MIRA INFORM REPORT

 

 

Report Date :

30.12.2008

 

IDENTIFICATION DETAILS

 

Name :

SUMCO TECHXIV CORPORATION

 

 

Registered Office :

1324-2 Masugaharamachi Omura City Nagasaki-Pref 856-8555

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2008

 

 

Date of Incorporation :

April 1960

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Semiconductor Silicon Wafers

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

YEN 3,333.0 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

name & address

 

SUMCO TECHXIV CORPORATION

REGD NAME:    Sumco Techxiv KK

MAIN OFFICE:  1324-2 Masugaharamachi Omura City Nagasaki-Pref 856-8555 JAPAN

                                    Tel: 0957-52-0111     Fax: 0957-52-3178

 

URL:                 http://www.sumcosi.com/

E-Mail address:            info@sumcosi.com

 

 

ACTIVITIES

 

Mfg of semiconductor silicon wafers

 

 

BRANCHES

 

Tokyo, Osaka, Fukuoka

 

 

OVERSEAS

 

Singapore, Shanghai

(Subsidiaries): Formosa Sumco Technology Corp (Taipei, Hsinchu, Mailiao);

Sumco Techxiv Europe NV (Belgium)

 

 

FACTORY(IES)

 

At the caption address, Miyazaki

 

 

OFFICER(S)

 

TAKASHI ABE, PRES                           

Yutaka Hirose, v pres

Mitsuo Yokokawa, dir                            

Tadashi Watabe, dir

Tetsuo Ikeda, dir                                               

Toshihisa Asano, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 90,452 M

PAYMENTS      REGULAR                     CAPITAL           Yen 11,636 M

TREND             STEADY                       WORTH            Yen 85,036 M

STARTED         1960                             EMPLOYES      2,081

 

 

COMMENT

 

MFR OF SEMICONDUCTOR SILICON WAFERS, WHOLLY OWNED BY SUMCO CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT

ENGAGEMENTS: R1,500,000 / 30 DAYS.

                       

MAX CREDIT LIMIT: YEN 3,333.0 MILLION, 30 DAYS NORMAL TERSM..

 

 

HIGHLIGHTS

 

This is major mfr of semiconductor wafers holding roughly 10% share on the global

market.  Originally established as Komatsu Electronics Metals Co Ltd, a JV between Komatsu Ltd  and Ishizuka Institute Ltd for production of high-purity polycrystalline silicon.  Became Sumco group member in Oct 2006 by TOB.  In Apr/2008, became a wholly owned subsidiary of Sumco Corporation through a share exchange.  Then the subject was delisted from Tokyo S/E (Second section).  Has production base in Saga, Nagasaki & Taiwan. 

 

           

FINANCIAL INFORMTION

 

The sales volume for Mar/2008 fiscal term amounted to Yen 117,132 million, a 39.0% up from Yen 84,257 million in the previous term.  Sales boosted by robust demand for 300mm wafers which grew stronger than projection.  Weaker Yen also helped.  The recurring profit was posted at Yen 23,190 million and the net profit at Yen 14,139 million, respectively, compared with Yen 15,128 million recurring profit and Yen 8,857 million net profit, respectively, a year ago.

           

For the current term ending Jan 2009 the recurring profit is projected at Yen 22,000 million and the net profit at Yen 13,300 million, respectively, on a 5% fall in turnover, to Yen 111,250 million. Yen’s continued advance will negatively affect exports.  Demand is seen cooling at home & abroad. The slowing economy is having a substantial impact on the business.

           

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,333.0 million, on 30 days normal terms.  The proposed amount is considered well within the firm’s financial capabilities.

 

 

REGISTRATION

 

Date Registered:          Apr 1960

Legal Status:   Limited Company (Kabushiki Kaisha)

Issued:             30,200 K shares

Sum:                 Yen 11,636 million

           

 

Major shareholders (%)

 

Sumco Corp*(100)

 

*.. Major silicon wafer mfr, having second-largest share of global market, founded 1999,       listed Tokyo S/E, capital Yen 114,117 million, turnover Yen 474,951 million, operating profit Yen 140,385 million, recurring profit Yen 123,028 million, net profit Yen 74,879 million, total assets Yen 709,776 million, net worth Yen 387,377 million, employees 9,526, pres Kenjiro Shigematsu

           

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Manufactures semiconductor silicon wafers (95%): epitaxial wafers, annealed     wafers, polished wafers, diffused wafers, etched wafers, lapped wafers, sliced wafers; others (5%). Overseas sales ratios about 50%.

 

           

Clients

 

[Mfrs, wholesalers] Toshiba Corp, NEC, Sharp Corp, Rohm Co, Komatsu Silicon America, Sumco Techxiv Europe, other.

No. of accounts: 800

Domestic areas of activities: Nationwide

 

 

Suppliers

 

 [Mfrs, wholesalers] Formosa Sumco Technology Corp, Tokuyama Corp, other.

 

Payment record: Regular

 

Location: Business area in Omura City, Nagasaki-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

           

Bank References

 

Mizuho Corporate Bank (H/O)

SMBC (Tokyo)

Relations: Satisfactory

 

 

FINANCES

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/01/2008

31/01/2007

INCOME STATEMENT

 

 

 

  Annual Sales

　

117,132

84,257

 

  Cost of Sales

83,240

60,217

 

      GROSS PROFIT

33,892

24,039

 

  Selling & Adm Costs

12,912

9,860

 

      OPERATING PROFIT

20,980

14,179

 

  Non-Operating P/L

2,210

949

 

      RECURRING PROFIT

23,190

15,128

　

      NET PROFIT

14,139

8,857

BALANCE SHEET

 

 

 

 

  Cash

　

9,926

3,364

 

  Receivables

 

23,116

22,039

 

  Inventory

 

19,667

17,613

 

  Securities, Marketable

1,500

　

 

  Other Current Assets

7,313

4,100

 

      TOTAL CURRENT ASSETS

61,522

47,116

 

  Property & Equipment

103,253

73,698

 

  Intangibles

 

1,391

1,123

 

  Investments, Other Fixed Assets

10,813

7,029

 

      TOTAL ASSETS

176,979

128,966

 

  Payables

 

14,040

14,353

 

  Short-Term Bank Loans

30,092

22,883

 

　

 

　

　

 

  Other Current Liabs

25,935

14,500

 

      TOTAL CURRENT LIABS

70,067

51,736

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

15,100

17,650

 

  Reserve for Retirement Allw

5,541

5,109

 

  Other Debts

　

1,234

150

 

      TOTAL LIABILITIES

91,942

74,645

 

      MINORITY INTERESTS

 

 

 

Common stock

11,636

11,636

 

Additional paid-in capital

12,824

12,824

 

Retained earnings

32,811

14,545

 

Evaluation p/l on investments/securities

12

81

 

Others

 

27,754

15,235

 

Treasury stock, at cost

(1)

0

 

      TOTAL S/HOLDERS` EQUITY

85,036

54,321

　

      TOTAL EQUITIES

176,979

128,966

ANALYTICAL RATIOS            Terms ending:

31/01/2008

31/01/2007

 

 

Net Worth (S/Holders' Equity)

85,036

54,321

 

 

Current Ratio (%)

87.80

91.07

 

 

Net Worth Ratio (%)

48.05

42.12

 

 

Recurring Profit Ratio (%)

19.80

17.95

 

 

Net Profit Ratio (%)

12.07

10.51

 

 

Return On Equity (%)

16.63

16.30

 

           

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.50

UK Pound

1

Rs.70.02

Euro

1

Rs.67.95

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

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