MIRA
INFORM REPORT
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Report Date : |
25.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHIN-ETSU CHEMICAL CO LTD |
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Registered Office : |
Asahi Tokai Bldg, 2-6-1 Ohtemachi Chiyodaku Tokyo 100-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
September 1926 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of PVC, Semiconductor Wafers, Silicon |
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 56,874.9 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
SHIN-ETSU CHEMICAL CO LTD
REGD NAME: Shin-Etsu Kagaku Kogyo
KK
MAIN OFFICE: Asahi Tokai Bldg,
2-6-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN
Tel:
03-3246-5011 Fax: 03-3246-5358
URL: http://www.shinetsu.co.jp/
E-Mail address: info@shinetsu.co.jp
ACTIVITIES
Mfg of PVC, semiconductor wafers, silicon
BRANCHES
Osaka, Nagoya, Fukuoka, Sapporo, Gunma
FACTORY(IES)
Naoetsu, Takefu, Gunma (Isobe, Matsuida), Kashima
OVERSEAS
USA (9), Mexico, Portugal, UK, Netherlands (4), Hungary, Germany, Malaysia (5), Korea (2), China (4), Taiwan (4), Singapore (2), Indonesia (2), Thailand (2), Philippines, Australia (2) (--subsidiaries)
CHIEF EXEC
CHIHIRO KANAGAWA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,304,695 M
PAYMENTS REGULAR CAPITAL Yen 119,419 M
TREND STEADY WORTH Yen 1,360,315 M
STARTED 1926 EMPLOYES 19,177
COMMENT
MFR
SPECIALIZING IN PVC & ELECTRONIC MATERIALS.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSIENSS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 56,874.9 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company was
established originally as a carbide & calcium cyan amide maker and
developed business operations into silicone production and PVC in 1950s. Now is known one of the world’s largest mfrs
of vinyl chloride, silicon resin and semiconductor silicon. Expanding into electronics materials,
including rare earths & synthetic quartz.
Has many excellent subsidiaries both in Japan & abroad. Noted for high earnings power.
FINANCIAL INFORMATION
The sales volume for Mar/2007
fiscal term amounted to Yen 1,304,695 million, a 15.7% up from Yen 1,127,915
million in the previous term. Demand
for silicon wafers used in semiconductors grew globally. The rare earth magnets for electronics
industry business for applications in hard disk drives did well with signs of
recovery in demand. Sales of ArF
photoresists increased. The firm
benefited from worldwide expansion in the production of memory chips as well as
rising prices amid tight supplies.
Shipments grew not only for state-of-the-art 300mm silicon wafers but
also for older 200mm versions. The
organic & inorganic chemicals operation, producing polyvinyl chloride,
logged a new record profit. The unit
was buoyed by results at its US subsidiary, which enjoyed robust housing
starts. The Dutch subsidiary also had
solid results thanks to brisk demand in Europe. The recurring profit was posted at Yen 247,018 million and the
net profit at Yen 154,010 million, respectively, compared with Yen 185,004
million recurring profit and Yen 115,010 million net profit, respectively, a
year ago.
(Apr/Dec/2007
results): Sales Yen 1,043,643 million (up 7.4%), operating profit Yen 213,530
million (up 18.5%), recurring profit Yen 223,008 million (up 22.7%), net profit
Yen 143,431 million (up 16.7%). (%
compared with the corresponding period a year ago). Sales grew powered by strong demand for wafers. Brisk demand from chip makers for advanced
300mm wafers has been a driving force in boosting wafer demand.
For
the current term just ended Mar 2008 the recurring profit was projected at Yen
288,000 million and net profit at Yen 179,000 million, respectively, on a 7.3%
rise in turnover, to Yen 1,400,000 million.
Silicon resins fared well. In
semiconductor wafers, 300mm wafers enjoyed benefits of facility expansion.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 56,874.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: Sept 1926
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,720
million shares
Issued: 432,106,693
shares
Sum: Yen
119,419 million
Major shareholders (%)
Master
Trust Bank of Japan, T (9.8), Japan Trustee Services Bank T (8.3), Nippon Life
Ins (5.3), Japan Trustee Services T4 (3.9), Hachijuni Bank (2.7), State Meiji Yasuda Life Ins (2.6), Nipponkoa
Ins (2.3), Street Bank & Trust 505103 (1.8), MUFG (1.6), State Street Bank
(1.2); foreign owners (34.9)
No. of shareholders: 45,752
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya
Managements
Chihiro
Kanagawa, pres & CEO; Shunzo Mori, s/mgn dir; Fumio Akiya, s/mgn dir; Yasuhiko Saitoh, s/mgn dir; Ryoei
Miki, mgn dir; Kiichi Habata, mgn dir; Yoshiaki Ono, mgn dir; Frank P Popoff, dir; Shunji Kono, dir;
Masashi Kaneko, dir
Nothing detrimental is knows as to the commercial morality
of executives.
Related companies
Shintech
Inc (USA), Shin-Etsu Polymer, Shin-Etsu Handotai, other
OPERATION
Activities:
Manufactures:
(Sales Breakdown by divisions):
Organic & Inorganic Chemicals Div
(54.3%): PVC, silicones, methanol, chloromethane, cellulose
derivatives, caustic soda, silicon metal;
Electronic Materials Div (36.7%): semiconductor silicone, organic
materials for electronics industry, rare earth magnets for electronics
industry, photo-resists;
Functional Materials Div (9.0%): synthetic
quartz products, oxide single crystals, rare earths,
rare earth magnets, construction of plants engineering, information processing,
ex port of technology & plants,
import of goods, others.
Overseas sales ratios (69.0%):
N America (22.8%), Asia/Oceania (30.1%), Europe (12.6%), others (3.7%).
Clients
Mfrs,
wholesalers] Shin-Etsu Handotai, Mitsubishi Corp, Shin-Etsu Electronics Materials Singapore, Mitsui & Co,
Shin-Etsu Astech, other.
No. of accounts
3,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs,
wholesalers] Shin-Etsu Handotai, Naoetsu Electronics, Mitsui & Co, Kashima PVC Monomer, Mitsubishi Chemical,
other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the
caption address are leased and maintained satisfactorily.
Bank References
MUFG (H/O)
Mizuho Bank (H/O)
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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1,304,695 |
1,127,915 |
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Cost of Sales |
933,199 |
831,333 |
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GROSS PROFIT |
371,496 |
296,582 |
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Selling & Adm Costs |
130,467 |
111,262 |
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OPERATING PROFIT |
241,029 |
185,320 |
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Non-Operating P/L |
5,989 |
-280 |
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RECURRING PROFIT |
247,018 |
185,040 |
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NET PROFIT |
154,010 |
115,045 |
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BALANCE SHEET |
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Cash |
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296,851 |
262,145 |
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Receivables |
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315,710 |
277,874 |
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Inventory |
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169,177 |
147,367 |
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Securities, Marketable |
207,178 |
178,555 |
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Other Current Assets |
74,583 |
61,046 |
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TOTAL CURRENT ASSETS |
1,063,499 |
926,987 |
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Property & Equipment |
545,408 |
468,783 |
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Intangibles |
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25,964 |
25,347 |
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Investments, Other Fixed Assets |
225,124 |
250,163 |
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TOTAL ASSETS |
1,859,995 |
1,671,280 |
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Payables |
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155,463 |
132,673 |
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Short-Term Bank Loans |
24,490 |
18,168 |
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Other Current Liabs |
252,940 |
202,048 |
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TOTAL CURRENT LIABS |
432,893 |
352,889 |
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Debentures |
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8,000 |
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Long-Term Bank Loans |
20,652 |
49,670 |
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Reserve for Retirement Allw |
10,943 |
10,397 |
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Other Debts |
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35,192 |
42,425 |
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TOTAL LIABILITIES |
499,680 |
463,381 |
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MINORITY INTERESTS |
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Common
stock |
119,419 |
119,419 |
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Additional
paid-in capital |
128,177 |
128,178 |
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Retained
earnings |
1,017,260 |
882,412 |
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Evaluation
p/l on investments/securities |
29,173 |
38,559 |
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Others |
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58,726 |
38,559 |
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Treasury
stock, at cost |
7,560 |
(6,300) |
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TOTAL S/HOLDERS` EQUITY |
1,360,315 |
1,173,679 |
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TOTAL EQUITIES |
1,859,995 |
1,671,280 |
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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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272,488 |
220,592 |
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Cash
Flows from Investment Activities |
-185,183 |
-138,813 |
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Cash Flows
from Financing Activities |
-61,833 |
-42,496 |
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Cash,
Bank Deposits at the Term End |
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404,532 |
373,863 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
1,360,315 |
1,173,679 |
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Current
Ratio (%) |
245.67 |
262.69 |
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Net
Worth Ratio (%) |
73.14 |
70.23 |
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Recurring
Profit Ratio (%) |
18.93 |
16.41 |
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Net
Profit Ratio (%) |
11.80 |
10.20 |
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Return
On Equity (%) |
11.32 |
9.80 |
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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%)