MIRA
INFORM REPORT
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Report Date : |
31.07.2007 |
IDENTIFICATION DETAILS
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Name : |
TAIWAN POLYPROPYLENE CO LTD |
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Registered Office : |
3FL, 85 Pa Teh Rd Section 4 |
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Country : |
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Date of Incorporation : |
July.23, 1973 |
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Com. Reg. No.: |
04689368 |
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Legal Form : |
Public Listed Company |
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Line of Business : |
Importing of crude and mineral oil. Manufacturing of various plastic resins and materials. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 10,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name &
address
TAIWAN POLYPROPYLENE CO LTD
3FL, 85 PA TEH RD SECTION 4
TEL : [+886] 2-25288895
FAX : [+886] 2-25288823
EXECUTIVE SUMMARY
INCORPORATION DATE :
JULY.23, 1973
REGISTRATION NO. :
04689368
LEGAL FORM :
PUBLIC LISTED COMPANY
CHIEF EXECUTIVE :
MR. BOWEI MOU-WEI LEE (CHAIRMAN)
STAFF STRENGTH :
207
CAPITAL :
US$ 88,233,173
BUSINESS LINE :
MANUFACTURER
TURNOVER :
NTD 4,091,906,000 (AS OF MARCH 2007)
EQUITIES :
NTD 6,292,274,000 (AS OF MARCH 2007)
PAYMENT :
EXCELLENT
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STRONG
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
FAIRLY GOOD
EXCHANGE RATE :
TWD 32.8291 = US$1 AS OF 2007-7-30
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
TWD –
*Company History*
===============
1974 - 1976 - Construction
and start-up of the first Polypropylene production line based on the Hercules
'slurry' process. The
first plant came on stream with 60,000 tonnes per annum
homopolymer capacity.
Product was marketed under the brand name of PROFAX.
1981 -
Second Hercules 'slurry' plant (TPP Line II) started up with a capacity of
60,000 tones per
annum with both homopolymer and
heterophasic copolymer capabilities.
1986 - Adopted the know-how of
manufacturing PP Staple Fiber from HERCULES INC and
constructed a fiber plant with an annual
capacity of 6,000 tones. Production started under
the brand
name of TAIPPRON.
1988
- A new Spheripol line (TPP Line III) with an initial capacity of 60,000
tones per annum
started up. It has homopolymer, random
copolymer, and heterophasic copolymer and
terpolymer production capabilities.
- Became a
listed company in the Taiwan Stock Exchange.
1990 - Completed the
expansion of the Spheripol line to 90,000 tones per annum
- Completed the PCMA plant with a capacity of 7,200 tones per annum. It
produced glass
fiber, mineral or rubber reinforced and
flame retardant PP compounds.
1994
- Started up a second Spheripol line (TPP Line IV) with annual capacity
of 130,000 tones per
annum, replacing TPP Line I and II.
1998
- Line IV is de-bottlenecked to a capacity of 200,000 tones per annum.
- Successful implementation of SAP as an ERP (Enterprise Resource Planning)
management system.
2002
- Line III and IV de-bottlenecked to total capacity 400,000 tones a year
2004
- Completed logistics improvement project with investment of NTD 330
million
2006 - Main shareholders,
BASELL TAIWAN HOLDINGS BV and KOO's group, transfer all
shares to LCY INVESTMENT CORP and quit
their ownership in the company. The Board
of Directors is reorganized.
*Company Registration*
===================
License number :
04689368
Year issued
: 23 July, 1973
Issuing Authority :
Ministry of Economic Affairs (MOEA)
*Capital Details*
=============
Initial registered capital : N/A
Capital increases as follows :
Date Increase/Decrease (NTD)
------
----------------------------------
1996
2,022,224,150
2001
2,594,612,460
2002 2,571,840,710
2003
2,648,995,940
2004
2,781,445,740
2005
2,920,518,030
Market Capitalization
: NTD 10,828,980,000
Year : 1995
*Licenses & Permits*
================
License number :
99661849
Date issued :
31 November, 1990
Issuing authority :
Industrial Development Bureau, MOEA
Type of license :
Factory license
*Offices & Facilities*
=================
Size : 29sq.meter.
(Approx)
Location : Center Business
District (CBD)
Property status
: Rented
Type of building
: Commercial building
Previous contact details
--------------------------------
(1)
Address : 4Fl
Tel no :
2-27413135
Fax no :
2-27213342
(2)
Address : 8Fl
Tel no :
2-25716255, 5316462
Fax no :
2-25316511
Email add : laura_chao@tpp.com.tw
gregory_k._tawes@tpp.com.tw
laura_chao@tpp.com.tw
(3)
Address : 6Fl,
Tel no :
4-22266482
*Factories, Size & Locations*
======================
Size : 9,775 sq. meter
(Approx.)
Location
:
Type of building
: Industrial building
Property status
: Owned by TAIWAN POLYPROPYLENE CO LTD
*Corporate & Organization Structure*
============================
A large-sized company operated and managed by an experienced
team of professionals.
*Industry Ranking*
===============
Generally regarded as one of the Top 1000 Companies in
Manufacturing Industry of Taiwan.
Details of rank are as follows:
Year Rank
-------
---------
1999 171
2000 181
2001 160
2004 169
2005 161
2006 167
*Sales Ranking*
=============
Ranked among
Details of rank are as follows:
Year Rank
------
------
1992 202
1996 130
1997 158
1998 212
2000 175
2001 157
2002 157
2002 157
2005 188
2006 201
*Auditor*
========
DELOITTE & TOUCHE
*Insurance Companies*
==================
- CHINA LIFE INSURANCE CO LTD
- MALAYAN OVERSEAS INSURANCE CORP
*Registrar*
=========
CHINA TRUST BUSINESS BANK
Stock Market Code: 1311
*Reputation*
==========
Reference checking for the purpose of establishing the
firm's reputation within the respective industry failed to reveal any negative
information.
Web
site: www.tpp.com.tw
SC’s website is unable to be
landed at present for the technical reason.
Email : service@tpp.com.tw
For the past 34 years there is no record of litigation.
*Major Shareholders*
=================
Shareholders' Name
No. of Shares
---------------------------
------------------
PP
NEDSAR LTD
4,002,957
Management : Mr. Chi-chih Lee, Director
Mr. Charles Cheng-cheng Wei, Manager
Mr. Tung-lin Weng, Director
Name
Nationality Job
Description
Mr. Chi-chih Lee Taiwanese Director Factory
Mr. Charles Cheng-cheng Wei Taiwanese Manager Finance
Mr. Tung-lin Weng Taiwanese Director Operations
Mr. Yuan-pei Lin Taiwanese Director Sales
Mr. Bowei Mou-wei Lee Taiwanese General Manager
*Key Personnel*
=============
(1)
Mr. Bowei Lee
Responsibilities : Overall management of the company
Other position :
Chairman of the following companies :
- LEE CHANG YUNG CHEMICAL INDUSTRY
CORP
- LEE CHANG
YUNG CHEMICAL INDUSTRY CORP, KSIAOKANG FACTORY
- LEE CHANG
YUNG TECHNOLOGY CORP
(2)
Mr. Charles Cheng-cheng Wei
Tel : 2-27631611 Ext. 450
Email add :
wei@lcy.com.tw
charles_wei@tppcom.tw
(3)
Mr. Yuan-pei Lin
Tel no. :
2-25288895 Ext. 156
Email add : yp_lin@tpp.com.tw
*Main Products & Services*
======================
Specializes in the following areas of work:
1. Importing of crude and mineral oil.
2. Manufacturing of various plastic resins and materials.
3. Distribution of manufactured products to local and
overseas markets.
Also includes the following products :
- Engineering plastics, raw materials
- Engineering plastics, reinforced
- PP resin, modified
- PP resin, reinforced
Products : Acetal
Antioxidant agents
Chlorides
Clutches
Composite materials
Brand : Globalene
Profax
Taippron
*Payment Terms*
=============
Sales
------
Local : Cash
30-90
days credit
Export : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
Purchase
-------------
Local : 30-90 days credit
Import : Letter of Credit (L/C)
Telegraphic Transfer (T/T)
Open
account /DA terms with settlement using TelegraphicTransfer (T/T)
*Associations*
============
Member of :
- American Chamber of Commerce in
*Competitors*
===========
The following locally based firms supply similar range of
products/services.
- USI CORP
- FORMOSA PLASTICS CORP
- ORIENTAL UNION CHEMICAL CORP
- ASIA POLYMER CORP
*Quality Certification*
=================
(1)
Type of certification : CNS
Year of certification
: 1982
(2)
Type of certification : ISO 9002
Year of certification
: 1995
Certification item
: Chemical products
(3)
Type of certification : ISO 14000
Year of certification
: 1997
(4)
Type of certification : OHSAS 18001
Year of certification
: 2005
*Production Capacity*
==================
Current Capacity :
200,000 tons
Minimum Capacity : 170,000 tons
-----------------------
Capacity
: 400,000 tonnes/year (PP Plant)
: 7,200 tonnes/year (PCMA Plant)
: 6,000 tonnes/year (PP staple fiber Plant)
Other details : The TPP
plant is situated in the Ta-She Petrochemical Industry park in Kaohsiung Hsien,
south of
homopolymers, random copolymers and
heterophasic copolymers. In addition, there are a
staple fiber facility and a PCMA compounding plant in the same
complex.
*Domestic Raw Materials Suppliers*
=============================
Major local supplier include :
- CPC CORP
*Domestic Customers*
==================
Most of domestic sales are achieved through direct sales to
plastic manufacturers.
Major local customer include :
Customer's name : CHIN LIEN HSING INDUSTRY CO LTD
Product buying : PP
Plastic materials
Monthly sales :
NTD 100,000
*Local Distribution Network*
=======================
45% annual turnover is attributed to local sales.
*Export Market*
=============
55% annual turnover is attributed to export.
*International Trade Ranking*
=======================
The firm has been ranked among
Details of rank are as follows :
Year Rank
-----
------
1997 368
2001 164
2002 162
2003 135
2004 162
2005
116
*(Subsidiaries , Joint-ventures & Affiliates)
===============================
Company Name : HMC POLYMERS CO LTD
Address : 20Fl Sathorn City Tower
Country :
Relationship : Affiliate
Legal Form : Private company with limited liability
Company Type : Manufacturer
Industry : Plastics & Products
*IMPORTER AGENCY LISTING*
===========================
Supplier :
Country of Origin :
Product Description : Polypropylene stable fibres
Brand : Montell
Year : 1984
Supplier :
Country of Origin :
Product Description : Polypropylene stable fibres
Brand : Montell
Year : 1984
Supplier :
Country of Origin :
Product Description : Polypropylene stable fibres
Brand : Montell
Year : 1984
PAYMENT RATING : 1 OBTAINED SCORES : 86
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Implication |
Implications |
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1 |
Scores 85–100 |
Excellent |
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2 |
Scores 75 – 84 |
Above Average |
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3 |
Scores 50 – 74 |
Average |
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4 |
Scores 35 – 49 |
Fair |
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5 |
Scores 15 – 34 |
Below Average |
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6 |
Scores 01 – 14 |
Poor |
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NR |
No Data |
No Data |
The rating indicates the
payment pattern of SC based upon our Payment Database, comments from suppliers
of SC, information from banks (if available), as well as industrial sources.
Dealings on open terms may be possible for
FAIRLY LARGE amounts depending on individual judgement experience.
*BANK DETAILS*
===============
Bank Name : BANK OF
Branch : Chungcheng Dist,
Branch Address :
SWIFT Code : BKTWTWTP
Bank Name : MEGA INT'L COMMERCIAL BANK CO LTD
Branch : Chungcheng Dist,
Branch Address :
SWIFT Code : ICBCTWTP
*Financials*
==========
Balance Sheet
Currency :
NTD
Denomination : In thousand
March
2007 2006 2005 2004 2003 2002
---------------
------------
--------- --------- --------- ---------
Current Assets
6,767,905 5,599,855 3,609,260 4,133,940 3,373,513 2,947,945
Funds & long-term
investments 174,628 169,279 586,67 609,934 538,233 554,058
Property 1,282,362 1,313,180 1,434,271 615,540 1,593,529 1,622,330
Other Assets 40,930 752,403 554,753 444,932 327,743 346,824
Total Assets 8,265,825 7,834,717 6,184,956 6,804,346 5,833,018 5,471,157
Current Liabilities
(Before) 1,675,400 1,442,982 1,081,314 1,430,850 1,057,338 1,070,629
(After)
160,042 2,252,031 1,533,747 1,369,093
Long-term Liabilities
Other Liabilities 298,151 303,523 334,474 351,995 356,006 359,571
Total Liabilities
(Before)
1,973,551 1,746,505 1,415,788 1,782,845 1,413,344 1,430,200
(After)
1,934,890 2,604,026 1,889,753 1,728,664
Common stock 2,920,518 2,920,518 2,920,518 2,781,446 2,648,996 2,571,841
Capital Reserve 6,439 6,439 6,439 6,439 6,439 7,552
Retained Earnings
(Before) 3,244,824
3,093,128 1,853,421 2,244,211 1,773,243 1,472,518
(After)
1,334,319 1,283,958 1,164,384 1,096,899
Total Shareholder's
Equity
6,292,274
6,088,212 4,769,168 5,021,501 4,419,674 4,040,957
(After)
4,250,066 4,200,320 3,943,265 3,665,338
Income Statement
Currency :
NTD
Denomination : In thousand
March
2007 2006 2005 2004 2003 2002
--------------- ----------- ----------- ----------- ------------ ---------
Operating revenue
4,091,906 15,242,661 13,925,442
12,141,283 9,782,266 7,849,411
Gross Profit 352,888 1,283,569 1,134,163 2,011,788
1,535,892 1,344,401
Operating Income
170,548 734,716 517,037 1,354,467 930,258 675,820
Non-operating income
38,988 1,499,376 221,755 105,141 93,768 96,982
Non-operating expense
6,245 13,863 3,986 31,358 126,950 266,045
Net Income 151,696 1,758,809 569,463 1,079,827 675,231 378,700
Earnings (losses)
per share (After) 0.52 6.02 1.95 370 2.31 1.30
*Financial Ratios*
==============
(1)
Year Net Worth Shareholder's Return on Return on Return on Debt to
(NTD M) Equity(NTD M) Sales (%) Equity (%) Assets(%) Assets(%)
------- ------------- -------------- ------------- ------------- ------------
----------
1998 - 3,66500 5.38 6.60 5.56 15.79
2001 3803 3.99 7.10 5.61 21.05
2002 4041 4.83 9.38 6.93 26.14
(2)
March
2007 2006 2005 2004 2003 2002
---------------
-------- -------- -------- -------- --------
Ratio of liabilities
to Assets % 23.88 22.29 22.89 26.37 24.23 26.14
Ratio of long-term capital
to fixed Assets
% 490.68 463.62 332.52 310.82 277.35 249.08
Current ratio% 403.96 388.08 333.78 288.91 319.06 275
Quick ratio% 339.09 323.10 246.29 160.10 224.50 205.19
Interest coverage 73.60 367.37 234.59 1,397.14 792.77 453.46
Turnover of receivable
(times)
18.07 20.98 22.73 21.94 19.20 19.20
Average collection
period of
receivable 20 17 16 17 19 19.01
Turnover of inventories (times) 17 16.73 10.04 7.65 0.53 8.76
Turnover of expense (times) 15.17 16.80 14.99 12.87 13.06 13.46
Average days of sales 21 22 36 48 35 41.67
Turnover of fixed assets
(times)
12.76 11.60 9.71 7.57 6.14 4.84
Turnover of total assets
(times)
1.98 1.95 2.25 1.78 1.68 1.43
Return on total assets% 1.91 25.16 8.79 17.08 11.96 7.38
Return on shareholder's
Equity%
2.45 32.40 11.63 22.87 15.96 9.66
Operating Income 5.84 25.16 17.70 48.63 35.12 26.28
Net Income before tax 6.96 76.02 25.16 51.35 33.86 1970
Profit margin% 3.71 1.54 4.09 8.90 6.90 4.82
Retroactive 0.52 6.02 1.95 3.70 2.31 1.30
Cash flows ratio% 0.59 56.08 117.02 60.27 55.98 124.62
Cash flows adequacy% 96.52 124.02 173.13 121.95 150.10 143.56
Cash reinvestment ratio% 0.10 3.08 5.61 4.72 3.91 15.86
Degree of operating leverage 2.91 2.56 3.38 1.98 2.35 2.05
Degree of financial leverage 1.02
1.01 1.01 1.00 1.00 1.00
*Int´l Trade Activity
(Currency:
==============================
Year Imports Exports Total
2004
$3,128,794.41 $4,444,222.17 $7,573,016.58
2005
$4,369,308.72
$6,734,001.39 $11,103,310.11
2006
$5,296,025.39
$7,221,241.57 $12,517,266.96
*Financial Summary
(Currency:
==============================
Year Sales Assets Net Income
1998
$166,629,629.63
$161,185,185.19
$8,962,962.96
2001
$196,169,471.85
$139,785,258.27
$7,835,171.21
2002
$225,622,621.44
$157,262,345.50
$10,885,311.87
2003
$282,072,260.67
$168,195,444.06
$19,470,328.72
2004
$365,151,368.42
$204,641,984.96
$32,476,000.00
2005
$439,982,369.67
$195,417,251.18
$17,992,511.85
2006
$460,781,771.46
$236,841,505.44 $53,168,349.46
Over the past 34 years, SC has made a stable growth with
satisfactory profit. It is considered a credit line up to USD 10,000,000
appears to be within SC’s capacities.
Attached:
trade references
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code
Product/Service Description
Exporting 3089 Plastics
products
Importing 1311 Crude
petroleum and natural gas
Importing 2821 Plastics
materials and resins
Manufacturing 2295 Coated fabrics, not rubberized
Manufacturing 2800 Chemicals and Allied Products
Manufacturing 2821 Plastics materials and resins
Manufacturing 3089 Plastics products
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code
Product/Service Description
Exporting 2911000000 Acetals and hemiacetals, whether or not with other oxygen
function, and their
halogenated,
sulfonated, nitrated or nitrosated derivatives
Exporting 3902100000 Polypropylene
Exporting 5503400000 Synthetic staple fibers, not carded or combed, or otherwise
processed for
spinning:
of polypropylene
Importing 2700 Mineral
fuels, oils, waxes & bituminous sub
Importing 2709 Crude
oil from petroleum and bituminous minerals
Importing 2710 Oil
(not crude) from petrol & bitum mineral etc,
Importing 2827390000 Other chlorides
Importing 2901220000 Propene (propylene)
Importing 2911000000 Acetals and hemiacetals, whether or not with other oxygen
function, and their
halogenated,
sulfonated, nitrated or nitrosated derivatives
Importing 2915700000 Palmitic acid, stearic acid, their salts and estrs
DETAILED PRODUCT CLASSIFICATION & ACTIVITY
Activity Product/Service
Description
Importer Crude
oil
Importer Propene
Importer Chlorides
Importer Fuel,
minerals
Importer Acetal
Importer Palmitic
acids
Importer Antioxidant
agents
Importer Cultured
crystals
Importer Clutches
Importer Rubber
thread
INTERNATIONAL TRADE: ACTIVITY & MARKETS
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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%)