MIRA INFORM REPORT
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Report Date : |
15.10.2014 |
IDENTIFICATION DETAILS
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Name : |
HITACHI CHEMICAL CO LTD |
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Registered Office : |
Gran Tokyo South Tower, 1-9-2 Marunouchi Chiyodaku Tokyo 100-6606 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
October 1962 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturing, process of synthetic resins |
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No. of Employees |
18,149 |
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 20,631.3 Million |
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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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy
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Source
: CIA |
Company
name and address
HITACHI CHEMICAL CO LTD
REGD NAME: Hitachi
Kasei KK
MAIN OFFICE: Gran
Tokyo South Tower, 1-9-2 Marunouchi Chiyodaku Tokyo 100-6606 JAPAN
Tel:
03-5533-7000 Fax: 03-5533-7077 -
URL: http://www.hitachi-chem.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg, process of
synthetic resins
BRANCHES
Ibaraki, Chiba,
Aichi, Fukuoka, Miyagi, other (Tot 9)
OVERSEAS
China (17), USA
(6), Taiwan (3), Malaysia (4), Singapore (3), India (2),
Thailand (4), Hong
Kong (3), Mexico, Germany
FACTORIES
Hitachi (3),
Chiba, other (Tot 8); China, Taiwan, other
CHIEF
EXEC
KAZUYUKI TANAKA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 493,766 M
PAYMENTS REGULAR CAPITAL Yen 15,454 M
TREND UP WORTH Yen 336,386 M
STARTED 1962 EMPLOYES 18,149
COMMENt
MFR OF INDUSTRIAL CHEMICALS FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT
LIMIT: YEN 20,631.3 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast
figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is a leading processor synthetic resins, with automobile and electronic
materials as major earning source.
World’s largest mfr of negative electrode for lithium-ion
batteries. Expanding business overseas,
mainly in S/E Asia. One of 3 major
companies of Hitachi group. .
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 493,766
million, a 6.3% up from Yen 464,655 million in the previous term. The recurring profit was posted at Yen 32,081
million and the net profit at Yen 24,103 million, respectively, compared with
Yen 27,344 million recurring profit and Yen 18,816 million net profit,
respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen 125,127 million (up 5.0%), operating
profit Yen 7,531 million (up 0.4%), recurring profit Yen 8,228 million (down
3.2%), net profit Yen 6,500 million (down 20.3%). (% compared with the corresponding period a
year ago).
For the current term ending Mar 2015 the recurring profit is projected
at Yen 36,000 million and the net profit at Yen 25,000 million, respectively,
on a 5.9% rise in turnover, to Yen 523,000 million. Mass production started at its plants in
China & Taiwan.
The financial
situation is considered ^FAIR and good for ^ORDINARY business engagements. Max credit limit is estimated at Yen ^
million, on 30 days normal terms.
REGISTRATION
Date
Registered: Oct 1962
Legal Status: Limited Company (Kabushiki Kaisha
Authorized:
800 million shares
Issued: 208,364,913 shares
Sum: Yen 15,454 million
Major
shareholders (%): Hitachi Ltd (51.2), Japan Trustee Services T (3.8), Master Trust Bank
of Japan T (1.7), Zenkyoren (1.7), Nippon Life Ins (1.5), BBH 493025 Black
Rock-GAL location F (1.3), Group companies’ S/Holding Assn (1.3), Master Trust
Bank of Japan TJ (0.9), Trust & Custody Inv T (0.8), Bank of New York
Jasdec Treaty (0.7); foreign owners (21.3)
No.
of shareholders: 18,579
Listed on the S/Exchange (s) of: Tokyo
Managements: Takashi
Kawamura, ch; Kazuyuki Tanaka, pres; Yoshihiro Nomura, s/mgn dir; Yoshihiro
Nomura, s/mgn dir; Shigeru Ito, mgn dir; Shinichiro Uchimura, mgn dir; Masayuki
Kan, mgn dir; Akira Kaneko, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Shin-Kobe Electric Machinery Co, Hitachi
Kasei Polymer Co, other.
OPERATION
Activities: Manufactures
industrial chemicals:
(Sales
breakdown by divisions):
Functional
Materials (53%): electronics materials, inorganic materials, polymer science materials,
printed wiring board materials, other;
Advanced
Components & Systems (47%): automotive products, energy storage devices
& systems, electronics components, others;
Overseas
Sales Ratio (51%)
Clients: [Mfrs,
wholesalers] Hitachi Kasei Shoji, Hitachi Chemical, Shinko Denki Co, Hitachi
Chemical Ind, Hitachi Chemical Taiwan, Toyotsu Chemiplas Corp, other
No. of accounts:
500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Furukawa Electric Co, Hitachi Kasei Polymer, Sumitomo Shoji
Chemical, Japan Brake Ind, Hitachi Kasei Automotive Products, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG Bank (Tokyo)
Mizuho Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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493,766 |
464,655 |
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Cost of Sales |
373,940 |
356,212 |
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GROSS PROFIT |
119,826 |
108,443 |
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Selling & Adm Costs |
92,051 |
84,884 |
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OPERATING PROFIT |
27,775 |
23,559 |
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Non-Operating P/L |
4,306 |
3,785 |
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RECURRING PROFIT |
32,081 |
27,344 |
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NET PROFIT |
24,103 |
18,818 |
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BALANCE SHEET |
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Cash |
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37,419 |
36,955 |
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Receivables |
108,293 |
105,134 |
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Inventory |
50,335 |
47,259 |
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Securities, Marketable |
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499 |
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Other Current Assets |
82,428 |
61,894 |
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TOTAL CURRENT ASSETS |
278,475 |
251,741 |
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Property & Equipment |
171,704 |
162,020 |
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Intangibles |
24,957 |
30,478 |
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Investments, Other Fixed Assets |
32,944 |
33,641 |
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TOTAL ASSETS |
508,080 |
477,880 |
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Payables |
19,619 |
48,612 |
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Short-Term Bank Loans |
24,615 |
20,387 |
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Other Current Liabs |
75,372 |
44,591 |
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TOTAL CURRENT LIABS |
119,606 |
113,590 |
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Debentures |
20,000 |
20,000 |
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Long-Term Bank Loans |
10,616 |
8,053 |
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Reserve for Retirement Allw |
16,259 |
17,111 |
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Other Debts |
|
5,213 |
5,722 |
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TOTAL LIABILITIES |
171,694 |
164,476 |
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MINORITY INTERESTS |
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Common
stock |
15,454 |
15,454 |
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Additional
paid-in capital |
36,113 |
36,113 |
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Retained
earnings |
274,895 |
259,230 |
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Evaluation
p/l on investments/securities |
1,475 |
1,077 |
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Others |
(327,937) |
(4,895) |
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Treasury
stock, at cost |
336,386 |
6,425 |
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TOTAL S/HOLDERS` EQUITY |
336,386 |
313,404 |
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TOTAL EQUITIES |
508,080 |
477,880 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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51,000 |
47,931 |
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Cash
Flows from Investment Activities |
-37,088 |
-53,182 |
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Cash
Flows from Financing Activities |
-3,028 |
-2,867 |
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Cash,
Bank Deposits at the Term End |
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87,652 |
73,978 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
336,386 |
313,404 |
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Current
Ratio (%) |
232.83 |
221.62 |
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Net Worth
Ratio (%) |
66.21 |
65.58 |
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Recurring
Profit Ratio (%) |
6.50 |
5.88 |
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Net
Profit Ratio (%) |
4.88 |
4.05 |
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Return
On Equity (%) |
7.17 |
6.00 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
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|
1 |
Rs.98.15 |
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Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
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 |
-- |
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.