L

 

MIRA INFORM REPORT

 

 

Report Date :

26.11.2013

 

IDENTIFICATION DETAILS

 

Name :

NICHIA CORPORATION

 

 

Registered Office :

491 Oka Kaminakacho Anan City Tokushima-Pref 774-8601

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

December 1956

 

 

Com. Reg. No.:

4800-01-006794

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of phosphors for CRT, light emitting diodes, LED           

 

 

No. of Employees :

7,751


RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 and address

 

NICHIA CORPORATION

 

REGD NAME:    Nichia Kagaku Kogyo KK

MAIN OFFICE:  491 Oka Kaminakacho Anan City Tokushima-Pref 774-8601 JAPAN

Tel: 0884-22-2311     Fax: 0884-21-0148

 

 

URL:                 http://www.nichia.co.jp/

E-Mail address: info@nichia.co.jp

 

 

ACTIVITIES

 

Mfg of phosphors for CRT, light emitting diodes, LED, other

 

 

BRANCHES   

 

Tokyo, Nagoya, Osaka

 

 

OVERSEAS   

 

USA (3), Taiwan (2), Malaysia, Netherlands, Germany, China (4), Singapore,

Korea, India (3), Thailand, Hong Kong, Australia (--subsidiaries)

 

 

FACTORIES  

 

At the caption address, Tatsumi, Tokushima, Naruto, Kagoshima

 

 

OFFICER(S)

 

EIJI OGAWA, PRES                  Noboru Tasaki, v pres

Hiroyoshi Ogawa, v pres Toshiya Iwashima, mgn dir         

Gen’ichi Shinomiya, mgn dir       Satoru Inufushi, mgn dir             

 

Yen Amount:     In million Yen, unless otherwise stated


 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 287,483 M

PAYMENTS      REGULAR         CAPITAL           Yen 46,741 M

TREND             STEADY           WORTH                        Yen 475,839 M

STARTED         1956                 EMPLOYES      7,751

 

 

COMMENT    

 

MFG OF DIODES, PHOSPHORS, SEMICONDUCTOR MATERIALS, OTHER. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by father of Eiji Ogawa for mfg phosphors for fluorescent lamps, which started in 1966.  In 1968 concluded technical license agreement with General Electric, USA, which agreement later canceled in 1980 because of technical reasons (as reported by the firm).  This is a specialized mfr of phosphors for CRT, light emitting diodes, optical semiconductor devices, other.  Boasts No.1 shares in each field.  Holds about 35/40% market share in LED. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2012 fiscal term amounted to Yen 287,483 million, a 7% up from Yen 269,202 million in the previous term.  White LED lights grew.  The recurring profit was posted at Yen 50,198 million and the net profit at Yen 32,577 million, respectively, compared with Yen 47,754 million recurring profit and Yen 31,136 million net profit, respectively a year ago.

 

For the current term ending Dec 2013 the recurring profit is projected at Yen 51,000 million and the net profit at Yen 33,000 million, respectively, on a 5% rise in turnover, to Yen 301,000 million..

           

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                      Dec 1956

Regd No.:                                 4800-01-006794 (Tokushima-Anan)

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                             4.5 million shares

Issued:                                    2,146,209 shares

Sum:                                        Yen 46,741 million

Major shareholders (%):           Employees’ S/Holding Assn (14.6), Kyodo Iyaku Kenkyusho, (6.1), Tokushima Bank (4.9), Awa Bank (4.8), Shikoku Bank (4.8)

No. of shareholders:                267

           

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Manufactures chemicals (19%), optical semiconductor materials (81%). Exports (50%)

 

(Handling Items):

Light Emitting Diodes: compound semiconductor materials, light emitting diodes, ultra violet LEDs;

 

Laser Diodes: laser diodes, phosphors, evaporation/coating materials, transition materials catalysts/organometallic compounds, magnets, fine chemicals, other.

           

Clients: [Electronic mfrs, wholesalers] Sanyo Electric Co, Sharp Electronics (M) Sdn Bhd Hong Kong Branch, Citizen Electronics, Panasonic Corp, LG Japan, Minebea Co, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Panasonic Semiconductor Discrete Devices, Shin-Etsu Semiconductors, Tanaka Holdings Co, other.

 

Payment record: Regular

 

Location: Business area in Anan City, Tokushima-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:        Tokushima Bank (Anan)

                                    Awa Bank (Anan)

                                    Relations: Satisfactory

 

 

FINANTIALS

 

(In Million Yen)

       Terms Ending:

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

 

301,000

287,483

269,202

256,697

Recur. Profit

 

51,000

50,198

47,754

66,082

Net Profit

 

33,000

32,577

31,136

40,525

Total Assets

 

 

547,178

502,416

494,511

Current Assets

 

 

342,226

307,005

326,670

Current Liabs

 

 

41,587

37,175

51,892

Net Worth

 

 

475,839

442,349

421,170

Capital, Paid-Up

 

 

46,741

46,741

46,741

Div.P.Share(¥)

 

 

2,500.00

2,500.00

3,000.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.70

6.79

4.87

41.26

    Current Ratio

 

..

822.92

825.84

629.52

    N.Worth Ratio

..

86.96

88.04

85.17

    R.Profit/Sales

 

16.94

17.46

17.74

25.74

    N.Profit/Sales

10.96

11.33

11.57

15.79

    Return On Equity

..

6.85

7.04

9.62

Notes: Forecast figures for the 31/12/2013 fiscal term

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.58

UK Pound

1

Rs.101.42

Euro

1

Rs.84.70

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.