MIRA INFORM REPORT

 

 

Report Date :

03.02.2014

 

IDENTIFICATION DETAILS

 

Name :

LINTEC CORPORATION

 

 

Registered Office :

23-23 Honcho ItabashikuTokyo 173-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

October, 1934

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Mfg of adhesive tapes, films, packaging tapes

 

 

No. of Employees :

4,283

 

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 :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

LINTEC CORPORATION

 

 

REGD NAME 

 

Lintec KK

 

 

MAIN OFFICE

 

23-23 Honcho ItabashikuTokyo 173-0001 JAPAN

Tel: 03-5248-7711     Fax: 03-5248-7760

 

*.. The is its Branch Office     -

 

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

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

 

 

ACTIVITIES

 

Mfg of adhesive tapes, films, packaging tapes

 

 

BRANCHES

 

Sapporo, Sendai, Toyama, Nagoya, Osaka, Fukuoka (Tot10)

 

 

OVERSEAS

 

China, USA, Europe, other

 

 

FACTORIES

 

Gunma, Saitama (3),Chiba, Hyogo (3), Ehime (2), other

 

 

CHIEF EXEC 

 

HIEOYUKI NISHIO, PREES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 190,844 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 23,201 M

TREND SLOW                          WORTH            Yen 143,569 M

STARTED         1934                             EMPLOYES      4,283

 

 

COMMENT

 

MFR OF ADHESIVE MATERIALS; AFFILIATED TO NIPPON PAPER IND CO

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

Results:

31/03/2010

189,348

11,300

7,284

(%)

121,502

(Consolidated)

31/03/2011

212,733

19,520

13,022

12.35

130,576

 

31/03/2012

200,905

13,613

8,648

-5.56

132,847

 

31/03/2013

190,844

10,981

7,681

-5.01

143,569

 

31/03/2014

210,000

15,000

10,500

10.04

..

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was originally established for mfg adhesive tapes and has grown to the largest mfr of gum and adhesive products such as tapes, films and packaging tapes.  Products are used widely in construction, auto & IT Industries.  Also holds largest market share in calling card envelope and fore-retardant wall papers.  Accordingly, products label-printing machines, packaging machines, etc.  Specialty papers, processed papers and processed films are also mainstay.

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 190,844 million, a 5.6% down from Yen 200,905 million in the previous term.   The recurring profit was posted at Yen 10,981 million and the net profit at Yen 7,681 million, respectively, compared with Yen 13,613 million recurring profit and Yen 8,648 million net profit, respectively, a year ago.

 

(Apr/Sept/2013 results): Sales Yen 98,834 million (up 2.9%), operating profit Yen 6,762 million (up 18.3%), recurring profit Yen 6,811 million (up 20.9%), net profit Yen 4,783 million (up 16.0%).  (% as compared with the corresponding period a year ago)

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 15,000 million and the net profit at Yen 10,500 million, on a 10.0% rise in turnover, to Yen 210,000 million.  Sales of semiconductor adhesive products, including for smartphones and tablets, are faring well.

 

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

 

 

REGISTRATION

 

     Date Registered:              Oct 1934

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                              300 million shares

Issued:                         76,584.240

Sum:                            Yen 23,201 million

 

Major shareholders (%): Nippon Paper Industries (28.3), Japan Trustee Services T9 (3.6), Japan Trustee Services T (3.6), Tamie Shoji (3.0), Zenkyoren (2.9), Master Trust Bank of Japan T (2.9), Chase London Sl Omnibus Acct (2.8), Eiko Shiwaku (2.6), Company’s Treasury Stock (2.4), Goldman Sachs International (1.6); foreign owners (23.2)

 

No. of shareholders: 7,043

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Akihiko Ouchi, ch; Hiroyuki Nishio, pres;  Hitoshi Asai dir; Shigeru Kawasaki, dir; Koji Ichihashi, dir; Toshiro Nakamori, dir; Hiroaki Chihara, dir; Yoshio Miyaoshi, dir; Masahiro Yoshida, dir

 

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

 

Related companies: Lintec USA, Lintec Tianjin, other.

 

 

 

OPERATION

 

Activities: Manufactures pressure-sensitive adhesive tapes, films, packaging materials, Label printing machines, optically functional film, specialty papers, others;

 

(Sales Breakdown)

Printing materials and industrial materials-related (43%)

Electronics & Optical-related (38%)

Papers &work timbers-related (19%)

Overseas Sales Ratio (34%)

 

Clients: [Mfrs, wholesalers] Japan Seal Printing Coop, San-Mic Chiyoda, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sumitomo Chemical, San-Mic Chiyoda,, other

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Itabashi)

Mizuho Bank (Itabashi)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

Annual Sales

 

190,844

200,905

 

Cost of Sales

150,432

158,738

 

GROSS PROFIT

40,411

42,167

 

Selling & Adm Costs

29,847

28,192

 

OPERATING PROFIT

10,564

13,975

 

Non-Operating P/L

417

-362

 

RECURRING PROFIT

10,981

13,613

 

NET PROFIT

7,681

8,648

BALANCE SHEET

 

 

 

 

Cash

 

44,603

40,907

 

Receivables

 

61,791

64,765

 

Inventory

 

27,531

27,217

 

Securities, Marketable

 

 

 

Other Current Assets

4,580

4,340

 

TOTAL CURRENT ASSETS

138,505

137,229

 

Property & Equipment

64,915

62,273

 

Intangibles

 

3,047

2,345

 

Investments, Other Fixed Assets

9,581

8,356

 

TOTAL ASSETS

216,048

210,203

 

Payables

 

43,124

45,612

 

Short-Term Bank Loans

1,430

1,320

 

 

 

 

 

 

Other Current Liabs

12,357

15,143

 

TOTAL CURRENT LIABS

56,911

62,075

 

Debentures

 

 

 

 

Long-Term Bank Loans

 

 

 

Reserve for Retirement Allw

14,136

13,914

 

Other Debts

 

1,431

1,366

 

TOTAL LIABILITIES

72,478

77,355

 

MINORITY INTERESTS

 

 

 

Common stock

23,201

23,201

 

Additional paid-in capital

26,830

26,830

 

Retained earnings

99,198

94,281

 

Evaluation p/l on investments/securities

213

117

 

Others

 

(3,121)

(8,832)

 

Treasury stock, at cost

(2,752)

(2,750)

 

TOTAL S/HOLDERS` EQUITY

143,569

132,847

 

TOTAL EQUITIES

216,018

210,203

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

19,619

18,910

 

Cash Flows from Investment Activities

-13,966

-12,282

 

Cash Flows from Financing Activities

-2,877

-12,262

 

Cash, Bank Deposits at the Term End

 

40,739

36,036

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

143,569

132,847

 

 

Current Ratio (%)

243.37

221.07

 

 

Net Worth Ratio (%)

66.46

63.20

 

 

Recurring Profit Ratio (%)

5.75

6.78

 

 

Net Profit Ratio (%)

4.02

4.30

 

 

Return On Equity (%)

5.35

6.51

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.48

UK Pound

1

Rs.102.95

Euro

1

Rs.84.60

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.