MIRA
INFORM REPORT
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Report Date : |
11.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
KANSAI PAINT CO LTD |
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Registered Office : |
4-3-6 Fushimimachi Chuoku Osaka 541-8523 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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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 : |
Manufacturer of Paints and Coatings |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 7,994.1 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
KANSAI PAINT CO LTD
REGD NAME: Kansai Paint KK
MAIN OFFICE: 4-3-6 Fushimimachi
Chuoku Osaka 541-8523 JAPAN
Tel:
06-6203-5531 Fax: 06-6203-5725
E-Mail address: info@kansai.co.jp
ACTIVITIES
Mfg of paints & coatings
BRANCHES
Tokyo, Nagoya, Sapporo, Sendai, Saitama, Chiba, Shizuoka, Hamamatsu,
Suzuka, Okayama, Hiroshima, Kitakyushu, Fukuoka, other (Tot 22)
OVERSEAS
UK (2), USA (2), Canada, China (9), Thailand (2), Singapore, Taiwan, Philippines,
Indonesia, Malaysia, Korea, India, Mexico (--subsidiaries/affiliated)
FACTORY(IES)
Amagasaki, Ono (--Hyogo), Nishikamogun (Aichi), Hiratsuka, Kanuma
(Tochigi)
CHIEF EXEC
SHOJU KOBAYASHI, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 231,213 M
PAYMENTS REGULAR CAPITAL Yen 25,658 M
TREND STEADY WORTH Yen 178,603 M
STARTED 1918 EMPLOYES 6,933
COMMENT
MFR OF PAINTS & COATINGS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 7,994.1 MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2008 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 Japan. The firm has since been focusing on mfg of
paints & coatings and has made the firm the largest paint mfr with highest
sales ratio to carmakers in domestic market and Asia. Manufactures paints & coatings for cars, machines, marines,
electronic goods, other. Automotive
coatings are the core products, highly competitive in new car coating films. Promoting application of photo-resists, car
paint protective films and external coverings for fiber-optic cables. Operating overseas business through tie-up
with De Pont. Active in technology
exports. Active in operations in China,
India, Thailand, other S/E Asian countries, with 18 subsidiaries &
affiliates in these areas, particularly 9 in China alone. Actively advancing into non-automotive
paints.
Recent overseas projects include
Kansai Paint will spend more than 1 billion Yen to build in China a
plant that will produce mainly
water-based paint for automobiles. This
is because Japanese carmakers in China boost
their use of such paint as part of attempts to reduce their environmental
impact. The plant will come onstream as
early as spring 2010 and is likely to have an annual output of 8,000 tons.
(News excerpt from Nikkei Shimbun dated 17/11/2007)
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 231,213
million, a 9.6% up from Yen 210,964 million in the previous term. Industrial coatings rose for industrial
machinery market, including construction machinery and machine tools due to
robust exports to Asia, N America and Oceania.
In China the market for marine coatings was brisk. In total, Coatings Div was up 9.7% to Yen
224,600 million. The recurring profit
was posted at Yen 24,516 million and the net profit at Yen 13,267 million,
respectively, compared with Yen 22,042 million recurring profit and Yen 12,048
million net profit, respectively, a year ago.
(Apr/Dec/2007 results): Sales Yen 193,539 million (up 12.9%), operating
profit Yen 17,566 million (up 7.7%), recurring profit Yen 19,851 million (up
7.8%), net profit Yen 11,563 million (up 12.5%). (% compared with the corresponding period a year ago). Overseas subs contributed. Subs in Asian countries, including India
& Thailand, keep growing, thanks to increased demand for construction-use
paints. Domestically paints for
construction machinery, automobiles, etc fared well. Operating profits keep growing with higher raw material prices
passed onto product prices gradually spreading. Made Akzo Nobel Endustri ve Otomobil Boyalari Sanayi ve Ticaret
AS (Turkey) as its con sub to cope up with increasing demand for automobile
& industrial-use paints.
For the term just ended Mar 2007 the recurring profit was projected at
Yen 28,500 million and the net profit at Yen 15,500 million, respectively, on a
12.5% rise in turnover, to Yen 260,000 million. Domestic demand was flat.
Overseas construction/automotive-us paints rose further via startup of
new plants in Malaysia, Indonesia & Thailand after spring 2006. Net profit hitting another high on growing
sales & price hikes.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 7,994.1 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 (%)
Dai-ichi Life Ins (4.5), Master Trust Bank of Japan T (4.4), Nippon Life
Ins (4.3), Japan Trustee Services Bank T (4.2), 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), Zenkyoren (2.4) foreign owners (23.2)
No. of shareholders: 13,188
Listed on the S/Exchange (s) of
Tokyo, Osaka
Managements
Shoju Kobayashi, pres & CEO; Toshinobu Otani, v pres; Kazuhiro
Fujita, s/mgn dir; Shin’ichi Hamamatsu,
s/mgn dir; Koichi Imada, s/mgn dir; Yuzo Kawamori, s/mgn dir; Osamu Isozaki, mgn dir; Koji Yamamoto,
mgn dir; Hiroshi Miura, dir; Shigeru Nakamura, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
Kansai Paint Sales, Kanpei Trading, other
OPERATION
Activities: Manufactures paints & coatings (97%), others (3%)::
(Sales breakdown
by divisions):
Automotive
coatings (48%): Core business area of coating for new cars, including auto- motive parts, and automotive refinish
paints;
Industrial
coatings (21%): 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 (19%): 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;
Others (new
business) (7%)
Overseas sales
ratio 34.4%: Asia 32.1% (India, Thailand, Taiwan), Americas 1.2%, Europe 1.1%.
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 Osaka. Office
premises at the caption address are owned and maintained satisfactorily.
Bank References
MUFG (Osaka)
Mizuho Corporate Bank (Osaka)
Relations: Satisfactory
FINANCES
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(Consolidated in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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231,213 |
210,964 |
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Cost of Sales |
160,756 |
146,122 |
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GROSS PROFIT |
70,456 |
64,842 |
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Selling & Adm Costs |
48,366 |
45,939 |
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OPERATING PROFIT |
22,089 |
18,903 |
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Non-Operating P/L |
2,427 |
3,139 |
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RECURRING PROFIT |
24,516 |
22,042 |
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NET PROFIT |
13,267 |
12,048 |
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BALANCE SHEET |
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Cash |
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40,506 |
37,148 |
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Receivables |
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80,512 |
67,053 |
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Inventory |
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22,194 |
19,751 |
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Securities, Marketable |
800 |
806 |
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Other Current Assets |
6,133 |
6,283 |
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TOTAL CURRENT ASSETS |
150,145 |
131,041 |
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Property & Equipment |
54,832 |
45,983 |
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Intangibles |
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1,631 |
953 |
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Investments, Other Fixed Assets |
92,690 |
88,909 |
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TOTAL ASSETS |
299,298 |
266,886 |
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Payables |
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60,254 |
48,569 |
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Short-Term Bank Loans |
2,042 |
2,140 |
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Other Current Liabs |
27,714 |
18,266 |
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TOTAL CURRENT LIABS |
90,010 |
68,975 |
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Debentures |
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Long-Term Bank Loans |
1,579 |
7,028 |
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Reserve for Retirement Allw |
7,936 |
8,095 |
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Other Debts |
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21,170 |
19,212 |
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TOTAL LIABILITIES |
120,695 |
103,310 |
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MINORITY INTERESTS |
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11,401 |
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Common stock |
25,658 |
25,658 |
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Additional paid-in capital |
27,163 |
27,157 |
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Retained earnings |
80,795 |
70,664 |
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Evaluation p/l on
investments/securities |
31,186 |
30,642 |
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Others |
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14,599 |
(1,290) |
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Treasury stock, at cost |
(798) |
(656) |
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TOTAL S/HOLDERS` EQUITY |
178,603 |
152,175 |
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TOTAL EQUITIES |
299,298 |
266,886 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash Flows from Operating Activities |
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17,585 |
20,174 |
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Cash Flows from Investment
Activities |
-11,425 |
-10,668 |
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Cash Flows from Financing Activities |
-3,819 |
-3,686 |
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Cash, Bank Deposits at the Term End |
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40,096 |
8,452 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
178,603 |
152,175 |
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Current Ratio (%) |
166.81 |
189.98 |
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Net Worth Ratio (%) |
59.67 |
57.02 |
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Recurring Profit Ratio (%) |
10.60 |
10.45 |
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Net Profit Ratio (%) |
5.74 |
5.71 |
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Return On Equity (%) |
7.43 |
7.92 |
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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. |
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%)