MIRA
INFORM REPORT
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Report Date : |
23.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
KURARAY CO LTD |
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Registered Office : |
Ohte Center Bldg, 1-1-3 Ohtemachi Chiyodaku Tokyo 100-8115 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
June, 1926 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Synthetic Fiber |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 16,206.6 Million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
name of the company
KURARAY CO LTD
REGD NAME: Kuraray KK
MAIN OFFICE
Ohte Center Bldg, 1-1-3 Ohtemachi Chiyodaku Tokyo 100-8115 JAPAN
Tel: 03-6701-1000 Fax:
03-6701-1005
* The given address is its Osaka Branch Office
URL
E-Mail address
ACTIVITIES
Mfg of synthetic fiber
BRANCH(ES)
Osaka
OVERSEAS
China (12), USA (2), Taiwan, Korea, Indonesia, Malaysia,
Singapore, Thailand, Czech (--subsidiaries)
FACTORY(IES)
Kurashiki (2), Okayama, Saijo (Ehime), Niigata, Kashima
CHIEF EXEC
FUMIO ITOH, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES EXCLNT A/SALES Yen 385,285 M
PAYMENTS REGULAR CAPITAL Yen
88,955 M
TREND STEADY WORTH Yen
358,592 M
STARTED 1926 EMPLOYES 6,812
COMMENT
LEADING
MFR OF SYNTHETIC FIBER. FINANCIAL SITUATION COSIDERED EXCELLENT AND GOOD FOR
ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 16,206.6 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/03/2008 fiscal term
HIGHLIGHTS
This
is a leading mfr of synthetic fiber, known for synthetic fiber “Vinylon”
commercialized for first time in Japan and man-made leather “Clarino”. Non-textiles including man-made leather,
medical products, dental-care products and chemicals are main earning
source. Strong in developing functional
chemicals & artificial leather.
FINANCIAL INFORMATION
The
sales volume for Mar/2007 fiscal term amounted to Yen 385,284 million, a 2.7%
up from Yen 375,072 million in the previous term. Poval films for optics for use in LCD displays expanded. Poval resin enjoyed volume growth in Europe
despite the influence of rising cost of raw materials and fuel. PVB film saw strong demand for construction applications
in Europe. By divisions, Chemicals
& Resins up 10.5% to Yen 201,200 million, Textiles down 1.2% to Yen 107,900
million, Functional Materials up 0.9% to Yen 76,100 million. The recurring profit was posted at Yen
36,546 million and the net profit at Yen 22,412 million, respectively, compared
with Yen 32,781 million recurring profit and Yen 21,185 million net profit,
respectively, a year ago.
(Apr/Sept/2007
results): Sales Yen 206,197 million (up7.8%), operating profit Yen 24,282
million (up 26.8%), recurring profit Yen 22,688 million (up 31.3%), net profit
Yen 13,898 million (up 40.6%). (%
compared with the corresponding period a year ago). Chemicals and resins fared well, with demand strong for products
used in automotive safety glass, food packaging or fuel gas tanks. Sales of films used in LCDs were also
higher.
For
the current term ending Mar 2008 the recurring profit is projected at Yen
44,000 million and the net profit at Yen 25,500 million, on a 9% rise in
turnover, to Yen 420,000 million.
Functional chemicals, mainly LCD-use polarizing films and gas-blocking
resins for food-packaging materials will drive continued sales growth.
The
financial situation is considered maintained EXCELLENT and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 16,206.6 million, on 30 days normal terms.
REGISTRATION
Date Registered:Jun 1926
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,000
million shares
Issued: 382,863,603
shares
Sum: Yen
88,955 million
Major shareholders (%)
Japan Trustee Services Bank T
(6.2), Master Trust Bank of Japan T (6.1), Chase Manhattan Bank (London) (5.5),
Company’s Treasury Stock (3.8), Zenkyoren (3.5), Nippon Life Ins (3.1), Mellon
Bank Treaty Cl Omnibus (2.1), Meiji Yasuda Life Ins (2.1), Japan Trustee
Services T4 (2.0), BNP Paribas Securities (Japan) (2.0); foreign owners (34.0).
No. of shareholders
20,042
Listed on the S/Exchange (s) of
Tokyo, Osaka
Managements
Yasuaki
Wakui, ch; Fumio Itoh, pres; Junsuke Tanaka, s/mgn dir; Seiji Wajiki, mgn dir;
Osamu Asaba, mgn dir; Nobuo Iwawaki, mgn dir; Yoichi Ninagawa, mgn dir; Shiro
Kataoka, mgn dir; Hiroaki Yoshino, dir; Toshihide Sakai, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies: Kuraray Trading, Kuraray America, other
OPERATION
Activities: Manufactures synthetic fiber, resins, man-made
leather, other:
(Sales
Breakdown by Divisions):.
Chemicals
& Resins (52%): poval resin (PVA resin), PVA film,
water-soluble synthetic resin, PVB resin, EVOH resin & film (ethylene vinyl
alcohol copolymer, hydrogenated styrenic thermoplastic elastomers, isobutylene
polymer, liquid isoprene rubber;
Fiber
& Textiles (28%): PVA fiber:
Functional
Materials, Medical Products, others (20%): PVA gel for waste water
treatment, industrial filter membranes, highly heat resistant polyamide resin;
Overseas
Sales Ratio (43.5%): N America (9.5%), Europe (15.7%), Asia
(16.0%), other region (2.3%)
Clients
[Mfrs, wholesalers] Mitsubishi
Corp, Marubeni Corp, Mitsui & Co, Mitsubishi Chemical, Inabata & Co,
other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs,
wholesalers] Mitsubishi Chemical, Mitsui & Co, Showa Denko, Mitsubishi Gas
Chemical, Japan Saudi Arabia Methanol, 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)
MUFG (Nihombashi)
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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385,284 |
375,072 |
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Cost of Sales |
275,885 |
266,283 |
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GROSS PROFIT |
109,398 |
108,789 |
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Selling & Adm Costs |
69,178 |
70,512 |
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OPERATING PROFIT |
40,220 |
38,277 |
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Non-Operating P/L |
-3,674 |
-5,496 |
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RECURRING PROFIT |
36,546 |
32,781 |
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NET PROFIT |
22,412 |
21,185 |
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BALANCE SHEET |
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Cash |
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22,924 |
18,086 |
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Receivables |
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96,186 |
90,051 |
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Inventory |
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72,231 |
69,431 |
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Securities, Marketable |
12,997 |
9,999 |
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Other Current Assets |
13,632 |
13,100 |
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TOTAL CURRENT ASSETS |
217,970 |
200,667 |
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Property & Equipment |
174,151 |
159,396 |
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Intangibles |
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35,238 |
34,638 |
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Investments, Other Fixed Assets |
81,335 |
86,656 |
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TOTAL ASSETS |
508,694 |
481,357 |
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Payables |
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43,604 |
40,182 |
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Short-Term Bank Loans |
11,708 |
7,008 |
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Other Current Liabs |
39,092 |
32,038 |
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TOTAL CURRENT LIABS |
94,404 |
79,228 |
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Debentures |
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10,000 |
10,000 |
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Long-Term Bank Loans |
6,255 |
9,255 |
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Reserve for Retirement Allw |
13,070 |
13,402 |
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Other Debts |
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26,372 |
27,990 |
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TOTAL LIABILITIES |
150,101 |
139,875 |
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MINORITY INTERESTS |
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2,354 |
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Common stock |
88,955 |
88,955 |
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Additional paid-in capital |
87,314 |
87,226 |
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Retained earnings |
171,427 |
155,377 |
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Evaluation p/l on investments/securities |
11,321 |
16,425 |
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Others |
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10,855 |
2,727 |
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Treasury stock, at cost |
(11,280) |
(11,583) |
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TOTAL S/HOLDERS` EQUITY |
358,592 |
339,127 |
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TOTAL EQUITIES |
508,694 |
481,357 |
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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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38,961 |
32,690 |
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Cash Flows from Investment
Activities |
-28,936 |
-13,693 |
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Cash Flows from Financing Activities |
-4,350 |
-7,790 |
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Cash, Bank Deposits at the Term End |
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34,032 |
28,085 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth (S/Holders' Equity) |
358,592 |
339,127 |
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Current Ratio (%) |
230.89 |
253.28 |
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Net Worth Ratio (%) |
70.49 |
70.45 |
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Recurring Profit Ratio (%) |
9.49 |
8.74 |
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Net Profit Ratio (%) |
5.82 |
5.65 |
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Return On Equity (%) |
6.25 |
6.25 |
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%)