Shin-Etsu Chemical Co., Ltd.: Company Profile and SWOT Analysis by ICDResearch

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									Shin-Etsu Chemical Co., Ltd.

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Shin-Etsu Chemical Co., Ltd.                                            Financial Snapshot

                                                                        Operating Performance
Fast Facts
                                     2-6-1 Otemachi, Chiyoda-ku, 100-   The company reported revenues of US$12,048.92
Headquarters Address
                                     0004,Japan                         million during 2011, with a CAGR of 2.13% during
                                                                        2007–2011. Its revenue grew at an annual rate of
Telephone                            + 81 3 32465011
                                                                        15.42% over the previous fiscal year. In 2011, the
                                                                        company recorded an operating margin of 12.03%, as
Fax                                  + 81 3 32465350                    against 12.63% in 2010.

Website                              www.shinetsu.co.jpjindex.shtml
                                                                        Revenue and Margins
Ticker Symbol, Stock Exchange        4063, The Tokyo Stock Exchange

Number of Employees                  16,955

Fiscal Year End                      March

Revenue (in US$ million)             12,048.92

Revenue (in JPY million)             1,058,257.00




SWOT Analysis                                                           Return on Equity

Strengths                            Weaknesses                         The company recorded a return on equity (ROE) of
                                                                        7.00% for 2011, as compared to its peers, Asahi
Diversified Operations               Declining Market Share in Sector   Kasei Corporation (Ticker: 3407), DAISO CO., LTD.
                                                                        (Ticker: 4046) and Sumitomo Chemical Company,
                                                                        Limited (Ticker: 4005), which recorded ROEs of
Leading Market Position                                                 9.09%, 7.22% and 4.68% respectively. The company
                                                                        reported an operating margin of 12.03% in 2011.
Strong Growth Prospects
                                                                        Return on Equity


Opportunities                        Threats
Expansion into the Chinese Silicon
                                     Environmental Regulations
Market
Increasing Demand from
                                     Foreign Exchange Risk
Pharmaceutical & Healthcare
Positive Growth Forecast for PVC     M&A Holds Risk of Inefficient
Products                             Integration

Rising Semiconductor Markets



                                                                        Liquidity Position

                                                                        The company reported a current ratio of 3.56 in 2011,
                                                                        as compared to its peers, Asahi Kasei Corporation,
                                                                        DAISO CO.,         LTD. and Sumitomo Chemical
                                                                        Company, Limited, which recorded current ratios of
                                                                        1.54, 1.43 and 1.38 respectively. As of March 2011,
                                                                        the company recorded cash and short-term
                                                                        investments of worth US$4,106.98 million, against
                                                                        US$25.33 million current debt. The company reported
                                                                        a debt to equity ratio of 0.01 in 2011 as compared to
                                                                        its peers, Asahi Kasei Corporation, DAISO CO., LTD.
                                                                        and Sumitomo Chemical Company, Limited, which
                                                                        recorded debt to equity ratios of 0.38, 0.32 and 1.99
                                                                        respectively.




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Shin-Etsu Chemical Co., Ltd. - SWOT Profile                                                                    Page 1
Shin-Etsu Chemical Co., 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 .................................................................................................................................7
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       Operational Efficiency ......................................................................................................................................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 .......................................................................................................................20
      2.3.6       Liquidity ............................................................................................................................................................21
3     Recent Developments ..............................................................................
								
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