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MIRA INFORM REPORT
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Report No. : |
508795 |
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Report Date : |
12.05.2018 |
IDENTIFICATION DETAILS
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Name : |
FUJIKURA KASEI CO LTD |
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Registered Office : |
Kokuryu Shiba Koen Bldg, 2-6-15 Shiba-Koen Minatoku Tokyo 105-0011 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2018 |
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Date of Incorporation : |
Sep., 1938 |
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Com. Reg. No.: |
0114-01-007292 (Tokyo-Minatoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Synthetic Acrylic Resins, Other. |
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No. of Employees : |
397 |
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 2,162.2 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 (30.09.2017) |
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 - averaging 10% 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 resulted in several years of economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is 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.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. 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). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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Source
: CIA |
Company
name and address
FUJIKURA KASEI CO LTD
REGD NAME: Fujikura
Kasei KK
MAIN OFFICE: Kokuryu
Shiba Koen Bldg, 2-6-15 Shiba-Koen Minatoku Tokyo 105-0011 JAPAN
Tel:
03-3435-1100 Fax: 03-3435-1101 -
URL: http://www.fkkasei.co.jp
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of synthetic
acrylic resins, other
BRANCHES
Saitama (2),
Nagoya
OVERSEAS
China, Thailand,
USA, UK, India, Indonesia, Malaysia, Vietnam (-subsidiaries)
FACTORIES
Tochigi, Sano (Tot
3)
CHIEF
EXEC
DAISUKE KATO, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 62,780 M
PAYMENTS REGULAR CAPITAL Yen 5,352 M
TREND SLOW WORTH Yen 30,535 M
STARTED 1938 EMPLOYES 397
COMMENT
MFR OF SYNTHETIC ACRYLIC RESINS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 2,162.2 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
This is a mid-size
mfr of synthetic acrylic resins. Noted
as maker of coatings for use in electronics and plastic products. Strengthening construction-use coating
materials. Also makes electronic
materials including electro-conductive paste.
Has association with Fujikura Ltd.
Noted for good financial position.
The company is developing distribution operations in Vietnam, Malaysia
and Indonesia centered on its subsidiary in Thailand. It is exploring domestic coating sales by
developing vehicle exterior and two-wheeler in addition to vehicle interior and
four-wheeler lines. The company has
purchased a US paint maker Red Spot Paint & Varnish Co Ltd in 2008, and a
UK paint maker Sonneborn & Rieck Ltd in 2010. With these purchases, a firm business in 3
regions, namely Japan, the US & Europe, has been established, and the
company is promoting the strengthening of its business for coatings for
automobile use. Its main customers are
major automakers in Japan, USA and Europe.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 62,780
million, a 14.86% fall from Yen 73,741 million in the previous term. The recurring profit was posted at Yen 3,348
million and the net profit at Yen 2,399 million, respectively, compared with
Yen 2,976 million recurring profit and Yen 1,765 million net profit,
respectively, a year ago.
For the term that ended Mar 2018 the recurring profit was projected at
Yen 2,920 million and the net profit at Yen 1,850 million, respectively, on a
7.93% fall in turnover, to Yen 57,800 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 2,162.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: Sep 1938
Regd No.: 0114-01-007292 (Tokyo-Minatoku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 84 million shares
Issued:
32,716,878 shares
Sum:
Yen 5,352 million
Major shareholders
(%):
Fujikura Ltd (20.1), BBH Fidelity LPSF (Principal ASSP) (8.6), Japan Trustee
Services T (3.1), BBH Boston F-Nomura JP Sm Cap F620065 (2.7), Master Trust
Bank of Japan T (2.7), Company’s Tr. Stock (2.7), Fujikura Rubber (1.8),
Government of Norway (1.8), Kyokuto Boeki (1.7), Mizuho Bank (1.6); foreign
owners (27.2)
No. of
shareholders: 3,517
Listed
on the S/Exchange (s) of: Tokyo
Managements: Daisuke Kato,
pres; Hikoji Ueda, mgn dir; Yoshizo Shimoda, mgn dir; Hisashi Kajiwara, dir;
Hiroaki Watanabe, dir; Masahiro Takano, dir; Satoshi Watanabe, dir; Osamu
Tanaka, dir; Akio Miyagi, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Fujichemi Tokyo, Fujichemi Kinki, Fuji
Chemical Co, other.
OPERATION
Activities: Manufactures
synthetic acrylic resins;
(Sales breakdown
by divisions):
Coatings (37%): automotive
interior, exterior and lightings, cosmetic containers & enclosures,
electronic appliances, plastic hobby items, plastic sheets for agricultural use;
Construction
Paints (20%): exterior and interior building materials, decorative items, housing
equipment, public buildings & facilities;
Electronic
Materials (5%): communication equipment, electronic displays, household appliances,
automotive electronics, office machines;
Synthetic Resins
(32%): adhesives, films and display panels, electronic components, binder for
printing ink, medical materials, toner binder, charge control agent;
Chemicals (6%)
Overseas Sales
Ratio (50%)
Clients: [Mfrs, wholesalers]
Kyokuto Boeki Kaisha, Fujichemie Kinki, Kyocera Document Solutions, Fuji Chemical, Shoei Bussan, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] DIC Corp, Nagase & Co, Kawaguchi Pharmaceutical, Miyako
Chemical, Taihei Chemical Ind, Henkel Japan, Mitsubishi Chemical, other
Payment
record: Regular
Location: Business area in
Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank
References:
Gunma
Bank (Ikebukuro)
77
Bank (Tokyo)
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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57,800 |
62,780 |
73,741 |
69,560 |
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Recur.
Profit |
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2,920 |
3,348 |
2,976 |
2,583 |
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Net
Profit |
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1,850 |
2,399 |
1,765 |
1,249 |
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Total
Assets |
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50,075 |
51,234 |
52,955 |
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Current
Assets |
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29,893 |
31,369 |
32,514 |
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Current
Liabs |
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12,407 |
13,775 |
15,775 |
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Net
Worth |
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30,535 |
29,588 |
28,713 |
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Capital,
Paid-Up |
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5,352 |
5,352 |
5,352 |
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Div.P.Share(¥) |
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16.00 |
14.00 |
14.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-7.93 |
-14.86 |
6.01 |
-3.61 |
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Current Ratio |
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.. |
240.94 |
227.72 |
206.11 |
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N.Worth Ratio |
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.. |
60.98 |
57.75 |
54.22 |
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R.Profit/Sales |
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5.05 |
5.33 |
4.04 |
3.71 |
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N.Profit/Sales |
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3.20 |
3.82 |
2.39 |
1.80 |
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Return On Equity |
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.. |
7.86 |
5.97 |
4.35 |
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 67.22 |
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1 |
INR 90.88 |
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Euro |
1 |
INR 80.09 |
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Yen |
1 |
INR 0.62 |
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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PRA |
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Report Prepared
by : |
NIT |
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
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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.