|
|
|
MIRA
INFORM REPORT
|
Report No. : |
512420 |
|
Report Date : |
30.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
DIC CORPORATION |
|
|
|
|
Registered Office : |
DIC Bldg, 3-7-20 Nihombashi Chuoku Tokyo 103-0027 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Date of Incorporation : |
March 1937 |
|
|
|
|
Com. Reg. No.: |
0114-01-003807 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufactures inks & chemicals: printing inks, fine chemicals,
polymers, application materials |
|
|
|
|
No. of Employees : |
3,503 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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.
|
Source : CIA |
Company summary
DIC
CORPORATION
REGD
NAME: DIC KK
MAIN
OFFICE: DIC Bldg, 3-7-20 Nihombashi
Chuoku Tokyo 103-0027 JAPAN
Tel:
03-6733-3000 Fax: 03-6733-3020
E-Mail address: info@dic.co.jp
ACTIVITIES: Mfg of printing ink, synthetic resins,
organic pigments
BRANCHES: Osaka, Nagoya, Sapporo, Shizuoka, Fukuoka,
other (Total 13)
GROUP
FIRMS: Domestic 32 firms, overseas 139 firms
OVERSEAS: USA, Europe, Africa, Asia, Oceania, &
Central/South America
FACTORIES: Tokyo, Kashima, Suita, Chiba, Sakai,
Yokkaichi, Fukuoka, other (Tot 9)
CHIEF
EXEC: KAORU INO, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 789,427 M
PAYMENTS REGULAR CAPITAL Yen 96,557 M
TREND UP WORTH Yen 315,129 M
STARTED 1937 EMPLOYES 3,503
COMMEnt
MFR OF PRINTING
INK.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR BUSINESS ENGAGEMENTS.
HIGHLIGHTS
This is the
comprehensive mfr of chemicals, with inks and synthetic resins as mainlines. Engaged in diverse products of fine
chemicals. Renamed as captioned in Apr
2008 from the former, Dainippon Ink & Chemicals Co Ltd. Top-ranked in color chemicals. Advancing overseas with purchases of graphic
arts div of Sun Chemical (US) in 1986.
Expanding sales activity of TFT LCD materials. The company expanded sales, driven by
accommodating demand for ink in Asia & East Europe, expanded sales of
industrials in China, and achieving growth with HVA products such as TFT
LCDs. While promoting restructuring by
selling off industrial subsidiaries in the US & Europe, it actively works
to reorganize through setting up the best ink production system in the
world.
FINANCIAL INFORMATION
The sales volume
for Dec/2017 fiscal term amounted to Yen 789,427 million, a 5.06% up from Yen
751,438 million in the previous term.
The recurring profit was posted at Yen 56,960 million and the net profit
at Yen 38,603 million, respectively, compared with Yen 55,797 million recurring
profit and Yen 34,767 million net profit, respectively, a year ago.
For the current
term ending Dec 2018 the recurring profit is projected at Yen 58,000 million
and the net profit at Yen 40,000 million, respectively, on a 3.87% rise in
turnover, to Yen 820,000 million.
The financial situation
is considered FAIR and good for ORDINARY business engagements
REGISTRATION
Date Registered: Mar 1937
Regd No.: 0114-01-003807 (Tokyo-Chuoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 1,500 million shares
Issued: 965,372,048 shares
Sum: Yen 96,557 million
Major shareholders
(%): Nissei Real Estate (5.5), Japan Trustee Services T (4.9), Dainichi Seika
(4.4), Master Trust Bank of Japan T (4.1), JP Morgan Chase Bank (3.7), Dainichi
Life Ins (3,6), Nisshin Trading (3.2), Japan Trustee Services T4 (3.2),
Dainichi Seikan (4.4), Dai-ichi Life Ins
(3.8), Aioi Nissay Dowa Ins (2.7), Japan Trustee Services T9 (2.4); foreign
owners (27.8)
No.
of shareholders: 25,653
Listed
on the S/Exchange (s) of: Tokyo
Managements: Yoshiyuki
Nakanishi, ch; Kaoru Ino, pres; Masayuki Saito, v pres; Hideo Ishii, mgn dir;
Hitoshi Wakabayashi, adviser; Yoshihisa Kawamura, dir; Nobuo Suzuki, dir;
Yukako Uchinaga, dir; Kazuo Tsukahara, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Sun Chemical, DIC
Graphics, others
OPERATION
Activities: Manufactures inks
& chemicals: printing inks (47%), fine chemicals (13%), polymers (25%),
application materials (7%)
Overseas Sales
Rati (63%)
Clients: [Printing
houses, chemical mfrs, house builders] DIC Graphics, Nagase Corp,
PS Japan Corp, Sekisui House Ind, Mitsui & Co, Mitsubishi Corp, INAX
Tostem,
Matsushita Electric Works, Cleanup Corp, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsui & Co, Mitsubishi Corp, Mitsubishi Gas & Chemicals, Tosoh Ltd, Idemitsu Kosan, Asahi Kasei Chemical, OG Corp, Nagase Corp, DIC EP, Cast Film Japan, Nisshin Trading, other.
Payment
record: Regular
Location: Business
area in Tokyo. Office premises at the
caption address are owned and maintained satisfactorily.
Bank
References:
MUFG
(Nihombashi)
Mizuho
Bank (H/O)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
|
Terms Ending: |
31/12/2018 |
31/12/2017 |
31/12/2016 |
31/12/2015 |
|
|
Annual Sales |
|
820,000 |
789,427 |
751,438 |
819,999 |
|
Recur. Profit |
|
58,000 |
56,960 |
55,797 |
48,995 |
|
Net Profit |
|
40,000 |
38,603 |
34,767 |
37,394 |
|
Total Assets |
|
|
831,777 |
765,035 |
779,057 |
|
Current Assets |
|
|
424,976 |
398,737 |
408,658 |
|
Current Liabs |
|
|
244,851 |
232,610 |
236,369 |
|
Net Worth |
|
|
315,129 |
278,535 |
262,467 |
|
Capital, Paid-Up |
|
|
96,557 |
96,557 |
96,557 |
|
Div.P.Share(¥) |
|
|
120.00 |
100.00 |
8.00 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
3.87 |
5.06 |
-8.36 |
-1.21 |
|
Current Ratio |
|
.. |
173.57 |
171.42 |
172.89 |
|
N.Worth Ratio |
|
.. |
37.89 |
36.41 |
33.69 |
|
R.Profit/Sales |
|
7.07 |
7.22 |
7.43 |
5.98 |
|
N.Profit/Sales |
|
4.88 |
4.89 |
4.63 |
4.56 |
|
Return On Equity |
|
.. |
12.25 |
12.48 |
14.25 |
Notes: Forecast (or estimated) figures for
the 31/12/2018 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.82 |
|
|
1 |
INR 90.17 |
|
Euro |
1 |
INR 78.70 |
|
Yen |
1 |
INR 0.62 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SYL |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.