MIRA
INFORM REPORT
|
Report Date : |
12.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HANKUK STEEL WIRE CO.,
LTD. |
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|
|
|
Registered Office : |
370-34, Sinpyeong 1-dong, Saha-gu, Busan - 604-836 |
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|
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Country : |
Korea |
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|
Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
08/01/1990 |
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Legal Form : |
Listed Company |
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Line of Business : |
Manufacture of Steel Wire |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Regular |
|
|
|
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Litigation : |
Clear |
Basic
|
Company
Name |
HANKUK STEEL WIRE CO., LTD. |
|
Registered Address |
370-34,
Sinpyeong 1-dong, Saha-gu, BUSAN, KOREA |
|
Zip Code |
604-836 |
|
Tel |
+82-51-202-1991 |
|
Fax |
+82-51-205-1551 |
|
E-mail |
hkwire@hkwire.co.kr |
|
Website |
www.hkwire.co.kr |
|
Trading Address |
1910Ho,
Hyundai41Tower, 917-9, Mok1-dong, Yangcheon-Gu , Seoul, Korea |
|
Tel |
+82-02-2649-6752 |
|
Fax |
+82-02-2649-6753 |
|
Hakjang Factory |
724-5,
Hakjang-Dong, Sasang-Gu, Busan, Korea |
|
Tel |
+82-051-322-0416-9 |
|
Fax |
+82-051-322-0420 |
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Milyang Factory |
179-2, Yangdong-Ri, Hanam-Up, Milyang City, Kyung Sang Nam-Do, Korea |
|
Tel |
+82-055-391-0153~5 |
|
Fax |
+82-055-391-0156 |
|
Type |
Export/Import |
|
Industry |
Manufacture of Steel Wire |
|
Main Business |
Stainless Steel Wire, Galvanized Iron Wire, Wire Rope |
|
Established (mm/dd/yyyy) |
08/01/1990 |
The Subject owns the premises of the registered address (29,446㎡), Milyang
Factory (9,887㎡), and Hakjang Factory(8,714㎡).
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Nails(31162000) |
|
Sell |
Mechanical wire(31151800) |
|
Sell |
Iron plate(30102203) |
|
Sell |
Miscellaneous hardware(31162800) |
|
Sell |
Barbed wire(31152002) |
|
Sell |
Screws(31161500) |
|
Buy |
Billets(30103300) |
|
Buy |
Steel rods(30102404) |
|
Buy |
Stainless steel rods(30102405) |
|
Buy |
Steel billets(30103307) |
|
Buy |
Wire Rods |
CEO’s
|
Name |
Lee Myeong-Ho / Lee Jye-Hoon |
|
Date of Birth |
08/21/1934 |
|
Title |
Chairman & CEO |
|
Sex |
Mlae |
|
Nationality |
Korean |
Profiles
|
Capital |
6,500,000,000 KRW |
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|
Employees |
237 |
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Formation |
Listed Company (KOSDAQ: 025550) as of
06/12/1995 |
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Bank Details |
Busan Bank Gamjeon Dong Branch |
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Corporate Registered No. |
180111-0102359 |
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Business Registered No. |
606-81-38360 |
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Permit & Licenses |
12/05/1995 JIS 11/16/1998 ISO 9002 05/24/2004 KS 03/30/2005 ISO 9001 04/09/2005 ISO 9001 07/07/2005 KS 09/28/2005 JIS Int’l Trade No.: 781666 |
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Shareholder Position |
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Company History |
Jul. 05, 1974. / Established Hankuk Steel
Wire Company (148-1, Kamjeon-Dong, Buk-Ku, Pusan) Jun. 20, 1978. / Acquired the license of
trade (Pusan No.781666) Dec. 31, 1981. / Joined in Korea Metal
Industry Cooperative Aug. 22, 1984. / Joined in Korea Standards
Association Nov. 30, 1984. / Awarded the prize of
achieving 10million dollar export on the 21st Export Day Nov. 30, 1984. / Awarded the Presidential
Medal for export merit Feb. 21, 1985. / Acquired the license of
KS mark (License No.3855) Mar. 04, 1985. / Received the award of
Minister of Finance for model Tax Payer on the 19th Taxation Day Aug. 01, 1990. / Changed to Hankuk Steel
Wire Co., Ltd. Jun. 12, 1995. / Registered in the KOSDAQ
stock market Oct. 10, 1995. / Opened Milyang Factory
(Stainless Steel Wire) Dec. 05, 1995. / Obtained Japanese
Industrial Standards JIS Mark License
Oct. 31, 1998. / Acquired Buyoung Steel
Co., Ltd Nov. 16, 1998. / Obtained ISO9002 Sep. 12, 1999. / Purchased Shinpyong
Factory Jan. 01, 2000. / Moved the head office
(370-34, Shinpyong-Dong, Saha-Ku, Pusan)
May. 18, 2000. / Awarded the Prize of
Prime Minister for Excellent Employee Cooperation in production Aug. 27, 2002. / Completed NokSan
Factory Mar. 24, 2004. / Lee Myoung-Ho & Lee
Jye-Hun became president respective
Mar. 30, 2005. / Obtained ISO 9001:2000
for Wire Rope May. 09, 2005. / Established Hansun
R&D Center Jun. 23. 2006. / Designated as Inno-Biz |
The Subject Company specializes in the
provision of steel wire products. The Company provides six main products:
stainless steel wires, which produces four types of wires; hot-dip galvanized
steel wires such as low-carbon steel wires and zinc-coated low-carbon steel
wires; stranded barbed wires; staple wires; cabin wires, and other hot-rolled
steel products. During the year ended December 31, 2006, the Company had an
actual production output of 51,850 metric tons of zinc-coated wires and 4,243
metric tons of stainless steel wires. In 2006, zinc-coated wires and stainless
steel wires accounted for 25.77% and 13.78% of total sales, respectively. The
Company’s headquarters are located in Busan, Korea. It has a domestic factory
each in Busan and Gyeongsangnam Province.
Management
|
Job Description |
Title |
Name |
Nationality |
Date of Birth |
Education |
|
Chairman & CEO |
Mr. |
Lee Myeong-Ho |
Korean |
1934.08.21 |
Busan National University |
|
President & CEO |
Mr. |
Lee Jye-Hoon |
Korean |
1965.11.09 |
Seoul National University |
|
Vice Preisdent |
Mr. |
Lee Jeong-Hoon |
Korean |
1967.12.27 |
Korea University |
|
Outside Director |
Mr. |
Kim Byung-Min |
Korean |
1955.11.01 |
Busan National University |
|
Outside Director |
Mr. |
Lee Hong-Jae |
Korean |
1936.06.15 |
Dong-Ah University |
|
Auditor |
Mr. |
Park Seung-Ho |
Korean |
1939.02.08 |
Kyungnam Commercial High School |
Financials
Unit: KRW
|
Year |
Sales |
Assets |
Net income |
|
2006 |
145,473,402,914 |
80,186,614,766 |
4,226,909,200 |
|
116,193,116,751 |
74,335,435,494 |
440,244,959 |
|
|
2004 |
112,301,746,364 |
66,644,889,933 |
4,429,024,700 |
Financial Description
Unit: KRW
|
Authorized
Capital |
25,000,000,000 |
|
Paid-Up
Capital |
6,500,000,000 |
|
Total Issues Shares |
13,000,000 |
|
Balance Sheet |
|||
|
Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
|
Total Assets |
80,186,614,766 |
74,335,435,494 |
66,644,889,933 |
|
Current Assets |
52,514,269,425 |
48,222,043,526 |
42,779,715,303 |
|
-Quick Assets |
27,025,482,383 |
23,999,204,817 |
22,951,812,445 |
|
-Inventories |
25,488,787,042 |
24,222,838,709 |
19,827,902,858 |
|
Fixed Assets |
27,672,345,341 |
26,113,391,968 |
23,865,174,630 |
|
-Investment |
510,874,249 |
813,094,786 |
577,112,836 |
|
-Tangibles |
27,073,375,129 |
25,244,963,849 |
23,257,228,461 |
|
-Intangibles |
88,095,963 |
55,333,333 |
30,833,333 |
|
Total Liabilities |
42,375,138,570 |
40,482,802,109 |
32,671,495,834 |
|
Current Liabilities |
39,180,610,358 |
35,865,338,162 |
26,835,571,900 |
|
Fixed Liabilities |
3,194,528,212 |
4,617,463,947 |
5,835,923,934 |
|
Capital Stock |
6,500,000,000 |
6,500,000,000 |
6,500,000,000 |
|
Capital Surplus |
7,123,930,548 |
7,123,930,548 |
7,123,930,548 |
|
Profit Surplus |
24,204,549,364 |
20,229,457,364 |
20,365,693,230 |
|
Capital Adjustment |
(-)17,003,716 |
(-)754,527 |
(-)16,229,679 |
|
Total Equity |
37,811,476,196 |
33,852,633,385 |
33,973,394,099 |
|
Liab. & Shareholder’s Equity |
80,186,614,766 |
74,335,435,494 |
66,644,889,933 |
|
Current Liabilities |
39,180,610,358 |
35,865,338,162 |
26,835,571,900 |
|
Trade payables |
2,512,594,258 |
605,570,785 |
3,724,916,668 |
|
Short-Term Borrowings |
26,975,398,104 |
27,066,827,173 |
17,467,953,559 |
|
Short-Term Debentures |
5,000,000,000 |
5,000,000,000 |
- |
|
Current Portion of Long-Term Debts |
1,428,400,000 |
1,362,600,000 |
2,207,600,000 |
|
Account Payables |
897,117,653 |
618,804,540 |
945,475,810 |
|
Accrued Expenses |
1,109,651,606 |
919,605,948 |
825,167,848 |
|
Accrued Income Tax |
738,953,772 |
- |
1,558,200,152 |
|
Advance Receipts |
67,267,279 |
50,257,556 |
28,633,063 |
|
Withholdings |
52,627,570 |
26,072,160 |
77,624,800 |
|
Deferred Income Tax |
274,677,234 |
215,600,000 |
- |
|
Others |
123,922,882 |
- |
- |
|
Fixed Liabilities |
3,194,528,212 |
4,617,463,947 |
5,835,923,934 |
|
Long-Term Borrowings |
1,744,750,000 |
3,173,150,000 |
3,767,650,000 |
|
Unpaid Severance |
14,844,433 |
18,615,764 |
40,568,133 |
|
Provision for Severance & Retirement |
2,371,110,340 |
2,356,897,280 |
2,492,385,310 |
|
Transferred to National Pension Fund |
(-)20,952,900 |
(-)36,836,400 |
(-)55,620,700 |
|
Deposits for Employees' Severance Insurance |
(-)1,595,848,661 |
(-)1,606,337,697 |
(-)1,650,367,073 |
|
Others |
680,625,000 |
711,975,000 |
1,241,308,264 |
|
Income Statement |
|||
|
Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
|
Sales |
145,473,402,914 |
116,193,116,751 |
112,301,746,364 |
|
Cost of Sold Goods |
130,237,682,226 |
107,335,740,832 |
97,599,711,889 |
|
Gross Profit |
15,235,720,688 |
8,857,375,919 |
14,702,034,475 |
|
Selling & Admin. Expenses |
10,147,507,099 |
7,259,182,657 |
8,704,480,581 |
|
Operating Income |
5,088,213,589 |
1,598,193,262 |
5,997,553,894 |
|
Non-Operating Income |
3,968,425,716 |
2,244,060,401 |
2,701,543,833 |
|
Non-Operating expenses |
3,866,715,531 |
3,538,394,213 |
2,809,771,925 |
|
Ordinary Income |
5,189,923,774 |
303,859,450 |
5,889,325,802 |
|
Special Income |
- |
- |
- |
|
Income Before Taxes |
5,189,923,774 |
303,859,450 |
5,889,325,802 |
|
Income Taxes Expenses |
963,014,574 |
(-)136,385,509 |
1,460,301,102 |
|
Net Income |
4,226,909,200 |
440,244,959 |
4,429,024,700 |
|
Cash Flows |
|||
|
Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
|
Cash Flows from Operating |
6,182,529,011 |
(-)9,676,451,548 |
(-)1,865,897,707 |
|
-Net Income |
4,226,909,200 |
440,244,959 |
4,429,024,700 |
|
-Exp. without Cash Outflow |
5,545,357,540 |
4,495,641,626 |
4,530,314,876 |
|
-Revenue without Cash Inflows |
(-)367,584,932 |
(-)436,142,608 |
(-)705,979,808 |
|
-Changes in Asset/ & Liability |
(-)3,222,152,797 |
(-)14,176,195,525 |
(-)10,119,257,475 |
|
Cash Flows from Investing |
(-)4,193,988,121 |
(-)4,333,017,707 |
(-)2,919,706,320 |
|
-Cash Inflow from Investing |
257,360,454 |
2,844,845,379 |
1,840,072,987 |
|
-Cash Outflows for Investing |
(-)4,451,348,575 |
(-)7,177,863,086 |
(-)4,759,779,307 |
|
Cash Flows from Financing |
(-)1,389,038,219 |
12,988,090,219 |
5,716,242,823 |
|
-Cash Inflows from Financing |
109,565,235,270 |
92,777,268,329 |
82,286,636,473 |
|
-Cash Outflows from Financing |
(-)110,954,273,489 |
(-)79,789,178,110 |
(-)76,570,393,650 |
|
Increase/Decrease in Cash |
599,502,671 |
(-)1,021,379,036 |
930,638,796 |
|
Cash at the Beginning of Year |
478,113,716 |
1,499,492,752 |
568,853,956 |
|
Cash at the End of Year |
1,077,616,387 |
478,113,716 |
1,499,492,752 |
Products,
Technologies, Services
Description
|
Main
Products & Services |
-Hot Dip Galvanized Steel Wire Low carbon steel wires (JIS G 3532) Zinc-coated low carbon steel wires (JIS G
3547) Physical properites Tolerance of wire dia Weight of zinc-coating for low carbon Galvanized steel for wire ropes and redrawing Zinc-coated high carbon steel wire (JIS G
3548) Galvanized steel for wire ropes and redrawing -Wire Rope Terms of Each Part of The Wire Rope Specification of Wire Rope -Stainless Steel wire Stainless steel Chemical composition of Stainless Steel Bright, Soft No.1(B.W1) Dull, Soft No.1 (D.W1) Bright, Soft No.2(B.W2) Bright, 1/4 Hard (B.1/4H) Dulll, 1/4 Hard(D.1/4H) Bright, 1/2 Hard(B.1/2H) Dull, 1/2 Hard(D.1/2H) Bright, 3/4 Hard (B.3/4H=WPA) Dull, 3/4 Hard (D.3/4H=WPA) Bright, Full Hard (B.FH=WPB) Dull, Full Hard (D.FH=WPB) Bright/Dull, WSA (B/D.WSA) Bright/Dull, WSB (B/D.WSB) Weight Calculation of Stainless Steel Wire Wire Gage Conversion Table Conversion Table of all types unit -Stranded Barbed Wire Barbed wire (JIS G 3533) -Hot Rolled Steel Products -Staple Wire -Gabion Wire Mesh |
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|
Production
Capacity (Unit: M/T) |
|
Trade Partners
|
Suppliers |
POSCO POSCO Specialty Steel Co., Ltd. EVERRICH INT'L |
|
Competitors |
DAE-A STEEL WIRE JINHEUNG IRON & STEEL.CO., LTD Korea Sangsa Co., Ltd. MANHO ROPE & WIRE LTD DUCK HEUNG WIRE MFG. CO., LTD. DSR DongBang Special Steel Co., Ltd. HYUNDAI STEEL COMPANY FINE STEEL CO., LTD The Subject is ranked at the 1st
player in Galvanized Steel Wire, and 2nd player in Stainless Steel
wire next to MANHO ROPE & WIRE LTD in terms of domestic market share. |
Related Parties
(Subsidiaries, Joint-
Venture &
Affiliates)
|
Subsidiary |
HANKUK STEEL WIRE CO.,
LTD.(China) |
Sales by Region (Activity
& Markets)
|
Sales/ Unit : KRW |
2006 |
2005 |
2004 |
|
Export |
23,782,099,950 |
20,310,302,231 |
29,693,341,125 |
|
Domestic |
121,691,302,964 |
95,882,814,520 |
82,608,405,239 |
|
Total |
145,473,402,914 |
116,193,116,751 |
112,301,746,364 |
The Subject imports raw materials from China & Russia, and exports
mainly to Japan. Since 2005, it started to export to Europe.
Court Action
No.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)