MIRA
INFORM REPORT
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Report Date : |
06.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
TATEHO CHEMICAL INDUSTRIES CO LTD |
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Registered Office : |
974 Kariya Ako-City Hyogo-Pref 678-0239 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
April 1949 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Electro Fused Magnesia, Magnesia Oxide,
Ceramics |
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 222.5 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
TATEHO CHEMICAL
INDUSTRIES CO LTD
REGD NAME: Tateho Kagaku Kogyo KK
MAIN OFFICE: 974 Kariya Ako-City Hyogo-Pref 678-0239 JAPAN
Tel: 0791-42-5041 Fax: 0791-45-2040
URL: http://www.tateho.co.jp
E-Mail address: sales@tateho.co.jp
ACTIVITIES
Mfg of electro fused magnesia, magnesia oxide, ceramics
BRANCHES
Tokyo, Osaka
OVERSEAS
Tateho Chemical Shanghai Co Ltd (subsidiary mfr)
FACTORY
At the caption address
OFFICER(S)
MASAYUKI HASEGAWA, PRES
Tetsunori Minato, s/mgn dir
Yasunori Kitano, mgn dir
Hajime Okada, dir
Takahito Togane, dir
Isao Madono, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 6,500 M
PAYMENTS REGULAR CAPITAL Yen 450 M
TREND STEADY WORTH Yen 4,519 M
STARTED 1949 EMPLOYES 170
COMMENT
MFR OF ELECTROFUSED MAGNESIUM, WHOLLY OWNED BY AIR WATER INC.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 222.5 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject company was established in 1948 as mfr of magnesium. Pioneer in insulating magnesia & electrofused magnesia for electric heaters. Tops in production of electrofused magnesia. The firm went into financial difficulties in 2006 and accepted capital participation from Air Water Inc (See REGISTRATION), and became its wholly owned consolidated subsidiary, when delisted from Osaka S/E. In 1988, the two firms were already in business tie-ups. In Jul 2006, closed down US Office in South Carolina. Has a subsidiary in China, Tateho Chemical Dalian Co Ltd.
FINANCIAL INFORMATION
Financials are consolidated by the parent, Air Water Inc, and only disclosed in digested figures.
The sales volume for Mar/2008 fiscal term amounted to Yen 6,500 million, a 16% hike from Yen 5,600 million in the previous term. Shipments to steel makers and into China rose. The net profit was posted at Yen 273 million, compared with Yen 421 million a year ago. Rising costs of materials and fuel oils deteriorated profitability. Sales are, however, seen expanding.
For the current term ending Mar 2009 the net profit is projected at Yen 285 million, on a 5% rise in turnover, to Yen 6,800 million. Demand from steel makers still continue rising.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 222.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr 1949
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 3.6 million shares
Issued: 900,000 shares
Sum: Yen 450 million
Major shareholders (%)
Air Water Inc*(100)
* Largest industrial gas mfr, Osaka, founded 1929, listed Tokyo, Osaka, Sapporo S/E’s, capital Yen 25,513 million, sales Yen 426,226 million, operating profit Yen 25,578 million, recurring profit Yen 27,710 million, net profit Yen 14,502 million, total assets Yen 353,399 million, net worth Yen 127,568 million, employees 7,397, pres Yoshisuke Misaka
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Manufactures electrofused magnesia (45%), magnesium oxide, ceramics, other products (--55%).
(Products): single-crystal magnesia, electrofused magnesia (for electrothermal applications, for refractories, for ceramics), magnesium oxide, magnesium hydroxide, ceramics (whisker, silicon carbide whiskers, electrofused zirconia, electrofused calcia, calcium sulfite, other).
Clients
[Mfrs, wholesalers] Air Water Inc, Mitsui & Co, Nippon Steel, Mitsubishi Corp, Matsushita Electric Ind, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Tateho Ceramics, Air Water Inc, other
Imports from China.
Payment record: Regular
Location: Business area in Ako-City, Hyogo-Pref. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Himeji)
Resona Bank (Himeji)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
31/03/2009 |
31/03/2008 |
31/03/2007 |
31/03/2006 |
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Annual
Sales |
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6,800 |
6,500 |
5,600 |
5,558 |
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Recur.
Profit |
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Net
Profit |
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285 |
273 |
421 |
612 |
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Total
Assets |
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9,449 |
9,243 |
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Current
Assets |
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3,531 |
3,217 |
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Current
Liabs |
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1,882 |
3,043 |
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Net
Worth |
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4,519 |
4,249 |
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Capital,
Paid-Up |
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450 |
450 |
450 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
4.62 |
16.07 |
0.76 |
0.09 |
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Current Ratio |
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.. |
187.62 |
105.72 |
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N.Worth Ratio |
.. |
47.83 |
45.97 |
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R.Profit/Sales |
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.. |
.. |
.. |
.. |
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N.Profit/Sales |
4.19 |
4.20 |
7.52 |
11.01 |
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Return On Equity |
.. |
6.04 |
9.91 |
.. |
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Notes:
Financials are only partially disclosed in digested figures, as consolidated by
the parent, Air Water Inc, of which consolidated financials are attached.
Forecast (or estimated) figures for the 31/03/2009 fiscal
term.
SUPPLEMENTS:
CONSOLIDATED
FINANCIALS OF THE PARENT, AIR WATER INC.
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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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426,226 |
404,651 |
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Cost of Sales |
324,909 |
307,557 |
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GROSS PROFIT |
101,316 |
97,093 |
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Selling & Adm Costs |
75,738 |
73,996 |
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OPERATING PROFIT |
25,578 |
23,097 |
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Non-Operating P/L |
2,132 |
2,361 |
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RECURRING PROFIT |
27,710 |
25,458 |
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NET PROFIT |
14,502 |
11,876 |
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BALANCE SHEET |
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Cash |
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12,553 |
16,791 |
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Receivables |
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91,694 |
89,355 |
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Inventory |
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29,472 |
23,637 |
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Securities, Marketable |
364 |
411 |
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Other Current Assets |
13,589 |
13,590 |
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TOTAL CURRENT ASSETS |
147,672 |
143,784 |
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Property & Equipment |
141,451 |
119,573 |
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Intangibles |
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14,860 |
13,884 |
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Investments, Other Fixed Assets |
49,416 |
51,987 |
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TOTAL ASSETS |
353,399 |
329,228 |
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Payables |
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66,001 |
69,241 |
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Short-Term Bank Loans |
54,314 |
36,600 |
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Other Current Liabs |
27,746 |
26,890 |
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TOTAL CURRENT LIABS |
148,061 |
132,731 |
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Debentures |
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357 |
512 |
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Long-Term Bank Loans |
46,789 |
43,769 |
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Reserve for Retirement Allw |
7,482 |
7,153 |
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Other Debts |
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12,718 |
26,818 |
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TOTAL LIABILITIES |
215,407 |
210,983 |
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MINORITY INTERESTS |
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Common
stock |
15,513 |
19,874 |
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Additional
paid-in capital |
27,693 |
19,631 |
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Retained
earnings |
77,808 |
67,118 |
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Evaluation
p/l on investments/securities |
5,925 |
11,643 |
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Others |
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11,245 |
201 |
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Treasury
stock, at cost |
(193) |
(223) |
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TOTAL S/HOLDERS` EQUITY |
137,991 |
118,244 |
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TOTAL EQUITIES |
353,399 |
329,228 |
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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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21,664 |
30,648 |
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Cash
Flows from Investment Activities |
-36,033 |
-17,213 |
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Cash
Flows from Financing Activities |
9,800 |
-9,615 |
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Cash,
Bank Deposits at the Term End |
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12,524 |
16,846 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
137,991 |
118,244 |
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Current
Ratio (%) |
99.74 |
108.33 |
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Net
Worth Ratio (%) |
39.05 |
35.92 |
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Recurring
Profit Ratio (%) |
6.50 |
6.29 |
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Net
Profit Ratio (%) |
3.40 |
2.93 |
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Return
On Equity (%) |
10.51 |
10.04 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.46.88 |
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UK Pound |
1 |
Rs.82.97 |
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Euro |
1 |
Rs.64.99 |
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%)