MIRA
INFORM REPORT
|
Report Date : |
09.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
KOWA COMPANY LTD |
|
|
|
|
Registered Office : |
3-6-29 Nishiki Nakaku Nagoya 460-8625 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
November, 1939 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of pharmaceuticals, medical equipment |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
YEN 4,871.1 Million |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name of the company
KOWA CO LTD
REGD NAME: Kowa KK
MAIN OFFICE
3-6-29 Nishiki Nakaku Nagoya 460-8625 JAPAN
Tel: 052-963-3033
URL
E-Mail address
info@kowa.co.jp
ACTIVITIES
Mfg of pharmaceuticals, medical equipment;
Import, export, wholesale of textiles, apparel, machinery,
chemicals, other
BRANCHES
Tokyo, Osaka, Sapporo, Sendai, Yokohama, Okayama, Fukuoka,
etc. (Tot 23)
OVERSEAS
USA (4), Chile, Europe (2), Asia/Pacific (2) (--affiliates)
FACTORY(IES)
Chofu, Fuji,
Gamagori, Nagoya, Hamamatsu
OFFICERS
Takayasu Miwa, ch YOSHIHIRO
MIWA, PRES
Shoji Katoh, s/mgn dir Torao
Yamamoto, s/mgn dir
Takeshi Horie, s/mgn dir Yasunobu
Koyama, s/mgn dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 213,197 M
PAYMENTS REGULAR CAPITAL Yen 3,840 M
TREND STEADY WORTH Yen 241,182 M
STARTED 1939 EMPLOYES 3,917
COMMENT
MFR OF
PHARMACEUTICALS; IMPORT, EXPORT AND WHOLESALE OF TEXTILES, MACHINERY, OTHERS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 4,871.1 MILLION, 30 DAYS NORMAL TERMS
Note: Forecast for the 31/03/2008 term.
HIGHLIGHTS
The subject company was
established on the basis of mfg division separated from Kowa Spinning Co,
founded in 1912, Nagoya. The subject has
two major operations: mfg division: pharmaceuticals, medical equipment,
electronic devices, optical equipment, broadcasting devices; trading division:
import, export, wholesale of textiles, apparel, machinery, building materials,
chemicals, consumer goods, other. This
is a well-known mfr of digestive medicines, cholesterol-lowering agents,
hypertensive agents, etc. Also handles
health-care foods. Group consists of
about 70 firms centering in 4 core firms: Kowa Spinning Co Ltd, Kowa Co Ltd,
Kowa Pharmaceutical Co Ltd, and Kowa Shinyaku Co Ltd. In Oct 2006 acquired Nikken Chemical Co Ltd, mfr of
pharmaceuticals, to make it a consolidated subsidiary. In Jul 2007, transferred R&D & mfg
divisions of Kowa Pharmaceutical Co Ltd into the subject in order to streamline
group operations. Kowa Pharmaceutical
is now engaged in marketing and wholesaling businesses.
Overseas
affiliates (pharmaceuticals): Kowa Pharmaceutical Europe Co Ltd, Kowa Research
Europe Ltd (--UK);
Kowa
Research Institute Inc (USA)
FINANCIAL INFORMATION:
The sales volume for Mar/2007
fiscal term amounted to Yen 213,197 million, a 2.1% up from Yen 208,771 million
in the previous term. Textile &
apparel division was down by increasing competition among the trade over
prices. Non-textiles up by 16.3% to Yen
91,212 million with medical instruments exports kept rising. Fishing gears exports increased into Europe
& America, with added demand rising from China. Pharmaceuticals up 7.8% to Yen 103,279 million with hypertension
drugs and anti-cholesterol drugs increased.
Optical div was slow. The
recurring profit was posted at Yen 5,806 million and the net profit at Yen
7,725 million, respectively, compared with Yen 3,414 million recurring profit
and Yen 224 million net profit, respectively, a year ago. The improved net profits include
extraordinary income of Yen 10,259 million coming from the disposal of
investment/stockholdings.
(Apr/Sept/2007 results): Sales Yen 109,446 million (up 7.1%),
recurring profit Yen 2,987 million (up 50.3%), net losses Yen 311 million (down
from Yen 311 million net profit). (%
compared with the same period last year).
Textile div was slow due to extremely hot winter extending well into
autumn. Office uniforms were slow due
to rising costs of materials. However,
exports into Mid East expanded. In
non-textile div, pharmaceuticals & fishing gears rose. Industrial chemicals exports expanded into
Europe & USA thanks to new markets developed. This division was up 14.2% to Yen 49,557 million. Pharmaceuticals up 1.1% to Yen 50,603
million; large-size fundus camera exports rose into Australia, Turkey, India,
Korea, other. Other divisions up 6.3%
to Yen 9,824 million, with hotel operations captured more customers.
For the current term ending Mar
2008 the recurring profit is projected at Yen 3,500 million and the net profit
at Yen 1,000 million, on a 5.4% rise in turnover, to Yen 220,000 million. Pharmaceuticals including health foods will
keep growing.
The financial situation is considered
FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 4,871.1 million, on 30 days
normal terms.
REGISTRATION
Date Registered : Nov
1939
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
96.3 million shares
Issued :
37,770,000 shares
Sum :
Yen 3,840 million
Major shareholders (%): Kowa
Spinning (15.4), Sanko KK (5.3), MUFG (4.2), Mizuho Corporate Bank
(3.6),Genesis (3.5)
No. of shareholders: 1,414
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities: This is a trading
house with mfg division:
(Sales
Breakdown by divisions):
Manufacturing Division (49%): Ethical
products (analgesic drugs, anti-allergic drugs, cardiovascular drugs, dermatological
drugs, ophthalmologic drugs; OTC products (dermatological products,
gastrointestinal products, respiratory products, topical analgesic products,
tonic, quasi-drugs, health foods & drinks; Sporting optics (binoculars,
digiscoping, eye pieces, lenses); Medical equipment (automatic perimeters,
binocular loops, digital imaging, digital imaging, fundus camera, anterior
segment of the eye, tonometers/perimeters); Audio Video (PXID flash memory,
hotkey audio player, professional video & broadcasting equipment); fishing
gears, others;
Wholesaling Division (43%): Imports,
exports and wholesales textiles, textile materials, apparel, machinery,
building materials, chemicals, consumer goods;
Other
Divisions (9%): Real estate business, hotel operation, insurance brokerage,
printing, others.
Overseas sales ratio (16.49%): Asia
(China, Taiwan, Korea) (11.11%); USA/Europe (5.38%).
Clients
[Pharmaceutical mfrs,
wholesalers] Takisada Osaka, Mediceo Paltac Holdings, Kowa Shinyaku, Kurabo
Ind, Suzuken Co, Alfresa Corp, Kowa Pharmaceutical, Toho Pharmaceutical, Adani
Global Pte, other.
Exports to Europe, USA, Korea,
India, Australia, China, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Kowa Spinning,
Mitsubishi Rayon, Sanrio Co, Nissan Chemical
Ind, Teika Pharmaceutical, SQM Japan, Yutaka Sangyo, Gudami International,
Nissan Chemical Ind, other.
Payment record: Regular
Location:
Business area in Nagoya. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References
MUFG (Nagoya)
Mizuho Corporate Bank (Nagoya)
Relations: Satisfactory
Finances
|
FINANCES: (Consolidated in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2007 |
31/03/2006 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
213,197 |
208,771 |
|
|
Cost of Sales |
126,532 |
120,627 |
|
|
|
GROSS PROFIT |
86,664 |
88,144 |
|
|
|
Selling & Adm Costs |
81,832 |
85,284 |
|
|
|
OPERATING PROFIT |
4,867 |
2,853 |
|
|
|
Non-Operating P/L |
939 |
561 |
|
|
|
RECURRING PROFIT |
5,806 |
3,414 |
|
|
|
NET PROFIT |
7,725 |
224 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
27,076 |
15,866 |
|
|
Receivables |
|
63,552 |
66,790 |
|
|
Inventory |
|
21,425 |
18,409 |
|
|
Securities, Marketable |
2,301 |
1,341 |
|
|
|
Other Current Assets |
11,272 |
8,840 |
|
|
|
TOTAL CURRENT ASSETS |
125,626 |
111,246 |
|
|
|
Property & Equipment |
57,968 |
60,504 |
|
|
|
Intangibles |
|
2,071 |
2,127 |
|
|
Investments, Other Fixed Assets |
55,517 |
56,002 |
|
|
|
TOTAL ASSETS |
241,182 |
229,879 |
|
|
|
Payables |
|
28,361 |
25,891 |
|
|
Short-Term Bank Loans |
46,789 |
37,059 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
22,410 |
22,875 |
|
|
|
TOTAL CURRENT LIABS |
97,560 |
85,825 |
|
|
|
Debentures |
|
|
2,000 |
|
|
Long-Term Bank Loans |
8,343 |
6,090 |
|
|
|
Reserve for Retirement Allw |
11,894 |
12,707 |
|
|
|
Other Debts |
|
11,967 |
10,390 |
|
|
TOTAL LIABILITIES |
129,764 |
117,012 |
|
|
|
MINORITY INTERESTS |
|
9,333 |
|
|
|
Common stock |
3,840 |
3,840 |
|
|
|
Additional paid-in capital |
2,076 |
2,035 |
|
|
|
Retained earnings |
96,721 |
89,111 |
|
|
|
Evaluation p/l on
investments/securities |
16,204 |
16,324 |
|
|
|
Others |
|
1,259 |
854 |
|
|
Treasury stock, at cost |
(8,683) |
(8,630) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
111,417 |
103,534 |
|
|
|
TOTAL EQUITIES |
241,182 |
229,879 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2007 |
31/03/2006 |
|
|
Cash Flows from Operating Activities |
|
5,894 |
4,324 |
|
|
Cash Flows from Investment
Activities |
-6,430 |
10,762 |
|
|
|
Cash Flows from Financing Activities |
11,541 |
-10,835 |
|
|
|
Cash, Bank Deposits at the Term End |
|
26,756 |
15,644 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
||
|
|
|
Net Worth (S/Holders' Equity) |
111,417 |
103,534 |
|
|
|
Current Ratio (%) |
128.77 |
129.62 |
|
|
|
Net Worth Ratio (%) |
46.20 |
45.04 |
|
|
|
Recurring Profit Ratio (%) |
2.72 |
1.64 |
|
|
|
Net Profit Ratio (%) |
3.62 |
0.11 |
|
|
|
Return On Equity (%) |
6.93 |
0.22 |
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%)