|
Report No. : |
299910 |
|
Report Date : |
17.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
DAIKEN CORPORATION |
|
|
|
|
Registered Office : |
Dojima Avanza 22F., 1-6-20, Dojima, Kita-ku, Osaka-shi, Osaka pref.
530-0003 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
26.09.1945 |
|
|
|
|
Com. Reg. No.: |
2300-01-008590 |
|
|
|
|
Legal Form : |
Listed |
|
|
|
|
Line of Business : |
Manufacturer of Construction Materials. |
|
|
|
|
No. of Employee : |
3,141 |
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 : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
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
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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 |
DAIKEN CORPORATION
Country: Japan
Company name: DAIKEN CORPORATION
Name in local language: DAIKEN
KOGYO K .K.
Office address: Dojima Avanza
22F., 1-6-20, Dojima, Kita-ku, Osaka-shi,
Osaka pref.
530-0003
Office tel: 06-6452-6320
Website: www.daiken.jp
Business type: Manufacturer
Industry: Construction materials
Established: September
26, 1945
Capital: Jp.
13,150,039,080 yen
Employees: 3,141
Corporate formation: Listed
Corporation No.: 2300-01-008590
(Toyama Legal Affairs Bureau)
As of March 31, 2014:
Paid in capital : Jp.
13,150,039,080 yen
Number of authorized shares : 398,218,000
shares
Shares issued : 130,875,219
shares
Number of shareholder : 6,087
Name of
shareholders Number of thousand shares (%)
------------------------------------------------------------------------------------------------------------
Itochu Corporation 31,948
(24.41)
Sumitomo Mitsui Banking Corp.
4,934 ( 3.77)
Sumitomo Life Insurance
4,656 ( 3.56)
Sumitomo Mitsui Trust Bank, Ltd. 4,440 ( 3.39)
Sumitomo Forestry Co., Ltd. 3,191 ( 2.44)
The subject holds 5,392,000 shares(4.12%) as treasury stock.
Activity Product/Service Description
-------------------------------------------------------------------------------
Manufacturing Construction materials
Manufacturing Eco materials
Service Engineering
work
President Mr. Masanori Okuda (*)
Nationality: Japan
Chairman Mr.
Yoshitsugu Sawaki (*)
Nationality: Japan
Director & Vice President Mr.
Kazumasa Kanasaka (*)
Nationality: Japan
Director Mr. Kikuo Imamura
Nationality: Japan
Director Mr. Kenji Yamanaka
Nationality: Japan
Nationality: Japan
Director Mr. Tomoaki Kato
Nationality: Japan
Director Mr.
Takashi Terubayashi
Nationality: Japan
Director Mr.
Takashi Aihara
Nationality: Japan
Auditor Mr. Akimichi Ito
Nationality: Japan
Auditor Mr.
Mutsuhiro Shimada
Nationality: Japan
Auditor Mr. Akio Hasunuma
Nationality: Japan
Auditor Mr. Koji Mizuno
Nationality: Japan
Note: The names of director(s) and auditor(s) are phonetically spelt.
*Key Personnel*
=============
Mr. Masanori Okuda
President and representative director since April 2014
Born on April 25, 1950
Business career:
Apr. 1974: Employed by the subject.
Jun. 2008: Director, sales & marketing.
Apr. 2012: Senior managing director.
Home address: 2-12-4, Wakamiya, Okegawa-shi, Saitama pref.
Currency: (local currency - Jp. yen)
-------------------------------------------------------------------------------------
Year | Sales | Net Income
-------------------------------------------------------------------------------------
|
2009 |
150,325,000,000 |
598,000,000 |
|
2010 |
140,936,000,000 |
511,000,000 |
|
2011 |
141,506,000,000 |
1,375,000,000 |
|
2012 |
151,209,000,000 |
874,000,000 |
|
2013 |
158,153,000,000 |
1,318,000,000 |
|
2014 |
180,392,000,000 |
2,546,000,000 |
*Book Closing*
============
March31st
*Financials*
==========
|
Consolidated Balance Sheet |
|||
|
Unit: millions of JP yen |
|||
|
|
3/31/2012 |
3/31/2013 |
3/31/2014 |
|
Current assets |
66,961 |
71,889 |
75,652 |
|
Cash & deposits |
9,639 |
10,596 |
14,096 |
|
Account receivables |
33,424 |
36,308 |
36,733 |
|
Inventories |
20,782 |
20,741 |
21,155 |
|
Others |
3,116 |
4,244 |
3,668 |
|
Fixed assets |
58,440 |
59,596 |
38,451 |
|
Tangible assets |
38,427 |
38,549 |
38,451 |
|
Intangible assets |
1,962 |
2,192 |
2,345 |
|
Investments & others |
18,051 |
18,853 |
19,342 |
|
Deferred assets |
67 |
132 |
99 |
|
Total Assets |
125,469 |
131,618 |
135,890 |
|
|
|
|
|
|
Current liabilities |
70,065 |
64,904 |
64,978 |
|
Account payables |
24,881 |
24,892 |
25,019 |
|
Short term loans |
9,328 |
9,602 |
9,304 |
|
Long term loans due |
4,978 |
4,055 |
3,173 |
|
Outstanding accounts |
20,051 |
19,194 |
19,863 |
|
Outstanding taxes |
603 |
961 |
955 |
|
Others |
10,224 |
6,200 |
6,664 |
|
Fixed liabilities |
18,454 |
26,843 |
29,492 |
|
Bonds payable |
5,000 |
10,000 |
10,000 |
|
Long term loans |
8,231 |
10,526 |
11,824 |
|
Retirement benefits |
2,858 |
2,743 |
2,965 |
|
Others |
2,365 |
3,574 |
4,703 |
|
Shareholders' equity |
33,512 |
33,894 |
35,499 |
|
Paid up capital |
13,150 |
13,150 |
13,150 |
|
Capital reserves |
11,850 |
11,850 |
11,850 |
|
Retained earnings |
9,691 |
10,073 |
11,679 |
|
Treasury stock |
-1,179 |
-1,179 |
-1,180 |
|
Valuation & adjustment |
56 |
2,107 |
1,655 |
|
Minority Interest |
3,380 |
3,868 |
4,264 |
|
Total Net Assets |
36,949 |
39,870 |
41,419 |
|
Total Liabilities & Net
Assets |
125,469 |
131,618 |
135,890 |
|
Consolidated Income Statement |
|||
|
Unit : millions of JP yen |
|||
|
|
3/31/2012 |
3/31/2013 |
3/31/2014 |
|
Sales |
151,209 |
158,153 |
180,392 |
|
Cost of goods sold |
113,189 |
119,121 |
137,693 |
|
Gross profit(loss) |
38,020 |
39,031 |
42,699 |
|
Sales/administrative expenses |
33,477 |
34,327 |
39,121 |
|
Operating profit(loss) |
4,542 |
4,703 |
3,577 |
|
Non operating income |
1,045 |
1,834 |
2,193 |
|
Non operating expenses |
987 |
869 |
745 |
|
Ordinary profit(loss) |
4,600 |
5,669 |
5,025 |
|
Special profits |
261 |
2,091 |
106 |
|
Special losses |
2,968 |
5,387 |
514 |
|
Pretax profit |
1,893 |
2,373 |
4,617 |
|
Taxes & adjustment |
741 |
487 |
1,699 |
|
Minority interest |
277 |
566 |
371 |
|
Net profit |
874 |
1,318 |
2,546 |
*Latest Financials
*
================
On November 7, 2014, the subject released the following business results
and forecast:
As of September 30, 2014(2Q Mar. 2015 term):
Unit: millions of JPY
|
Year term |
Sales
|
Operating profit |
Ordinary profit |
Net profit |
|
2Q 2014 |
85,698 |
1,798 |
2,725 |
1,278 |
|
2Q 2015 |
82,588 |
1,438 |
2,120 |
1,313 |
|
FY 2015(F) |
170,000 |
3,600 |
4,500 |
2,400 |
|
Current assets; |
72,822 |
|
Fixed assets; |
59,879 |
|
Deferred assets; |
83 |
|
Total assets; |
132,785 |
|
Current liabilities; |
61,840 |
|
Fixed liabilities; |
28,992 |
|
Total liabilities; |
90,840 |
|
Shareholders’ equity; |
35,455 |
|
Retained earnings; |
12,514 |
|
Total net assets; |
41,951 |
|
Total liabilities and
net assets; |
132,785 |
Bank Name : Sumitomo Mitsui
Banking Corp.
Branch : Osaka head
office business banking department
Bank Name : Mizuho Bank, Ltd.
Branch : Osaka corporate
banking department
Bank Name : Norin Chukin Bank
Branch : Osaka
Subject is an Osaka-based public listed firm, manufacturing a wide range
of board as construction materials as well as eco-friendly materials, utilizing
used and scrapped materials.
The subject is positively implementing M&A at home and abroad to
grow further.
While the housing has been slow so far, the textile board is growing
abroad.
Logistics costs are fairly down but a weaker currency is pushing the
costs of imported materials.
For Mar. 2016 term, the subject is putting a focus on non-housing
business and is positively using domestic materials to avoid the increasing
costs.
Negative factors are not observed in particular at present.
Branch name: Tokyo office
Branch address: 3-12-8, Soto-kanda, Chiyoda-ku, Tokyo
----------------------------------------------------------------------------------------------------
Business network:
Local area marketing: Sapporo, Sendai, Saitama, Tokyo, Nagoya, Takamatsu
and Fukuoka cities
Product line marketing: Detached Housing Div., Collective Houses Div.,
Functional Architecture Div.
Specialty items marketing: Rush materials, Direct Business #1 & #2,
Retail shop
Eco-materials
Overseas business division
Real estate division
Showrooms: Sapporo, Sendai, Tokyo(2), Nagoya, Kanazawa, Okayama,
Takamatsu, Hiroshima and Fukuoka cities
*Main Products
& Services*
======================
For Mar. 2014 term:
-
Residential
space (52%)
-
Eco-materials
(33%)
-
Engineering
(10%)
-
Others
(5%)
Logistics centers:
-
Osaka
LC: Osaka-shi, Osaka pref.
-
Higashi-Nippon
LC: Kuki-shi, Saitama pref.
-
Nishi-Nippon
LC: Kasai-shi, Hyogo pref.
*Address*
=========
Registered address: 1-1, Inami, Nanto-shi, Toyama pref.
Operational head office: Dojima Avanza 22F., 1-6-20, Dojima, Kita-ku,
Osaka-shi
The quoted address is for the Tokyo business office
Date Development
-----------------------------------------------------------------------------------------------
September 26, 1945 Incorporated
under the name of “Daiken Mokuzai(Lumber) Kogyo
K.K.” by taking
over the business assets of forestry division of Daiken
Sangyo K.K.
May 1949 Public
listed(#7905).
April 1963 Technology tie up with Con Wed Inc.,
U.S.A.
October 1967 Merged Daiken Wall Board Co., Ltd. and took
the current company
name. Capital paid
in: JPY 1.5 billion.
2000 Business tie up with TOTO Co., Ltd.
2001 Business tie up with Nichiha Corp.
2002 Business tie up with YKKAP Co., Ltd.
2007 Acquired Kaihatsu Board Co., Ltd.
2010 Business tie up with Panasonic Denko.
2012 Business and capital alliance with
Hokushin Corp.
2013 Acquired C & H Corp.
*Suppliers*
==========
Okayama Daiken Kogyo Co., Ltd.
Itochu Corporation
Mie Daiken Co., Ltd.
Inami Daiken Kogyo Co., Ltd.
Tobu Daiken Kogyo Co., Ltd.
*Customers*
==========
Japan Kenzai Co., Ltd.
Jutec Corp.
Nice Corp.
Panasonic Eco Solutions Interior Materials Co., Ltd.
Sekusui Chemical Co., Ltd.
Company name: Inami Daiken Kogyo Co., Ltd.
Country: Japan
Status: Subsidiary
----------------------------------------------------------------------------------------------------
Company name: Daiken Kogyo (Ningbo) Co., Ltd.
Country: China
Status: Subsidiary
----------------------------------------------------------------------------------------------------
Company name: Daiken MIRI Sdn. Bhd.
Country: Malaysia
Status: Joint-Venture
----------------------------------------------------------------------------------------------------
*Subsidiaries & Affiliates*
=====================
As of March 31, 2014 the subject owns and controls a total of 25
subsidiaries and two affiliates at home and abroad.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.89 |
|
|
1 |
Rs.93.92 |
|
Euro |
1 |
Rs.72.01 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.