MIRA
INFORM REPORT
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Report Date : |
25.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHOKO CO LTD |
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Registered Office : |
2-4-1 Shibakoen Minatoku Tokyo 105-8432 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
May 1947 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Chemicals, Synthetic Resins,
Metals, Electronics |
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 2,706.8 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
SHOKO CO LTD
REGD NAME: Shoko Tsusho KK
MAIN OFFICE: 2-4-1 Shibakoen
Minatoku Tokyo 105-8432 JAPAN
Tel:
03-3459-5111 Fax: 03-3459-5390
E-Mail address: info@shoko.co.jp
ACTIVITIES
Import, export, wholesale of chemicals, synthetic resins,
metals, electronics
BRANCHES
Osaka, Nagoya, Fukuoka, Sendai, Oita
OVERSEAS
Lianyunguan Zhoahua Minerals Co Ltd, Shoko (Shanghai) Co Ltd
(--China);
Shoko America Inc (USA)
(--affiliates)
FACTORY(IES)
Chiba
CHIEF EXEC
HIROSHI NISHIMOTO, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 167,045 M
PAYMENTS REGULAR CAPITAL Yen 8,021 M
TREND STEADY WORTH Yen 15,303 M
STARTED 1945 EMPLOYES 421
COMMENT
TRADING
HOUSE SPECIALIZING IN CHEMICALS & SYNTHETIC RESINS, AF FILIATED WITH SHOWA DENKO KK.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 2,706.8 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/12/2008 fiscal term
HIGHLIGHTS
The subject company was
established by Showa Denko KK, a comprehensive chemicals mfr, Tokyo (see
REGISTRATION), as a trading firm primarily dealing in chemicals and
fertilizers. Since incorporated, the
firm has expanded operations into synthetic resins, light metals, iron/steel
products, construction materials and recently electronics. Synthetic resins & chemicals account for
nearly 50% of total sales. Emphasis on
fine chemicals. Actively diversifying
into pharmaceuticals, analyzers, reagents, computers, etc. Moving toward a general trader on R&D,
with mfg division in fertilizers, molding, soil improvement agents, etc
domestically, and heavy nitrogen compounds, calium arsenic boards, etc in USA. Diversified into real estate &
insurance. Clients are Showa Denko
group mfrs and other major chemicals mfrs nationwide.
(Brief History):
(1947) established as a trading
firm by Showa Denko KK for import & wholesale of chemicals &
fertilizers; (1953) advanced into mfg fertilizer; (1962) listed on Tokyo S/E
(Second section) and in 1981 First Section; (1972) diversified into chemicals
& petrochemicals fields; (1982) renamed as caption from Hikari Kogyo Co
Ltd; (1982) advanced into fine chemicals products, new-ceramic electronic
materials & precision instruments; (1987) advanced into real estate
industry; (2000) moved the headquarter to Shibakoen from Nishishimbashi
Minatoku, Tokyo, and in May 2006 to the caption address. (During the time merged 3 sister firms to
integrate operations.)
FINANCIAL INFORMATION
The
sales volume for Dec/2007 fiscal term amounted to Yen 167,045 million, a 6.2%
up from Yen 157,319 million in the previous term. Sales were steady and solid, backed up by surge in materials costs
leading to higher sales prices, exports of IT-related materials to China
boosted. By divisions, chemicals up
0.9% to Yen 28,652 million; synthetic resins up 15.3% to Yen 56,171 million,
spurred by robust demand for automobiles and packaging materials, including
exports to China; metals up 6.8% to Yen 55,856 million. The recurring profit was posted at Yen 1,850
million and the net profit at Yen 959 million, respectively, compared with Yen
2,002 million recurring profit and Yen 895 million net profit, respectively, a
year ago.
For
the current term ending Dec 2008 the recurring profit is projected at Yen 1,870
million and the net profit at Yen 970 million, respectively, on a 1.8% rise in
turnover, to Yen 170,000 million.
Syntheric resins will grow for automobiles and food containers. But sales will fall with no outlook for
large-scale orders for construction materials.
Real estate div projecting sales of 2 condominiums but operating profit
may decline without lucrative properties in the previous term.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 2,706.8 million, on 30 days normal terms.
REGISTRATION
Date Registered: May
1947
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 400
million shares
Issued: 112,714,687
shares
Sum: Yen
8,021 million
Major
shareholders (%): Showa Denko*(42.0), Mizuho Corporate Bank (2.7), Master Trust
Bank of Japan, T (1.1), Japan Securities Finance (1.1), Japan Trustee Services
Bank, T (0.9), Sompo Japan Ins (0.9),
Showa Highpolymer (0.9), Mitsubishi UFJ Trust (0.6), Fukoku Life Ins (0.5), Employees’ S/Holding Assn
(0.4)
*..
Major comprehensive chemical mfr, Tokyo, founded 1939, listed Tokyo S/E,
capital Yen 110,824 million, sales Yen 914,533 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, employ- ees
11,184, pres Kyohei Takahashi
No. of shareholders: 85,899
Listed on the S/Exchange (s) of
Tokyo
Managements
Hiroshi
Nishimoto, pres & CEO; Masatake Oriyama, mgn dir; Masaoki
Matsuki, mgn dir; Yoshitaka Ito,
mgn dir; Nobuo Takahashi, dir; Morio Sato, dir;
Noritoshi Osuga, dir; Yasuaki
Kamei, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related
companies: Mie Kasei, Showa Baido, Cosmo Kasei Kogyo, Shoko Tsusho (Shanghai),
other (Tot 7 as of Dec/2006)
OPERATION
Activities:
A trading house for import, export and wholesale of (Sales breakdown):
Chemicals Div (18%):
(organic chemicals) raw materials for resins & organic synthesis, solvents
& cleaning agents, resin additives, adhesives, synthetic rubber, food/feed
additives, (inorganic chemicals) ammonia products, acid, alkalis & salts,
chemicals for plating, minerals, water treatment agents, other;
Synthetic Resins Div (31%): LDPE, HDPE, PP, PS, other
plastic raw materials, plastic sheets, films & multi-layered products,
plastic molding & packing materials, other;
Light Metals Div (33%): aluminum ingots & alloy,
aluminum scraps, aluminum sheets, extrusions, electrolytic foils, rare metals,
ceramics, other;
Commodities & Construction Materials Div (10%): storage
tanks, food refrigeration units, industrial containers, reactors, heat
exchangers, pumps, cement, plaster materials & waterproofing agents,
aluminum construction materials, housing fixtures, other;
Electronics & Other Div (8%): LED
chips, modules, polymer aluminum electrolytic capacitors, semiconductors; real
estate management, sale of condominiums, land & houses, including
designing, planning, construction services; property & life insurance
broking, other.
Clients
[Mfrs, wholesalers] Showa Denko, Showa
Aluminum Can, Showa Highpolymer, Nippon
Chemi-Con, Kojundo Chemical Laboratory, Summit Alumi, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs,
wholesalers] Showa Denko, Japan Polyolefins, Japan Polyethylene, Showa
Highpolymer, Showa Denko Kenzai, Showa Light Metal, Cabot Super Metals, San Aroma, Kurimoto Ltd, other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the caption
address are owned by the parent, Showa Denko, and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (Ohtemachi)
Mizuho Trust Bank (H/O)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2007 |
31/12/2006 |
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INCOME STATEMENT |
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Annual Sales |
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167,045 |
157,319 |
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Cost of Sales |
158,419 |
148,708 |
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GROSS PROFIT |
8,626 |
8,611 |
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Selling & Adm Costs |
6,580 |
6,462 |
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OPERATING PROFIT |
2,045 |
2,148 |
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Non-Operating P/L |
-195 |
-146 |
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RECURRING PROFIT |
1,850 |
2,002 |
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NET PROFIT |
959 |
895 |
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BALANCE SHEET |
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Cash |
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2,744 |
3,521 |
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Receivables |
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43,337 |
42,255 |
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Inventory |
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6,328 |
3,859 |
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Securities, Marketable |
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Other Current Assets |
11,860 |
13,039 |
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TOTAL CURRENT ASSETS |
64,269 |
62,674 |
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Property & Equipment |
6,120 |
6,086 |
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Intangibles |
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203 |
229 |
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Investments, Other Fixed Assets |
4,044 |
5,563 |
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TOTAL ASSETS |
74,636 |
74,552 |
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Payables |
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45,117 |
44,845 |
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Short-Term Bank Loans |
3,565 |
4,025 |
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Other Current Liabs |
3,602 |
2,401 |
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TOTAL CURRENT LIABS |
52,284 |
51,271 |
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Debentures |
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3,000 |
3,000 |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
1,081 |
1,251 |
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Other Debts |
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2,967 |
3,480 |
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TOTAL LIABILITIES |
59,332 |
59,002 |
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MINORITY INTERESTS |
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Common
stock |
8,021 |
8,021 |
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Additional
paid-in capital |
1 |
1 |
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Retained
earnings |
6,454 |
5,945 |
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Evaluation
p/l on investments/securities |
1,003 |
1,537 |
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Others |
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36 |
83 |
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Treasury
stock, at cost |
(212) |
(38) |
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TOTAL S/HOLDERS` EQUITY |
15,303 |
15,549 |
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TOTAL EQUITIES |
74,636 |
74,552 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2007 |
31/12/2006 |
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Cash
Flows from Operating Activities |
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-2,434 |
1,751 |
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Cash Flows
from Investment Activities |
268 |
437 |
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Cash
Flows from Financing Activities |
418 |
-493 |
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Cash,
Bank Deposits at the Term End |
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5,195 |
6,946 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2007 |
31/12/2006 |
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Net
Worth (S/Holders' Equity) |
15,303 |
15,549 |
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Current
Ratio (%) |
122.92 |
122.24 |
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Net
Worth Ratio (%) |
20.50 |
20.86 |
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Recurring
Profit Ratio (%) |
1.11 |
1.27 |
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Net
Profit Ratio (%) |
0.57 |
0.57 |
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Return
On Equity (%) |
6.27 |
5.76 |
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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%)