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MIRA INFORM REPORT
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Report No. : |
492548 |
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Report Date : |
16.02.2018 |
IDENTIFICATION DETAILS
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Name : |
TEIJIN LTD |
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Registered Office : |
Nakanoshima Festival Tower West 30F, 3-2-4 Nakanoshima Kitaku Osaka
530-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Jun 1918 |
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Com. Reg. No.: |
1200-01-077489 (Osaka-Kitaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures synthetic fiber: advanced fibers & composites (18%), Eclectic materials & performance polymer products (18%), healthcare (20%), products (35%), others (8%) |
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No. of Employees : |
2,339 |
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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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 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 & address
TEIJIN LTD
REGD NAME: Teijin
KK
MAIN OFFICE: Nakanoshima Festival
Tower West 30F, 3-2-4 Nakanoshima Kitaku Osaka 530-0005 Japan
Tel:
06-6233-3401 -
URL: http://www.teijin.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg
of synthetic fiber, other
BRANCHES: Tokyo,
Hiroshima, other (Tot 15)
OVERSEAS: Subsidiaries
(domestic 58, overseas 111), Worldwide
FACTORIES: Yamaguchi,
Hiroshima, Matsuyama, other (Tot 4)
OFFICERS: JUN
SUZUKI, PRES Shigeo
Ohyagi, ch
Kazuhiro Yamamoto,
s/mgn dir Hiroshi Uno, s/mgn dir
Yasumichi Takei, s/mgn dir Yoshihisa Sonobe, mgn dir
Yen Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 741,291 M
PAYMENTS REGULAR CAPITAL Yen 70,816 M
TREND SLOW WORTH Yen
338,385 M
STARTED 1918 EMPLOYES 2,339
COMMENT: MFR OF SYNTHETIC FIBER, OTHER FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
This is the leading mfr of synthetic fiber, other. Core business is polyester fibers. Ranked second in the world in carbon fibers after making equity participation in Toho Rayon Co Ltd (present Toho Tenax Co Ltd). Today the main source of earnings is the healthcare business, led by the drug for gout (Feburic) and the home healthcare business for sleep apnea syndrome. Currently proceeding with restructuring as part of its rehabilitation, including production line closures in electronic materials & chemicals.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 741,291 million, a 6.25% down from Yen 790,748 million in the previous term. The recurring profit was posted at Yen 55,933 million and the net profit at Yen 50,133 million, respectively, compared with Yen 60,316 million recurring profit and Yen 31,090 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 65,000 million and the net profit at Yen 44,000 million, respectively, on a 13.99% rise in turnover, to Yen 845,000 million. .
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Jun 1918
Regd
No.: 1200-01-077489
(Osaka-Kitaku)
Listed
company: Tokyo S/E
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
3,000 million shares
Issued: 984,758,665
shares
Sum: Yen
70,816 million
Major
shareholders (%): Master Trust Bank of Japan T (9.3), Japan Trustee Services T (6.3), Nippon
Life Ins (3.5), Employees’ S/Holding Assn (2.3), MUFG (2.1), Japan Trustee
Services T9 (1.5), other; foreign owners (35.9)
No.
of shareholders: 70,190
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Teijin Pharma, Teijin Frontier, Toyo
Tenax, other.
OPERATION
Activities: Manufactures synthetic fiber: advanced fibers & composites (18%), Eclectic materials & performance polymer products (18%), healthcare (20%), products (35%), others (8%)
Overseas Sales Ratio (39%)
Clients: [Mfrs, wholesalers] Teijin Pharma, Teijin Frontier, Teijin DuPont Film, Wintech Polymer Ltd, Nisshinbo Brake Inc, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Cosmo Oil, Hanwa Co, Maruzen Petrochemicals, Shikoku Engineering, Mitsubishi Corp, Daiki Ind, other
Payment record: Regular
Location: Business area in Osaka. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (Osaka-Chuo)
Mizuho Bank
(Osaka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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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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845,000 |
741,291 |
790,748 |
786,171 |
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Recur.
Profit |
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65,000 |
55,933 |
60,316 |
42,378 |
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Net
Profit |
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44,000 |
50,133 |
31,090 |
-8,086 |
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Total
Assets |
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964,054 |
823,430 |
823,720 |
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Current
Assets |
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466,754 |
430,504 |
406,004 |
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Current
Liabs |
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279,572 |
228,196 |
241,555 |
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Net
Worth |
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338,385 |
300,113 |
280,075 |
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Capital,
Paid-Up |
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70,816 |
70,816 |
70,816 |
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Div
Ttl in Million (¥) |
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8,849 |
4,914 |
3,390 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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13.99 |
-6.25 |
0.58 |
0.22 |
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Current Ratio |
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.. |
166.95 |
188.66 |
168.08 |
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N.Worth Ratio |
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.. |
35.10 |
36.45 |
34.00 |
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R.Profit/Sales |
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7.69 |
7.55 |
7.63 |
5.39 |
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N.Profit/Sales |
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5.21 |
6.76 |
3.93 |
-1.03 |
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Return On Equity |
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.. |
14.82 |
10.36 |
-2.89 |
Notes: Forecast (or estimated) figures 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 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 0.60 |
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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NIS |
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Report Prepared
by : |
TPT |
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.