MIRA INFORM REPORT
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Report No. : |
325637 |
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Report Date : |
02.06.2015 |
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) : |
31.03.2015 |
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Date of Incorporation : |
Dec., 1917 |
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Com. Reg. No.: |
0100-01-036659 (Osaka-Nishiku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, Export, Wholesale of Chemicals. |
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No. of Employees : |
6,348 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 29,271.3 MILLION |
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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) |
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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.
|
Source
: CIA |
Company
Name and 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 Head Office
E-Mail address: info@nagase.co.jp
ACTIVITIES
Import, export,
wholesale of chemicals
BRANCHES
Tokyo, Nagoya, Kobe,
Amagasaki, Sakai (Tot 5)
OVERSEAS
USA, Canada, UK, Germany, Hungary, Poland, China, Taiwan, Korea, Thailand, Malaysia, Singapore, Vietnam, India, Indonesia, UAE, Mexico, Brazil, other
CHIEF
EXEC
KENJI ASAKURA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 759,713 M
PAYMENTSREGULAR CAPITAL Yen 9,699 M
TREND STEADY WORTH Yen 287,500 M
STARTED 1917 EMPLOYES 6,348
COMMENT
TOP-RANKED TRADING HOUSE
SPECIALIZING IN INDUSTIRAL CHEMICALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 29,271.3 MILLION, 30
DAYS NORMAL TERMS.
Notes: Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2016 fiscal term
HIGHLIGHTS
The subject
company is a top-ranked trading house specializing in industrial chemicals,
founded originally in 1832 by a certain Nagase as a dyestuff merchant in
Kyoto. In 1900, established business
ties with Bassel Chemical of Switz (now Chiba Specialty Chemicals) and since
diversified into various other industrial chemicals. Excels in dyestuffs, synthetic resins, etc. Actively engaged in new technological sector
such as pharmaceuticals raw materials, specialty resins, biotechnology,
electronics and other new materials.
Emphasizing semiconductor and LCD-related materials and equipment. Also deals in medical equipment and
pharmaceutical intermediates. Acquired
bio-related company in bankruptcy Hayashibara.
Aggressive in investment, including M&A activities, in electronics,
automobile and healthcare areas.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 759,713 million, a 5.0% up from Yen
723,212 million in the previous term.
Sales of automobile-related parts & processed materials drove
earnings growth. The recurring profit
was posted at Yen 20,366 million and the net profit at Yen 11,318 million,
respectively, compared with Yen 17,905 million recurring profit and Yen 11,663
million net profit, respectively, a year ago.
For the current
term ending Mar 2016 the recurring profit is projected at Yen 20,600 million
and the net profit at Yen 12,100 million, respectively, on an 8.3% rise in
turnover, to Yen 823,000 million. The
automobile-related business in North America will continue expanding. The electronic business will also show an
improvement in the absence of the reserves for bad debts that were booked in
the preceding term.
The financial situation
is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 29,271.3
million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1917
Regd No.:
0100-01-036659
(Osaka-Nishiku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 346,980,000 shares
Issued:
138,408,285 shares
Sum: Yen
9,699 million
Major
shareholders (%): Company’s Treasury Stock (8.2), Northern Trust (AVFC) Silchester (4.3),
Master Trust Bank of Japan T (4.2), Sumitomo Mitsui Trust Bank (4.1), Japan
Trustee Services T (3.1), SMBC (3.1), Hiroshi Nagase (2.9), Nippon Life Ins
(2.5), Reiko Nagase (2.5), Northern
Trust US Tax Ex Pension f (2.5); foreign owners (27.9)
No.
of shareholders: 5,882
Listed on the S/Exchange (s) of: Tokyo
Managements: Hiroshi Nagase,
ch; Reiji Nagase, v ch, Kenji Asakura, pres; Mitsuro Naba, mgn dir; Hiroshi
Hanamoto, mgn dir; Osamu Morishita, mgn dir; Ken’ichi Matsuki, dir; Toshiro
Yamaguchi, dir; Yasuo Nishiguchi, dir; Hidenori Nishi, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Nagase Chemtex, Totaku Ind, Hoei Sangyo, Nagase Logistics, Nagase
(Hong Kong), other
OPERATION
Activities: Specialized
trading house for import, export, wholesale of industrial Chemicals:
(Sales breakdown
by divisions): dyestuffs, pigments, other industrial chemicals (23%), synthetic resins
(33%), electronic materials & equipment (19%), automotive & energy (14%),
health-care products, foodstuffs (11%).
(Overseas sales
ratio (48%)
(Products handled
by Divisions):
Colors &
Imaging Division: dyestuffs, dyeing auxiliaries, finishing agents, textile processing
resins, adhesives for textiles, pigments, pigment dispersing agents, plastic
additives, UV cured resins, toner resins, silicones, dyes & related
chemicals for imaging & recording, chemicals for paper mfg, additives for
paints & inks;
Performance
Chemicals Division: plastic materials, plastics & pigments solvents,
additives for paints & inks, urethane materials, flame retardants, plastic
additives, plasticizers, polymer fibers;
Specialty
Chemicals Division: petrochemical products, raw materials for household
products, cosmetic ingredients, surfactants & surfactant raw materials,
Fluor chemicals, materials for silicones, daily goods, China & process
chemicals;
Advanced
Polymer Division: functional resins, general-purpose resins, auxiliaries, plastic
products, plastic-related equipment, devices & dies;
Automotive
Solutions Division: general-purpose resins, functional resins,
auxiliaries, plastic products, plastic-related equipment, devices & dies,
software engineering facility equipment;
Polymer
Products Division: resin materials, film sheet products, molded plastic
products, construction products;
Electronic
Chemicals Division: photo resist developer production equipment,
chemical management equipment for liquid crystal preprocessing, chemicals for
production of semiconductors & liquid crystals, formulated epoxy resins
& related products;
Electronic
Materials Division: liquid crystal displays, material & mfg devices
& optical films for LCDs and organic light-emitting diodes (LEDs),
processed aluminum products, processed glass products;
Fine
Chemicals Division: pharmaceuticals, intermediates in vitro
diagnostics, hard disk-related materials, other;
Beauty-Care
Products Division: cosmetics, skin counseling, health foods, facial services, other.
Clients: [Chemical mfrs,
wholesalers] Nagase Plastics, Nagase Chemical, Nippon Paint, Japan Display,
DIC, Sharp Corp, Sekisui Chemical, Nippon Paint, DIC, Toyo Quality One,
Sumitomo Chemical, Mitsubishi Motors, Otsuka Pharmaceutical, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers]
Nagase Chemtex, DIC, Mitsui Chemical, Asahi Kasei Chemicals, Sumitomo Chemical
Ind, Daicel Chemical Ind, Nippon Shokubai, Mitsubishi Chemical, Tottori Sanyo
Electric, Sharp Corp, BASF Japan, other.
Payment record: Regular
Location: Business area in
Osaka. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (Osaka)
MUFG (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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759,713 |
723,212 |
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Cost of Sales |
667,722 |
634,276 |
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GROSS PROFIT |
91,991 |
88,936 |
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Selling & Adm Costs |
73,838 |
73,146 |
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OPERATING PROFIT |
18,153 |
15,789 |
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Non-Operating P/L |
2,213 |
2,116 |
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RECURRING PROFIT |
20,366 |
17,905 |
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NET PROFIT |
11,318 |
11,663 |
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BALANCE SHEET |
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Cash |
|
40,575 |
34,980 |
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Receivables |
208,209 |
202,996 |
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Inventory |
69,012 |
57,458 |
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Securities, Marketable |
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Other Current Assets |
12,052 |
10,928 |
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TOTAL CURRENT ASSETS |
329,848 |
306,362 |
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Property & Equipment |
66,774 |
63,914 |
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Intangibles |
48,844 |
53,030 |
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Investments, Other Fixed Assets |
101,059 |
74,835 |
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TOTAL ASSETS |
546,525 |
498,141 |
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Payables |
105,737 |
105,014 |
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Short-Term Bank Loans |
31,388 |
28,818 |
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Other Current Liabs |
39,299 |
29,814 |
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TOTAL CURRENT LIABS |
176,424 |
163,646 |
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Debentures |
20,000 |
30,000 |
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Long-Term Bank Loans |
30,322 |
27,140 |
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Reserve for Retirement Allw |
10,803 |
11,875 |
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Other Debts |
|
21,476 |
13,588 |
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TOTAL LIABILITIES |
259,025 |
246,249 |
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MINORITY INTERESTS |
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Common
stock |
9,699 |
9,699 |
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Additional
paid-in capital |
11,654 |
10,242 |
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Retained
earnings |
205,203 |
206,351 |
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Evaluation
p/l on investments/securities |
44,920 |
24,725 |
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Others |
16,252 |
7,791 |
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Treasury
stock, at cost |
(228) |
(6,916) |
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TOTAL S/HOLDERS` EQUITY |
287,500 |
251,892 |
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TOTAL EQUITIES |
546,525 |
498,141 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
|
15,474 |
12,721 |
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Cash
Flows from Investment Activities |
-7,732 |
-14,171 |
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Cash
Flows from Financing Activities |
-3,205 |
-11,833 |
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Cash,
Bank Deposits at the Term End |
|
40,522 |
33,825 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
287,500 |
251,892 |
|
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Current
Ratio (%) |
186.96 |
187.21 |
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Net
Worth Ratio (%) |
52.61 |
50.57 |
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Recurring
Profit Ratio (%) |
2.68 |
2.48 |
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Net Profit
Ratio (%) |
1.49 |
1.61 |
|
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Return
On Equity (%) |
3.94 |
4.63 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.61 |
|
|
1 |
Rs.97.27 |
|
Euro |
1 |
Rs.69.63 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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.