MIRA INFORM REPORT

 

 

Report No. :

330426

Report Date :

02.07.2015

 

IDENTIFICATION DETAILS

 

Name :

NICHIA CORPORATION

 

 

Registered Office :

491 Oka Kaminakacho Anan City Tokushima-Pref 774-8601

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2015

 

 

Date of Incorporation :

December 1956

 

 

Com. Reg. No.:

4800-01-006794

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufacturer of phosphors for CRT, light emitting diodes, LED

 

 

No. of Employee :

7,191

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

 

Company name

 

NICHIA CORPORATION

 

 

REGD NAME

 

Nichia Kagaku Kogyo KK

 

 

MAIN OFFICE

 

491 Oka Kaminakacho Anan City Tokushima-Pref 774-8601 JAPAN

Tel: 0884-22-2311     Fax: 0884-21-0148

 

 

URL

 

http://www.nichia.co.jp/

E-Mail address:            info@nichia.co.jp

 

 

ACTIVITIES

 

Mfg of phosphors for CRT, light emitting diodes, LED, other

 

 

BRANCHES

 

Tokyo, Nagoya, Osaka

 

 

OVERSEAS

 

USA (4), Taiwan (2), Malaysia, Netherlands, Germany, China (4), Singapore,

Korea, India (3), Thailand, Hong Kong, Australia (--subsidiaries)

 

 

FACTORIES

 

At the caption address, Tatsumi, Tokushima, Naruto, Kagoshima

 

 

OFFICER(S)

 

EIJI OGAWA, PRES                  Noboru Tasaki, v pres

Hiroyoshi Ogawa, v pres            Toshiya Iwashima, mgn dir        

Gen’ichi Shinomiya, mgn dir       Satoru Inufushi, mgn dir            

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 329,846 M

PAYMENTSREGULAR   CAPITAL           Yen 46,741 M

TREND STEADY           WORTH            Yen 559,236 M

STARTED         1956                 EMPLOYES      7,191

 

 

COMMENT

 

MFG OF DIODES, PHOSPHORS, SEMICONDUCTOR MATERIALS, OTHER. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

                       

HIGHLIGHTS

           

The subject company was established by father of Eiji Ogawa for mfg phosphors for fluorescent lamps, which started in 1956.  Eiji took the pres office in Mar 1990.  In 1968 the concluded technical license agreement with General Electric, USA, which agreement later was cancelled in 1980 because of technical reasons (as reported by the firm).  This is a specialized mfr of phosphors for CRT, light emitting diodes, optical semiconductor devices, other.  Boasts No.1 shares in each field.  Holds about 40% market share in LED. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 329,846 million, a 13% up from Yen 291,152 million in the previous term.  Sales of white LED lights continued to grow, particularly overseas.  The recurring profit was posted at Yen 96,870 million and the net profit at Yen 52,777 million, respectively, compared with Yen 68,962 million recurring profit and Yen 44,990 million net profit, respectively a year ago.

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 105,000 million and the net profit at Yen 66,000 million, respectively, on a 5% rise in turnover, to Yen 346,500 million..

           

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:           Dec 1956

Regd No.:        4800-01-006794 (Tokushima-Anan)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:        4.5 million shares

Issued:               2,146,209 shares

Sum:                  Yen 46,741 million

Major shareholders (%): Employees’ S/Holding Assn (14.1), Kyodo Iyaku Kenkyusho, (6.1), Tokushima Bank (4.9), Awa Bank (4.8), Shikoku Bank (4.8)

No. of shareholders: 275

           

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Manufactures chemicals (12.8%), optical semiconductor materials (87.2%).

Exports (63%)

 

(Handling Items):

Light Emitting Diodes: compound semiconductor materials, light emitting diodes, ultra

violet LEDs;

Laser Diodes: laser diodes, phosphors, evaporation/coating materials, transition materials catalysts/organometallic compounds, magnets, fine chemicals, other.

 

Clients: [Electronic mfrs, wholesalers] Sanyo Electric Co, Sharp Electronics (M) Sdn Bhd Hong Kong Branch, Citizen Electronics, Panasonic Corp, LG Japan, Minebea Co, Nagoya Electric Works, Asahi Rubber, Seiwa Electric Mfg, Shinko Denshi Co, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Panasonic Semiconductor Discrete Devices, Shin-Etsu Semiconductors, Tanaka Holdings Co, other.

 

Payment record: Regular

 

Location: Business area in Anan City, Tokushima-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Tokushima Bank (Anan)

Awa Bank (Anan)

Relations: Satisfactory

 

 

FINANTIALS

 

(In Million Yen)

       Terms Ending:

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

346,500

329,846

291,152

287,483

Recur. Profit

 

105,000

96,879

68,962

30,198

Net Profit

 

66,000

62,777

44,990

32,577

Total Assets

 

 

651,453

526,127

547,178

Current Assets

 

 

432,534

375,843

342,226

Current Liabs

 

 

59,461

45,837

41,587

Net Worth

 

 

559,236

498,055

475,839

Capital, Paid-Up

 

 

46,741

46,741

46,741

Div.Ttl in Million (¥)

 

 

10,731

5,365

5,365

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.05

13.29

1.28

6.79

    Current Ratio

 

..

727.42

819.96

822.92

    N.Worth Ratio

 

..

85.84

94.66

86.96

    R.Profit/Sales

 

30.30

29.37

23.69

10.50

    N.Profit/Sales

 

19.05

19.03

15.45

11.33

    Return On Equity

 

..

11.23

9.03

6.85

 

Notes: Forecast figures for the 31/12/2015 fiscal term

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.62

UK Pound

1

Rs.99.89

Euro

1

Rs.70.77

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.