MIRA
INFORM REPORT
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Report Date : |
23.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
KYOWA HAKKO CHEMICAL CO LTD |
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Registered Office : |
Nihombashi-Muromachi Center Bldg 6F, 3-2-15
Nihombashi-Muromachi Chuoku Tokyo 103-0022 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
November 1966 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Manufacturing of industrial
chemicals & 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 3,157.9 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
KYOWA HAKKO CHEMICAL CO LTD
REGD NAME: Kyowa Hakko Chemical KK
MAIN OFFICE: Nihombashi-Muromachi Center Bldg 6F, 3-2-15 Nihombashi-Muromachi Chuoku Tokyo 103-0022 JAPAN
Tel: 03-3510-3550 Fax: 03-3510-3571
URL: http://www.kyowachemical.co.jp/
E-Mail address: info@kyowachemical.co.jp
ACTIVITIES
Mfg of industrial chemicals &
ingredients
BRANCHES
Osaka
OVERSEAS
Kyowa Hakko USA Inc (USA); Kyowa
Hakko Europe GmbH (Germany); Kyowa
Hakko Industry (Singapore) Pte Ltd (Singapore); Kyowa Hakko Kogyo Co Ltd,
Shanghai Rep Office (China)
FACTORY(IES)
Yokkaichi, Ichihara (Chiba)
OFFICER(S)
MINORU KIKKAWA, PRES
Tohru Kawamata, mgn dir
Shohei Konishi, dir
Jun’ichi Saitoh, dir
Yen Amount
In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 98,645 M
PAYMENTS REGULAR CAPITAL Yen 5,300 M
TREND STEADY WORTH Yen 37,134 M
STARTED 1966 EMPLOYES 503
COMMENT
MFR SPECIALIZING IN INDUSTRIAL
CHEMICALS, WHOLLY OWNED BY KYOWA HAKKO KOGYO CO LTD.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 3,157.9 MILLION, 30 DAYS
NORMAL TERMS.
HIGHLIGHTS
The subject company was
established originally as a subsidiary, named Kyowa Yuka Co Ltd, by Kyowa Hakko
Kogyo Co Ltd, Tokyo (see REGISTRATION) for mfg industrial chemicals. The subject merged in 1991 with Japan Oxocol
Co Ltd to start mfg at Chiba Plant. In
2000 established J-Plus Co Ltd, a JV with Mitsubishi Chemical Corp for
plasticizer business. In 2003
established Japan Ethyl Acetate Co Ltd, a JV with Showa Denko KK for ethyl
acetate production. In 2004, the parent
separated its Chemical Division and transferred the whole operations to the
subject firm, when the subject renamed as captioned. This is the core of industrial chemicals operations of the Kyowa
Hakko group, with the chemicals sector accounting for 27% of total consolidated
sales of the Kyowa Hakko group. The
chemicals operation group consists of 7 firms in the mfg and sales. Main mfg items are solvents, plasticizers,
plasticizer materials & ingredients, other (see OPERATION for
details).
FINANCIAL INFORMATION
The sales volume for Mar/2007
fiscal term amounted to Yen 98,645 million, a 15% up from Yen 85,820 million in
the previous term. Firm demand underpinned
increase in shipment volume, and revision of core product prices were
implemented as further rises in naphtha & crude oil markets led to higher
raw materials & fuel oil prices.
Strong overseas demand for plasticizer raw materials & solvents led
to sales increase. By products, sales
of high-purity solvents to IT industry were strong & specialty chemicals
products recorded sales growth in Japan & overseas, driven by strong
performance from core refrigerant oil raw materials. The recurring profit was posted at Yen 8,183 million and the net
profit at Yen 4,425 million, respectively, compared with Yen 5,178 million
recurring profit and Yen 4,555 million net profit, respectively, a year
ago.
For the current term ending Mar
2008 the recurring profit is projected at Yen 8,200 million and the net profit
at Yen 4,450 million, on a 1.4% rise in turnover, to Yen 100,000 million. Sales of functional chemicals will keep
growing, supported by robust demand in China & other S/E Asian
countries. Sales will reach the Yen
100,000 million targets.
The financial situation is
considered maintained FAIR to EXCELLENT and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 3,157.9 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Nov 1966
Legal
Status: Limited Company (Kabushiki
Kaisha)
Authorized: 88.8 million shares
Issued: 22.2 million shares
Sum:
Yen 5,300 million
Major shareholders (%)
Kyowa Hakko Kogyo Co Ltd*(100)
*.. Nation’s largest fermented
chemical producer, Tokyo, founded 1949, listed Tokyo S/E, capital Yen 26,745
million, turnover Yen 354,274 million, recurring profit Yen 30,901 million, net profit Yen 12,694 million, total
assets Yen 378,870 million, net worth Yen 241,717 million, employees 5,778, pres Yuzuru Matsuda
Consolidated Financials are as
attached (See SUPPLEMENTS)
Nothing detrimental is known as to
the commercial morality of executives.
OPERATION
Activities: Manufactures industrial
chemicals (100%): Alcohols: butyl alcohol, isobutyl alco-hol, ethylhexyl
alcohol; Acetates: ethyl acetate, isobutyl acetate, isoamyl acetate; Glycol Ethers: Ethylene glycol monobutyl ether,
diethylene glycol mono-n-hexyls ether, propylene glycol monomethyl, ether
acetate; Ketones: methyl isobutyl ketone, diisobutyl ketone; High purity Solvents; Diols: butylenes
glycol, ethyl-1.3-hexanediol; others.
(These are some of the typical products).
The firm has 3 major business
divisions:
Business Unit I: raw
materials for paints, inks & plasticizers, etc, for auto, electronics,
housing industries. Markets: paints
& coatings, inks, thinners, commodity polymers,
plasticizers, cleaning agents,
other;
Business Unit !!:
synthetic fatty acids, higher alcohols, specialty diols, functional polymeric
materials, used widely in lubricants, surfactants, polymers, cosmetics,
toiletries, Pharma- ceuticals, etc.
Markets: lubricants, specialty polymers, adhesives, cosmetics & toiletries,
pharmaceuticals & agricultural chemicals, surfactants, civil engineering,
other;
Business Unit III:
high grade solvents used in mfg semiconductors & liquid crystal sub- strates. Also undertakes R&D of
functional chemicals. Markets:
electronic materials, display
materials, optical materials, other.
Clients
Mfrs, wholesalers, other
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
Chemical mfrs, oil refineries,
wholesalers, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
31/03/2008 |
31/03/2007 |
31/03/2006 |
31/03/2005 |
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Annual Sales |
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100,000 |
98,645 |
85,820 |
78,058 |
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Recur. Profit |
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8,200 |
8,183 |
5,178 |
6,033 |
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Net Profit |
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4,450 |
4,425 |
4,555 |
3,194 |
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Total Assets |
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81,636 |
71,862 |
65,615 |
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Current Assets |
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40,365 |
37,969 |
30,597 |
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Current Liabs |
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43,606 |
34,188 |
27,292 |
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Net Worth |
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37,134 |
29,277 |
32,948 |
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Capital, Paid-Up |
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5,300 |
5,300 |
5,300 |
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Div.P.Share(¥) |
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10.00 |
10.00 |
10.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
1.37 |
14.94 |
9.94 |
35.08 |
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Current Ratio |
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.. |
92.57 |
111.06 |
112.11 |
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N.Worth Ratio |
.. |
45.49 |
40.74 |
50.21 |
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R.Profit/Sales |
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8.20 |
8.30 |
6.03 |
7.73 |
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N.Profit/Sales |
4.45 |
4.49 |
5.31 |
4.09 |
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Return On Equity |
.. |
11.92 |
15.56 |
9.69 |
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Notes: Forecast (or estimated)
figures for the 31/03/2008 fiscal term.
Financials are consolidated in the
parent’s and only these figures are disclosed.
SUPPLEMENTS:
CONSOLIDATED FINANCIALS OF THE PARENT, KYOWA HAKKO KOGYO CO
LTD
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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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354,274
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353,439
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Cost of Sales |
222,850
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226,457
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GROSS PROFIT |
131,424
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126,982
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Selling & Adm Costs |
100,725
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101,448
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OPERATING PROFIT |
30,698 |
25,534 |
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Non-Operating P/L |
203 |
2,685 |
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RECURRING PROFIT |
30,901 |
28,219 |
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NET PROFIT |
12,694 |
16,273 |
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BALANCE
SHEET |
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Cash |
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28,895 |
26,019 |
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Receivables |
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107,458
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97,828 |
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Inventory |
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56,015 |
55,485 |
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Securities, Marketable |
6,998 |
15,494 |
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Other Current Assets |
14,986 |
18,159 |
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TOTAL CURRENT ASSETS |
214,352
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212,985
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Property & Equipment |
91,248 |
88,188 |
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Intangibles |
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510 |
402 |
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Investments, Other Fixed Assets |
72,760 |
82,806 |
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TOTAL ASSETS |
378,870
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384,381
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Payables |
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52,249 |
46,869 |
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Short-Term Bank Loans |
12,822 |
12,203 |
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Other Current Liabs |
41,430 |
35,076 |
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TOTAL CURRENT LIABS |
106,501
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94,148 |
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Debentures |
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Long-Term Bank Loans |
314 |
12 |
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Reserve for Retirement Allw |
21,510 |
24,609 |
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Other Debts |
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6,463 |
8,121 |
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TOTAL LIABILITIES |
134,788
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126,890
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MINORITY INTERESTS |
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1,683 |
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Common
stock |
26,745 |
26,745 |
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Additional
paid-in capital |
43,180 |
43,186 |
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Retained
earnings |
151,565
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170,718
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Evaluation
p/l on investments/securities |
21,785 |
24,338 |
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Others |
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1,869 |
(1,152) |
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Treasury
stock, at cost |
(1,062) |
(8,028) |
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TOTAL S/HOLDERS` EQUITY |
244,082
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255,807
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TOTAL EQUITIES |
378,870
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384,381
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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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23,380 |
14,303 |
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Cash
Flows from Investment Activities |
-8,493 |
-1,795 |
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Cash
Flows from Financing Activities |
-24,417
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-5,139 |
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Cash,
Bank Deposits at the Term End |
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36,613 |
45,820 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
244,082
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255,807
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Current
Ratio (%) |
201.27 |
226.22 |
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Net
Worth Ratio (%) |
64.42 |
66.55 |
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Recurring
Profit Ratio (%) |
8.72 |
7.98 |
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Net
Profit Ratio (%) |
3.58 |
4.60 |
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Return
On Equity (%) |
5.20 |
6.36 |
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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%)