MIRA
INFORM REPORT
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Report Date : |
26.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
TOAGOSEI CO LTD |
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Registered Office : |
1-14-1 Nishishimbashi Minatoku Tokyo 105-8419 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
March 1942 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Industrial Chemicals |
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 6,437.1 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
TOAGOSEI CO LTD
REGD NAME: Toa Gosei KK
MAIN OFFICE: 1-14-1 Nishishimbashi
Minatoku Tokyo 105-8419 JAPAN
Tel:
033597-7215 Fax: 03-3597-7217
URL: http://www.toagosei.co.jp/
E-Mail address:info@toagosei.co.jp
ACTIVITIES
Mfg of industrial chemicals
BRANCH(ES)
Osaka, Nagoya, Toyama, Sakaide (Kagawa), Fukuoka
OVERSEAS
Toagosei America (Ohio); TOA-DIC Zhanjiagang Chemical, Toagosei Hong Kong; Toagosei (Zuhai) (--China); Taiwan Toagosei, TOA Jet Chemicqal (--Taiwan); Toagosei Asia (Singapore); Singapore Acrylic Ester, Singapore Acrylic
FACTORY(IES)
Nagoya, Tokuyama, Takaoka, Sakaide
CHIEF EXEC
FUTOSHI HASHIMOTO, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 162,729 M
PAYMENTS REGULAR CAPITAL Yen 20,886 M
TREND STEADY WORTH Yen 118,939 M
STARTED 1942 EMPLOYES 2,573
COMMENT
MFR OF INDUSTRIAL CHEMICALS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 6,437.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/12/2008 fiscal term
HIGHLIGHTS
This is a medium-ranked chemical mfr of Mitsui group. Originally started as ammonium sulfate & sulfuric acid producer. In 1944, merged 3 soda mfrs and became general chemical maker. Emphasis shifted from electrolytic process chemicals to acrylic-based products. Known for end-product instant glue “Alon Alpha”. Expectation on growth of LHC, purest in Japan, for use as cleaning agent for semiconductor wafers.
FINANCIAL INFORMATION
The sales volume for Dec/2007 fiscal term amounted to Yen 162,729 million, a 4.4% up from Yen 155,804 million in the previous term. By divisions, Basic Chemicals up 1.3% to Yen 53,470 million, thanks to price hikes of caustic soda for acrylic products, polymer coagulants, whose operations consolidated with Mitsui Chemical; Acrylic Div up 12.3% to Yen 48,674million;Functional Products up 3.6% to Yen 26,677 million. Sub in Singapore improved profitability in functional products, and increased production, spurred by expanded demand from electronic equipment. The recurring profit was posted at Yen 13,462 million and the net profit at Yen 6,403 million, respectively, compared with Yen 13,603 million recurring profit and Yen 6,961 million net profit, respectively, a year ago.
For the current term ending Dec 2008 the recurring profit is projected at Yen 14,800 million and the net profit at Yen 7,400 million, on a 2.4% rise in turnover, to Yen 166,600 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 6,437.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar 1942
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 550 million shares
Issued: 263,992,598 shares
Sum: Yen 20,886 million
Major shareholders (%)
Master Trust Bank of Japan T (5.6), Japan Trustee Services T (5.2), SMBC (4.4), MUFG (4.2), Customers’ S/Holding Assn (2.1), Aioi Ins (2.0), Group Employees’ S/Holding Assn (2.0), Tokio Marine & Nichido Fire Ins (2.0), Mitsui Life Ins (1.7), Norin Chukin Bank (1.4); foreign owners (10.1).
No. of shareholders: 18,407
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya
Managements
Akihiko Yamadera, ch; Futoshi Hashimoto, pres; Hisanori Abe, s/mgn dir;
Suemori Takashima, s/mgn dir; Yasutaro Yasuda, s/mgn dir; Akio Arisawa, dir; Katsutoshi Yamada, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Aron Kasei Co, Oita Chemical Co, MT Aqua Polymer Inc, Tsurumi Soda Co, other.
OPERATION
Activities: Manufactures industrial chemicals:
(Sales breakdown by
Divisions):
Basis Chemicals Div (33%): caustic soda, caustic potash, inorganic chlorides such as sodium hypochlorite, iron chloride (HI) solution, liquid chlorine & hydrochloric acid, chlorinated organic solvents, ammonium sulfate, sulfuric acid, industrial gases, special gases;
Acrylic Products Div (30%): acrylic esters & various acrylic polymers such as paper processing auxiliary agents, pressure sensitive adhesives, and polymer flocculants;
Specialty Chemicals Div (16%): adhesives, products for construction & civil engineering, and various development p0roducts;
Plastics, other (21%): piping material products and products associated with consumption goods;
Overseas Sales Ratios (15.1%): Asia (China, India, Korea, Taiwan) (11.3%); N America (2.0%), Europe (Belgium, Poland, France) (1.4%), other region (0.4%)
Clients
[Mfrs, wholesalers] Nagase Corp, Mitsubishi Chemical, Mitsubishi Corp, Nippon Soda, OG Chemical, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Mitsubishi Chemical, Shikoku Electric Power, Chubu Electric Power, Mitsubishi Corp, Sumitomo Corp, Mitsui & Co, Itochu Corp, Mitsubishi Gas Chemical, Nippon Shokubai, other..
Payment record: Regular
Location
Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References
SMBC (H/O)
MUFG (Tokyo)
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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162,729
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155,804
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Cost of Sales |
118,643
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111,799
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GROSS PROFIT |
44,086 |
44,005 |
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Selling & Adm Costs |
31,367 |
31,054 |
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OPERATING PROFIT |
12,719 |
12,950 |
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Non-Operating P/L |
743 |
653 |
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RECURRING PROFIT |
13,462 |
13,603 |
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NET PROFIT |
6,403 |
6,961 |
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BALANCE
SHEET |
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Cash |
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9,734 |
14,213 |
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Receivables |
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51,061 |
49,214 |
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Inventory |
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17,379 |
17,333 |
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Securities, Marketable |
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2 |
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Other Current Assets |
2,149 |
8,830 |
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TOTAL CURRENT ASSETS |
80,323 |
89,592 |
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Property & Equipment |
68,736 |
72,897 |
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Intangibles |
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2,294 |
2,230 |
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Investments, Other Fixed Assets |
31,328 |
30,888 |
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TOTAL ASSETS |
182,681
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195,607
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Payables |
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21,530 |
21,204 |
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Short-Term Bank Loans |
8,602 |
14,375 |
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Other Current Liabs |
21,936 |
25,067 |
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TOTAL CURRENT LIABS |
52,068 |
60,646 |
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Debentures |
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Long-Term Bank Loans |
6,867 |
10,657 |
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Reserve for Retirement Allw |
871 |
1,304 |
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Other Debts |
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3,936 |
6,087 |
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TOTAL LIABILITIES |
63,742 |
78,694 |
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MINORITY INTERESTS |
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Common
stock |
20,886 |
20,886 |
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Additional
paid-in capital |
15,073 |
15,069 |
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Retained
earnings |
64,096 |
59,717 |
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Evaluation
p/l on investments/securities |
5,841 |
8,418 |
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Others |
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13,768 |
13,447 |
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Treasury
stock, at cost |
(725) |
(624) |
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TOTAL S/HOLDERS` EQUITY |
118,939 |
116,913 |
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TOTAL EQUITIES |
182,681 |
195,607 |
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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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15,651 |
11,600 |
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Cash
Flows from Investment Activities |
-4,209 |
-10,093 |
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Cash
Flows from Financing Activities |
-15,894 |
583 |
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Cash,
Bank Deposits at the Term End |
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9,710 |
14,186 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2007 |
31/12/2006 |
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Net
Worth (S/Holders' Equity) |
118,939 |
116,913 |
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Current
Ratio (%) |
154.27 |
147.73 |
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Net
Worth Ratio (%) |
65.11 |
59.77 |
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Recurring
Profit Ratio (%) |
8.27 |
8.73 |
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Net
Profit Ratio (%) |
3.93 |
4.47 |
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Return
On Equity (%) |
5.38 |
5.95 |
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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%)