MIRA
INFORM REPORT
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Report Date : |
30.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHOWA DENKO KK |
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Registered Office : |
1-13-9 Shiba-Daimon Minatoku Tokyo 105-8518 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun 1939 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of petrochemicals, chemicals, electronics products, aluminum, etc. |
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 16255.7 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
SHOWA DENKO KK
REGD NAME
Showa Denko KK
MAIN OFFICE
1-13-9 Shiba-Daimon Minatoku Tokyo 105-8518 JAPAN
Tel : 03-5470-3235
Fax : 03-3431-6215
URL : http://www.sdk.co.jp/
E-Mail address: info@sdk.co.jp
ACTIVITIES
Mfg of petrochemicals, chemicals, electronics products, aluminum, etc
BRANCH(ES)
Osaka, Nagoya, Fukuoka
OVERSEAS
USA, Germany, Singapore (2), China (2), Taiwan
FACTORY(IES)
Oita, Tokuyama, Kawasaki, Fukushima (2), Yokohama, Nagano (2), Osaka,
Chiba, Tochigi (2), Saitama
OVERSEAS
USA (2), Portugal, Czech, Malaysia, Indonesia (2), Philippines,
Singapore (2), Thailand, China (6), Taiwan (3)
CHIEF EXEC
KYOHEI TAKAHASHI, PRES & CEO
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 914,533 M
PAYMENTS REGULAR CAPITAL Yen 110,824 M
TREND STEADY WORTH Yen 265,492 M
STARTED 1939 EMPLOYES 11,184
COMMENT
PETROCHEMICAL
MFR. FINANCIAL SITUATION
COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 16,255.7 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/12/2007 fiscal term
HIGHLIGHTS
The subject company was established by the merger of Nihon Denki Kogyo, aluminum smelter and Showa Hiryo KK, fertilizer producer, Tokyo. This is a comprehensive mfr of chemicals: petrochemicals, organic/inorganic chemicals, electronic materials, aluminum cans, other. Placing stronger emphasis on electronic and information materials, and specialty chemicals. Emphasizing hard disk business both domestically and overseas. Has 12 factories domestically and 20 overseas, including 6 factories in China. Clients are major general trading houses, mfrs, other. Goods are both imported and exported thru general trading houses.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen
914,533 million, a 12.6% up from Yen 811,899 million in the previous term. This was thanks to the strong sales of hard
disks, as well as growing demand for synthetic graphite electrodes from
electric furnace steel makers outside Japan.
By divisions, Petrochemicals up 11.4% to Yen 335,383 million, thanks to
price hikes from the material price hikes.
Chemicals up 7.0% to Yen 79,201 million, due to the price hikes of
acrylnitril, caustic soda and hydrochloric acid. Aluminums up 8.0% to Yen 260,107 million. The recurring profit was posted at Yen
57,514 million and the net profit at Yen 28,836 million, respectively, compared
with Yen 46,960 million recurring profit and Yen 15,647 million net profit,
respectively, a year ago.
(Jan/Sept/2007 results): Sales Yen 743,985 million (up 11.6%), operating profit Yen 52,408 million, recurring profit Yen 39,134 million (down 11.4%), net profit Yen 21,008 million (down 16.0%). (% compared with the same period last year). Naphtha prices soared. The firm’s ability to boost prices amid tighter supply-demand conditions also contributed to the rise. Operating profit, on the other hand, tumbled at the hard disk business. Rising prices for rare metals raw materials hurt profitability.
For the current term ending Dec 2007 the recurring profit is projected
at Yen 60,500 million and the net profit at Yen 33,000 million, on a 9.4% rise
in turnover, to Yen 1,000,000 million.
Petrochemicals sales will grow, free of routine plant checkups. Higher prices will be passed onto product
prices. Man-made graphite electrodes
will show steady growth. Profits will
grow absorbing expenses for shift of hard drives to perpendicular recycling
rare metal ruthenium to curtail materials costs.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 16,255.7 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun
1939
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 3,300
million shares
Issued: 1,175,820,425
shares
Sum: Yen 110,824 million
Major shareholders (%): Japan Trustee Services Bank, T (6.3), Fukoku Life Ins (4.6), Master Trust Bank of Japan
T (4.4), Dai-ichi Life Ins (3.8), Sompo Japan Ins (3.5), Nippon Life Ins (3.0), Mizuho
Corporate Bank (2.5), Meiji Yasuda Life Ins (2.3), Employees’ S/Holding Assn (1.3), State
Street
Bank & Trust (1.2); foreign owners (20.5)
No. of shareholders: 85,899
Listed on the S/Exchange (s) of: Tokyo
Managements: Mitsuo Ohashi, ch; Kyohei Takahashi, pres; Yasumasa Sasaki, v pres; Tatsuo Satoh, v
pres; Norikuni Imoto, v pres; Koji Kudoh, mgn dir; Tetsuo Tamada, mgn dir; Ichiro
Nomura,
mgn dir; Shinji Sakai, mgn dir; Toshio Oh’i, mgn dir; Takashi Miyazaki, mgn dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
Showa Highpolymer Co, Showa Denko Aluminum Can Corp, Showa Co, other
OPERATION
Activities: Manufactures petrochemicals, chemicals,
electronics, other:
(Sales Breakdown
by Divisions):
Petrochemicals Div
(37%): ethylene, propylene, C4 Faction, cracked fuel oil;
Organic Chemicals
Div (9%): acetaldehyde, acetic acid, vinyl acetate, ethyl acetate, alkyl alcohol,
alkyl ester resin, liquefied aluminum, nitrogen, amino acid, functional resins;
Electronics &
Information Div (18%): hard disks, compound semiconductors, rare earth
magnet alloy;
Inorganic
Chemicals Div (8%): ceramics for electronics industries, grinding
materials, artificial graphite electrodes, fine carbon;
Aluminum Div
(28%): hydroxide aluminum, aluminum ingots, aluminum, aluminum metals,
aluminum sheets, aluminum foil, aluminum moldings, aluminum cylinders for LBP,
aluminum cans, heat exchangers;
Overseas Sales
Ratio (20.6%): Asia (Korea, China, Taiwan, other S/E Asia) 23.5%; USA, Europe,
other 7.1%
Clients: [Mfrs, wholesalers] Nippon Steel, Marubeni Corp, Sumitomo Corp, Mitsui & Co, Mitsubishi Corp, Zeon Corp, other
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Marubeni Corp, Idemitsu
Petrochemicals, Nippon Oil, Sumitomo Corp, Zeon Corp, Mitsui & Co, Hitachi Ltd, Nippon
Petrochemicals, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Mizuho Corporate Bank (Ohtemachi)
Norin Chukin Bank (H/O)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/12/2006 |
31/12/2005 |
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INCOME STATEMENT |
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Annual Sales |
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914,533 |
811,899 |
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Cost of Sales |
762,532 |
672,423 |
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GROSS PROFIT |
152,001 |
139,476 |
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Selling & Adm Costs |
83,274 |
82,285 |
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OPERATING PROFIT |
68,727 |
57,191 |
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Non-Operating P/L |
-11,213 |
-102,321 |
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RECURRING PROFIT |
57,514 |
46,960 |
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NET PROFIT |
28,836 |
15,647 |
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BALANCE SHEET |
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Cash |
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55,424 |
37,273 |
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Receivables |
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176,218 |
161,054 |
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Inventory |
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86,313 |
77,336 |
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Securities, Marketable |
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Other Current Assets |
30,498 |
42,380 |
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TOTAL CURRENT ASSETS |
348,453 |
318,043 |
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Property & Equipment |
549,991 |
510,904 |
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Intangibles |
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18,408 |
24,278 |
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Investments, Other Fixed Assets |
120,971 |
133,008 |
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TOTAL ASSETS |
1,037,823 |
986,233 |
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Payables |
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161,456 |
140,181 |
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Short-Term Bank Loans |
110,348 |
97,773 |
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Other Current Liabs |
157,021 |
153,430 |
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TOTAL CURRENT LIABS |
428,825 |
391,384 |
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Debentures |
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19,000 |
24,000 |
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Long-Term Bank Loans |
183,168 |
195,168 |
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Reserve for Retirement Allw |
35,341 |
42,982 |
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Other Debts |
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105,997 |
76,910 |
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TOTAL LIABILITIES |
772,331 |
730,444 |
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MINORITY INTERESTS |
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49,050 |
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Common stock |
110,824 |
110,451 |
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Additional paid-in capital |
26,883 |
11,090 |
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Retained earnings |
47,333 |
21,868 |
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Evaluation p/l on
investments/securities |
19,286 |
19,485 |
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Others |
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61,318 |
43,940 |
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Treasury stock, at cost |
(152) |
(96) |
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TOTAL S/HOLDERS` EQUITY |
265,492 |
206,738 |
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TOTAL EQUITIES |
1,037,823 |
986,233 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2006 |
31/12/2005 |
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Cash Flows from Operating Activities |
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91,398 |
77,966 |
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Cash Flows from Investment
Activities |
-55,948 |
-17,987 |
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Cash Flows from Financing Activities |
-18,047 |
-53,446 |
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Cash, Bank Deposits at the Term End |
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55,100 |
37,233 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2006 |
31/12/2005 |
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Net Worth (S/Holders' Equity) |
265,492 |
206,738 |
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Current Ratio (%) |
81.26 |
81.26 |
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Net Worth Ratio (%) |
25.58 |
20.96 |
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Recurring Profit Ratio (%) |
6.29 |
5.78 |
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Net Profit Ratio (%) |
3.15 |
1.93 |
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Return On Equity (%) |
10.86 |
7.57 |
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. |
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%)