MIRA INFORM REPORT
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Report No. : |
317758 |
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Report Date : |
16.04.2015 |
IDENTIFICATION DETAILS
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Name : |
NIPPON DENKO CO LTD |
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Registered Office : |
Tokyo Tatemono Yaesu Bldg 4F, 1-4-16 Yaesu Chuoku Tokyo 103-0028 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
Jan., 1935 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Ferroalloys, Functional Materials, Environment
Systems, Other. |
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No. of Employees : |
1322 |
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 3,780.0 Million |
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Status : |
Satisfactory |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused
the economy to contract during the 2nd and 3rd quarters of 2014. The economy
has largely recovered in the three years since the disaster, but reconstruction
in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a
longstanding debate on restructuring the economy and reining in Japan's huge
government debt, which amounts to more than 240% 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 2015, although the government
in 2014 decided to postpone the final phase of the increase until 2017 to give
the economy time to recover from the 2014 increase. 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
NIPPON DENKO CO LTD
REGD NAME: Shin
Nippon Denko KK
MAIN OFFICE: Tokyo
Tatemono Yaesu Bldg 4F, 1-4-16 Yaesu Chuoku Tokyo 103-0028 JAPAN
Tel: 036860-6800 Fax: 03-6860-6832 -
URL: http://www.nippondenko.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of
ferroalloys, functional materials, environment systems, other
BRANCHES
Muroran, Hokkaido,
Osaka, Oita, & Fukuoka
FACTORIES
Hokkaido,
Fukushima, Toyama (2), Tokushima
CHIEF
EXEC
TATSURO SHIRASU,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 75,864 M
PAYMENTSREGULAR CAPITAL Yen
11,026 M
TREND UP WORTH Yen
78,596 M
STARTED 1935 EMPLOYES 1322
COMMENT
MFR OF FERROALLOYS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 3,780.0 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast
figures for the 31/12/2015 fiscal term.
HIGHLIGHTS
This is the
top-ranked ferroalloy mfr, having strategic tie-up with Samancor Ltd of South
Africa. Has JV in Jinghou, China. Belongs to Nippon Steel & Sumitomo Metal
group. Also makes positive electrodes
for lithium-ion batteries. Business integration with Chuo Denki Kogyo in July
2014. .
FINANCIAL
INFORMATION
The sales volume
for Dec/2014 fiscal term amounted to Yen 75,864 million, a 39.4% up from Yen
54,408 million in the previous term.
Affiliation of Chuo Denki Kogyo as a 100%-owned subsidiary contributed
to earnings for the full term. Sales
volume of ferroalloys increased. The
recurring profit was posted at Yen 2,286 million and the net profit at Yen
10,807 million, respectively, compared with Yen 3,978 million recurring profit
and Yen 2,273 million net profit, respectively, a year ago.
For the current
term ending Dec 2015 the recurring profit is projected at Yen 3,600 million and
the net profit at Yen 2,000 million, respectively, on a 26.5% rise in turnover,
to Yen 96,000 million. Ferroalloys sales
will continue increasing.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,780.0
million, on 30 days normal terms.
REGISTRATION
Date
Registered: Jan 1935
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 200 million shares
Issued: 146,741.292 shares
Sum: Yen 11,026 million
Major shareholders
(%):
Nippon Steel & Sumitomo Metal (20.6), MUFG (3.2), Mizuho Bank (2.7), BONY
GCM Client (2.5), Sumitomo Corp (2.3), CBNYDFA Int’l Small Cap Value P (1.8),
Evergreen (1.7), Japan Trustee Services T (1.6), Hiroaki Okabe (1.5), Hiroshi
Tsunoda (1.4); foreign owners (13.8)
No. of
shareholders: 16,317
Listed
on the S/Exchange (s) of: Tokyo
Managements: Tatsuro Shirasu,
pres; Takao Nishino, v pres; Shuji Anazawa, S/mgn dir; Hiroaki Kobayashi, s/mgn
dir; Takayuki Koshimura, mgn dir; Shun’ichi Sugai, mgn dir; Teruaki Ishiyama,
advisor; Nobuo Tanaka, dir; Gotaro Itotsuki, dir; Kazuya Komori, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: Chuo Denki Kogyo, Kyoei Sangyo, Riken Kogyo, other.
OPERATION
Activities: Manufactures:
Ferroalloys (62%), functional materials (24%), environment systems (2%), others
(12%)
Clients: [Mfrs,
wholesalers] Nippon Steel & Sumitomo Metal, Hitachi Metals, Automotive Energy Supply, Mitsui Bussan Metal
One Building Materials, other
No. of accounts:
500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Nichiei Ind, Mizushima
Ferroalloy Co, Showa Denro Kogyo, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (Tokyo)
Mizuho Bank (Ohtemachi)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2014 |
31/12/2013 |
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INCOME STATEMENT |
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Annual Sales |
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75,864 |
54,408 |
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Cost of Sales |
67,241 |
45,457 |
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GROSS PROFIT |
8,622 |
8,950 |
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Selling & Adm Costs |
5,902 |
5,357 |
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OPERATING PROFIT |
2,720 |
3,593 |
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Non-Operating P/L |
-434 |
385 |
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RECURRING PROFIT |
2,286 |
3,978 |
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NET PROFIT |
10,807 |
2,273 |
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BALANCE SHEET |
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Cash |
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9,507 |
8,701 |
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Receivables |
31,469 |
13,071 |
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Inventory |
27,438 |
16,806 |
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Securities, Marketable |
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Other Current Assets |
4,703 |
1,441 |
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TOTAL CURRENT ASSETS |
73,117 |
40,019 |
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Property & Equipment |
24,654 |
17,791 |
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Intangibles |
101 |
28 |
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Investments, Other Fixed Assets |
18,639 |
13,914 |
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TOTAL ASSETS |
116,511 |
71,752 |
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Payables |
13,800 |
5,063 |
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Short-Term Bank Loans |
3,700 |
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Other Current Liabs |
7,192 |
5,210 |
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TOTAL CURRENT LIABS |
24,692 |
10,273 |
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Debentures |
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Long-Term Bank Loans |
9,130 |
1,600 |
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Reserve for Retirement Allw |
2,232 |
1,874 |
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Other Debts |
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1,860 |
1,692 |
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TOTAL LIABILITIES |
37,914 |
15,439 |
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MINORITY INTERESTS |
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Common
stock |
11,026 |
11,026 |
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Additional
paid-in capital |
21,524 |
9,579 |
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Retained
earnings |
44,388 |
34,131 |
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Evaluation
p/l on investments/securities |
1,295 |
1,329 |
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Others |
564 |
447 |
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Treasury
stock, at cost |
(201) |
(199) |
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TOTAL S/HOLDERS` EQUITY |
78,596 |
56,313 |
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TOTAL EQUITIES |
116,511 |
71,752 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2014 |
31/12/2013 |
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Cash
Flows from Operating Activities |
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-1,266 |
8,351 |
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Cash
Flows from Investment Activities |
-4,565 |
-4,209 |
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Cash
Flows from Financing Activities |
2,568 |
-1,738 |
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Cash,
Bank Deposits at the Term End |
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9,309 |
9,503 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2014 |
31/12/2013 |
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Net
Worth (S/Holders' Equity) |
78,596 |
56,313 |
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Current
Ratio (%) |
296.12 |
389.56 |
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Net
Worth Ratio (%) |
67.46 |
78.48 |
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Recurring
Profit Ratio (%) |
3.01 |
7.31 |
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Net
Profit Ratio (%) |
14.25 |
4.18 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.40 |
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1 |
Rs.92.15 |
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Euro |
1 |
Rs.66.48 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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 |
-- |
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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.