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MIRA
INFORM REPORT
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Report No. : |
492472 |
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Report Date : |
16.02.2018 |
IDENTIFICATION DETAILS
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Name : |
SHOWA
DENKO KK |
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Registered Office : |
1-13-9
Shiba-Daimon Minatoku Tokyo 105-8518 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
June
1939 |
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Com. Reg. No.: |
0104-01-014518 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Manufactures
petrochemicals, chemicals, electronics, other |
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No. of Employees : |
3,631 |
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 16,396.2 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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 2016 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 second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company Name And Address
SHOWA DENKO KK
REGD NAME: Showa
Denko KK
MAIN OFFICE: 1-13-9
Shiba-Daimon Minatoku Tokyo 105-8518 JAPAN
Tel:
03-5470-3235 Fax: 03-3431-6215
E-Mail address: info@sdk.co.jp
ACTIVITIES: Mfg of
petrochemicals, chemicals, electronics products, aluminum, etc
BRANCHES: Osaka, Nagoya,
Fukuoka
OVERSEAS: USA,
Germany, Singapore (2), China (2), Taiwan
FACTOR(IES: Oita,
Tokuyama, Kawasaki, Fukushima, Yokohama, Nagano, Osaka, Chiba, Tochigi),
Saitama (Tot 17)
OVERSEAS: USA,
Portugal, Czech, Malaysia, Indonesia, Philippines, Singapore,
Thailand,
China, Taiwan, other
SUBSIDIARIES: Domestic 17; overseas 30 locations)
OFFICERS: KOHEI
MORIKAWA, PRES Hideo Ichikawa, ch
Jun
Tanaka, mgn dir Hidehito
Takahashi, mgn dir
Keiichi
Kamiguchi dir Toshiharu
Kato, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Y671.159 M
PAYMENTS REGULAR CAPITAL Y 110,564 M
TREND SLOW WORTH Y 296,560 M
STARTED 1939 EMPLOYS 3,631
COMMENT: PETROCHEMICAL
MFR.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 16,396.2 MILLION, 30 DAYS NORMAL
TERMS.
HIGHLIGHTS
The subject company was established by the merger of Nihon
Denki Kogyo, aluminum smelter and Showa Hiryo KK, fertilizer producer,
Tokyo. This is a comprehensive mfr of
chemicals: petrochemicals, organic/inorganic chemicals, electronic materials,
aluminum cans, other. Placing stronger
emphasis on electronic and information materials, and specialty chemicals. Emphasizing hard disk business both domestically
and overseas. Has 12 factories
domestically and 20 overseas, including 6 factories in China. As growing fields, the firm is strengthening
the businesses dealing high-purity gas for semiconductors & materials for
lithium-iron batteries. Clients are
major general trading houses, mfrs, other.
Goods are both imported and exported thru general trading houses.
FINANCIAL INFORMATION
The sales volume for Dec/2016 fiscal term amounted to Yen
671,159 million, a 13.47% fall from Yen 775,732 million in the previous
term. The recurring profit was posted at
Yen 38,690 million and the net profit at Yen 12,305 million, respectively,
compared with Yen 32,050 million recurring profit and Yen 921 million net
profit, respectively, a year ago.
For the term that ended Dec 2017 the recurring profit was
projected at Yen 43.500 million and the net profit at Yen 21,000 million, on a
13.53% rise in turnover, to Yen 762.000 million. Final results are yet to be released.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 16,396.2
million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun
1939
Regd No.: 0104-01-014518 (Tokyo-Minatoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 3,300 million shares
Issued: 149,911,292 shares
Sum: Yen 140,564 million
Major shareholders (%): Master Trust Bank of Japan T (5.6),
Company’s Treasury Stock (4.6), Japan Trustee Services Bank, T (4.3), Fukoku
Life Ins (3.6), other: foreign owners (31.9)
No. of shareholders: 57,636
Listed on the S/Exchange (s) of: Tokyo
Nothing detrimental is known as to the commercial morality
of executives.
Related companies: Showa Highpolymer Co, Showa Denko
Aluminum Can Corp,
Showa Co, other
OPERATION
Activities: Manufactures petrochemicals, chemicals,
electronics, other:
(Sales Breakdown by Divisions):
Petrochemicals Div (27%): ethylene,
propylene, C4 Faction, cracked fuel oil;
Organic Chemicals Div (18%):
acetaldehyde, acetic acid, vinyl acetate, ethyl acetate, alkyl alcohol, alkyl
ester resin, liquefied aluminum, nitrogen, amino acid, functional resins;
Inorganic Chemicals Div (7%):
ceramics for electronics industries, grinding materials, artificial graphite
electrodes, fine carbon;
Aluminum Div (14%):
hydroxide aluminum, aluminum ingots, aluminum, aluminum metals, aluminum
sheets, aluminum foil, aluminum moldings, aluminum cylinders for LBP, aluminum
cans, heat exchangers;
Others: (34%)
Overseas Sales Ratio (36%)
Clients: [Mfrs, wholesalers] Nippon Steel, Marubeni Corp,
Sumitomo Corp, Mitsui & Co, Mitsubishi Corp, Zeon Corp, Asahi Brewery,
other
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Marubeni Corp, Idemitsu Petrochemicals,
Nippon Oil,
Sumitomo Corp, Zeon Corp, Mitsui & Co, Hitachi Ltd,
Nippon Petrochemicals, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
Mizuho Bank (H/O)
Norin Chukin Bank (H/O)
Relations: Satisfactory
Financials
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Terms Ending: |
31/12/2017 |
31/12/2016 |
31/12/2015 |
31/12/2014 |
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Annual Sales |
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762,000 |
671,159 |
775,732 |
872,785 |
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Recur. Profit |
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43,500 |
38,690 |
32,050 |
21,731 |
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Net Profit |
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21,000 |
12,305 |
921 |
2,929 |
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Total Assets |
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932,698 |
940,494 |
1,009,843 |
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Current Assets |
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335,007 |
331,525 |
378,360 |
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Current Liabs |
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310,792 |
331,093 |
380,958 |
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Net Worth |
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296,560 |
296,513 |
299,599 |
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Capital, Paid-Up |
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140,564 |
140,564 |
140,564 |
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Div.Ttl in Million (¥) |
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4,713 |
4,713 |
4,939 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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13.53 |
-13.48 |
-11.12 |
2.95 |
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Current Ratio |
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.. |
107.79 |
100.13 |
99.32 |
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N.Worth Ratio |
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.. |
31.80 |
31.53 |
29.67 |
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R.Profit/Sales |
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5.71 |
5.76 |
4.13 |
2.49 |
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N.Profit/Sales |
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2.76 |
1.83 |
0.12 |
0.34 |
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Return On Equity |
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.. |
4.15 |
0.31 |
0.98 |
Notes: Forecast (or estimated) figures for the 31/12/2017
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 63.92 |
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1 |
INR 89.55 |
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Euro |
1 |
INR 79.68 |
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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
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VIV |
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Report Prepared
by : |
SYL |
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.