MIRA
INFORM REPORT
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Report Date : |
15th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
UNION STEEL PTE. LTD. |
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Registered Office : |
33 Pioneer Road North, Singapore 628474, Singapore |
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Country : |
Singapore |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
23.11.1991 |
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Legal Form : |
Exempt Pte Ltd |
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Line of Business : |
Recycling of Non-Ferrous Metals and
Stainless Steel. |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name
UNION STEEL PTE. LTD.
Line Of Business
RECYCLING OF NON-FERROUS METALS AND
STAINLESS STEEL
Parent Company
UNION STEEL HOLDINGS LIMITED
(PERCENTAGE OF SHAREHOLDING: 100%)
Financial Elements
FY 2006
COMPANY
Sales :
S$73,719,308
Networth :
S$6,966,092
Paid-Up Capital : S$1,000,000
Net result :
S$3,064,831
Net
Margin(%) : 4.16
Return on Equity(%) : 44.00
Leverage Ratio : 3.24
Rating
Credit Rating : Sing $ 5 000
00 1 to Sing $ 10 000 000
BUSINESS INFORMATION REPORT
COMPANY IDENTIFICATION
Subject Company : UNION STEEL PTE. LTD.
Former Name : -
Business Address : 33 PIONEER ROAD NORTH
Town : SINGAPORE
Postcode : 628474
County : -
Country : Singapore
Telephone : 6861 9833
Fax : 6862 9833
ROC Number : 199105888N
Reg. Town : -
SUMMARY
All amounts in this report are in: SGD unless otherwise stated
Legal Form : Exempt Pte Ltd
Date Inc. : 23/11/1991
Previous Legal Form : -
Summary year : 30/06/2006
Sales : 73,719,308
Networth : 6,966,092
Capital : -
Paid-Up Capital : 1,000,000
Employees : 28
Net result : 3,064,831
Share value : -
AUDITOR : LTC & ASSOCIATES
REFERENCES
Litigation : No
Company status : TRADING
Started : 23/11/1991
PRINCIPAL(S)
ANG YU SENG S1171861B Director
DIRECTOR(S)
ANG YU SENG S1171861B Director
Appointed on : 23/11/1991
Street : 63 SARACA ROAD, SELETAR HILLS ESTATE
Town : SINGAPORE
Postcode : 807400
Country : Singapore
ANG YEW LAI S1720356H Director
Appointed on : 23/11/1991
Street : 35 DAIRY FARM ROAD, #08-01, DAIRY FARM ESTATE PHASE 3
Town : SINGAPORE
Postcode : 679052
Country : Singapore
HELEN CAMPOS THOMAS S1318008C Company Secretary
Appointed on : 28/01/2004
Street : 10 MEI HWAN DRIVE, GOLDEN HILL ESTATTE
Town : SINGAPORE
Postcode : 568349
Country : Singapore
FORMER DIRECTOR(S)
TAN SIOK KHENG S1705273Z
LOW MEI MEI MAUREEN S1728235B
ACTIVITY(IES)
INVESTMENT COMPANIES Code:12095
IMPORTERS And EXPORTERS Code:11760
BASED ON ACRA'S RECORD AS AT 13/02/2007
1) GENERAL WHOLESALE TRADE (INCLUDING
GENERAL IMPORTERS & EXPORTERS);
TRADING OF SCRAP IRON & STEEL, USED
MACHINERY, FERROUS & NON-
CHARGES
Date : 27/08/2004
Comments : CHARGE NO : C200404266
SECURED : 0.00 AND ALL MONIES OWING
CHARGEE(S) : OVERSEA-CHINESE BANKING CORPORATION LTD
Date : 08/02/2006
Comments : CHARGE NO : C200600895
SECURED : 0.00 AND ALL MONIES OWING
CHARGEE(S) : OVERSEA-CHINESE BANKING CORPORATION LTD
Date : 18/09/1997
Comments : CHARGE NO : 199705666 (DISCHARGED)
SECURED : 0.00 ALL MONIES OWING
CHARGEE (S) : STANDARD CHARTERED BANK
Date : 17/02/2004
Comments : CHARGE NO : C200400759
SECURED : 0.00 AND ALL MONIES OWING
CHARGEE(S) : UOB LTD
PREMISES/PROPERTY INFORMATIONS
Date : 15/02/2007
Tax rate : 10
Site Address : 33 PIONEER ROAD NORTH
Town : SINGAPORE
Postcode : 628474
Country : Singapore
Annual Value : 206,000
Date : 15/02/2007
Tax rate : 10
Site Address : 76 JOO KOON CIRCLE
Town : SINGAPORE
Postcode : 629096
Country : Singapore
Annual Value : 124,000
*TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.
*TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.
*FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).
*ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.
BANKERS
STANDARD CHARTERED BANK
UNITED OVERSEAS BANK LIMITED
OVERSEA-CHINESE BANKING CORPORATION LTD
SHAREHOLDERS(S)
UNION STEEL HOLDINGS LIMITED 1,000,000 Company
Street : 33 PIONEER ROAD NORTH
Town : SINGAPORE
Postcode : 628474
Country : Singapore
FORMER SHAREHOLDER(S)
ANG YU SENG 700,000
ANG YEW LAI 300,000
HOLDING COMPANY
UNION STEEL HOLDINGS LIMITED 200410181W % :
100
SUBSIDIARY(IES)
No Participation In Our Database
PAYMENT HISTORY AND EXPERIENCES
Trade Morality : AVERAGE
Liquidity : SUFFICIANT
Payments : REGULAR
Trend : UPWARD
Financial Situation : AVERAGE
LITIGATION(S)
No Litigation In Our Database
FINANCIAL ELEMENTS
All amounts in this report are in : SGD
Audit
Qualification: UNQUALIFIED
(CLEAN) UNQUALIFIED (CLEAN)
Date
Account Lodged: 21/12/2006
Balance
Sheet Date:
30/06/2006
30/06/2005
Number
of weeks:
52 52
Consolidation
Code: COMPANY COMPANY
ASSETS
Tangible
Fixed Assets:
7,036,774
7,068,943
Total
Fixed Assets:
7,036,774
7,068,943
Inventories: 9,231,530 3,464,872
Receivables: 5,480,480 4,397,072
Cash,Banks,
Securitis: 2,062,827 1,403,622
Other
current assets:
5,700,401
751,795
Total
Current Assets:
22,475,238
10,017,361
TOTAL ASSETS: 29,512,012 17,086,304
LIABILITIES
Equity
capital:
1,000,000
1,000,000
Profit
& lost Account: 5,966,092 3,901,261
TOTAL
EQUITY:
6,966,092
4,901,261
Long
Term Loans:
1,083,356
1,583,348
Other
long term Liab.:
12,498
55,300
Total
L/T Liabilities:
1,095,854
1,638,648
Trade
Creditors:
2,682,002
2,534,221
Short
term liabilities:
65,114
69,308
Due
to Bank: 14,283,597 5,783,370
Provisions: 1,849,511 1,487,425
Other
Short term Liab.:
2,569,842
672,071
Total
short term Liab.:
21,450,066
10,546,395
TOTAL
LIABILITIES:
22,545,920
12,185,043
PROFIT & LOSS ACCOUNT
Net
Sales
73,719,308
53,383,778
Gross
Profit:
6,815,749
4,824,040
Result
of ordinary operations
4,267,433
2,413,178
NET
RESULT BEFORE TAX:
3,834,831
2,208,481
Tax
:
770,000 400,000
Net
income/loss year:
3,064,831
1,808,481
Interest
Paid:
432,602
204,697
Depreciation: 608,017 549,304
Dividends: 1,000,000 1,000,000
Directors
Emoluments:
256,345
226,460
Purchases,Sces
& Other Goods:
66,903,559
48,559,738
Wages
and Salaries:
1,213,477 1,243,170
Financial Income: 6,345 -
RATIOS
30/06/2006 30/06/2005
Turnover
per employee: 2632832.43 1906563.50
Net
result / Turnover(%): 0.04 0.03
Fin.
Charges / Turnover(%):0.01 0.00
Stock
/ Turnover(%): 0.13 0.06
Net
Margin(%): 4.16 3.39
Return
on Equity(%): 44.00 36.90
Return
on Assets(%): 10.39 10.58
Dividends
Coverage: 3.06 1.81
Net
Working capital: 1025172.00 -529034.00
Cash
Ratio: 0.10 0.13
Quick
Ratio: 0.35 0.55
Current
ratio: 1.05 0.95
Receivables
Turnover: 26.76 29.65
Leverage Ratio:
3.24
2.49
Net Margin :
(100*Net income loss year)/Net sales
Return on Equity : (100*Net income loss
year)/Total equity
Return on Assets : (100*Net income loss
year)/Total fixed assets
Dividends Coverage : Net income loss year/Dividends
Net Working capital : Total current assets - Total
short term liabilities
Cash Ratio :
Cash Bank securities/Total short term liabilities
Quick Ratio :
(Cash Bank securities+Receivables)/Total Short term liabilities
Current ratio : Total current
assets/Total short term liabilities
Inventory Turnover : (360*Inventories)/Net
sales
Receivables Turnover : (Receivable*360)/Net sales
Leverage Ratio :
Total liabilities/(Total equity-Intangible assets)
FINANCIAL COMMENTS
THE FINANCIAL CONDITION OF THE COMPANY WAS
SEEN TO BE FAIR IN VIEW OF
THE FOLLOWING:
NET WORTH:
THE BALANCE SHEET WAS CONSIDERED PASSABLE
WITH NET WORTH IMPROVED BY 42.13% FROM S$4,901,261 IN FY 2005 TO S$6,966,092 IN FY 2006. THIS
WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$5,966,092 (2005:
S$3,901,261); A RISE OF 52.93% FROM THE PRIOR FINANCIAL YEAR.
LEVERAGE:
IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY AMOUNT DUE TO BANKS WHICH MADE UP 66.59% (2005: 54.84%) OF THE TOTAL CURRENT
LIABILITIES AND AMOUNTED TO S$14,283,597 (2005: S$5,783,370). THE
BREAKDOWN IS AS FOLLOWS:
-SHORT-TERM BANK LOANS - 2006: S$4,000,000
(2005: S$3,200,000)
-BANK OVERDRAFT - 2006: S$ 1,479
(2005: - )
-BILLS PAYABLE TO BANK - 2006: S$9,782,126
(2005: S$2,083,378)
-BANK LOAN - 2006: S$1,583,348 (2005: S$2,083,340)
IN THE LONG-TERM, SUBJECT WAS LARGELY
FINANCED BY LONG TERM LOANS WHICH MADE UP 98.86% (2005: 96.63%) OF THE TOTAL CURRENT LIABILITIES
AND AMOUNTED TO S$1,083,356 (2005: S$1,583,348).
IN ALL, LEVERAGE RATIO ROSE FROM 2.49 TIMES
TO 3.24 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.
LIQUIDITY:
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION
WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT
RATIO ROSE TO 1.05 TIMES, UP FROM 0.95 TIMES AND QUICK RATIO FELL TO
0.35 TIMES FROM 0.55 TIMES IN FY 2005.
NET WORKING CAPITAL IMPROVED BY 2.94 TIMES
FROM S$-529,034 IN FY 2005 TO S$1,025,172.
PROFITABILITY:
REVENUE POSTED AN INCREASE OF 38.09% FROM
S$53,383,778 IN FY 2005 TO S$73,719,308 AND NET PROFIT ROSE BY 69.47% TO S$3,064,831 (2005:
S$1,808,481). HENCE, NET MARGIN ROSE TO 4.16% (2005: 3.39%).
DEBT
SERVICING:
DEBT SERVICING PROBLEMS MIGHT NOT BE
EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN
ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS INTEREST
EXPENSES WERE LOW AT S$432,602 IN FY 2006 (2005: S$204,697).
AVERAGE COLLECTION PERIOD HAS SHORTENED FROM
29.65 TO 26.76 DAYS. A SHORTER AVERAGE COLLECTION PERIOD POSES LESSER RISK OF TURNING
INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING
ABILITY MAY BE AFFECTED IF TRADE RECEIVABLES ARE NON FORTHCOMING.
NOTES TO
THE FINANCIAL STATEMENTS:
BILLS
PAYABLES, BANK OVERDRFT AND LOAN
BANK LOAN
BANK LOAN OF S$2,500,000 COMMENCING IN
AUGUST 2004, WHICH IS REPAYABLE BY 59 EQUAL MONTHLY INSTALMENTS OF S$41,666 AND A FINAL INSTALMENT
OF S$41,706. IT BEARS INTEREST AT 2.5% PER ANNUM FOR THE FIRST YEAR,
3% PER ANNUM FOR THE SECOND YEAR, 3.5% PER ANNUM FOR THE THIRD YEAR
AND THEREAFTER AT THE PREVAILING PRIME RATE.
THE BANK LOAN IS SECURED BY LEASEHOLD LAND
AND BUILDING WITH CARRYING AMOUNT OF ABOUT S$2,921,000 (2005: S$2,956,000)
BANK OVERDRFT AND BILLS PAYABLE
BANK OVERDRFT, BILLS PAYABLE AND OTHER
CREDIT FACILITIES GRANTED TO THE COMPANY, WHICH ARE SECURED BY THE LEGAL MORTGAGE OF THE
COMPANY'S LEASEHOLD LAND AND BUILDINGS WITH CARRYING AMOUNT OF ABOUT
S$2,921,000 (2005: S$4,902,000) AND/OR JOINT AND SEVERAL GUARANTEES
BY THE DIRECTORS OF THE COMPANY OR CORPORATE GUARANTEE BY THE
HOLDING COMPANY ARE AS FOLLOWS:
-BANK OVERDRAFT - 2006: S$ 1,479
(2005: - )
-BILLS PAYABLE TO BANK - 2006: S$9,782,126
(2005: S$1,141,045)
BILLS PAYABLE AND OTHER CREDIT FACILITIES
GRANTED TO THE COMPANY, WHICH WERE SECURED BY JOINT AND SEVERAL GUARANTEES BY THE
DIRECTORS OF THE COMPANY AND LEGAL MORTGAGE OF THE PROPERTIES UNDER
THE NAME OF A DIRECTOR OF THE COMPANY ARE AS FOLLOWS:
BILLS PAYABLE - 2006: - (2005: S$942,333)
THE EFFECTIVE RATES OF INTEREST RANGE FROM
3% TO 6.57% (2005: 3% TO
6.25%) PER ANNUM.
CONTINGENT
LIABILITIES
LETTER OF CREDIT - 2006: S$9,197 (2005: S$21,005)
LETTER OF GUARANTEE - 2006: S$5,500 (2005: - )
PERFORMANCE GUARANTEE - 2006: - (2005: S$72,000)
THE MAXIMUM AMOUNT THE COMPANY COULD BECOME
LIABLE IS AS SHOWN ABOVE.
BACKGROUND/OPERATION
THE COMPANY WAS INCORPORATED IN THE REPUBLIC
OF SINGAPORE ON
23/11/1991 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS
PRESENT NAMESTYLE AS "UNION STEEL PTE. LTD.".
AS AT 13/02/2007, THE COMPANY HAS ISSUED AND
PAID-UP CAPITAL OF 1,000,000 SHARES OF A VALUE OF S$1,000,000.
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING
& CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
1) GENERAL WHOLESALE TRADE (INCLUDING
GENERAL IMPORTERS & EXPORTERS);
TRADING OF SCRAP IRON & STEEL, USED MACHINERY,
FERROUS & NON-
FERROUS METAL ETC
2) BANK/FINANCIAL HOLDING COMPANIES;
INVESTMENT COMPANY
DURING THE FINANCIAL YEAR UNDER REVIEW, THE
PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF RECYCLING OF NON-FERROUS METALS AND
STAINLESS STEEL.
FROM THE RESEARCH DONE, THE FOLLOWING
INFORMATION WAS GATHERED:
BACKGROUND OF UNION STEEL HOLDINGS LIMITED:
LISTINGS
* LISTED ON 15 AUGUST 2005 ON SGX MAINBOARD
THE GROUP WAS INCORPORATED IN SINGAPORE ON
12 AUGUST 2004 UNDER THE NAME OF UNION STEEL HOLDINGS PTE LTD. IT ADOPTED THE CURRENT NAME
ON 29 JUNE 2005. THE GROUP IS PRINCIPALLY ENGAGED IN THE RECYCLING
OF FERROUS AND NON-FERROUS SCRAP METALS, THE TRADING OF STEEL
PRODUCTS AND THE PROVISION OF OTHER SERVICES, COMPRISING WASTE
COLLECTION AND MANAGEMENT, DEMOLITION WORKS, RENTAL OF STEEL PLATES
AND CAR SCRAPPING. THE GROUP BELIEVES THAT IT IS CURRENTLY ONE OF
THE LARGEST METALS RECYCLING COMPANIES IN SINGAPORE IN TERMS OF
VOLUME OF METALS RECYCLED.
THE GROUP SERVES A WIDE CUSTOMER BASE OF
OVER 500 CUSTOMERS, SPANNING ACROSS COUNTRIES SUCH AS CHINA, INDIA, INDONESIA, JAPAN, MALAYSIA
AND SINGAPORE. THE GROUP INTENDS TO SEEK EXPANSION OPPORTUNITIES
WITHIN BOTH ITS EXISTING AND POTENTIAL MARKETS VIA POSSIBLE
ACQUISITIONS AND JOINT VENTURES IN CHINA AND INDONESIA.
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:
* COLLECTION, PROCESSING AND PACKING OF
FERROUS AND NON-FERROUS SCRAP METALS
* COLLECT, PROCESS AND PACK THE SCRAP METALS
AND SUPPLY THE RECYCLED METALS TO THEIR CUSTOMERS
* WASTE COLLECTION AND MANAGEMENT SERVICES
THROUGH WHICH THEY COLLECT FERROUS AND NON-FERROUS SCRAP METALS
* CARRY OUT DEMOLITION WORKS THROUGH WHICH
THEY ARE ABLE TO COLLECT SCRAP METALS FOUND IN MACHINERY, BUILDINGS AND OTHER STRUCTURES
CONTAINING METALS
* RENTAL OF STEEL PLATES AND CAR SCRAPPING
SERVICES
NON-FERROUS METALS PROCESSING
* PROCUREMENT AND COLLECTION
* SORTING AND SEGREGATION
* BALING OR BRIQUETTING
* QUALITY CONTROL, PACKING AND STORAGE
- PROCESSED ACCORDING TO THE GUIDELINES SET
BY THE INSTITUTE OF SCRAP
RECYCLING INDUSTRIES, WASHINGTON D.C.
PRODUCTS DEALINGS:
FERROUS METALS
* STEEL
* HEAVY MELTING SCRAP STEEL
NON-FERROUS METALS
* COPPER
* ALUMINIUM
* STAINLESS STEEL
INDUSTRIES SERVED:
* STEEL MILLS
* FOUNDRIES
* METALS FABRICATORS
* METALS BROKERS
EXPORT COUNTRIES:
* SOUTH EAST ASIA
* CHINA
* INDIA
MARKETS SERVED:
* SINGAPORE
* MALAYSIA
* INDONESIA
* THAILAND
* CAMBODIA
* VIETNAM
* HONG KONG
* TAIWAN
* CHINA
* JAPAN
* KOREA
* MYANMAR
* BANGLADESH
* INDIA
* SRI LANKA
* NEPAL
* PAKISTAN
* TURKEY
* BELGIUM
* GERMANY
* UNITED KINGDOM
QUALITY ASSESSMENT:
* ISO 9002
NEWS: UNION STEEL HOLDINGS LIMITED SIGNS
MEMORANDUM OF UNDERSTANDING (MOU) WITH CHANGZHOU ZENITH STEEL CO LTD IN CHINA "EXTRACTS"
-SOURCE: UNION STEEL HOLDINGS LIMITED WEBSITE
DATE: 07/02/2007
SINGAPORE - MAINBOARD-LISTED UNION STEEL
HOLDINGS LIMITED, AN INTEGRATED METAL RECYCLING COMPANY AND ONE OF THE LARGEST METAL
RECYCLERS IN SINGAPORE IN TERMS OF VOLUME OF METALS RECYCLED, TODAY ANNOUNCED
THAT IT HAS SIGNED A MEMORANDUM OF UNDERSTANDING (MOU) WITH
CHANGZHOU ZENITH STEEL CO LTD (ZENITH) IN CHINA
ZENITH IS A MAJOR IRON AND STEEL GROUP IN
THE CHANGJIANG RIVER PEARL RIVER DELTA REGION. IT PRODUCES A WIDE RANGE OF PRODUCTS, WHICH
INCLUDES WIRE RODS, DEBARS IN WIRE AND BILLETS.
UNDER THE MOU, UNION STEEL WILL HAVE THE RIGHTS
TO DISTRIBUTE ZENITH'S PRODUCTS IN SINGAPORE, INDONESIA, MALAYSIA AND VIETNAM. UNION
STEEL WILL ALSO HAVE THE RIGHTS TO APPOINT SUB-DISTRIBUTORS TO
DISTRIBUTE ZENITH'S PRODUCTS VIA ITS MARKETING CHANNELS.
UNION STEEL WILL ALSO PROVIDE SERVICES IN SOURCING
AND TRADING OF COKE AND IRON ORE FOR ZENITH -
WHICH REQUIRES APPROXIMATELY 4 MILLION TONS OF IRON ORE IN
2007.
BOTH UNION STEEL AND ZENITH WILL WORK
TOWARDS SETTING UP A SINGAPORE OFFICE FOR FURTHER COOPERATION.
NO OTHER TRADE INFORMATION IS AVAILABLE AS
TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 15/02/2007.
ON 28 JUNE 2005, THE COMPANY BECAME A WHOLLY
OWNED SUBSIDIARY OF UNION STEEL HOLDINGS LIMITED, INCORPORATED IN THE REPUBLIC OF SINGAPORE
WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.
NUMBER OF EMPLOYEES (30 JUNE):
* COMPANY - 2006: NOT AVAILABLE (2005: NOT
AVAILABLE)
* GROUP
- 2006: - (2005: -)
REGISTERED AND BUSINESS ADDRESS:
33 PIONEER ROAD NORTH
SINGAPORE 629096
- OWNED PREMISE
- DATE OF CHANGE OF ADDRESS: 01/10/2004
WEBSITE:
http://www.unionsteel.com.sg
EMAIL:
info@unionsteel.com.sg
MANAGEMENT
THE DIRECTORS AT THE TIME OF THE REPORT ARE:
1) ANG YU SENG, A SINGAPOREAN
- OTHER DIRECTORSHIP(S) IN OUR DATABASE:
YLS STEEL PTE LTD
2) ANG YEW LAI, A SINGAPOREAN
- OTHER DIRECTORSHIP(S) IN OUR DATABASE:
YLS STEEL PTE LTD
Singapore’s Country Rating 2006
Investment Grade
IN SINGAPORE, THE POLITICAL
SITUATION APPEARS TO BE VERY STABLE.
ECONOMIC GROWTH IS BECOMING MORE
MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS
BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.
ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY
PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF
DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND
HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT
AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S
STRONG FINANCIAL CONDITION.
AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE
HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS
POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO
ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE
HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON
DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND
BIOTECHNOLOGIES.
ASSETS
- ONE
OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN
ITS PERFORMANCE.
- ONE
OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.
- WORKFORCE’S
EDUCATION AND SKILL LEVEL IS VERY HIGH.
- A
MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING
COMPANY, TEMASEK.
- THE
BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.
- GREAT
POLITICAL STABILITY.
WEAKNESSES
- ECONOMY
REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.
- MUST
ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER
ASIAN ECONOMIES
- REFORMS
ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.
- AGING
POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.
SOURCES: COFACE
COPYRIGHT. ALL RIGHTS RESERVED.
OVERVIEW OF SINGAPORE
PAST PERFORMANCE
SINGAPORE’S ECONOMIC GROWTH MODERATED IN THE SECOND QUARTER
TO 7.5% YEAR-ON-YEAR DUE TO A WEAKER MANUFACTURING SECTOR. PRELIMINARY
ESTIMATES ISSUED SHOWN GROWTH IN REAL GROSS DOMESTIC PRODUCT SLOWED FROM A
REVISED 10.7% IN THE FIRST QUARTER. ON A QUARTER-ON-QUARTER BASIS, SEASONALLY
ADJUSTED ANNUALISED BASIS, GDP GREW 1.1% AFTER A 7% EXPANSION IN THE PREVIOUS
QUARTER.
THE MANUFACTURING SECTOR IS FORECASTED TO HAVE
EXPANDED BY A MORE MODERATE 10.2% IN THE SECOND QUARTER, MAINLY ATTRIBUTED TO
LOWER PRODUCTION FROM THE BIOMEDICAL MANUFACTURING CLUSTER. IT FELL BY ABOUT
HALF FROM THE 20.2% IN THE FIRST QUARTER BUT HIGHER THAN THE 9.3% REGISTERED
FOR THE WHOLE OF 2005. THE MANUFACTURING SECTOR ACCOUNTS FOR ABOUT A THIRD OF
SINGAPORE’S ECONOMY WORTH S$194 BILLION.
THE KEY ELECTRONICS SECTOR IN MANUFACTURING IS GROWING
STRONGLY, AGAINST THE VOLATILE BIOMEDICAL SEGMENT. ELECTRONICS ARE SINGAPORE’S
MAIN EXPORT AND THE INDUSTRY ROSE 8.6% YEAR-ON-YEAR IN MAY, BOOSTED BY A 38.9%
GROWTH IN THE SEMICONDUCTOR SEGMENT.
THE ACTUAL FIGURES SHOWN THAT THE CONSTRUCTION SECTOR
GREW 0.2% IN THE SECOND QUARTER OVER 2Q2005. THIS IS IN CONTRAST WITH A 0.8%
DECLINE IN THE TWO PRECEDING QUARTERS AND DECLINES IN THE SIX QUARTERS BEFORE
THAT.
THE SERVICES SECTOR ACTUALLY ROSE 7% FROM A YEAR
EARLIER, SLOWER THAN THE 8.2% IN THE FIRST QUARTER BUT ABOVE THE 6% RECORDED IN
2Q2005. SERVICES INDUSTRIES, WHICH RANGE FROM HOSPITALITY TO TRANSPORT, MADE UP
NEARLY TWO-THIRDS OF THE ECONOMY LAST YEAR. THOSE IN FINANCIAL SERVICES,
PARTICULARLY BANKERS, FUND MANAGERS AND STOCKBROKERS, REPORTED STRONG GROWTH OF
9.5% FROM THE SAME PERIOD LAST YEAR AND UP FROM 8.7% IN THE PREVIOUS
QUARTER.
WHOLESALE AND RETAIL TRADE ROSE 10.1% IN THE SECOND
QUARTER, AGAINST 15.1% IN THE PREVIOUS QUARTER, AS WHOLESALERS WERE AFFECTED BY
A SLOWDOWN IN NON-OIL RE-EXPORTS.
HOTELS AND RESTAURANTS GAINED 6.1% IN THE SECOND
QUARTER SLOWER THAN 7.1% IN THE LAST QUARTER.
ON THE EMPLOYMENT MARKET, MORE JOBS WERE CREATED IN
THE SECOND QUARTER BUT UNEMPLOYMENT ROSE TO 2.9% AS MORE PEOPLE, ESPECIALLY
TERTIARY GRADUATES, ENTERED THE JOB MARKET. SOME 36,500 MORE JOBS WERE CREATED
IN THE SECOND QUARTER, REFLECTING THE CONTINUED GROWTH IN THE ECONOMY. IT
BROUGHT THE TOTAL NUMBER OF JOBS CREATED IN THE FIRST HALF OF 2006 TO A RECORD
81,500, WHICH IS ABOUT TWO-THIRDS MORE THAN THE 49,500 REGISTERED IN THE SAME
PERIOD LAST YEAR.
THE SERVICE INDUSTRY CONTRIBUTED MOSTLY TO THE JOBS
CREATION, ADDING 24,200 JODS, WHILE MANUFACTURING AND CONSTRUCTION POSTED
INCREASE OF 8,300 AND 4,000 JOBS RESPECTIVELY.
RETRENCHED WORKERS TOTAL 3,100, LOWER THAN THE 3,500
IN THE FIRST QUARTER, BUT HIGHER THAN THE 2,100 IN 2Q2005.
AHEAD
THE OUTLOOK FOR THE ECONOMY REMAINS POSITIVE, AMID
SIGNS OF A SLOWDOWN IN GLOBAL GROWTH. ON 8 AUGUST 2006, PRIME MINISTER LEE
HISEN LOONG ANNOUNCED THAT THE SINGAPORE ECONOMY GREW 9.4% IN THE FIRST HALF OF
2005. AS A RESULT, BARRING AN OIL SHOCK, THE FULL YEAR OFFICIAL FORECAST IS
BEING RAISED TO BETWEEN 6.5% AND 7.5% FOR 2006, UP FROM THE EARLIER 5 TO 7%
RANGE.
IN THE SECOND HALF, MODERATE GROWTH WILL BE REGISTERED
IN LINE WITH THE COOLING GLOBAL ECONOMY. BUT SURPRISINGLY, THE COMPOSITE
LEADING INDEX (CLI), AN INDICATOR THAT LEADS ECONOMIC ACTIVITY BY ABOUT ONE TO
TWO QUARTERS AHEAD, ROSE 1.5% IN ITS FASTEST GROWTH IN OVER TWO YEARS. CLI
COMPRISES NINE COMPONENTS SUCH AS MONEY SUPPLY, LIQUIDITY AND STOCK PRICES.
THE GLOBAL ENERGY PRICES WILL CONTINUE TO FLUCTUATE
WITH THE VIOLENCE IN THE MIDDLE EAST AND POTENTIAL SUPPLY PROBLEMS IN NIGERIA,
IRAN AND IRAQ. OTHER RISK FACTORS INCLUDE AN AVIAN FLU OUTBREAK, A SLOWDOWN IN
THE UNITED STATES ECONOMY, AND THE UNWINDING OF GLOBAL IMBALANCES SUCH AS THE
US TRADE DEFICIT.
HOTELS AND RESTAURANTS ARE BANKING ON SEPTEMBER’S
INTERNATIONAL MONETARY FUND/WORLD BANK MEETING TO MAINTAIN THE GROWTH MOMENTUM.
THE FINANCIAL SERVICES SECTOR IS HOPEFUL THAT WITH THE
PICK-UP IN BUSINESS LOANS, BILLION-DOLLAR HEDGE FUNDS RELOCATING HERE FROM HONG
KONG AND STRONG INSURANCE SALES, THE INDUSTRY WILL BE GROWING ROBUSTLY FOR THE
REST OF THE YEAR.
SLOWER 8.4% GROWTH IN NON-OIL EXPORTS LAST MONTH
SINGAPORE’S NON-OIL DOMESTIC EXPORTS (NODX) GREW AT A
SLOWER-THAN-EXPECTED 8.4% IN JULY 2006 OVER THE SAME MONTH A YEAR AGO, MAINLY
DUE TO WEAKER SHIPMENTS OF ELECTRONICS, PHARMACEUTICALS AND PETROCHEMICALS.
ELECTRONICS EXPORTS, WHICH ACCOUNTED FOR SLIGHTLY LESS
THAN HALF OF OVERALL NODX IN 2005, GREW 5% IN JULY TO S$6.62 BILLION. IT WAS
THE 12TH STRAIGHT MONTH OF EXPANSION BUT WEAKER THAN THE 9.1% GROWTH REGISTERED
IN JUNE. IT WAS HURT BY A 23% FELL IN DISK DRIVE EXPORTS, WHICH WAS BEING
VALUED AT S$843 MILLION IN JULY, AND A 21% DECLINE IN PERSONAL COMPUTER
SHIPMENTS VALUED AT S$86 MILLION.
NON-ELECTRONIC EXPORTS, WHICH CONSIST MAINLY OF
PHARMACEUTICALS AND PETROCHEMICALS, ROSE 11.7% TO S$7.14 BILLION.
PHARMACEUTICALS ROSE 7.1% TO S$1.27 BILLION IN JULY, SIGNIFICANTLY SLOWER THAN
THE JUNE’S RISE OF 25% TO S$1.45 BILLION. PETROCHEMICAL EXPORTS ROSE 11.5% TO
S$1.02 BILLION, IN COMPARISON WITH THE 32% GROWTH IN JUNE TO S$1.1 BILLION.
SHIPMENTS TO SINGAPORE’S MAJOR MARKETS SUCH AS
MALAYSIA, HONG KONG AND THE UNITED STATES GREW IN JULY BUT THESE WERE OFFSET BY
DECLINES IN OTHER DESTINATIONS, INCLUDING JAPAN, CHINA AND EUROPEAN UNION.
TOTAL TRADE IN JULY ROSE 15.9% TO ALMOST S$69
BILLION.
REGIONAL ECONOMIST SONG SENG WUN OF CIMB-GK RESEARCH
PREDICTED THAT THE TECHNOLOGY SECTOR COULD ENJOY A REBOUND IN THE COMING MONTHS
AS DEMAND TYPICALLY PICK UP WITH THE CHRISTMAS SEASON. THE TECHNOLOGY EXPORTS
WILL GROW BY THE LOW-TO-MID TEENS RANGE AS THE DISK DRIVE EXPORTS IMPROVE.
EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY,
SINGAPORE
IE SINGAPORE
THE STRAITS TIMES
TODAY
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 |
|