MIRA
INFORM REPORT
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Report Date : |
09.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHINAGAWA REFRACTORIES CO LTD |
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Registered Office : |
4-1-7 Kudan-Kita Chiyodaku Tokyo 102-0073 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
June 1903 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of Refractories |
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 1,972.9 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
SHINAGAWA
REFRACTORIES CO LTD
REGD NAME: Shinagawa Shiro-Renga KK
MAIN OFFICE: 4-1-7 Kudan-Kita Chiyodaku Tokyo 102-0073
JAPAN
Tel:
03-5215-9700 Fax: 03-5215-9720
URL: http://www.shinagawa.co.jp/
E-Mail address:
ACTIVITIES
Mfg of refractories
BRANCH(ES)
Osaka, Nagoya, Akashi, Kobe, Kurashiki, Sendai, Chiba, other
(Tot 16)
OVERSEAS
China (2), Australia, USA (Ohio)
FACTORY(IES)
Okayama (2), Kashima
CHIEF EXEC
HIDEAKI NISHIO, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 84,565 M
PAYMENTS REGULAR CAPITAL Yen 3,300 M
TREND STEADY WORTH Yen 36,081 M
STARTED 1903 EMPLOYES 2,564
COMMENT
REFRACTORIES
MAKER.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,972.9 MILLION, 30 DAYS NORMAL
TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
This is the top-class comprehensive mfr of refractories. Pioneer in fire-brick industry with first production dating back to 1875. Close ties with JFE group, Sumitomo Metal Ind & Kobe Steel. Manufactures shaped refractory bricks, unshaped refractory, fine ceramics, ceramic fiber, other. Also executes engineering works, such as design, installation & maintenance of various kinds of industrial furnaces & kilns.. Strong earnings from real estate leasing by utilizing idle land. Setting up 2nd JV of continuous casting equipment-use mold power in China, with the firm’s stake being 66.7%. Necessary paper-works/documentation was completed on 24/Apr/2008. New JV in China will produce 6,000 tons of mold power per year.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 84,565 million, a 6.2% rise from Yen 79,648 million in the previous term. China subsidiary for refractories turned profitable. Sales volume of work refractories for steelmakers increased. Exports rose into newly emerging/resource countries. Japan’s crude steel production grew 3.2% to 121 million tons from last year, recording second highest production volume. By divisions, Refractories up 9.0% to Yen 67,891 million; engineering up 3.3% to Yen 424 million. The recurring profit was posted at Yen 4,810 million and the net profit at Yen 2,126 million, respectively, compared with Yen 4,659 million recurring profit and Yen 1,814 million net profit, respectively, a year ago. Wrote off extraordinary losses of Yen 630 million, inclusive of fixed assets impairment losses of Yen 341 million.
(Apr/Jun/2008 results): Sales Yen 21,671 million (up 10.3%), operating profit Yen 1,282 million (up6.9%), recurring profit Yen 1,298 million (up16.7%), net profit Yen 694 million (up 40.2%). (% compared with the corresponding period a year ago). Domestic demand and exports were robust, with the domestic crude steel production up 3.9% to 31,060,000 tons, the 2nd highest record.
For the current term ending Mar 2009 the recurring profit is projected at Yen 5,000 million and the net profit at Yen 1,800 million, on a 4.1% rise in turnover, to Yen 88,000. Work-use
refractories will continue grow, backed up highest-level steel production. Construction-use products for Sumitomo Metal Ind’s Wakayama No.1 blast furnace will contribute. Material prices taking upward trend, but operating profits rising, helped by full-scale contribution of US sub launched in preceding term.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,972.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun 1903
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 168 million shares
Issued: 66 million shares
Sum: Yen 3,300 million
Major shareholders (%)
JFE Steel (5.6), Kobe Steel (5.3), Sumitomo Trust Bank (4.9), Japan Trustee Services Bank (3.3), Fukoku Life Ins (3.0), Master Trust Bank of Japan (2.6), Nippon Life Ins (2.6), Mizuho Corporate Bank (2.5), Chase London SL Omnibus Acct (2.5), SMBC (2.2); foreign owners (13.0)
No. of shareholders: 5,274
Listed on the S/Exchange (s) of: Tokyo, Osaka, Sapporo
Managements
Hideaki Nishio, pres; Yoshihiko Shimizu, s/mgn dir; Takao Yamanishi, mgn dir; Hiroyuki; Noboru Tsukamoto, mgn dir; Toyoji Katoh, mgn dir; Yukinobu Kurashina, dir; Ikutoshi Kubota, dir; Ryoichi Yoshino, dir; Osamu Nomura, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Isolite Insulating Products Co, Ceratechno Co, Shinagawa Refractories Australasia Pty, other
OPERATION
Activities: Manufactures refractories (80%); engineering works (15%); real estate, sports facility management, others (5%).
Overseas trading ratio (21.2%): Asia/Oceania 17.4%, other regions 3.8%
(Mfg items):
Shaped/unshaped Refractories Div: refractories for steelmaking facilities (blast furnaces, hot-blast stoves, coke ovens); for cast house floors, for BOF & EAF; for torpedo cars, ladles, and secondary refining furnaces; for continuous casting; for reheating furnaces;
Refractories for nonferrous & metal industries; for copper, zinc, lead and aluminum refining furnaces; For ceramic/other industries: for gas, petroleum, and chemical plants; for cement & lime kilns, for incinerators, for glass furnaces & ceramic firing kilns; other;
Mold Powder Div: starting powder, powder for high-speed casting, for medium carbon steel, for low carbon steel, other;
Ceramic Fiber Div: Alumina silica fibers, alumina fibers, zirconia fibers, vacuum formed products, fiber patching materials, other;
Fine Ceramic Div: sialon ceramics, silicon nitride ceramics, alumina ceramics, zirconia ceramics, other;
Special Purpose Products Div: inorganic coating materials, zirconia ultrahigh-temperature furnaces, ceramic filters, zirconia heating elements, various kinds of absorbent, other.
Engineering Works Div: design, installation & maintenance of various kind of industrial furnaces & kilns.
Clients
[Steelmakers, other mfrs] JFE Steel, Kobe Steel, JFE Plant & Service, JFE Bars & Shapes Corp, Sumitomo Metal Ind, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Ube Materials, Morimura & Bros, Itochu Ceratech Corp, Ohara & Co, other.
Payment record: Regular
Location
Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Tokyo)
Mizuho Corporate Bank (Ohtemachi)
Relations: Satisfactory
FINANCES: (In Million Yen)
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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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84,565 |
79,648 |
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Cost of Sales |
68,003 |
63,957 |
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GROSS PROFIT |
16,561 |
15,691 |
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Selling & Adm Costs |
11,524 |
10,783 |
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OPERATING PROFIT |
5,037 |
4,908 |
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Non-Operating P/L |
-227 |
-249 |
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RECURRING PROFIT |
4,810 |
4,659 |
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NET PROFIT |
2,126 |
1,814 |
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BALANCE SHEET |
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Cash |
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8,128 |
7,261 |
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Receivables |
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16,092 |
29,388 |
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Inventory |
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14,418 |
11,406 |
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Securities, Marketable |
898 |
211 |
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Other Current Assets |
11,273 |
1,497 |
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TOTAL CURRENT ASSETS |
50,809 |
49,763 |
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Property & Equipment |
33,032 |
34,212 |
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Intangibles |
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2,296 |
2,518 |
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Investments, Other Fixed Assets |
17,502 |
25,477 |
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TOTAL ASSETS |
103,639 |
111,970 |
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Payables |
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13,892 |
12,387 |
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Short-Term Bank Loans |
26,179 |
31,184 |
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Other Current Liabs |
7,471 |
7,066 |
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TOTAL CURRENT LIABS |
47,542 |
50,637 |
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Debentures |
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1,000 |
1,000 |
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Long-Term Bank Loans |
6,357 |
4,611 |
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Reserve for Retirement Allw |
3,317 |
3,065 |
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Other Debts |
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9,342 |
13,563 |
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TOTAL LIABILITIES |
67,558 |
72,876 |
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MINORITY INTERESTS |
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Common
stock |
3,300 |
3,300 |
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Additional
paid-in capital |
635 |
635 |
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Retained
earnings |
22,683 |
20,887 |
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Evaluation
p/l on investments/securities |
2,842 |
7,961 |
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Others |
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6,635 |
6,319 |
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Treasury
stock, at cost |
(14) |
(9) |
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TOTAL S/HOLDERS` EQUITY |
36,081 |
39,093 |
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TOTAL EQUITIES |
103,639 |
111,970 |
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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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8,071 |
2,928 |
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Cash
Flows from Investment Activities |
-373 |
-3,457 |
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Cash
Flows from Financing Activities |
-3,914 |
-1,765 |
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Cash,
Bank Deposits at the Term End |
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7,555 |
6,842 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
36,081 |
39,093 |
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Current
Ratio (%) |
106.87 |
98.27 |
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Net
Worth Ratio (%) |
34.81 |
34.91 |
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Recurring
Profit Ratio (%) |
5.69 |
5.85 |
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Net Profit
Ratio (%) |
2.51 |
2.28 |
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Return
On Equity (%) |
5.89 |
4.64 |
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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.44.26 |
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UK Pound |
1 |
Rs.79.00 |
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Euro |
1 |
Rs.63.53 |
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%)