MIRA
INFORM REPORT
|
Report Date : |
10.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SHIN-ETSU CHEMICAL CO LTD |
|
|
|
|
Registered Office : |
Asahi Tokai Bldg, 2-6-1 Ohtemachi Chiyodaku Tokyo 100-0004 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
September 1926 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturer of PVC, Semiconductor Wafers, Silicon |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
YEN 61,024.8 Million |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
name & address
SHIN-ETSU CHEMICAL
CO LTD
REGD NAME: Shin Etsu Kagaku Kogyo KK
MAIN OFFICE: Asahi Tokai Bldg,
2-6-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN
Tel:
03-3246-5011 Fax: 03-3246-5358
URL: http://www.shinetsu.co.jp/
E-Mail address: info@shinetsu.co.jp
ACTIVITIES
Mfg of PVC, semiconductor wafers, silicon
BRANCHES
Osaka, Nagoya, Fukuoka, Sapporo, Gunma
FACTORY(IES)
Naoetsu, Takefu, Gunma (Isobe, Matsuida), Kashima
OVERSEAS
USA (9), Mexico, Portugal, UK, Netherlands (4), Hungary,
Germany, Malaysia (5), Korea (2), China (4), Taiwan (4), Singapore (2),
Indonesia (2), Thailand (2), Philippines, Australia (2) (--subsidiaries)
CHIEF EXEC
CHIHIRO KANAGAWA, PRES & CEO
Yen
Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,376,364 M
PAYMENTS REGULAR CAPITAL Yen
119,419 M
TREND STEADY WORTH Yen
1,483,669 M
STARTED 1926 EMPLOYES 20,241
COMMENT
MFR
SPECIALIZING IN PVC & ELECTRONIC MATERIALS.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSIENSS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 61,024.8 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was
established originally as mfr of chemical fertilizer and limestone nitrogen,
and has since developed business operations into silicone production and PVC in
1950s. Now is known one of the world’s largest
mfrs of vinyl chloride, silicon resin and semiconductor silicon. Expanding into electronics materials,
including rare earths & synthetic quartz.
Has many excellent subsidiaries both in Japan & abroad. Noted for high earnings power. Production
of rare-earth kept rising for 31st consecutive month in value terms
in spring 2008, climbing 19% from a year earlier to Yen 8.51 billion, according
to a study by the Japan Electronics & Information Technology Industries
Association.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal
term amounted to Yen 1,376,364 million, a 5.5% up from Yen 1,304,695 million in
the previous term. This is largely
thanks to hefty demand for silicon wafers used in semiconductors, which grew
globally. By Divisions,
Organic/Inorganic Chemicals down 1.0% to Yen 701,002 million, its US
subsidiary, Shintech Inc, expanded sales by full production, in addition to
robust sales in Europe by Shin-Etsu PVC (Netherlands); Electronic Materials up
17.8% to Yen 564,696 million, boosted by 300mm wafer sales and rare metals;
Functional Materials down 5.3% to Yen 110,665 million,, as photomask demand was
sharply down. The recurring profit was
posted at Yen 300,040 million and the net profit at Yen 183,580 million,
respectively, compared with Yen 247,018 million recurring profit and Yen
154,010 million net profit, respectively, a year ago.
(Apr/Sept/2008 results): Sales
Yen 695,413 million (up 1.1%), operating profit Yen 150,101 million (up 7.2%),
recurring profit Yen 156,519 million (up 7.3%), net profit Yen 100,953 million
(up 6.0%). (% compared with the
corresponding period a year ago). Sales
growth of Shintech Inc (USA) contributed.
Also PVC in Netherlands had good sales in Europe. Sales of functional silicone products grew
and contributed to by product price revisions.
On the other hand, polymer business of keypads for mobile phones
continued lingering at low level, affected by decline in unit price. 300mm wafers, the firm’s main wafer product,
were strong thanks to worldwide distribution & continuous improvement of
productivity & product quality.
Cutbacks in sales promotion and other expenses combined with brisk
demand for state-of-the-art 300mm silicon wafers helped boost its profits, says
the firm.
For the current term ending Mar
2009 the firm left unrevised its earnings outlook it made in Apr 2008 as
follows: Sales Yen 1,400,000 million (up 1.7% from the previous term),
recurring profit Yen 320,000 million and net profit at Yen 200,000
million. Industrial-use rare metals for
HDDs depressed with continued inventory adjustment, but 300mm semiconductor
wafers remain on firm tone. PVCs
suffering from reduced housing starts in US, but covered by brisk demand from
Latin America. Silicon resins enjoying
prevailing price hikes. Shintech is
expected to post 12% rise in pretax profit to about Yen 35 billion for current
fiscal year ending Dec/2008 on increased shipments at a new plant, located in
Louisiana. Shintech’s fiscal 2008
earnings will be reflected in Shin-Etsu’s consolidated earnings for the fiscal
year ending Mar 2009. Shin-Etsu expects
that demand for 300mm silicon wafers will remain strong in current fiscal year,
but it forecasts a decline in this segment’s pretax profit due to lower prices. This will likely be offset by increased
sales of PVC & caustic soda, the firm says.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 61,024.8 million, on 30 days normal terms.
REGISTRATION
Date Registered: Sept 1926
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
1,720 million shares
Issued:
432,106,693 shares
Sum: Yen 119,419 million
Major shareholders (%)
Master Trust Bank of Japan, T
(9.7), Japan Trustee Services Bank T (7.9), Nippon Life Ins (5.6), Japan Trustee
Services T4 (3.3), Hachijuni Bank (2.7),
Meiji Yasuda Life Ins (2.6), Nipponkoa Ins (2.3), MUFG (1.6), State
Street Bank & Trust 505103 (1.2); foreign owners (33.9)
No. of
shareholders: 58,457
Listed
on the S/Exchange (s) of: Tokyo, Osaka, Nagoya
Managements
Chihiro Kanagawa, pres &
CEO; Shunzo Mori, s/mgn dir; Fumio Akiya, s/mgn
dir; Yasuhiko Saitoh, s/mgn dir; Kiichi Habata, mgn dir; Yoshiaki Ono, mgn dir;
Koji Takasugi, mgn dir; Frank P Popoff, dir; Shunji Kono, dir; Masashi Kaneko,
dir
Nothing detrimental is knows as to the commercial morality
of executives.
Related companies
Shintech
Inc (USA), Shin-Etsu Polymer, Shin-Etsu Handotai, other
OPERATION
Activities:
Manufactures industrial chemicals:
(Sales Breakdown by Divisions):
Organic & Inorganic Chemicals Div (51%): PVC,
silicones, methanol, chloromethane, cellulose
derivatives, caustic soda, silicon metal;
Electronic Materials Div (41%):
semiconductor silicone, organic materials for electronics industry, rare earth
magnets for electronics industry, photo-resists;
Functional Materials Div (8%): synthetic
quartz products, oxide single crystals, rare earths, rare earth magnets,
construction of plants engineering, information processing, ex port of technology & plants, import of
goods, others.
Overseas sales ratios (68.3%): N
America (20.2%), Asia/Oceania (29.9%), Europe (12.9%), others (5.3%).
Clients
[Mfrs,
wholesalers] Shin-Etsu Handotai, Mitsubishi Corp, Shin-Etsu Electronics Materials Singapore, Mitsui & Co,
Shin-Etsu Astech, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs,
wholesalers] Shin-Etsu Handotai, Naoetsu Electronics, Mitsui & Co,
Kashima PVC Monomer, Mitsubishi
Chemical, other.
Payment
record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References
MUFG (H/O)
Mizuho Bank (H/O)
Relations: Satisfactory
FINANCES: (In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2008 |
31/03/2007 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
1,376,364 |
1,304,695 |
||
|
|
Cost of Sales |
946,940 |
933,199 |
|||
|
|
GROSS PROFIT |
429,424 |
371,496 |
|||
|
|
Selling & Adm Costs |
142,278 |
130,467 |
|||
|
|
OPERATING PROFIT |
287,146 |
241,028 |
|||
|
|
Non-Operating P/L |
12,894 |
5,990 |
|||
|
|
RECURRING PROFIT |
300,040 |
247,018 |
|||
|
|
NET PROFIT |
183,580 |
154,010 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
217,265 |
296,851 |
||
|
|
Receivables |
|
313,943 |
315,710 |
||
|
|
Inventory |
|
204,336 |
169,177 |
||
|
|
Securities, Marketable |
184,519 |
207,178 |
|||
|
|
Other Current Assets |
97,262 |
74,583 |
|||
|
|
TOTAL CURRENT ASSETS |
1,017,325 |
1,063,499 |
|||
|
|
Property & Equipment |
654,643 |
545,408 |
|||
|
|
Intangibles |
|
25,859 |
25,964 |
||
|
|
Investments, Other Fixed Assets |
220,717 |
225,124 |
|||
|
|
TOTAL ASSETS |
1,918,544 |
1,859,995 |
|||
|
|
Payables |
|
149,304 |
155,463 |
||
|
|
Short-Term Bank Loans |
11,826 |
24,490 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
215,518 |
252,940 |
|||
|
|
TOTAL CURRENT LIABS |
376,648 |
432,893 |
|||
|
|
Debentures |
|
|
|
||
|
|
Long-Term Bank Loans |
22,132 |
20,652 |
|||
|
|
Reserve for Retirement Allw |
13,783 |
10,943 |
|||
|
|
Other Debts |
|
22,312 |
35,192 |
||
|
|
TOTAL LIABILITIES |
434,875 |
499,680 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
119,419 |
119,419 |
|||
|
|
Additional
paid-in capital |
128,177 |
128,177 |
|||
|
|
Retained
earnings |
1,163,680 |
1,017,260 |
|||
|
|
Evaluation
p/l on investments/securities |
10,695 |
29,173 |
|||
|
|
Others |
|
73,915 |
73,846 |
||
|
|
Treasury
stock, at cost |
(12,217) |
(7,560) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
1,483,669 |
1,360,315 |
|||
|
|
TOTAL EQUITIES |
1,918,544 |
1,859,995 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2008 |
31/03/2007 |
||
|
|
Cash
Flows from Operating Activities |
|
202,413 |
272,488 |
||
|
|
Cash
Flows from Investment Activities |
-248,626 |
-185,183 |
|||
|
|
Cash
Flows from Financing Activities |
-53,534 |
-61,833 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
301,619 |
404,532 |
||
|
ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
1,483,669 |
1,360,315 |
||
|
|
|
Current
Ratio (%) |
270.10 |
245.67 |
||
|
|
|
Net
Worth Ratio (%) |
77.33 |
73.14 |
||
|
|
|
Recurring
Profit Ratio (%) |
21.80 |
18.93 |
||
|
|
|
Net
Profit Ratio (%) |
13.34 |
11.80 |
||
|
|
|
Return
On Equity (%) |
12.37 |
11.32 |
||
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.76 |
|
UK Pound |
1 |
Rs.74.87 |
|
Euro |
1 |
Rs.60.81 |
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%)