MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
DAIICHI FINE CHEMICAL CO LTD |
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Registered Office : |
530 Chokeiji Takaoka City Toyama-Pref 933-8511 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
December, 1951 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of pharmaceutical materials & intermediates,
veterinary medicines, food additives, bio chemicals, cosmetic ingredients |
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 753.5 Million |
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Status : |
Satisfactory |
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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, cosmetic ingredients
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
Yusuke Yukimoto, mgn dir Norio
Shindo, dir
Toshio Yamanishi, dir Shuichi
Ishino, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 17,732 M
PAYMENTS REGULAR CAPITAL Yen 6,276 M
TREND STEADY WORTH Yen 15,271 M
STARTED 1951 EMPLOYES 432
COMMENT
MFR SPECIALIZING IN PHARMACEUTICAL MATERIALS & INTERMEDIATES, WHOLLY OWNED BY KYOWA HAKKO KOGYO CO LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSI-NESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 753.5 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 expanded to include: pharmaceutical raw materials & intermediates, veterinary medicines, food additives, feed additives, cosmetic materials & ingredients, reagents, diagnostic, bio products, etc. In Jul 2007, the firm was transferred to Kyowa Hakko Kogyo Co Ltd, fermented chemical mfr, Tokyo (See REGISTRATION) and became its wholly owned subsidiary. Integrated group fine chemicals operations into one at the subject. Goods are also imported and exported. Products are shipped mainly to the parent and its group companies.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 17,732 million, an 8% up from Yen 16,418 million in the previous term. Integration of fine chemicals operations contributed. Bio products were much in demand. The recurring profit was posted at Yen 2,795 million and the net profit at Yen 1,697 million, respectively, compared with Yen 2,018 million recurring profit and Yen 1,248 million net profit, respectively, a year ago. .
For the current term ending Mar 2009 the recurring profit is projected at Yen 2,800 million and the net profit at Yen 1,730 million, respectively, on a 5% rise in turnover, to Yen 18,600 million. Pharmaceutical intermediates and bio chemicals will grow.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 753.5 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1951
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 5.8
million shares
Issued: 3.4
million shares
Sum: Yen 6,276 million
(Capital increased in Apr 2007
from the previous Yen 2,726 million).
Major shareholders (%)
Kyowa Hakko Kogyo Co Ltd*(100)
*.Largest fermented chemical mfr, Tokyo, founded 1949, listed Tokyo S/E, turnover Yen 392,119million,operating profit Yen 39,390 million, recurring profit Yen 37,996 million, net profit Yen 23,477 million, total assets Yen 394,081 million, net worth Yen 254,288 million, employees 6,073, pres Yuzuru Matsuda
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is knows as to the commercial morality
of executives.
OPERATION
Activities: Manufactures and exports
pharmaceuticals raw materials & intermediates, bulk chemicals, bio
chemicals (--90%), veterinary drugs, food additives, feed additives, cosmetic
ingredients (--8%), diagnostic & reagents, others (4%).
Diagnostic
& bio products (monoclonal antibodies), purified proteins of collagens,
immunoassay kit, other.
(Exports 20%).
Clients
[Pharmaceutical
mfrs, wholesalers] Kyowa Hakko Kogyo Co, Daiichi Fine Chemical Europe, Meiji
Seika Kaisha, San-Ei Gen FFI Inc, other.
No. of accounts: 1
Domestic areas of activities: Nationwide
Suppliers
[Mfrs,
wholesalers] Daiichi Pharmaceutical, Itochu Techno Chemical, Takasago Int’l
Corp, BASF Takeda Vitamin, Sumitomo 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)
Relations: Satisfactory
FINANCES
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Terms Ending: |
31/03/2009 |
31/03/2008 |
31/03/2007 |
31/03/2006 |
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Annual
Sales |
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18,600 |
17,732 |
16,418 |
15,643 |
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Recur.
Profit |
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2,800 |
2,795 |
2,018 |
1,549 |
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Net
Profit |
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1,730 |
1,697 |
1,248 |
1,014 |
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Total
Assets |
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20,857 |
21,641 |
18,364 |
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Current
Assets |
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12,756 |
13,430 |
10,895 |
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Current
Liabs |
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4,730 |
14,584 |
4,110 |
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Net
Worth |
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15,271 |
5,647 |
13,349 |
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Capital,
Paid-Up |
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6,276 |
2,276 |
2,276 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
60.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
4.90 |
8.00 |
4.95 |
-5.99 |
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Current Ratio |
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.. |
269.68 |
92.09 |
265.09 |
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N.Worth Ratio |
.. |
73.22 |
26.09 |
72.69 |
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R.Profit/Sales |
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15.05 |
15.76 |
12.29 |
9.90 |
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N.Profit/Sales |
9.30 |
9.57 |
7.60 |
6.48 |
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Return On Equity |
.. |
11.11 |
22.10 |
7.60 |
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Notes: Forecast (or estimated) figures for the 31/03/2009 fiscal term
SUPPLEMENTS
CONSOLIDATED
FINANCIALS OF THE PARENT, KYOWA HAKKO CO LTD.
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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392,119 |
354,274 |
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Cost of Sales |
247,201 |
219,850 |
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GROSS PROFIT |
144,917 |
131,424 |
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Selling & Adm Costs |
105,527 |
100,725 |
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OPERATING PROFIT |
39,390 |
30,698 |
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Non-Operating P/L |
-1,394 |
203 |
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RECURRING PROFIT |
37,996 |
30,901 |
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NET PROFIT |
23,477 |
12,694 |
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BALANCE SHEET |
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Cash |
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18,481 |
28,895 |
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Receivables |
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110,447 |
107,458 |
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Inventory |
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62,415 |
56,015 |
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Securities, Marketable |
26,667 |
6,998 |
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Other Current Assets |
14,651 |
14,986 |
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TOTAL CURRENT ASSETS |
232,661 |
214,352 |
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Property & Equipment |
95,134 |
91,248 |
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Intangibles |
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556 |
510 |
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Investments, Other Fixed Assets |
65,730 |
72,760 |
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TOTAL ASSETS |
394,081 |
378,870 |
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Payables |
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49,358 |
52,249 |
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Short-Term Bank Loans |
12,533 |
12,822 |
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Other Current Liabs |
49,788 |
41,430 |
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TOTAL CURRENT LIABS |
111,679 |
106,501 |
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Debentures |
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Long-Term Bank Loans |
256 |
314 |
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Reserve for Retirement Allw |
21,166 |
21,510 |
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Other Debts |
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4,221 |
6,463 |
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TOTAL LIABILITIES |
137,322 |
134,788 |
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MINORITY INTERESTS |
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Common
stock |
26,745 |
26,745 |
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Additional
paid-in capital |
43,180 |
43,180 |
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Retained
earnings |
170,947 |
151,565 |
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Evaluation
p/l on investments/securities |
15,348 |
21,785 |
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Others |
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2,082 |
1,869 |
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Treasury
stock, at cost |
(1,544) |
(1,062) |
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TOTAL S/HOLDERS` EQUITY |
256,758 |
244,082 |
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TOTAL EQUITIES |
394,081 |
378,870 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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30,713 |
23,380 |
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Cash
Flows from Investment Activities |
-9,492 |
-8,493 |
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Cash Flows
from Financing Activities |
-13,499 |
-24,417 |
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Cash,
Bank Deposits at the Term End |
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44,118 |
36,613 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
256,758 |
244,082 |
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Current
Ratio (%) |
208.33 |
201.27 |
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Net
Worth Ratio (%) |
65.15 |
64.42 |
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Recurring
Profit Ratio (%) |
9.69 |
8.72 |
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Net
Profit Ratio (%) |
5.99 |
3.58 |
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Return
On Equity (%) |
9.14 |
5.20 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 42.37 |
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UK Pound |
1 |
Rs.84.01 |
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Euro |
1 |
Rs.65.96 |
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%)