MIRA INFORM REPORT
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Report No. : |
303423 |
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Report Date : |
16.01.2015 |
IDENTIFICATION DETAILS
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Name : |
NAGASE & CO LTD |
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Registered Office : |
1-1-17 Shinmachi Nishiku Osaka 550-8668 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
December 1917 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is engaged in specialized trading house for import, export, wholesale
of industrial chemicals |
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No of Employees : |
5,960 |
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 Limits : |
YEN 26,727.5 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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.
|
Source
: CIA |
Company
name & address
NAGASE & CO LTD
REGD
NAME
Nagase Sangyo KK
MAIN
OFFICE
1-1-17 Shinmachi Nishiku Osaka 550-8668 Japan
Tel:
06-6535-2114
Fax: 06-6535-2160
*.. The is
its Tokyo Office
E-Mail address: info@nagase.co.jp
ACTIVITIES
Import, export,
wholesale of chemicals
BRANCHES
Tokyo, Nagoya,
Fukuoka, Hiroshima, Takamatsu, other
OVERSEAS
Europe (4), North America (5), South America
(4), China/Korea/Taiwan (11), Asia/Oceania (9)
CHIEF
EXEC
HIROSHI NAGASE,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 723,212 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 9,699 M
TREND STEADY WORTH Yen 251,892 M
STARTED 1917 EMPLOYES 5,960
COMMENT
TOP-RANKED TRADING HOUSE SPECIALIZING IN
INDUSTIRAL CHEMI CALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 26,727.5 MILLION, 30 DAYS NORMAL TERMS.
Unit: in Million Yen
Forecast
(or estimated) figures for 31/03/2015 fiscal term
HIGHLIGHTS
The subject company is top-ranked specialist trader of chemical products, including dyestuffs and synthetic resins. Emphasizing semiconductors and LCD-related materials and equipment. Also deals in medical equipment and pharmaceutical intermediates. Acquired bio-related company Hayashibara.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 723,212 million, an 8.5% up from Yen 666,272 million in the previous term. Processed materials benefitted from increased sales for OA equipment and household electric appliances in the Asian market. Sales of electronics also remained in good shape for LCDs in China. The recurring profit was posted at Yen 17,905 million and the net profit at Yen 11,663 million, respectively, compared with Yen 17,927 million recurring profit and Yen 14,182 million net profit, respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen 181,337 million (up 5.8%), operating profit Yen 4,431 million (up 6.3%), recurring profit Yen 5,089 million (down 0.3%), net profit Yen 3,512 million (down 0.4%). (% compared with the corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is projected at Yen 21,500 million and the net profit at Yen 14,200 million, respectively, on an 8.3% rise in turnover, to Yen 783,000 million. Automobile-related products will drive growth. Hayashibara will advance overseas with sales of trehalose.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 26,727.5 million, on 30 days normal
terms.
REGISTRATION
Date Registered: Dec 1917
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 346,980,000 shares
Issued: 138,408,235
shares
Sum: Yen
9,699 million
Major
shareholders (%): Company’s Treasury Stock (8.2), Northern Trust-AVF Inv I (4.3),
Sumitomo Mitsui Trust Bank (4.1), Master Trust Bank of Japan T (4.0), SMBC (3.1), Japan Trustee Services Bank T (3.1), Northern
Trust (AVFC) Nontreaty (3.1), Hiroshi Nagase (2.9), Nippon Life Ins (2.9),
Reiko Nagase (2.5); foreign owners (27.7)
No.
of shareholders: 6,358
Listed on the S/Exchange (s) of: Tokyo
Managements: Hiroshi Nagase,
pres & CEO; Reiji Nagase, s/mgn dir; Kenichi Matsuki, mgn dir; Toshio
Yamaguchi, mgn dir; Hiroshi Hanamoto, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Nagase Chemtex, Totaku Ind, Hoei Sangyo, Nagase Logistics, other
OPERATION
Activities: Specialized
trading house for import, export, wholesale of industrial chemicals
(Sales
breakdown by divisions): dyestuffs, pigments, other industrial chemicals
(23%), advanced materials & processing
(33%), electronics (19%), automobile & energy (14%), health care &
lifestyle materials (11%).
Overseas
Sales Ratio (48%)
Clients: [Chemical mfrs,
wholesalers] Japan Display, Denso Corp, DIC Corp, Sharp Corp, Calsonic Kansei
Corp, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sumitomo Chemical, Daicel Chemical Ind, Nippon
Shokubai, Mitsubishi Chemical, Tottori Sanyo
Electric, Mitsui Chemical, other.
Payment record: No Complaints
Location: Business area in
Osaka. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (H/O)
Mitsui Sumitomo
Trust 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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723,212 |
666,272 |
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Cost of Sales |
634,276 |
583,689 |
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GROSS PROFIT |
88,936 |
82,583 |
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Selling & Adm Costs |
73,146 |
67,004 |
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OPERATING PROFIT |
15,789 |
15,578 |
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Non-Operating P/L |
2,116 |
2,349 |
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RECURRING PROFIT |
17,905 |
17,927 |
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NET PROFIT |
11,663 |
14,182 |
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BALANCE SHEET |
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Cash |
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34,980 |
46,693 |
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Receivables |
202,996 |
196,001 |
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Inventory |
57,458 |
51,862 |
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Securities, Marketable |
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Other Current Assets |
10,928 |
11,195 |
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TOTAL CURRENT ASSETS |
306,362 |
305,751 |
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Property & Equipment |
63,914 |
60,967 |
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Intangibles |
53,030 |
55,295 |
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Investments, Other Fixed Assets |
74,835 |
64,734 |
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TOTAL ASSETS |
498,141 |
486,747 |
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Payables |
105,014 |
107,941 |
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Short-Term Bank Loans |
28,818 |
25,061 |
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Other Current Liabs |
29,814 |
32,810 |
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TOTAL CURRENT LIABS |
163,646 |
165,812 |
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Debentures |
30,000 |
30,000 |
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Long-Term Bank Loans |
27,140 |
32,614 |
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Reserve for Retirement Allw |
11,875 |
10,283 |
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Other Debts |
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13,588 |
10,232 |
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TOTAL LIABILITIES |
246,249 |
248,941 |
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MINORITY INTERESTS |
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Common
stock |
9,699 |
9,699 |
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Additional
paid-in capital |
10,242 |
10,041 |
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Retained
earnings |
206,351 |
199,160 |
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Evaluation
p/l on investments/securities |
24,725 |
17,943 |
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Others |
7,791 |
8,072 |
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Treasury
stock, at cost |
(6,916) |
(7,109) |
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TOTAL S/HOLDERS` EQUITY |
251,892 |
237,806 |
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TOTAL EQUITIES |
498,141 |
486,747 |
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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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12,721 |
18,576 |
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Cash
Flows from Investment Activities |
-14,171 |
-9,529 |
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Cash
Flows from Financing Activities |
-11,833 |
1,164 |
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Cash,
Bank Deposits at the Term End |
|
33,825 |
45,816 |
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ANALYTICAL RATIOS TERMS ENDING: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
251,892 |
237,806 |
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Current
Ratio (%) |
187.21 |
184.40 |
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Net
Worth Ratio (%) |
50.57 |
48.86 |
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Recurring
Profit Ratio (%) |
2.48 |
2.69 |
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Net
Profit Ratio (%) |
1.61 |
2.13 |
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Return
On Equity (%) |
4.63 |
5.96 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.76 |
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|
1 |
Rs.94.02 |
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Euro |
1 |
Rs.72.63 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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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 |
|
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 |
-- |
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.