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Report No. : |
309830 |
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Report Date : |
25.02.2015 |
IDENTIFICATION DETAILS
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Name : |
SHIN-ETSU CHEMICAL CO LTD |
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Registered Office : |
Asahi Tokai Bldg, 2-6-1 Ohtemachi Chiyodaku |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
September 1926 |
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Com. Reg. No.: |
0100-01-008680 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures Industrial Chemicals |
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No. of Employees : |
17,986 |
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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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 |
SHIN-ETSU CHEMICAL
CO LTD
REGD NAME: Shin Etsu Kagaku Kogyo KK
MAIN OFFICE: Asahi Tokai Bldg, 2-6-1 Ohtemachi Chiyodaku
Tokyo 100-0004 JAPAN
Tel:
03-3246-5011 Fax: 03-3246-5358
URL:
http://www.shinetsu.co.jp/
E-Mail address: info@shinetsu.co.jp
ACTIVITIES: Mfg of PVC, semiconductor wafers, silicon
BRANCHES: Osaka, Nagoya, Fukuoka, Sapporo, Gunma
FACTORIES: Naoetsu, Takefu, Gunma (Isobe, Matsuida),
Kashima
OVERSEAS: USA (9), Mexico, Portugal, UK, Netherlands
(4), Hungary, Germany, Malaysia (5), Korea (2), China (4), Taiwan (4),
Singapore (2), Indonesia (2), Thailand (2), Philippines, Australia (2) (--subsidiaries)
CHIEF EXEC: SHINZO MORI, PRES & CEO
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 1,165,819 M
PAYMENTS REGULAR CAPITAL Yen 119,419 M
TREND UP WORTH Yen 1,822,135 M
STARTED 1926 EMPLOYES 17,986
COMMENT: MFR SPECIALIZING IN PVC & ELECTRONIC
MATERIALS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2011 |
1,058,257 |
160,338 |
100,119 |
(%) |
1,469,429 |
|
(Consolidated) |
31/03/2012 |
1,047,731 |
165,237 |
100,643 |
-0.99 |
1,494,573 |
|
|
31/03/2013 |
1,025,409 |
170,207 |
105,714 |
-2.13 |
1,623,176 |
|
|
31/03/2014 |
1,165,819 |
180,605 |
113,617 |
13.69 |
1,822,135 |
|
|
31/03/2015 |
1,200,000 |
201,000 |
129,000 |
2.93 |
.. |
Notes: Unit: In
Million Yen
Forecast (or
estimated) figures for 31/03/2015 fiscal term
The subject company was established originally as mfr of chemical
fertilizer and limestone nitrogen, and has since developed business operations
into silicone production and PVC in 1950s.
Now is known one of the world’s largest mfrs of vinyl chloride, silicon
resin and semiconductor silicon.
Expanding into electronics materials, including rare earths &
synthetic quartz. Has many excellent
subsidiaries both in Japan & abroad.
Noted for high earnings power. Production of rare-earth kept rising for 31st consecutive
month in value terms in spring 2008, climbing 19% from a year earlier to Yen
8.51 billion, according to a study by the Japan Electronics & Information
Technology Industries Association.
Considering start of in-house production of poly-silicon; technical
development already completed, but location of plant & construction
schedule unfixed yet. Planned capacity
buildup of 300mm wafers & release of solar cell-use products possible put
off for some time, the firm says. The
firm is building a rare-earth magnet alloy plan in Fujian, China, aiming for
stable material procurement, the new plant is scheduled to start up in Jan
2013. Water-soluble materials will be
produced in the US as well as in Japan & Europe, when a new US plant goes
into operation in early 2014. The PVC
subsidiary in the US has large growth potential in up-and-coming countries,
fueled by increased infrastructure demand.
Semiconductor wafer business is still in a state of oversupply, the
company is cautious about investment in capacity expansion and next-generation
products. It is eager for M&A, with
a view to expanding new businesses. In
the US, the company is studying in-house production of ethylene as PVC
materials with an aim to gear up comprehensive production system and enhance
price competitive edge.
The sales volume for Mar/2014 fiscal term amounted to Yen 1,165,819
million, a 13.7% up from Yen 1,025,409 million in the previous term. Depressed sales of PC-use silicon wafers were
covered by brisk smartphone and tablet PC-use products. Demand for rare-earth magnet grew from hybrid
vehicle makers. The recurring profit was
posted at Yen 180,605 million and the net profit at Yen 113,617 million,
respectively, compared with Yen 170,207 million recurring profit and Yen
105,714 million net profit, respectively, a year ago..
For the current term ending Mar 2015 the recurring profit is projected
at Yen 201,000 million and the net profit at Yen 129,000 million, respectively,
on a 2.9% rise in turnover, to Yen 1,200,000 million. Sales of silicones and functional chemicals
will be steady.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Sept 1926
Regd No.: 0100-01-008680
(Tokyo-Chiyodaku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,720
million shares
Issued:
432,106,693 shares
Sum: Yen
119,419 million
Major shareholders
(%): Master Trust Bank of Japan, T (8.6), Japan Trustee Services Bank T
(6.3), Nippon Life Ins (5.3), Hachijuni Bank (2.7), Japan Trustee Services t4
(2.6), Meiji Yasuda Life Ins (2.4), SSBT OD05 Omnibus Acct Treaty Cl (2.0),
Company’s Treasury Stock (1.6), State Street Bank & Trust 505225 (1.5),
Mellon Bank Mellon Omnibus US P (1.3); foreign owners (41.1)
No. of
shareholders: 59,439
Listed on the
S/Exchange (s) of: Tokyo
Managements: Chihiro Kanagawa,
ch; Shunzo Mori, pres & CEO; Fumio Akiya, v pres; Yasuhiko Saitoh, v pres; Toshinobu
Ishihara, s/mgn dir; Norikazu Fukud, mgn dir; Akiji Takasugi, mgn dir; Masahiko
Todorogi, mgn dir; Toshiya Akimoto, mgn dir; Fumiaki Arai, mgn dir; Yukihiro
Matsui, mgn dir
Nothing detrimental is knows as to the commercial morality of executives.
Related companies: Shintech Inc
(USA), Shin-Etsu Polymer, Shin-Etsu Handotai, other
Activities: Manufactures
industrial chemicals:
(Sales Breakdown
by Divisions):
Vinyl Chloride
& Chemicals Div (37%): PVC, silicones, methanol, chloromethane,
cellulose derivatives, caustic soda, silicon metal;
Silicones Div
(13%): semiconductor silicone, organic materials for electronics industry,
rare earth magnets for electronics industry, photo-resists;
Functional
Materials Div (9%): synthetic quartz products, oxide single crystals,
rare earths, rare earth magnets, construction of plants engineering,
information processing, export of technology & plants, import of goods,
others.
Semiconductor
Silicones Div (18%);
Others (23%);
Overseas sales
ratios (71%)
Clients: [Mfrs,
wholesalers] Shin-Etsu Handotai (meaning semiconductor), Mitsubishi Corp,
Shin-Etsu Electronics Materials Singapore, Mitsui & Co, Shin-Etsu Astech,
Toshiba Corp, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Shin-Etsu Handotai, Naoetsu Electronics, Mitsui & Co, Kashima
PVC Monomer, Mitsubishi Chemical, Shintech Inc, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mizuho Bank (H/O)
Relations: Satisfactory
(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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1,165,819 |
1,025,409 |
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Cost of Sales |
873,879 |
769,427 |
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GROSS PROFIT |
291,939 |
255,981 |
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Selling & Adm Costs |
118,130 |
98,938 |
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OPERATING PROFIT |
173,809 |
157,043 |
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Non-Operating P/L |
6,796 |
13,164 |
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RECURRING PROFIT |
180,605 |
170,207 |
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NET PROFIT |
113,617 |
105,714 |
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BALANCE SHEET |
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Cash |
|
363,339 |
252,881 |
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Receivables |
|
267,243 |
243,785 |
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Inventory |
|
273,136 |
269,377 |
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Securities, Marketable |
274,282 |
214,380 |
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Other Current Assets |
57,829 |
52,090 |
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TOTAL CURRENT ASSETS |
1,235,829 |
1,032,513 |
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Property & Equipment |
720,799 |
649,650 |
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Intangibles |
|
19,408 |
14,637 |
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Investments, Other Fixed Assets |
222,876 |
224,103 |
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TOTAL ASSETS |
2,198,912 |
1,920,903 |
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Payables |
|
109,401 |
100,197 |
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Short-Term Bank Loans |
7,524 |
5,507 |
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Other Current Liabs |
137,236 |
93,931 |
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TOTAL CURRENT LIABS |
254,161 |
199,635 |
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Debentures |
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Long-Term Bank Loans |
7,557 |
7,709 |
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Reserve for Retirement Allw |
28,127 |
20,185 |
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Other Debts |
|
86,931 |
70,198 |
|
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TOTAL LIABILITIES |
376,776 |
297,727 |
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MINORITY INTERESTS |
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Common stock |
119,419 |
119,419 |
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Additional paid-in capital |
128,625 |
128,234 |
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Retained earnings |
1,541,127 |
1,470,015 |
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Evaluation p/l on
investments/securities |
10,439 |
11,591 |
|
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Others |
|
57,479 |
(66,916) |
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Treasury stock, at cost |
(34,954) |
(39,167) |
|
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TOTAL S/HOLDERS` EQUITY |
1,822,135 |
1,623,176 |
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TOTAL EQUITIES |
2,198,912 |
1,920,903 |
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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 |
|
259,734 |
235,622 |
|
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Cash Flows from Investment
Activities |
-246,894 |
-119,254 |
|
|
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Cash Flows from Financing Activities |
-41,361 |
-44,011 |
|
|
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Cash, Bank Deposits at the Term End |
|
362,560 |
363,028 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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|
|
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Net Worth (S/Holders' Equity) |
1,822,135 |
1,623,176 |
|
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Current Ratio (%) |
486.24 |
517.20 |
|
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Net Worth Ratio (%) |
82.87 |
84.50 |
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Recurring Profit Ratio (%) |
15.49 |
16.60 |
|
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Net Profit Ratio (%) |
9.75 |
10.31 |
|
|
|
Return On Equity (%) |
6.24 |
6.51 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.27 |
|
|
1 |
Rs.96.21 |
|
Euro |
1 |
Rs.70.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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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 |
|
|
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 |
|
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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.