MIRA INFORM REPORT

 

 

Report Date :

30.01.2014

 

IDENTIFICATION DETAILS

 

Name :

NIPPON CERAMIC CO LTD

 

 

Registered Office :

176-17 Hirooka Tottori City 659-1193

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

June 1975

 

 

Com. Reg. No.:

2700-01-000573 (Tottori-Tottori)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of fine ceramic-applied sensors

 

 

No. of Employees :

1,967

 

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 and address

 

NIPPON CERAMIC CO Ltd

 

 

REGD NAME:    Nippon Ceramic KK

MAIN OFFICE:  176-17 Hirooka Tottori City 659-1193 JAPAN

                                    Tel: 0857-53-3600     Fax: 0857-53-3670-

 

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

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

 

 

ACTIVITIES  

 

Mfg of fine ceramic-applied sensors

 

 

BRANCHES

 

Tokyo, Osaka

 

 

OVERSEAS

 

UK, Hong Kong, USA, Philippines

 

 

FACTORIES

 

Tottori (2); China, Philippines

 

 

CHIEF EXEC

 

YOSHIHARU TANIGUCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　         A/SALES          Yen 16,089 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 10,241 M

TREND             SLOW              　         WORTH            Yen 40,791 M

STARTED                     1975     　                     EMPLOYES      1,967

 

 

COMMENT

 

MFR OF CERAMIC SENSORS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/12/2009

13,101

1,278

919

(%)

37,558

(Consolidated)

31/12/2010

16,738

2,452

1,636

27.76

36,488

 

31/12/2011

16,462

2,938

2,305

-1.65

38,270

 

31/12/2012

16,089

2,331

1,539

-2.27

40,791

 

31/12/2013

17,500

2,100

1,350

8.77

..

Unit: In Million Yen

Forecast figures for the 31/12/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-ranked mfr of fine ceramic-applied sensors.  World’s largest make of infrared sensors, with 60% global share, and top player of Japan, having 90% share, with China as main production base.  The firm is expanding sensors for consumer use along with those for security equipment.  Globally renowned for ultrasonic sensor. The firm has co-developed with Tottori University advanced devices, in which fine mechanical structures are embedded in silicon substances.  It has also created a chair of sensor engineering in the company, in an attempt to foster human resources.  At the end of 2013, the firm released newly-developed low-priced sensors to compete with Chinese makers’ counterfeit products.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec 2012 fiscal term amounted to Yen 16,089 million, a 2.3% down from Yen 16,462 million in the previous term.  The recurring profit was posted at Yen 2,331 million and the net profit at Yen 1,539 million, respectively, compared with Yen 2,938 million recurring profit and Yen 2,305 million net profit, respectively, a year ago.

 

(Jan/Sept/2013 results): Sales Yen 13,380 million (up 15.5%), operating profit Yen 1,366 million (down 11.3%) recurring profit Yen 1,670 million (down 7.6%), net profit Yen 1,087 million (down 8.4%).  (% as compared with the corresponding period a year ago).

           

For the term that ended Dec 2013 the recurring profit was projected at Yen 2,100 million and the net profit at Yen 1,350 million, on an 8.8% rise in turnover, to Yen 17,500 million.  Final results are yet to be released.   

 

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

 

 

REGISTRATION

           

Date Registered:　Jun 1975

Regd No.:         2700-01-000573 (Tottori-Tottori)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       80 million shares

Issued:                26,312,402 shares

Sum:                   Yen 10,241 million

 

Major shareholders (%): Taniguchi Kosan (14.3), Company’s Treasury Stock (11.6), Taiyo Pearl Fund LP (7.8), Japan Trustee Services T (6.7), Master Trust Bank of Japan T (4.9), Niccera Kosan (4.2), San-in Godo Bank (4.1), SFP Value Realization Master F (4.1), State Street Bank & Trust (3.0), Masanori Akiyama (2.1); foreign owners (26.4)

 

No. of shareholders: 4,599

 

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

 

Managements: Yoshiharu Taniguchi, ch & pres; Shinichi Taniguchi, s/mgn dir; Kazutaka Hirotomi, mgn dir; Kenji Nakagawa, dir; Jun Kondo, dir

 

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

 

Related companies: Nicera Philippines, other.

 

 

OPERATION

           

Activities: Manufactures fine ceramic-applied sensors, ultrasonic sensors, infrared sensors, supersonic sensors, ferrite, module, other (--100%). 

 

Overseas Sales Ratio (39%)

           

Clients: [Mfrs, wholesalers] Panasonic Corp, Panasonic Mobile Communications, Sharp Corp, Omron, Panasonic Electric Ind, other

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Murata Mfg, OS Electronics, Satori Electric Co, Kyocera

            Corp, Optical Coatings Japan, other 

 

Payment record: No complaints

 

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

 

Bank References:        Tottori Bank (H/O)

                                    San-in Bank (Tottori)

                                    Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2012

31/12/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

16,089

16,462

 

  Cost of Sales

12,126

11,243

 

      GROSS PROFIT

3,962

5,219

 

  Selling & Adm Costs

2,070

2,359

 

      OPERATING PROFIT

1,891

2,859

 

  Non-Operating P/L

440

79

 

      RECURRING PROFIT

2,331

2,938

　

      NET PROFIT

1,539

2,305

BALANCE SHEET

 

 

 

 

  Cash

　

20,837

18,474

 

  Receivables

 

3,613

3,652

 

  Inventory

 

5,629

4,860

 

  Securities, Marketable

1,895

1,838

 

  Other Current Assets

440

420

 

      TOTAL CURRENT ASSETS

32,414

29,244

 

  Property & Equipment

9,936

9,966

 

  Intangibles

 

569

515

 

  Investments, Other Fixed Assets

1,921

2,216

 

      TOTAL ASSETS

44,840

41,941

 

  Payables

 

2,719

2,266

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

1,086

1,216

 

      TOTAL CURRENT LIABS

3,805

3,482

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

139

111

 

  Other Debts

　

104

78

 

      TOTAL LIABILITIES

4,048

3,671

 

      MINORITY INTERESTS

 

 

 

Common stock

10,241

10,241

 

Additional paid-in capital

12,033

12,033

 

Retained earnings

19,377

18,585

 

Evaluation p/l on investments/securities

(7)

(59)

 

Others

 

1,550

(127)

 

Treasury stock, at cost

(2,403)

(2,403)

 

      TOTAL S/HOLDERS` EQUITY

40,791

38,270

　

      TOTAL EQUITIES

44,840

41,941

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2012

31/12/2011

 

Cash Flows from Operating Activities

　

2,593

3,081

 

Cash Flows from Investment Activities

-5,268

315

 

Cash Flows from Financing Activities

-884

-644

　

Cash, Bank Deposits at the Term End

　

8,692

11,749

ANALYTICAL RATIOS            Terms ending:

1932/3/1

31/12/2011

 

 

Net Worth (S/Holders' Equity)

40,791

38,270

 

 

Current Ratio (%)

851.88

839.86

 

 

Net Worth Ratio (%)

90.97

91.25

 

 

Recurring Profit Ratio (%)

14.49

17.85

 

 

Net Profit Ratio (%)

9.57

14.00

 

 

Return On Equity (%)

3.77

6.02

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.20

UK Pound

1

Rs.103.12

Euro

1

Rs.84.96

 

 

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.