MIRA INFORM REPORT
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Report Date : |
27.06.2011 |
IDENTIFICATION DETAILS
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Name : |
NAGASE & CO LTD |
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Registered Office : |
1-1-17 Shinmachi Nishiku Osaka 550-8668 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
December 1917 |
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Com. Reg. No.: |
(Osaka-Nishiku) 049021 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, Export, Wholesale of chemicals |
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 27,289.1 Million |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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Litigation : |
---- |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Japan |
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
NAGASE & CO LTD
REGD NAME
Nagase Sangyo KK
MAIN OFFICE
1-1-17 Shinmachi
Nishiku Osaka 550-8668 JAPAN
Tel:
06-6535-2114 Fax: 06-6535-2160
*.. The given address is its Tokyo Head Office
E-Mail address: info@nagase.co.jp
ACTIVITIES
Import,
export, wholesale of chemicals
BRANCHES
Tokyo,
Nagoya, Fukuoka, Hiroshima, Takamatsu, other
OVERSEAS
USA (6), Canada, UK, Germany, China (14), Taiwan (2), Korea (2), Thailand (2), Malaysia (3), Singapore (3), Vietnam (3), India, Indonesia, UAE, other
CHIEF EXEC
HIROSHI
NAGASE, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 660,213 M
PAYMENTS REGULAR CAPITAL Yen 9,699 M
TREND STEADY WORTH Yen
209,316 M
STARTED 1917 EMPLOYES 4,667
COMMENT
TOP-RANKED TRADING HOUSE SPECIALIZING IN INDUSTIRAL
CHEMICALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR BUSINESS ENGAGEMENTS. MAX CREDIT LIMIT: YEN 27,289.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2012 fiscal term
HIGHLIGHTS
The subject company is a top-ranked trading house specializing in
industrial chemicals, founded originally in 1832 by a certain Nagase as a
dyestuff merchant in Kyoto. In 1900,
established business ties with Bassel Chemical of Switz (now Chiba Specialty
Chemicals) and since diversified into various other industrial chemicals. Excels in dyestuffs, synthetic resins,
etc. Actively engaged in new technological
sector such as pharmaceuticals raw materials, specialty resins, biotechnology,
electronics and other new materials. In
Oct 2003 the firm set up JV’s in Taiwan and China for offering CAD auto-parts
design services, following the one set up in USA. The firm is reported purchased Pac Tec GmbH,
a German producer of semiconductor mfg equipment. Nagase is taking steps to expand its business
in latter-stage semiconductor mfg and is planning to use Pac Tech’s
technologies to gain ground in supplying equipment and materials. Since 2000, the firm has served as agent for
Pac Tech, selling the firm’s equipment and licensing technology in Japan. Aggressive in investment, including M&A
activities, in electronics, automobile and healthcare areas. In July 2007, started lab center for
materials and additive agents. Business
in India and Vietnam continues expanding.
The firm will set up some new production lines in the sites in Harima
and Fukuchiyama plants to boost production of electronic resins &
bio-related materials. It will also
establish a JV for production of resins for paint and adhesive agents in
China. The company plans to invest Yen
2.3 billion to increase epoxy resin production capacity by fall 2011 in view of
robust demand for mobile phone and solar battery-related products. It converted Aikawa Kogyo, a synthetic resin
sales firm, to a wholly owned subsidiary.
FINANCIAL INFORMATION
The sales volume for Mar/2011 fiscal term amounted to Yen 660,213
million, a 9.3% up from Yen 603,949 million in the previous term. Sales volume recovered, led by synthetic
resins and electronic materials. Gross
profit was buoyed by expanded sales of own-brand electronic-related
materials. Due to the Great East Japan
Earthquake, one of Nagase mfg subsidiaries incurred plant restoration expenses
totaling Yen 20 million. The subsidiary
resumed normal operations as of Mar 31, 2011.
By Divisions, Chemicals up 6.8% to Yen 253,290 million; Plastics up
15.3% to Yen 222,100 million; Electronics up 13.6% to Yen 133,640 million; Life
Science down 9.5% to Yen 50,240 million.
The recurring profit was posted at Yen 20,625 million and the net profit
at Yen 12,823 million, respectively, compared with Yen 14,712 million recurring
profit and Yen 7,537 million net profit, respectively, a year ago.
For the current term ending Mar 2012 the recurring profit is projected
at Yen 19,000 million and the net profit at Yen 12,000 million, respectively,
on a 0.03% fall in turnover, to Yen 660,000 million. China and emerging nations in Asia, Europe
and the United States are all expected to continue to expand. In Japan, however, it is anticipated that it
will be sometime before mfrs of end products are able to return to normal
operations, due to the adverse impact of the Great East Japan Earthquake on the
supply of principal raw materials, core parts & components. An exchange rate of Yen83.00 to US$1 is used
for this forecasts.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 27,289.1 million, on 30 days normal
terms.
REGISTRATION
Date Registered: Dec
1917
Regd No.: (Osaka-Nishiku) 049021
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 346,980,000 shares
Issued: 138,408,285
shares
Sum: Yen 9,699 million
Major shareholders
(%): Company’s Treasury Stock (7.1), Northern Trust (AVFC) American (5.7),
Master Trust Bank of Japan T (4.9), Sumitomo Trust Bank (4.1), Japan Trustee
Services T (4.0), Nippon Life Ins (3.6), SMBC (3.1), , Hiroshi Nagase (3.0),
Reiko Nagase (2.5); foreign owners (21.8)
No. of shareholders: 4,024
Listed on the
S/Exchange (s) of: Tokyo, Osaka
Managements: Hiroshi Nagase,
pres & CEO; Makoto Tsuruoka, s/mgn dir; Kyoichi Zushi, s/mgn dir; Reiji
Nagase, mgn dir; Eiji Asami, mgn dir; Shingo Bamba, mgn dir; Kazuo Nagashima,
dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Nagase Chemtex,
Totaku Ind, Hoei Sangyo, Nagase Logistics,
other
OPERATION
Activities: Specialized
trading house for import, export, wholesale of industrial
Chemicals:
(Sales breakdown
by divisions): dyestuffs, pigments, other industrial chemicals (39%), synthetic resins
(32%), electronic materials & equipment (19%), health-care products,
foodstuffs (9%), others (1%).
(Overseas sales
ratio (40.3%): N/E Asia 24.0%; S/E Asia 24.0%; North America 2.6%, Europe, others
2.5%.
(Products handled
by Divisions):
Colors &
Imaging Division: dyestuffs, dyeing auxiliaries, finishing agents, textile processing
resins, adhesives for textiles, pigments, pigment dispersing agents, plastic
additives, UV cured resins, toner resins, silicones, dyes & related
chemicals for imaging & recording, chemicals for paper mfg, additives for
paints & inks;
Performance Chemicals Division: plastic materials, plastics
& pigments solvents, additives for paints & inks, urethane materials,
flame retardants, plastic additives, plasticizers, polymer fibers;
Specialty
Chemicals Division: petrochemical products, raw materials for household
products, cosmetic ingredients, surfactants & surfactant raw materials,
Fluor chemicals, materials for silicones, daily goods, China & process
chemicals;
Advanced Polymer
Division: functional resins, general-purpose resins, auxiliaries, plastic
products, plastic-related equipment, devices & dies;
Automotive
Solutions Division: general-purpose resins, functional resins,
auxiliaries, plastic products, plastic-related equipment, devices & dies,
software engineering facility equipment;
Polymer Products
Division: resin materials, film sheet products, molded plastic products,
construction products;
Electronic
Chemicals Division: photo resist developer production equipment,
chemical management equipment for liquid crystal preprocessing, chemicals for
production of semiconductors & liquid crystals, formulated epoxy resins
& related products;
Electronic
Materials Division: liquid crystal displays, material & mfg devices
& optical films for LCDs and organic light-emitting diodes (LEDs),
processed aluminum products, processed glass products;
Fine Chemicals
Division: pharmaceuticals, intermediates in vitro diagnostics, hard disk-related
materials, other;
Beauty-Care
Products Division: cosmetics, skin counseling, health foods, facial services, other.
Clients: [Chemical mfrs, wholesalers]
Sekisui Chemical, Nippon Paint, DIC, Sumitomo Chemical, Mitsubishi Motors,
Otsuka Pharmaceutical, Shinto Paint, Toshiba Mobile Display, Fujitsu Ltd,
Toshiba Matsushita Display Technology, Kansai Paint, Mitsubishi Electric
Trading, Kasai Kogyo, other.
No. of accounts: 2,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sumitomo Chemical, Daicel Chemical Ind, Nippon
Shokubai, Mitsubishi Chemical, Tottori Sanyo Electric, Asahi Kasei
Chemicals, Mitsui
Chemical Poly-Urethane Co, other.
Payment record:
Regular
Location:
Business area in Osaka. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
SMBC
(H/O)
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: |
31/03/2011 |
31/03/2010 |
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INCOME STATEMENT |
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Annual Sales |
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660,213 |
603,949 |
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Cost of Sales |
587,204 |
538,534 |
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GROSS PROFIT |
73,008 |
65,415 |
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Selling & Adm Costs |
54,276 |
52,286 |
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OPERATING PROFIT |
18,732 |
13,129 |
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Non-Operating P/L |
1,893 |
1,583 |
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RECURRING PROFIT |
20,625 |
14,712 |
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NET PROFIT |
12,823 |
7,537 |
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BALANCE SHEET |
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Cash |
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47,202 |
42,807 |
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Receivables |
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186,113 |
186,985 |
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Inventory |
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36,714 |
31,051 |
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Securities, Marketable |
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Other Current Assets |
7,275 |
6,932 |
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TOTAL CURRENT ASSETS |
277,304 |
267,775 |
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Property & Equipment |
39,916 |
40,322 |
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Intangibles |
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3,674 |
2,522 |
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Investments, Other Fixed Assets |
54,442 |
57,469 |
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TOTAL ASSETS |
375,336 |
368,088 |
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Payables |
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101,679 |
108,643 |
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Short-Term Bank Loans |
16,138 |
10,412 |
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Other Current Liabs |
20,700 |
18,059 |
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TOTAL CURRENT LIABS |
138,517 |
137,114 |
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Debentures |
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Long-Term Bank Loans |
10,555 |
11,104 |
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Reserve for Retirement Allw |
7,295 |
6,815 |
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Other Debts |
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9,653 |
10,302 |
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TOTAL LIABILITIES |
166,020 |
165,335 |
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MINORITY INTERESTS |
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Common
stock |
9,699 |
9,699 |
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Additional
paid-in capital |
10,041 |
10,040 |
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Retained
earnings |
181,665 |
171,286 |
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Evaluation
p/l on investments/securities |
13,188 |
14,961 |
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Others |
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183 |
2,194 |
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Treasury
stock, at cost |
(5,460) |
(5,427) |
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TOTAL S/HOLDERS` EQUITY |
209,316 |
202,753 |
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TOTAL EQUITIES |
375,336 |
368,088 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2011 |
31/03/2010 |
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Cash
Flows from Operating Activities |
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10,997 |
27,875 |
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Cash
Flows from Investment Activities |
-9,147 |
-9,438 |
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Cash
Flows from Financing Activities |
3,564 |
-11,753 |
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Cash,
Bank Deposits at the Term End |
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47,202 |
42,807 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
209,316 |
202,753 |
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Current
Ratio (%) |
200.19 |
195.29 |
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Net
Worth Ratio (%) |
55.77 |
55.08 |
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Recurring
Profit Ratio (%) |
3.12 |
2.44 |
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Net
Profit Ratio (%) |
1.94 |
1.25 |
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Return
On Equity (%) |
6.13 |
3.72 |
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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.44.94 |
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UK Pound |
1 |
Rs.71.89 |
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Euro |
1 |
Rs.64.09 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.