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MIRA INFORM REPORT
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Report No. : |
498335 |
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Report Date : |
15.03.2018 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI CHEMICAL CORPORATION |
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Registered Office : |
Palace Bldg, 1-1-1 Marunouchi Chiyodaku Tokyo 100-8251 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
June 1950 |
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Com. Reg. No.: |
0100-01-146760 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Petrochemicals, Functional Chemicals, Health-Care Products, Other |
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No. of Employees : |
40,914 |
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++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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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 & address
MITSUBISHI CHEMICAL CORPORATION
REGD NAME: Mitsubishi
Kagaku KK
MAIN OFFICE: Palace
Bldg, 1-1-1 Marunouchi Chiyodaku Tokyo 100-8251 JAPAN
Tel:
03-6748-7300 Fax: 03-3286-1210
URL: http://www.m-kagaku.co.jp/
E-Mail address: (thru the URL)
ACTIVITIES: Mfg
of petrochemicals, functional chemicals, health-care products, other
BRANCHES: Osaka,
Nagoya, Fukuoka Sapporo, Sendai, other (Tot 15)
OVERSEAS: USA,
Germany, Hong Kong, China, Singapore, Thailand (--subsidiaries)
FACTORIES: Kurosaki,
Yokkaichi, Naoetsu, Mizushima, Sakaide, Kashima, Tsukuba,
Matsuyama, Odawara
(Tot 16)
R&D Centers: Yokohama, Tsukuba
OFFICER(S): HITOSHI
OCHI, PRES Akio Ueda, rep
dir
Jun’ichi Okamoto,
dir Steve Yulik, dir
Kazuyuki Futamata, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 210,568 M
PAYMENTS REGULAR CAPITAL Yen 53,229 M
TREND SLOW WORTH Yen
168,718 M
STARTED 1950 EMPLOYES 40,914
COMMENT: MFR SPECIALIZING IN CHEMICALS, WHOLLY OWNED BY MITSUBISHI CHEMICAL HOLDINGS CORP. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
This is the nation’s largest comprehensive chemical mfr. Tops in ethylene production. Reborn through the merger between Mitsubishi Kasei and Mitsubishi Petrochemical. In Oct 2005, founded a joint-stock holding company, Mitsubishi Chemical Holdings Corp (See REGISTRATION), jointly with Mitsubishi Pharma Corp by means of a stock-to-stock exchange, and became its wholly owned subsidiary, simultaneously de-listed from Tokyo & Osaka S/E’s. By the stead, Mitsubishi Chemical Holdings Corp was listed on Tokyo S/E. This is the core of the Group, with petrochemicals accounting for about 85% of total group sales. The subject is the top ethylene mfr, producing petrochemicals, functional chemicals, healthcare products, other.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 210,568 million, a 6% fall from Yen 223,490 million in the previous term. The recurring profit was posted at Yen 11,781 million and the net profit at Yen 6,289 million, respectively, compared with Yen 20,347 million recurring profit and Yen 21,199 million net losses, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 12,000 million and the net profit at Yen 7,500 million, respectively, on a 3% rise in turnover, to Yen 216,900 million. .
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Jun 1950
Regd
No.: 0100-01-146760
(Tokyo-Chiyodaku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,200
million shares
Issued: 572,034,109
shares
Sum: 53,229
million
Major
shareholders (%): Mitsubishi Chemical
Holdings Corp*(100)
*.. Joint-stock holding company, formed in Oct 2005, listed Tokyo S/E, with role of portfolio management of the group, capital Yen 50,000 million, turnover Yen 3,376,057 million, operating profit Yen 268,671 million, recurring profit Yen 258,343 million, net profit Yen 156,259 million, total assets Yen 4,576,127 million, net worth Yen 1,209,403 million, employees 69,568, pres Hiroshi Ochi.
Nothing detrimental is known as to the
commercial morality of executives.
OPERATION
Activities: Manufactures petrochemicals (35%), polymers (25%), functional chemicals (10%), functional materials (10%), healthcare products (5%), services, others (15%).
Overseas Sales Ratio (31%) (% is all about)
Clients: [Mfrs, wholesalers] Mitsubishi Corp, Nisshin Steel, Meiwa Corp, other.
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Nippon Oil Corp, Nisshin Steel, Mitsubishi Chemical Engineering, Idemitsu Kosan, Mitsui Chemical, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned by the parent, Mitsubishi Chemical Holdings Corp, and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mizuho Bank (H/O)
Relations:
Satisfactory
FINANCIALS
(Consolidated In Million Yen)
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Terms Ending: |
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31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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216,900 |
210,568 |
223,490 |
253,307 |
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Recur.
Profit |
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12,000 |
11,781 |
20,347 |
14,115 |
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Net Profit |
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7,500 |
6,289 |
21,199 |
10,221 |
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Total
Assets |
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466,173 |
465,875 |
491,045 |
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Net
Worth |
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168,718 |
165,086 |
154,463 |
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Capital,
Paid-Up |
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53,229 |
53,229 |
53,229 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.01 |
-5.78 |
-11.77 |
4.26 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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36.19 |
35.44 |
31.46 |
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N.Profit/Sales |
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3.46 |
2.99 |
9.49 |
4.04 |
Notes: Forecast 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 64.99 |
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1 |
INR 90.83 |
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Euro |
1 |
INR 80.58 |
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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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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
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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.