MIRA
INFORM REPORT
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Report Date : |
03.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SANKYO RIKAGAKU KK |
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Registered Office : |
2-2-18 Izumi Okegawa Saitama-Pref 363-0021 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
June 1953 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Coated Paper and Abrasives |
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 653.4 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
SANKYO RIKAGAKU KK
REGD NAME: Sankyo Rikagaku KK
MAIN OFFICE: 2-2-18 Izumi Okegawa
Saitama-Pref 363-0021 JAPAN
Tel:
048-786-2111 Fax: 048-786-3662
URL: http://www.sankyorikagaku.co.jp/
E-Mail address:info@sankyorikagaku.co.jp
ACTIVITIES
Mfg of coated paper & abrasives
BRANCH (ES)
Tokyo, Sapporo, Sendai, Nagoya, Osaka, Hiroshima, other (Tot
10)
OVERSEAS
Fuji Star Coated Abrasives Inc (USA); Fuji Star Canada Inc (Canada);
Toa-Sankyo Industries Ltd (Thailand); Vitraco Sankyo Industries (Malaysia); G-Team Machinery (Shanghai) Co Ltd (China) (--subsidiaries)
FACTORY (IES)
At the caption address
CHIEF EXEC
SUSUMU SUTO, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 15,082 M
PAYMENTS REGULAR CAPITAL Yen 573 M
TREND STEADY WORTH Yen 10,637 M
STARTED 1953 EMPLOYES 354
COMMENT
MFR SPECIALIZING IN ABRASIVES.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 653.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
This is a leading mfr specializing in coated paper & abrasives, with main use for automobiles. Also used in metal, wood and painted surfaces. Overseas production is active. Operates integrated production facility in Thailand, Tao-Sankyo Industries Ltd; and secondary processing facility in Malaysia, Vitraco-Sankyo Industries SDN BHD. Main clients are major carmakers, electronic mfrs, other, nationwide.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 15,082 million, a 5.2% up from Yen 14,388 million in the previous term. Robust demand from automakers continued, offsetting slow demand from woodworking, furniture and auto-repairing industries. New products for IT-related industry also contributed. Exports continued rising into China and other Asian countries. Exports were up 4% to Yen 3,958 million. The recurring profit was posted at Yen 1,251 million and the net profit at Yen 709 million, respectively, compared with Yen 1,072 million recurring profit and Yen 657 million net profit, respectively, a year ago.
(Apr/Dec/2007 results): Sales Yen 11,610 million (up 0.9%), operating profit Yen 1,025 million (up 4.0%), recurring profit Yen 1,059 million (up 4.8%), net profit Yen 681 million (up 4.5%). (% compared with the corresponding period a year ago). Domestic demand fell due to decreased demand from automakers. Woodworking industry was dull. Exports continued fair into China and USA where market widened into new areas. Exports were up 5.7% over the previous period.
For the term just ended Mar 2008 the recurring profit was projected at Yen 1,280 million and the net profit at Yen 750 million, respectively, on a 0.8% rise in turnover, to Yen 15,200 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 653.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun 1953
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 20 million shares
Issued: 5,817,600 shares
Sum: Yen 573 million
Major shareholders (%)
Sankyo Rikagaku Kenkyusho (35.0), UBS Sec Customer Segregated (6.9), Mizuho Bank (4.8), Employees’ S/Holding Assn (4.6), Tsuyoshi Kaneko (4.2), Mitsubishi UFJ Trust Bank (2.1), Nanko Ceramics Co (2.1), Wahei Takeda (2.0), Sugimura Toryo (1.7), Tenryu Saw Mfg (1.7); foreign owners (10.6)
No. of shareholders: 5,817
Listed on the S/Exchange (s) of
JASDAQ
Managements
Susumu Soto, pres; Hitoshi Konishi, mgn dir; Tsuyoshi Kaneko, dir (advisor); Toshihiko Sasaki, dir; Masatoshi Nakabayashi, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Fuji Star USA, Fuji Star Canada, other.
OPERATION
Activities: Manufactures coated paper & abrasives:
(Sales Breakdown by Divisions): Abrasive paper (38%), abrasive cloth (17%), abrasivematerials (10%), abrasive machinery & tools (9%), abrasive tapes (6%), others (20%);
Overseas Sales Ratio (26.25%): N America (USA, Canada) 5.69%; Asia (China, Malaysia, Taiwan, Thailand, etc) 19.61%; others (Europe, Oceania) 0.94%.
Clients
[Automakers, electronics mfrs, other mfrs] Toyota Motor, NEC, Nissan Motor, Mazda Motor, Isuzu Motors, Matsushita Electric Ind, Toshiba Corp, Makita USA, Kanto Auto Works, other.
No. of accounts
800
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Nagase & Co, Kashiwagi, Toyo Kenmazai Kogyo, Takashima & Co, Tokokosen Corp, other.
Payment record
Regular
Location: Business area in Okegawa City, Saitama-Pref. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
Mizuho Bank (Marunouchi)
MUFG (Kyobashi-Chuo)
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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15,082 |
14,338 |
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Cost of Sales |
10,951 |
10,422 |
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GROSS PROFIT |
4,130 |
3,915 |
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Selling & Adm Costs |
2,907 |
2,928 |
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OPERATING PROFIT |
1,223 |
986 |
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Non-Operating P/L |
28 |
86 |
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RECURRING PROFIT |
1,251 |
1,072 |
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NET PROFIT |
709 |
657 |
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BALANCE SHEET |
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Cash |
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3,650 |
3,952 |
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Receivables |
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4,473 |
4,340 |
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Inventory |
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2,675 |
2,649 |
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Securities, Marketable |
455 |
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Other Current Assets |
208 |
207 |
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TOTAL CURRENT ASSETS |
11,461 |
11,148 |
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Property & Equipment |
2,048 |
2,068 |
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Intangibles |
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99 |
114 |
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Investments, Other Fixed Assets |
1,248 |
1,167 |
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TOTAL ASSETS |
14,856 |
14,497 |
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Payables |
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2,720 |
2,907 |
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Short-Term Bank Loans |
120 |
120 |
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Other Current Liabs |
1,078 |
1,013 |
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TOTAL CURRENT LIABS |
3,918 |
4,040 |
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Debentures |
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Long-Term Bank Loans |
4,323 |
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Reserve for Retirement Allw |
293 |
414 |
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Other Debts |
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(4,316) |
3 |
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TOTAL LIABILITIES |
4,218 |
4,457 |
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MINORITY INTERESTS |
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Common
stock |
573 |
573 |
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Additional
paid-in capital |
559 |
558 |
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Retained
earnings |
9,434 |
8,888 |
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Evaluation
p/l on investments/securities |
103 |
89 |
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Others |
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(16) |
(47) |
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Treasury
stock, at cost |
(16) |
(22) |
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TOTAL S/HOLDERS` EQUITY |
10,637 |
10,039 |
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TOTAL EQUITIES |
14,856 |
14,497 |
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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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700 |
914 |
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Cash Flows
from Investment Activities |
-748 |
-324 |
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Cash
Flows from Financing Activities |
-136 |
-98 |
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Cash,
Bank Deposits at the Term End |
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3,650 |
3,812 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
10,637 |
10,039 |
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Current
Ratio (%) |
292.52 |
275.94 |
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Net
Worth Ratio (%) |
71.60 |
69.25 |
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Recurring
Profit Ratio (%) |
8.29 |
7.48 |
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Net
Profit Ratio (%) |
4.70 |
4.58 |
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Return
On Equity (%) |
6.67 |
6.54 |
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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%)