MIRA INFORM REPORT
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Report Date : |
17.05.2013 |
IDENTIFICATION DETAILS
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Name : |
TOAGOSEI CO LTD |
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Registered Office : |
1-14-1
Nishishimbashi Minatoku Tokyo 105-8419 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
March, 1942 |
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Com. Reg. No.: |
0104-01-020186 (Tokyo-Minatoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures of Industrial Chemicals |
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No. of Employees : |
2,509 |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry cooperation,
a strong work ethic, mastery of high technology, and a comparatively small
defense allocation (1% of GDP) helped Japan develop a technologically advanced
economy. Two notable characteristics of the post-war economy were the close
interlocking structures of manufacturers, suppliers, and distributors, known as
keiretsu, and the guarantee of lifetime employment for a substantial portion of
the urban labor force. Both features are now eroding under the dual pressures
of global competition and domestic demographic change. Japan's industrial
sector is heavily dependent on imported raw materials and fuels. A small
agricultural sector is highly subsidized and protected, with crop yields among
the highest in the world. While self-sufficient in rice production, Japan
imports about 60% of its food on a caloric basis. For three decades, overall
real economic growth had been spectacular - a 10% average in the 1960s, a 5%
average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in
the 1990s, averaging just 1.7%, largely because of the after effects of
inefficient investment and an asset price bubble in the late 1980s that
required a protracted period of time for firms to reduce excess debt, capital,
and labor. Modest economic growth continued after 2000, but the economy has
fallen into recession three times since 2008. A sharp downturn in business
investment and global demand for Japan's exports in late 2008 pushed Japan into
recession. Government stimulus spending helped the economy recover in late 2009
and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude
earthquake and the ensuing tsunami in March disrupted manufacturing. The
economy has largely recovered in the two years since the disaster, but
reconstruction in the Tohoku region has been uneven. Newly-elected Prime
Minister Shinzo ABE has declared the economy his government's top priority; he
has pledged to reconsider his predecessor's plan to permanently close nuclear
power plants and is pursuing an economic revitalization agenda of fiscal
stimulus and regulatory reform and has said he will press the Bank of Japan to
loosen monetary policy. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2012 stood as the fourth-largest
economy in the world after second-place China, which surpassed Japan in 2001,
and third-place India, which edged out Japan in 2012. The new government will
continue a longstanding debate on restructuring the economy and reining in
Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation,
reliance on exports to drive growth, and an aging and shrinking population are
other major long-term challenges for the economy.
Source
: CIA
Company Name
TOAGOSEI CO LTD
REGD NAME
Toa Gosei KK
MAIN OFFICE
1-14-1
Nishishimbashi Minatoku Tokyo 105-8419 JAPAN
Tel:
03-3597-7215 Fax: 03-3597-7217
URL: http://www.toagosei.co.jp/
E-Mail address: info@toagosei.co.jp
ACTIVITIES
Mfg of industrial chemicals
BRANCH
Osaka, Nagoya,
Toyama, Sakaide (Kagawa), Fukuoka
OVERSEAS
USA (2), Korea,
China (2), Hong Kong, Taiwan (2), Singapore (--subsidiaries)
FACTORIES
Nagoya, Tokuyama,
Takaoka, Sakaide, Kawasaki
CHIEF EXEC
FUTOSHI HASHIMOTO,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 148,203 M
PAYMENTSREGULAR CAPITAL Yen
20,886 M
TREND SLOW WORTH Yen 136,240 M
STARTED 1942 EMPLOYES 2,509
COMMENT
MFR OF INDUSTRIAL CHEMICALS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit: Million Yen
Forecast
(or estimated) figures for 31/12/2013 fiscal term
HIGHLIGHTS
This is a
medium-sized chemical mfr of Mitsui group.
Originally founded in 1933 as Yahagi Kogyo Co Ltd for mfg ammonium
sulfate, sulfuric & nitric acid using surplus electricity from the then
parent company, Mitsui Chemical Co Ltd.
In 1942, reorganized and established second Yahagi Kogyo Co Ltd. In 1944, merged 3 soda companies and became
general chemical maker, named Toagosei Chemical Industry Co Ltd, and later
renamed as captioned. Shifted mainstay
items from electrolytic process chemicals to acrylic-based products. Leads the industry in acrylic-related
products. Instant glue is another revenue
source. Known for end-product instant
glue “Aron Alpha”. Expectation on growth
of LHC, purest in Japan, for use as cleaning agent for semiconductor wafers. The company is starting up facilities with
5,000-ton capacity for electrolytic materials for vehicle-use lithium-ion
batteries, and is likely to add more facilities, depending on the
situation. Singapore subsidiary is
promoting water-soluble polymers.
Acrylic acid production capacity in Oita will be raised by 2.3-fold to
140,000 tons in May 2013. The company
merged with Tamura Soda and Nihon Junyaku in Jan 2013. It will complete expansion of Oita Plant for
acrylic acid in early 2014. It is
commercializing gas diffusion electrode jointly with KANEKA, and enhancing
capacity of functional adhesives and high-end sodium hypochlorite.
Overseas Subsidiaries: Toagosei America
(Ohio); TOA-DIC Zhangjiagang Chemical, Toagosei Hong Kong; Toagosei (Zhuhai)
(--China); Taiwan Toagosei, TOA Jet Chemical (--Taiwan), Toagosei Singapore
(Singapore); Toagosei Korea Co Ltd.
FINANCIAL INFORMATION
The sales volume
for Dec/2012 fiscal term amounted to Yen 148,203 million, a 3.1% down from Yen
1153,007 million in the previous term.
In adhesive business, household and industrial demand was both steady. The market price of acrylic ester turned
down. Sales of inorganic chemicals and
high-purity gas for semiconductor makers remained depressed. Operating profits declined. The recurring profit was posted at Yen 15,250
million and the net profit at Yen 9,699 million, respectively, compared with
Yen 17,569 million recurring profit and Yen 13,000 million net profit,
respectively, a year ago.
(Jan/Mar/2013
results): Sales Yen 35,247 million (down 4.0%), operating profit Yen 3,541
million (up 5.4%), recurring profit Yen 3,756 million (up 9.2%), net profit Yen
2,473 million (up 12.4%). (% compared
with the corresponding period a year ago).
For the current
term ending Dec 2013 the recurring profit is projected at Yen 15,600 million
and the net profit at Yen 10,000 million, on a 1.2% rise in turnover, to Yen
150,000 million. Sales of basic
chemicals will be on a downward trend, but acrylic acid for thickener will
expand. Feed additives will be in full
production. Backup production for Nippon
Shokubai will partially continue.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Mar 1942
Regd No.:
0104-01-020186
(Tokyo-Minatoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 550 million shares
Issued: 263,992,598
shares
Sum: Yen
20,886 million
Major
shareholders (%): Japan Trustee Services T (5.7), SMBC (4.4), Master Trust Bank of Japan
T (4.7), SMBC (4.7), Customers’ S/Holding Assn (2.8), Group Employees’
S/Holding Assn (2.3), MUFG (2.1), Aioi Nissay Dowa Ins (1.8), Trust &
Custody Services Inv T (1.5), Norin
Chukin Bank (1.4), Mellon Bank Mellon Omnibus US P (1.4); foreign owners
(19.0).
No. of shareholders: 15,419
Listed on the S/Exchange (s) of: Tokyo
Managements: Akihiko
Yamadera, ch; Futoshi Hashimoto, pres;
Katsutoshi Yamada, dir; Soichi Nomura, dir; Takeshi Ozeki, dir; Mikishi
Takamura, dir; Kazuaki Nakagawa, dir; Shinichi Sugiura, dir; Eiichi Takizawa,
dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Aron Kasei Co,
Oita Chemical Co, MT Aqua Polymer Inc, Tsurumi Soda
Co, other.
OPERATION
Activities: Manufactures industrial chemicals:
(Sales breakdown by Divisions): (Cited from the firm’s
website)
Basic
Chemicals Div (32%):
Caustic soda: chemical fibers, pulp, dye, and
pharmaceuticals;
Oxygen: combustion enhancing gas for welding &
cutting, oxygen inhalation (and high pressure oxygen treatment) for medical
use, oxygen aeration for wastewater treatment, oxygen-based pulp bleaching, and
fermentation in biotechnology;
Sulfuric acid: fertilizers, synthetic fibers, and inorganic
chemicals;
Trichloroethylene: metal degreasing
& cleaning solvents, and raw materials
Acrylic
Products Div (37%):
Acrylic esters: acrylic fibers,
fiber processors, paints, pressure sensitive & other adhesives, leather
processors, paper processors, & acrylic resin, detergent builders;
Acrylic acid: nonwoven cloth
binders, flocculants, dispersants, paper processors, superabsorbent resin,
& detergent builders;
Polymer
flocculants: treatment of various kinds of wastewater & dehydration of sludges;
Construction
materials: one-pack waterproof spray materials, decorative waterproof wall
materials, permeable type water-absorption preventive agents, chemical grouts,
& earth resistance reducing agents;
Specialty
Chemicals Div (11%):
Cyanoacrylate
instant adhesives: for bonding rubber, plastic, metal, & wood in industrial &
consumer uses;
Heat-resistant
adhesives: for bonding metal & ceramics used in high-temperature
environments;
Hot melt
adhesives: for bonding plastics, metals & textiles; for bonding
difficult-to-bond plastics like PE, PP polyester, & nylon;
Special monomers
& oligomers: raw materials for paints, printing inks, coatings, & adhesives;
Silver-based
antimicrobial agents: For kitchen & bathroom equipment, building
materials, & textiles;
Antifungal agents:
For
kitchen equipment, home appliances, & paints;
Plastics,
other (20%):
Pipes & couplings: rigid PVC pipes;
Environmental products: trash receptacles;
Nursing care products: portable toilets,
nursing care bath products.
Overseas
Sales Ratios (15%)
Clients: [Mfrs, wholesalers] TG Corporation,
Sumitomo Chemical, Nagase Corp, Mitsubishi Chemical, Mitsubishi Corp, Nippon Soda, OG Chemical,
Konishi Co, MT Aquapolymer Inc, Saiden Chemical Ind, Jusco, other.
No. of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsubishi Chemical, Showa Denko, Shikoku Electric
Power, Chubu
Electric Power, Mitsubishi Corp, Sumitomo Corp, Mitsui & Co, Itochu Corp,
Mitsubishi Gas Chemical,
Nippon Shokubai, other.
Payment record: Regular
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References:
SMBC (H/O)
MUFG (Tokyo)
Relations: Satisfactory
FINANCIALS
(in Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2012 |
31/12/2011 |
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INCOME STATEMENT |
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Annual Sales |
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148,203 |
153,007 |
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Cost of Sales |
108,246 |
107,663 |
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GROSS PROFIT |
39,956 |
45,344 |
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Selling & Adm Costs |
25,372 |
28,006 |
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OPERATING PROFIT |
14,583 |
17,338 |
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Non-Operating P/L |
667 |
231 |
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RECURRING PROFIT |
15,250 |
17,569 |
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NET PROFIT |
9,699 |
13,000 |
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BALANCE SHEET |
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Cash |
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17,096 |
14,467 |
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Receivables |
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43,434 |
42,182 |
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Inventory |
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15,989 |
16,991 |
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Securities, Marketable |
14,000 |
10,000 |
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Other Current Assets |
2,765 |
4,117 |
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TOTAL CURRENT ASSETS |
93,284 |
87,757 |
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Property & Equipment |
66,065 |
61,754 |
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Intangibles |
|
902 |
1,081 |
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Investments, Other Fixed Assets |
21,200 |
20,454 |
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TOTAL ASSETS |
181,451 |
171,046 |
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Payables |
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14,878 |
14,983 |
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Short-Term Bank Loans |
6,234 |
3,274 |
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Other Current Liabs |
12,677 |
10,922 |
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TOTAL CURRENT LIABS |
33,789 |
29,179 |
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Debentures |
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Long-Term Bank Loans |
5,986 |
9,323 |
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Reserve for Retirement Allw |
454 |
534 |
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Other Debts |
|
4,982 |
4,233 |
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TOTAL LIABILITIES |
45,211 |
43,269 |
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MINORITY INTERESTS |
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Common
stock |
20,886 |
20,886 |
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Additional
paid-in capital |
16,796 |
16,797 |
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Retained
earnings |
93,821 |
86,758 |
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Evaluation
p/l on investments/securities |
1,412 |
1,166 |
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Others |
|
4,047 |
3,847 |
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Treasury
stock, at cost |
(722) |
(1,678) |
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TOTAL S/HOLDERS` EQUITY |
136,240 |
127,776 |
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TOTAL EQUITIES |
181,451 |
171,046 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2012 |
31/12/2011 |
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Cash
Flows from Operating Activities |
|
23,293 |
17,828 |
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Cash
Flows from Investment Activities |
-15,041 |
-9,041 |
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Cash
Flows from Financing Activities |
-3,377 |
-7,320 |
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Cash,
Bank Deposits at the Term End |
|
29,529 |
23,992 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2012 |
31/12/2011 |
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Net
Worth (S/Holders' Equity) |
136,240 |
127,776 |
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Current
Ratio (%) |
276.08 |
300.75 |
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Net
Worth Ratio (%) |
75.08 |
74.70 |
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Recurring
Profit Ratio (%) |
10.29 |
11.48 |
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Net
Profit Ratio (%) |
6.54 |
8.50 |
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Return
On Equity (%) |
7.12 |
10.17 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.77 |
|
|
1 |
Rs.83.31 |
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Euro |
1 |
Rs.70.46 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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 |
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 |
|
-- |
NB |
New Business |
-- |
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.