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MIRA INFORM REPORT
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Report No. : |
504542 |
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Report Date : |
17.04.2018 |
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 Tokyo 100-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Sept., 1926 |
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Com. Reg. No.: |
0100-01-008680
(Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company
(Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of
PVC, Semiconductor Wafers, Silicon. |
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No. of Employees : |
2,826 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
Yen 46,755.3 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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
Name And Address
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, other
(Tot 9)
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
YASUHIKO SAITO, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 637,790 M
PAYMENTS REGULAR CAPITAL Yen
119,419 M
TREND UP WORTH Yen 818,441 M
STARTED 1926 EMPLOYES 2,826
COMMENT
MFR SPECIALIZING
IN PVC & ELECTRONIC MATERIALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 46,755.3 MILLION, 30 DAYS NORMAL
HIGHLIGHTS
This is the world’s largest mfr of PVC, and
semiconductor wafers. Originally maker of chemical fertilizers including
carbide and calcium cyanide. Major maker of silicone resins. Succeeded in shift
of mainline, and expanded to electronic materials, including rare earths and
synthetic quarts. The firm’s
earning power is overwhelming competitors, thanks to contribution of
high-functional electronics materials & other products.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term
amounted to Yen 639,990 million, a 1% up from Yen 630,239 million in the
previous term. The recurring profit was
posted at Yen 115,298 million and the net profit at Yen 82,928 million,
respectively, compared with Yen 110,017 million recurring profit and Yen 75,327
million net profit, respectively, a year ago..
For the current term ending Mar 2018 the
recurring profit is projected at Yen 119,500 million and the net profit at Yen
85,000 million, respectively, on a 3% rise in turnover, to Yen 657,130
million.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
Max credit limit is estimated at Yen 46,755.3 million, on
30 days normal terms
REGISTRATION
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 (10.4), Japan
Trustee Services Bank T (8.2), Nippon Life Ins (5.0), Hachijuni Bank (2.8),
Japan Trustee Services T4 (2.6), Meiji Yasuda Life Ins (2.4), GIC Private Ltd
(1.5), Bank of New York Mellon SANV 10 (1.4), State Street Bank West Treaty
505234 (1.4), Company’s Treasury Stock (1.4); foreign owners (39.3)
No. of shareholders: 38,586
Listed on the S/Exchange (s) of: Tokyo
Managements: Chihiro Kanagawa, ch; Yasuhiko Saito, pres
& CEO; Fumio Akiya, v pres; Toshinobu Ishihara, s/mgn dir; Susumu Ueno,
s/mgn dir; Akiji Takasugi, mgn dir; Masahiko Todoroki, mgn dir; Toshiya
Akimoto, mgn dir; Fumio Arai, mgn dir; Yukihiro Matsui, mgn dir; Masanori
Miyajima, 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
OPERATION
Activities: Manufactures industrial chemicals:
(Sales Breakdown by Divisions):
Vinyl Chloride & Chemicals
Div (33%): PVC, silicones, methanol,
chloromethane, cellulose derivatives, caustic soda, silicon metal;
Silicones Div (15%): 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 (20%);
Others (23%);
Overseas sales ratios (72%)
Clients: [Mfrs, wholesalers] Shin-Etsu Handotai (meaning semiconductor),
Mitsubishi Corp, Shin-Etsu Electronics Materials Singapore, Mitsui & Co,
Shin-Etsu Astech, Toshiba Corp, Mitsubishi Shoji Chemical, Aichi Elec Co,
Sanken Electric, Nissli Co, Toppan Printing, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Shin-Etsu Handotai, Naoetsu Electronics, Mitsui
& Co, Kashima PVC Monomer, Mitsubishi Chemical, Shintech Inc, Shin-Etsu
Malaysia, Shin-Etsu Astech, 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 (Uchisaiwaicho)
Relations:
Satisfactory
FINANCES
(In
Million Yen) (Non-Consolidated)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual Sales |
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657,130
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637,990
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630,239
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640,369
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Recur. Profit |
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119,500
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115,238
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110,017
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Net Profit |
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85,000
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82,928
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75,327
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66,715
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Total Assets |
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1,113,589
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1,022,313
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937,436
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Current Assets |
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728,329
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664,190
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Current Liabs |
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281,466
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234,582
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Net Worth |
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818,441
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774,459
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751,535
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Capital, Paid-Up |
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119,419
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119,419
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119,419
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Div.Ttl In Million (¥) |
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48,987 |
44,720 |
42,573 |
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<Analytical
Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.00 |
1.23 |
-1.58 |
7.69 |
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Current Ratio |
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.. |
258.76
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283.14
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.. |
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N.Worth Ratio |
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.. |
73.50 |
75.76 |
80.17 |
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R.Profit/Sales |
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18.19 |
18.06 |
17.46 |
.. |
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N.Profit/Sales |
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12.94 |
13.00 |
11.95 |
10.42 |
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Return On Equity |
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.. |
10.13 |
9.73 |
8.88 |
Note: Forecast for the 31/03/2018 fiscal term
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.45 |
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|
1 |
INR 93.28 |
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Euro |
1 |
INR 80.74 |
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YEN |
1 |
INR 0.61 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
PRA |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.