MIRA INFORM REPORT

 

 

Report Date :

06.09.2007

 

IDENTIFICATION DETAILS

 

Name :

DAIICHI FINE CHEMICAL CO LTD

 

 

Registered Office :

530 Chokeiji Takaoka City Toyama-Pref 933-8511

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Dec 1951

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of pharmaceutical materials & intermediates, veterinary medicines, food additives, bio-chemicals

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 255.4 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

name

 

DAIICHI FINE CHEMICAL CO LTD

 

 

REGD NAME

 

Daiichi Fine Chemical KK

 

 

MAIN OFFICE

 

530 Chokeiji Takaoka City Toyama-Pref 933-8511 JAPAN

Tel        : 0766-21-3456

Fax       : 0766-21-3792

URL      : http://www.daiichi-fcj.co.jp/

E-Mail address: dfk@daiichi-fcj.co.jp

 

 

ACTIVITIES

 

Mfg of pharmaceutical materials & intermediates, veterinary medicines, food additives, bio-chemicals

 

 

BRANCHES

 

Tokyo, Osaka

 

 

OVERSEAS

 

Daiichi Fine Chemical Europe GmbH (Germany); Daiichi Vitamin (Suzhou) Co Ltd (China)

 

 

FACTORY(IES)

 

At the caption address

 

 

OFFICER(S)

 

SYUNYA TAMAI, PRES                         Toshifumi Asada, v pres

Hirosuke Yukimoto, mgn dir                    Michio Fujimoto, dir

Hideo Tsuta, dir                                     Norio Shindo, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 16,418 M

PAYMENTS      REGULAR                     CAPITAL           Yen 2,276 M

TREND             STEADY                       WORTH            Yen 5,647 M

STARTED         1951                             EMPLOYES      388

 

 

COMMENT

 

MFR SPECIALIZING IN PHARMACEUTICAL MATERIALS & INTERMEDIATES,      WHOLLY OWNED BY KYOWA HAKKO KOGYO CO LTD.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 255.4 MILLION, 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a fine chemicals mfg division separated from Daiichi Pharmaceutical Co Ltd, leading prescription drugs maker, Tokyo, for mfg pharmaceuticals materials & intermediates, and other fine chemicals.  Mfg items are: pharmaceutical raw materials & intermediates, veterinary medicines, food additives, feed additives, cosmetic materials & ingredients, reagents, etc.  In Jul 2007, the firm was transferred to Kyowa Hakko Kogyo Co Ltd and became its wholly owned subsidiary.  Goods are also imported and exported.  Products are shipped to the parent and its group companies.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 16,418 million, a 5% up from Yen 16,643 million in the previous term.  The recurring profit was posted at Yen 2,018 million and the net profit at Yen 1,248 million, respectively, compared with Yen 1,568 million recurring profit and Yen 1,013 million net profit, respectively, a year ago.  Bio-chemicals business grew.

 

For the current term ending Mar 2008 the net profit is projected at Yen 1,250 million, on a 5% rise in turnover, to Yen 17,250 million.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 255.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Dec 1951

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    5.8 million shares

Issued:                          1.44 million shares

Sum:                            Yen 2,276 million

Major shareholders (%): Kyowa Hakko Kogyo Co Ltd*(100)

*. Largest fermented chemical mfr, Tokyo, founded 1949, listed Tokyo S/E, turnover Yen     354,274 million,

recurring profit Yen 30,901 million, net profit Yen 12,694 million, total assets Yen 378,870 million, net worth Yen 241,717 million, employees 5,778, pres Yuzuru Matsuda

           

Nothing detrimental is knows as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Manufactures and exports pharmaceuticals raw materials & intermediates, bulk chemicals (--90%), veterinary drugs, food additives, feed additives, cosmetic materials (--8%), reagents, others (4%).  

 

(Export 20%).

 

Clients: [Pharmaceutical mfrs, wholesalers] Kyowa Hakko Kogyo Co, other.

 

No. of accounts: 1

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Daiichi Pharmaceutical, Itochu Techno Chemical, Takasago Int’l        Corp, other.

 

Payment record: Regular

 

Location: Business area in Takaoka City, Toyama-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

SMBC (Toyama)

Hokuriku Bank (Takaoka)

 

 

FINANCES

 

FINANCES: (Non-Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

16,418

15,643

 

  Cost of Sales

11,744

11,402

 

      GROSS PROFIT

4,673

4,240

 

  Selling & Adm Costs

2,724

2,762

 

      OPERATING PROFIT

1,948

1,478

 

  Non-Operating P/L

70

90

 

      RECURRING PROFIT

2,018

1,568

　

      NET PROFIT

1,248

1,013

BALANCE SHEET

 

 

 

 

  Cash

　

4,013

289

 

  Receivables

 

4,670

5,021

 

  Inventory

 

4,131

3,503

 

  Securities, Marketable

　

　

 

  Other Current Assets

616

2,082

 

      TOTAL CURRENT ASSETS

13,430

10,895

 

  Property & Equipment

6,756

5,903

 

  Intangibles

 

2

2

 

  Investments, Other Fixed Assets

1,453

1,564

 

      TOTAL ASSETS

21,641

18,364

 

  Payables

 

2,727

2,583

 

  Short-Term Bank Loans

8,000

　

 

　

 

　

　

 

  Other Current Liabs

3,857

1,527

 

      TOTAL CURRENT LIABS

14,584

4,110

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

600

5

 

  Reserve for Retirement Allw

808

759

 

  Other Debts

　

2

110

 

      TOTAL LIABILITIES

15,994

4,984

 

      MINORITY INTERESTS

 

 

 

Common stock

2,276

2,276

 

Additional paid-in capital

1,734

1,734

 

Retained earnings

1,507

9,250

 

Evaluation p/l on investments/securities

129

118

 

Others

 

1

1

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

5,647

13,379

　

      TOTAL EQUITIES

21,641

18,364

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

5,647

13,379

 

 

Current Ratio (%)

92.09

265.09

 

 

Net Worth Ratio (%)

26.09

72.85

 

 

Recurring Profit Ratio (%)

12.29

10.02

 

 

Net Profit Ratio (%)

7.60

6.48

 

 

Return On Equity (%)

22.10

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions