Nippon Light Metal Company, Ltd.: Metals Company Profile, SWOT & Financial Report by ICDResearch

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									Nippon Light Metal Company, Ltd.

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Nippon Light Metal Company, Ltd.                                               Financial Snapshot

                                                                               Operating Performance
Fast Facts
                                     2-2-20 Higashi-Shinagawa, Shinagawa-ku,   The company reported revenue of US$4,889.37
Headquarters Address
                                     140-8628,Japan                            million during the fiscal year 2011 (2011). The
                                                                               company's revenue declined at a compounded rate of
Telephone                            + 81 3 54619211
                                                                               1.75% during 2007–2011, with an annual decline of
                                                                               6.78% over 2010. In 2011, the company recorded an
Fax                                  N/A                                       operating margin of 5.27%, as against 0.70% in 2010.

Website                              www.nikkeikin.co.jp
                                                                               Revenue and Margins
Ticker Symbol, Stock Exchange        5701, American Stock Exchange

Number of Employees                  9,739

Fiscal Year End                      March

Revenue (in US$ million)             4,889.37

Revenue (in JPY million)             429,433.00




SWOT Analysis                                                                  Return on Equity

Strengths                            Weaknesses                                The company recorded a return on equity (ROE) of
                                                                               11.18% for 2011, as compared to its peers, Shinsho
Broad product portfolio              Decrease in top-line performance          Corporation (Ticker: 8075), Kobe Steel, Ltd. (Ticker:
                                                                               5406) and Alcoa Inc. (Ticker: AA), which recorded
                                                                               ROEs of 13.79%, 9.65% and 4.41% respectively. The
Diversified facilities               Over dependence on Japan                  company reported an operating margin of 5.27% in
                                                                               2011.
Strong bottom-line performance
                                                                               Return on Equity
Opportunities                        Threats
Demand for alumina and aluminum in
                                     Operational risks
the US
Low cost advantage in emerging
                                     Stringent government regulations
countries




                                                                               Liquidity Position

                                                                               The company reported a current ratio of 1.21 in 2011,
                                                                               as compared to its peers, Shinsho Corporation, Kobe
                                                                               Steel, Ltd. and Alcoa Inc., which recorded current
                                                                               ratios of 1.09, 1.12 and 1.28 respectively. As of March
                                                                               2011, the company recorded cash and short-term
                                                                               investments of worth US$479.03 million, against
                                                                               US$193.32 million current debt. The company
                                                                               reported a debt to equity ratio of 1.93 in 2011 as
                                                                               compared to its peers, Shinsho Corporation, Kobe
                                                                               Steel, Ltd. and Alcoa Inc., which recorded debt to
                                                                               equity ratios of 1.92, 1.58 and 0.68 respectively.




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Nippon Light Metal Company, Ltd. - SWOT Profile                                                                        Page 1
Nippon Light Metal Company, Ltd.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
    2.2       Key Financial Performance Indicators .................................................................................................................11
      2.2.1       Revenue and Operating Profit .........................................................................................................................11
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................12
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................13
      2.2.4       Solvency ..........................................................................................................................................................14
      2.2.5       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure ..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......
								
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