MIRA
INFORM REPORT
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Report Date : |
13.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
NIPPON ELECTRIC GLASS CO LTD |
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Registered Office : |
2-7-1 Seiran Ohtsu City Shiga-Pref520-0833 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
October 1944 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of
LCD & Plasma Display Glass |
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 9,987.0 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
NIPPON ELECTRIC GLASS CO LTD
REGD NAME: Nippon Denki Garasu KK
MAIN OFFICE: 2-7-1 Seiran Ohtsu
City Shiga-Pref520-0833 JAPAN
Tel:
077-537-1700 Fax: 077-534-4967
E-Mail address: info@neg.co.jp
* The given address is its Osaka Branch
Office at: 4-1-14 Miyahara Yodogawaku Osaka, as given; Tel: 06-6399-2711; Fax:
06-6399-2731
ACTIVITIES
Mfg of LCD & plasma display glass
BRANCH(ES)
Tokyo, Osaka
OVERSEAS
USA (2), Malaysia, Indonesia, China (2), Taiwan, Korea
(2) (--subsidiaries)
FACTORY(IES)
Ohtsu, Shiga-Takatsuki, Notogawa, Wakasa-Kaminaka
CHIEF EXEC
YUZO IZUTSU, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 336,410 M
PAYMENTS REGULAR CAPITAL Yen 18,385 M
TREND STEADY WORTH Yen 276,555 M
STARTED 1944 EMPLOYES 6,209
COMMENT
MFR OF
LCD & PLASMA DISPLAY GLASS.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 9,987.0 MILLION, 30 DAYS NORMAL TERMS.
^
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company was established originally by NEC Corp and later absorbed as NEC’s glass section. And in 1949 separated as independent firm. Top-class producer of CRT glass bulbs and plasma display glass. Produces diverse high-tech products in electronic and optical areas, including LCD-use thin sheet glass. Now rather independent of NEC. Aggressive in production overseas.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 336,410 million, a 13.5% up from Yen 296,440 million in the previous term. Product mix of CRT glass was reduced to about 10%, while FPD related glass has increased to about 65% of the group sales. This shows rapid rise in demand for FPD’s. Driven by the growth in FPD glass sales profits improved. The recurring profit was posted at Yen 81,425 million and the net profit at Yen 40,358 million, respectively, compared with Yen 49,380 million recurring profit and Yen 3,231 million net profit, respectively, a year ago.
(Apr/Dec/2007 results): Sales Yen 265,564 million (up 4.0%), operating profit Yen 68,225 million (up 0.4%), recurring profit Yen 66,818 million (up 2.6%), net profit Yen 34,613 million (down 3.7%). (% compared with the corresponding period a year ago). FPD-related glass continued growing. Glass fibers for automobiles rose, too.
For the current term ending Mar 2008 the recurring profit is projected at Yen 94,000 million and the net profit at Yen 50,000 million, on an 8.5% rise in turnover, to Yen 365,000 million. Demand for CRT-use products diminishing gradually. FRT-use products continuing growth, supported by stronger market demand. But profit margin deteriorating due to panel makers’ strong demand for price discount. Net profit will rise, free of special losses on asset impairment related with CRT-use products.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 9,987.0 million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct 1944
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 800 million shares
Issued: 319,544,156 shares
Sum: Yen 18,385 million
Major shareholders (%): NEC Corp (13.5), JTBS (NEC) (11.5), State Street Bank & Trust (5.5), Chase Manhattan Bank (4.7), Nipro Corp (3.7), Japan Trustee Services T (3.2), Goldman Sachs International (2.0), State Street Bank & Trust 505103 (1.6), Shiga Bank (1.6); foreign owners (38.2).
No. of shareholders
5,726
Listed on the S/Exchange (s) of
Tokyo, Osaka
Managements
Tetsuji Mori, ch; Yuzo Izutsu, pres & CEO; Hiroshi Kato,
v pres; Katsumi Inaba, v pres; Masayuki
Arioka, s/mgn dir; Masami Atsuji, s/mgn dir; Shigeru Yamamoto, s/mg dir; Koichi
Inamasu, s/mgn dir; Shuji Itoh, s/mgn dir; Junji Fujikawa, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
NEG Malaysia, NEG Korea, Techneglas Inc, other (Tot 28)
Overseas subsidiaries
Nippon Electric Glass (Malaysia) Sdn Bhd; PT Nippon Electric
Glass Indonesia; Techneglas Inc (USA); Nippon Electric Glass America Inc;
Nippon Electric Glass (Fuzhou) Co Ltd; Nippon Electric Glass (Korea) Co Ltd;
Paju Electric Glass Co Ltd (Korea); Nippon Electric Glass Taiwan Co Ltd.
OPERATION
Activities: Manufactures LCD & plasma display glass,
glass fibers, building materials,
others:
(Sales Breakdown by Divisions):
Display-use
Glass Division (74%): LCD substrate glass, CRT glass bulbs, PDP
substrate glass, glass for optical devices, glass tubing for lighting, heat
resistant glass, radiation shielding glass, others;
Electronic
parts-use Glass Division (4%): glass for electronic devices, power
glass, high-precision glass tubes, others;
Glass
Fiber Division (8%): E-fiber yarn, E-fiber chopped strands,
E-fiber roving, ARG fiber, glass fibers, others;
Building
Materials & other Divisions (12%): glass-ceramic building
materials, glass blocks, heat-resistant glass for fire doors, radiation shielding
glass, recycled glass tiles, solar
collectors, others;
Overseas
Sales Ratio (61.9%): Asia 55.7% (China, Korea, Taiwan,
Malaysia, Indonesia); Others (6.2%)
(USA & Europe)
Clients
[Electronic mfrs, wholesalers] Matsushita Electric Ind, NEG
Taiwan, NEG Korea, Paju Electric (Korea), Maeda Glass Co, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Newman Power Service, NEG Taiwan, SGS Engineering,
NEG Butsuryu Service, Nichiden Glass Processing, other..
Payment record
Regular
Location
Business area in Ohtsu City. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
SMBC (Kyoto)
Sumitomo Trust Bank (Kyoto)
Relations: Satisfactory
Financials
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FINANCES: (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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336,410 |
296,440 |
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Cost of Sales |
225,213 |
212,711 |
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GROSS PROFIT |
111,196 |
83,728 |
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Selling & Adm Costs |
26,611 |
31,776 |
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OPERATING PROFIT |
84,585 |
51,952 |
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Non-Operating P/L |
-3,160 |
-2,572 |
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RECURRING PROFIT |
81,425 |
49,380 |
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NET PROFIT |
40,358 |
3,231 |
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BALANCE SHEET |
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Cash |
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85,391 |
86,322 |
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Receivables |
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72,890 |
70,514 |
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Inventory |
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39,773 |
40,798 |
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Securities, Marketable |
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Other Current Assets |
10,665 |
18,533 |
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TOTAL CURRENT ASSETS |
208,719 |
216,167 |
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Property & Equipment |
274,683 |
233,206 |
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Intangibles |
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888 |
830 |
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Investments, Other Fixed Assets |
35,417 |
35,813 |
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TOTAL ASSETS |
519,707 |
486,016 |
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Payables |
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47,302 |
36,793 |
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Short-Term Bank Loans |
72,315 |
73,965 |
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Other Current Liabs |
78,691 |
66,990 |
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TOTAL CURRENT LIABS |
198,308 |
177,748 |
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Debentures |
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20,000 |
40,000 |
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Long-Term Bank Loans |
3,980 |
8,756 |
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Reserve for Retirement Allw |
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1,611 |
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Other Debts |
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20,863 |
22,537 |
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TOTAL LIABILITIES |
243,151 |
250,652 |
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MINORITY INTERESTS |
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4,359 |
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Common
stock |
18,385 |
18,385 |
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Additional
paid-in capital |
20,129 |
20,123 |
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Retained
earnings |
225,961 |
185,672 |
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Evaluation
p/l on investments/securities |
6,969 |
7,098 |
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Others |
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5,916 |
373 |
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Treasury
stock, at cost |
(805) |
(647) |
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TOTAL S/HOLDERS` EQUITY |
276,555 |
231,004 |
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TOTAL EQUITIES |
519,707 |
486,016 |
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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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107,784 |
71,311 |
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Cash
Flows from Investment Activities |
-95,959 |
-56,515 |
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Cash Flows
from Financing Activities |
-9,432 |
-29,759 |
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Cash,
Bank Deposits at the Term End |
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85,391 |
86,321 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
276,555 |
231,004 |
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Current
Ratio (%) |
105.25 |
121.61 |
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Net
Worth Ratio (%) |
53.21 |
47.53 |
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Recurring
Profit Ratio (%) |
24.20 |
16.66 |
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Net
Profit Ratio (%) |
12.00 |
1.09 |
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Return
On Equity (%) |
14.59 |
1.40 |
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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%)