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MIRA INFORM REPORT
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Report No. : |
485434 |
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Report Date : |
12.01.2018 |
IDENTIFICATION DETAILS
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Name : |
NIPPON ELECTRIC GLASS CO LTD |
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Registered Office : |
2-7-1 Seiran Ohtsu City Shiga-Pref 520-0833 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
October 1944 |
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Com. Reg. No.: |
1600-01-001498 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures
LCD & plasma display glass, glass fibers, building materials, others;
electronic & information glass, other glass products |
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No. of Employees : |
1,644 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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
summery
NIPPON ELECTRIC GLASS CO LTD
REGD NAME: Nippon Denki Garasu KK
MAIN OFFICE: 2-7-1 Seiran Ohtsu City Shiga-Pref 520-0833 JAPAN
Tel:
077-537-1700 Fax: 077-534-4967
* The given address is its Osaka Office
E-Mail address: info@neg.co.jp
ACTIVITIES: Mfg of LCD & plasma display glass
BRANCHES: Tokyo, Osaka
OVERSEAS: USA, Malaysia, Indonesia, China, Taiwan,
Korea, Germany
(--subsidiaries)
FACTORIES: Ohtsu, Shiga-Takatsuki, Notogawa,
Wakasa-Kaminaka, Fujisawa
OFFICERS: MOTOHARU
MATSUMOTO, PRES
Masayuki Arioka, ch Hirokazu Takeuchi, s/mgn dir
Masaharu Tochimoto, mgn dir Akihisa Saeki, mgn dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 239,411 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 32,155 M
TREND SLOW WORTH Yen 504,288 M
STARTED 1944 EMPLOYES 1,644
COMMENT
MFR OF LCD & PLASMA DISPLAY GLASS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established originally by NEC Corp
and later absorbed as NEC’s glass section.
And in 1949 separated as independent firm. Top-class producer of CRT glass bulbs and plasma
display glass. Produces diverse high-tech products in electronic and optical
areas, including LCD-use thin sheet glass.
Also makes glass fibers for automobiles. Aggressive in production
overseas. The company is fostering automobile glass fibers & photovoltaic
cell-related glass products.
FNANCIAL
INFORMATION:
The sales volume for Dec/2016 fiscal term amounted to Yen
239,411 million, a 4.68% down from Yen 251,177 in the previous term. The recurring profit was posted at Yen
13,987 million and the net profit at Yen 4,968 million, respectively, compared
with Yen 14,272 million recurring profit and Yen 9,636 million net profit,
respectively, a year ago.
For the term that ended Dec 2017
the recurring profit was projected at Yen 32,000 million and the net profit at
Yen 24,000 million, on a 16.95% rise in turnover, to Yen 280,000 million. Final results are yet to be released.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Oct 1944
Regd No.: 1600-01-001498 (Shiga-Otsu)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
1,200 million shares
Issued:
497,616,234 shares
Sum: Yen 32,155 million
Major shareholders (%): Nipro Corp (13.7), Master Trust
Bank of Japan T (8.5), Japan Trustee Services T (5.9), Bank of New York 133524
(2.1), Shiga Bank (1.6), other; foreign owners (35.8)
No. of shareholders: 9,881
Listed on the S/Exchange (s) of:
Tokyo
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: NEG
Malaysia, NEG Korea, Techneglas Inc, other
OPERATION
Activities:
Manufactures LCD & plasma display glass, glass fibers, building materials,
others; electronic & information glass (61%), other glass products (39%)
Overseas Sales Ratio (79%):
Clients:
[Electronic mfrs, wholesalers] Matsushita Electric Ind, NEG Taiwan, NEG Korea,
Paju Electric (Korea), Maeda Glass Co, Panasonic Liquid Display, other.
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Newman Power Service, NEG Taiwan, SGS Engineering, NEG Butsuryu Service, Nichiden
Glass Processing, Chori, other..
Payment record: No Complaints
Location:
Business area in Ohtsu City, Shiga-Pref.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
SMBC (Kyoto)
Mitsui Sumitomo Trust
Bank (Kyoto)
Relations: Satisfactory
FINANCES
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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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280,000 |
239,411 |
251,177 |
192,692 |
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Recur. Profit |
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32,000 |
13,967 |
14,272 |
6,883 |
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Net Profit |
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24,000 |
4,968 |
9,636 |
5,938 |
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Total Assets |
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693,953 |
727,041 |
731,288 |
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Current Assets |
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254,870 |
267,429 |
264,001 |
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Current Liabs |
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86,024 |
105,399 |
82,700 |
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Net Worth |
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504,288 |
513,219 |
513,634 |
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Capital, Paid-Up |
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32,155 |
32,155 |
32,155 |
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Div.Ttl in Million (¥) |
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7,957 |
5,968 |
7,958 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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16.95 |
-4.68 |
30.35 |
-23.70 |
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Current Ratio |
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296.28 |
253.73 |
319.23 |
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N.Worth Ratio |
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72.67 |
70.59 |
70.24 |
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R.Profit/Sales |
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11.43 |
5.83 |
5.68 |
3.57 |
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N.Profit/Sales |
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8.57 |
2.08 |
3.84 |
3.08 |
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Return On Equity |
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.. |
0.99 |
1.88 |
1.16 |
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 63.74 |
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1 |
INR 86.01 |
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Euro |
1 |
INR 76.14 |
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YEN |
1 |
INR 0.57 |
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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VAR |
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Report Prepared
by : |
TRU |
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
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.