capital |
26,883 |
11,090 |
|
|
|
Retained earnings |
47,333 |
21,868 |
|
|
|
Evaluation p/l on
investments/securities |
19,286 |
19,485 |
|
|
|
Others |
|
61,318 |
43,940 |
|
|
Treasury stock, at cost |
(152) |
(96) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
265,492 |
206,738 |
|
|
|
TOTAL EQUITIES |
1,037,823 |
986,233 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/12/2006 |
31/12/2005 |
|
|
Cash Flows from Operating Activities |
|
91,398 |
77,966 |
|
|
Cash Flows from Investment
Activities |
-55,948 |
-17,987 |
|
|
|
Cash Flows from Financing Activities |
-18,047 |
-53,446 |
|
|
|
Cash, Bank Deposits at the Term End |
|
55,100 |
37,233 |
|
ANALYTICAL RATIOS Terms ending: |
31/12/2006 |
31/12/2005 |
||
|
|
|
Net Worth (S/Holders' Equity) |
265,492 |
206,738 |
|
|
|
Current Ratio (%) |
81.26 |
81.26 |
|
|
|
Net Worth Ratio (%) |
25.58 |
20.96 |
|
|
|
Recurring Profit Ratio (%) |
6.29 |
5.78 |
|
|
|
Net Profit Ratio (%) |
3.15 |
1.93 |
|
|
|
Return On Equity (%) |
10.86 |
7.57 |
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. |
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%)