MIRA
INFORM REPORT
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Report Date : |
15.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SUMITOMO SEIKA CHEMICALS CO LTD |
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Registered Office : |
Sumitomo Bldg, 4-5-33 Kitahama Chuoku Osaka 541-0041 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
July 1944 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Industrial Chemicals, Gases, Oxygen Generators |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 2,092.6 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
SUMITOMO SEIKA CHEMICALS CO LTD
REGD NAME: Sumitomo Seika KK
MAIN OFFICE: Sumitomo Bldg, 4-5-33
Kitahama Chuoku Osaka 541-0041 JAPAN
Tel:
06-6220-8508 Fax: 06-6220-8541
URL: http://www.sumitomoseika.co.jp/
E-Mail address: info@sumitomoseika.co.jp
ACTIVITIES
Mfg of industrial chemicals, gases, oxygen generators
BRANCH(ES)
Tokyo
OVERSEAS
Sumitomo Seika Singapore Pte Ltd (subsidiary)
Dusseldorf, New York (--rep offices)
FACTORY(IES)
Beppu (Hyogo), Himeji, Chiba
CHIEF EXEC
MASAMI NAKAMOTO, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 62,255 M
PAYMENTS REGULAR CAPITAL Yen 9,698 M
TREND STEADY WORTH Yen 31,771 M
STARTED 1944 EMPLOYES 1,014
COMMENT
MFR OF INDUSTRIAL
CHEMICALS, AFFILIATED TO SUMITOMO CHEMICAL CO LTD.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 2,092.6 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company is Sumitomo Chemical-affiliated chemical maker. Started originallyas maker of ammonium sulfide and gradually developed business into industrial chemicals & engineering & chemical machinery, including oxygen generators. Stressing on fine chemicals, such as water-absorbent resins for paper diapers and pharmaceutical intermediates.
(Recent news released 11/Mar/2008): The firm to acquire super absorbent polymer business from Arkema, France. The French company has been producing the products under technology license from the subject since 1985. Due to rising costs of production the subject decided to have a production base in Europe. The product’s trade mark is “AQUA KEEPR”.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 62,255 million, a 14.3% up from Yen 54,471 million in the previous term. Chemicals Div up slightly 1.7% to Yen 22,148 million, as construction materials were slow. Water-absorbent Resin Div up 26.6% to Yen 25,793 million; additional super-absorbent resin facilities started operation in Himeji contributed, in addition to increased production at Singapore plant. Gases Div up 16.3% to Yen 14,313 million, thanks to increased demand for electronics gases from IT/Electronics Device industries in Asia. The recurring profit was posted at Yen 5,664 million and the net profit at Yen 3,333 million, respectively, compared with Yen 5,874 million recurring profit and Yen 3,042 million net profit, respectively, a year ago.
For the current term ending Mar/2009 the recurring profit is projected at Yen 4,800 million and the net profit at Yen 3,000 million, on a 12.4% rise in turnover, to Yen 70,000 million. Super-absorbent gases will continue to rise with facilities expanded by 50%, spurring buildup of dispensing filling equipment for increased sales to Taiwan & S Korea.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 2,092.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jul 1944
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 200 million shares
Issued: 69,864,854 shares
Sum: Yen 9,698 million
Major shareholders (%): Sumitomo Chemical*(30.0), Japan Trustee Services T (5.2), State Street Bank & Trust (4.9), SMBC (4.0), Sumitomo Trust Bank (3.4), Mitsui Sumitomo Ins (2.2), Master Trust Bank of Japan T (2.0), Taki Chemical (1.4), Company’s Treasury Stock (1.2); foreign owners (10.7).
No. of shareholders: 6,395
Listed on the S/Exchange (s) of
Tokyo, Osaka
* Sumitomo Chemical Co Ltd, major comprehensive chemical mfr of Sumitomo Group, founded 1925, listed Tokyo, Osaka S/E’s, capital Yen 89,699 million, turnover Yen 1,790,026 million, operating profit Yen 139,623 million, recurring profit Yen 157,981 million, net profit Yen 93,860 million, total assets Yen 2,324,906 million, net worth Yen 792,538 million, employees 24,691, pres Hiromasa Yonekura
Managements
Masami Nakamoto, pres; Masaru Uno, s/mgn dir; Kazuhiro Tada, mgn dir; Hiroshi Honjoh, mgn dir; Johji Ogasawara, mgn dir; Makoto Hara, dir; Shoichi Hara, dir; Mitsuji Adachi, dir; Takushi Yamamoto, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Seika Engineering, Futawa Co, Harima Kosan Co, other
OPERATION
Activities: Manufactures industrial chemicals, water-absorbent resins, gases & engineering:
(Sales Breakdown by
Divisions):
Industrial Chemicals Div (35%): organic sulfur compound, organic halogen compounds, disinfectants, industrial chemicals, high-refractive index materials, medical drugs, agricultural chemicals, photographic chemicals, resin additives, optical recording materials;
Functional Polymers (41%): water-absorbent/water-soluble polymers, fine-particulate polymers, emulators, latexes, special functional polymers, other;
Gases/Engineering Div (24%): high-purity gases, reference gases, semiconductor gases, medical gases, propellant gases, other;
Overseas Sales Ratio (40.9%): Asia 23.8%; Other region 17.1%.
Clients
[Mfrs, wholesalers] Futawa Co, Uni-Charm Products, Sumitomo Chemical, Sumitomo Shoji Chemicals, Itochu Chemical Frontier, other.
No. of accounts
800
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Sumitomo Chemical, Idemitsu Kosan, Futawa Co, Nagase & Co, Tosoh Corp, other..
Payment record
Regular
Location
Business area in Osaka. Office premises at the caption address are owned by the parent, Sumitomo Chemical, and maintained satisfactorily.
Bank References
SMBC (Osaka)
Sumitomo Trust Bank (Osaka)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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62,255 |
54,471 |
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Cost of Sales |
47,023 |
39,733 |
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GROSS PROFIT |
15,232 |
14,737 |
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Selling & Adm Costs |
9,058 |
8,608 |
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OPERATING PROFIT |
6,174 |
6,129 |
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Non-Operating P/L |
-510 |
-255 |
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RECURRING PROFIT |
5,664 |
5,874 |
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NET PROFIT |
3,333 |
3,042 |
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BALANCE SHEET |
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Cash |
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2,083 |
1,524 |
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Receivables |
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19,884 |
17,517 |
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Inventory |
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7,243 |
7,003 |
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Securities, Marketable |
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Other Current Assets |
1,598 |
1,109 |
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TOTAL CURRENT ASSETS |
30,808 |
27,153 |
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Property & Equipment |
23,661 |
21,498 |
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Intangibles |
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107 |
91 |
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Investments, Other Fixed Assets |
4,917 |
5,203 |
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TOTAL ASSETS |
59,493 |
53,945 |
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Payables |
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12,483 |
10,019 |
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Short-Term Bank Loans |
6,956 |
2,392 |
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Other Current Liabs |
4,597 |
5,344 |
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TOTAL CURRENT LIABS |
24,036 |
17,755 |
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Debentures |
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Long-Term Bank Loans |
350 |
2,759 |
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Reserve for Retirement Allw |
3,233 |
3,579 |
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Other Debts |
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102 |
183 |
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TOTAL LIABILITIES |
27,721 |
24,276 |
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MINORITY INTERESTS |
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Common
stock |
9,698 |
9,698 |
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Additional
paid-in capital |
7,539 |
7,539 |
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Retained
earnings |
13,256 |
10,670 |
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Evaluation
p/l on investments/securities |
549 |
1,065 |
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Others |
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980 |
946 |
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Treasury
stock, at cost |
(251) |
(249) |
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TOTAL S/HOLDERS` EQUITY |
31,771 |
29,669 |
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TOTAL EQUITIES |
59,493 |
53,945 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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5,490 |
4,338 |
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Cash Flows
from Investment Activities |
-6,296 |
-4,472 |
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Cash
Flows from Financing Activities |
1,413 |
-1,442 |
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Cash,
Bank Deposits at the Term End |
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2,051 |
1,492 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
31,771 |
29,669 |
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Current
Ratio (%) |
128.17 |
152.93 |
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Net
Worth Ratio (%) |
53.40 |
55.00 |
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Recurring
Profit Ratio (%) |
9.10 |
10.78 |
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Net
Profit Ratio (%) |
5.35 |
5.58 |
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Return
On Equity (%) |
10.49 |
10.25 |
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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%)