MIRA INFORM REPORT

 

 

Report Date :

25.02.2008

 

IDENTIFICATION DETAILS

 

Name :

NICHIA CORPORATION

 

 

Registered Office :

491 Oka Kaminakacho Anan City Tokushima-Pref 774-8601

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

December 1956

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Phosphors for CRT, Light Emitting Diodes, Other

 

 

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 6,896.5 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

 

name & address

 

NICHIA CORPORATION

REGD NAME:   Nichia Kagaku Kogyo KK

MAIN OFFICE:  491 Oka Kaminakacho Anan City Tokushima-Pref 774-8601 JAPAN

                        Tel: 0884-22-2311     Fax: 0884-21-0148

URL:                 http://www.nichia.co.jp/

E-Mail address: info@nichia.co.jp

 

 

ACTIVITIES

 

Mfg of phosphors for CRT, light emitting diodes, other

 

 

BRANCHES

 

Tokyo, Nagoya, Osaka

 

 

OVERSEAS

 

USA (3), Taiwan, Malaysia, Netherlands, Germany (3), China, Singapore, Korea, India, Thailand (--subsidiaries)

 

 

FACTORY(IES)

 

 At the caption address, Tatsumi, Tokushima, Naruto, Kagoshima

 

 

OFFICER(S)

 

EIJI OGAWA, PRES                             

Noboru Tasaki, v pres

Toshiya Iwashima, mgn dir                     

Kenshi Shinomiya, mgn dir        

Teruji Yamakawa, mgn dir                                  

Kazuo Iwasa, dir

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 209,846 M

PAYMENTS      REGULAR                     CAPITAL           Yen 16,472 M

TREND             STEADY                       WORTH            Yen 286,774 M

                        STARTED         1956                             EMPLOYES      4,091

 

 

COMMENT

 

MFG OF DIODES, PHOSPHORS, SEMICONDUCTOR MATERIALS, OTHER. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

MAX CREDIT LIMIT

 

YEN 6,896.5 MILLION, 30 DAYS NORMAL TERMS

 

 

 

                       

                         Estimated figures for the 31/12/2007 fiscal term.  Not yet disclosed.

 

 

HIGHLIGHTS

           

The subject company was established by father of Eiji Ogawa for mfg phosphors for fluorescent       lamps, which started in 1966.  In 1968 concluded technical license agreement with General Electric, USA, which agreement later canceled in 1980 because of technical reasons (as reported by the firm). This is a specialized mfr of phosphors for CRT, light emitting diodes, optical semiconductor devices, other.  Boasts No.1shares in each field.  About 34% in LED markets. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2006 fiscal term amounted to Yen 209,846 million, a 4.6% up from Yen 200,614 million in the previous term.  Demand increased for fluorescent materials for use in plasma TV’s.  By divisions, Chemicals Div up 17% to Yen 58,002 million; Semiconductor Div remained similar at Yen 151,843 million.  Areawise, sales in Japan up 4%, USA/S America up 29% and Europe up 2%, respectively.  In Europe, while LED sales were steady, the withdrawal of large clients in fluorescent materials hard hit its profits.

 

For the term ended Dec 2007 the recurring profit was projected and believed posted at Yen 80,000 and the net profit at Yen 48,000 million, respectively, compared with Yen 79,482 million recurring profit and Yen 52,845 million net profit, respectively, a year ago.

           

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 6,896.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: Dec 1956

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        4.5 million shares

Issued:              1,562,409 shares

Sum:                Yen 16,472 million

           

 

Major shareholders (%)

 

Employees’ S/Holding Assn (24.6), Kyodo Igaku Kenkyusho, (8.4), Tokushima Bank (4.9), Awa Bank (4.8), Shikoku Bank (4.8)

No. of shareholders: 185

           

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

 

 

OPERATION

 

Activities: Manufactures chemicals (28%), optical semiconductor materials (72%). 42% of the products are exported.

 

Overseas sales ratio (38.2%): Asia 24.3%; N/S Americas 8.7%; Europe 5.1%

 

 (Handling Items):

 

Light Emitting Diodes: compound semiconductor materials, light emitting diodes, ultraviolet LEDs;

Laser Diodes: laser diodes, phosphors, evaporation/coating materials, transition materials  catalysts/organometallic compounds, magnets, fine chemicals, other.

 

           

Clients

 

[Electronic mfrs, wholesalers] Sanyo Electric Co, Sharp Electronics (M) Sdn Bhd Hong Kong Branch, Citizen Electronics, other.

 

 

No. of accounts

 

1,000

 

 

Domestic areas of activities

 

Nationwide

 

           

Suppliers

 

Mfrs, wholesalers] Mitsui & Co, Panasonic Semiconductor Discrete Devices, other.

 

 

Payment record

 

Regular

 

 

Location

 

Business area in Anan City, Tokushima-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Tokushima Bank (Anan)

Awa Bank (Anan)

Relations: Satisfactory

 

 

Finances

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2006

31/12/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

209,846

200,614

 

  Cost of Sales

101,226

90,556

 

      GROSS PROFIT

108,619

110,058

 

  Selling & Adm Costs

30,732

27,653

 

      OPERATING PROFIT

77,887

82,405

 

  Non-Operating P/L

1,595

3,277

 

      RECURRING PROFIT

79,482

85,682

　

      NET PROFIT

47,633

52,845

BALANCE SHEET

 

 

 

 

  Cash

　

100,661

86,757

 

  Receivables

 

65,635

70,676

 

  Inventory

 

53,885

37,340

 

  Securities, Marketable

　

　

 

  Other Current Assets

5,119

4,412

 

      TOTAL CURRENT ASSETS

225,300

199,185

 

  Property & Equipment

114,896

109,171

 

  Intangibles

 

1,173

1,149

 

  Investments, Other Fixed Assets

9,402

7,020

 

      TOTAL ASSETS

350,771

316,525

 

  Payables

 

6,030

5,389

 

  Short-Term Bank Loans

11,447

12,147

 

　

 

　

　

 

  Other Current Liabs

19,224

23,337

 

      TOTAL CURRENT LIABS

36,701

40,873

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

27,036

28,498

 

  Reserve for Retirement Allw

3

193

 

  Other Debts

　

256

915

 

      TOTAL LIABILITIES

63,996

70,479

 

      MINORITY INTERESTS

 

25

 

Common stock

16,472

16,472

 

Additional paid-in capital

2,486

2,486

 

Retained earnings

265,424

224,984

 

Evaluation p/l on investments/securities

(16)

495

 

Others

 

2,408

1,583

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

286,774

246,020

　

      TOTAL EQUITIES

350,771

316,525

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2006

31/12/2005

 

Cash Flows from Operating Activities

　

55,687

54,447

 

Cash Flows from Investment Activities

-36,225

-32,790

 

Cash Flows from Financing Activities

-9,190

-7,171

　

Cash, Bank Deposits at the Term End

　

96,073

85,327

ANALYTICAL RATIOS            Terms ending:

31/12/2006

31/12/2005

 

 

Net Worth (S/Holders' Equity)

286,774

246,020

 

 

Current Ratio (%)

613.88

487.33

 

 

Net Worth Ratio (%)

81.76

77.73

 

 

Recurring Profit Ratio (%)

37.88

42.71

 

 

Net Profit Ratio (%)

22.70

26.34

 

 

Return On Equity (%)

16.61

21.48

           

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions