MIRA INFORM REPORT

 

 

Report Date :

06.09.2014

 

IDENTIFICATION DETAILS

 

Name :

HITACHI CHEMICAL CO LTD

 

 

Registered Office :

Gran Tokyo South Tower, 1-9-2 Marunouchi Chiyodaku Tokyo 100-6606

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October 1962

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing, process of synthetic resins

 

 

No. of Employees

18,149

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

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

PAYMENTSREGULAR   CAPITAL           Yen 15,454 M

TREND UP                    WORTH        Yen 336,386 M

STARTED         1962                 EMPLOYES      18,149

 

 

COMMEN 

 

MFR OF INDUSTRIAL CHEMICALS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

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. 

 

 

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)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

493,766

464,655

　

  Cost of Sales

373,940

356,212

　

      GROSS PROFIT

119,826

108,443

　

  Selling & Adm Costs

92,051

84,884

　

      OPERATING PROFIT

27,775

23,559

　

  Non-Operating P/L

4,306

3,785

　

      RECURRING PROFIT

32,081

27,344

　

      NET PROFIT

24,103

18,818

BALANCE SHEET

 

 

　

　

  Cash

　

37,419

36,955

　

  Receivables

 

108,293

105,134

　

  Inventory

 

50,335

47,259

　

  Securities, Marketable

　

499

　

  Other Current Assets

82,428

61,894

　

      TOTAL CURRENT ASSETS

278,475

251,741

　

  Property & Equipment

171,704

162,020

　

  Intangibles

 

24,957

30,478

　

  Investments, Other Fixed Assets

32,944

33,641

　

      TOTAL ASSETS

508,080

477,880

　

  Payables

 

19,619

48,612

　

  Short-Term Bank Loans

24,615

20,387

　

　

 

　

　

　

  Other Current Liabs

75,372

44,591

　

      TOTAL CURRENT LIABS

119,606

113,590

　

  Debentures

 

20,000

20,000

　

  Long-Term Bank Loans

10,616

8,053

　

  Reserve for Retirement Allw

16,259

17,111

　

  Other Debts

　

5,213

5,722

　

      TOTAL LIABILITIES

171,694

164,476

　

      MINORITY INTERESTS

 

　

　

Common stock

15,454

15,454

　

Additional paid-in capital

36,113

36,113

　

Retained earnings

274,895

259,230

　

Evaluation p/l on investments/securities

1,475

1,077

　

Others

 

(327,937)

(4,895)

　

Treasury stock, at cost

336,386

6,425

　

      TOTAL S/HOLDERS` EQUITY

336,386

313,404

　

      TOTAL EQUITIES

508,080

477,880

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

51,000

47,931

　

Cash Flows from Investment Activities

-37,088

-53,182

　

Cash Flows from Financing Activities

-3,028

-2,867

　

Cash, Bank Deposits at the Term End

　

87,652

73,978

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

336,386

313,404

　

 

Current Ratio (%)

232.83

221.62

　

 

Net Worth Ratio (%)

66.21

65.58

　

 

Recurring Profit Ratio (%)

6.50

5.88

　

 

Net Profit Ratio (%)

4.88

4.05

　

　

Return On Equity (%)

7.17

6.00

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.44

UK Pound

1

Rs.98.64

Euro

1

Rs.78.20

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.