MIRA
INFORM REPORT
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Report Date : |
11.09.2007 |
IDENTIFICATION DETAILS
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Name : |
YEUN CHYANG INDUSTRIAL CO LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
January 31, 1973 |
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Com. Reg. No.: |
59068700 |
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Legal Form : |
Public Listed Company |
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Line of Business : |
Manufacturing of a range of stainless steel products and materials Marketing and selling to both domestic and international markets. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
Up To USD 8,000,000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
YEUN CHYANG INDUSTRIAL CO LTD
HSIANG CHANGHWA HSIEN 524,
TEL : 886- 4-8899666
FAX : 886-4-8899768
EXECUTIVE SUMMARY
INCORPORATION DATE :
JANUARY 31, 1973
REGISTRATION NO. :
59068700
LEGAL FORM :
PUBLIC LISTED COMPANY
CHIEF EXECUTIVE :
MR. CHING-KO CHANG (CHAIRMAN)
STAFF STRENGTH :
596
CAPITAL :
US$ 108,761,329
BUSINESS LINE :
MANUFACTURER
TURNOVER :
NTD 6,346,854,000 (AS OF MAR. 31, 2007)
EQUITIES :
NTD 5,756,398,000 (AS OF MAR. 31, 2007)
PAYMENT :
EXCELLENT
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
TWD 33.07096 = US$1
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 - Started
with a small factory with 30 employees.
1986 - Maintains
60 workers in its factory.
1987 - Began
direct exports of its products overseas
- Local
sales increased steadily
1989 - Relocated
its
2001 - Listed on
the
*Capital Details*
=============
Initial paid up capital
: NTD 19,800,000.00
Capital increases/decrease as follows :
Year
Amount (NTD)
------
---------------------
1983 39,600,000.00
1988
99,000,000.00
1995
149,000,000.00
1996
199,002,000.00
1998
788,000,000.00
1999
945,600,000.00
2000 1,087,440,000.00
2001
1,056,560,000.00
2003
1,117,600,000.00
2004
1,292,700,000.00
2005
1,492,860,000.00
2006
2,184,330,000.00
2007 2,698,173,100.00
*Office & Facilities*
===============
Size : 6,732
square meter (Approx)
Location : Chichou
Hsiang
Type of building : Industrial
building
Property status : Owned by
YEUN CHYANG INDUSTRIAL CO LTD
Comments : Serves as
office and factory.
Other contact details
----------------------------
Fax nos. :
4-8899783 / 8899770
E-mail addresses : ychyang@mail.yuenchyang.com.tw
philtan@mail.yeunchyang.com.tw
alex@mail.yeunchyang.com.tw
binsin@mail.yeunchyang.com.tw
jackie@mail.yeunchyang.com.tw
ychinet@ms16.hinet.net
mark@mail.yeunchyang.com.tw
cmy@mail.yeunchyang.com.tw
yftony@mail.yeunchyang.com.tw
yf@mail.yeunchyang.com.tw
ycy2@mail.yeunchyang.com.tw
yq@mail.yeunchyang.com.tw
Previous contact details
--------------------------------
(1)
Address : Ta Fa
Industrial Park
Tel no. :
7-7873411
Fax no. : 7-7872901
(2)
Address :
Fax no. :
2-22991267
(3)
Fax no. :
4-8295089
*Factories, Size & Locations*
=====================
The firm maintains two (2) manufacturing premises which includes:
Size : 1,438
square meter (Approx)
Location : Puhsin
Hsiang
Type of building : Industrial building
Property status : Owned by YEUN
CHYANG INDUSTRIAL CO LTD
Comments : Serves as factory
*Corporate & Organization Structure*
============================
A large-sized company operated and managed by an experienced team of
professionals.
*Licenses & Permits*
=================
(1)
License number : 9964602300
Date issued : 26 June,
1974
Issuing authority : Industrial
Development Bureau, MOEA
Type of license : Factory
license
(2)
License number : 9964601800
Date issued : 13
November, 2000
Issuing authority : Industrial
Development Bureau, MOEA
Type of license : Factory
license
*Industry Ranking*
===============
Generally regarded as one of the Top 1000 Companies in manufacturing
industry of
Detail of rank follow :
Year Rank
---- ----
2004 263
2005 250
2006 158
*Accountants*
===========
-
*Registrar*
=========
SINOPAC SECURITIES CO LTD
*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.yeunchyang.com.tw the
design is professional and the content is well organized. At present it is both
in Chinese and English versions.
E-mail: ys@mail.yuenchyang.com.tw
For the past two years there is no record of litigation.
*Major Shareholders*
================
Shareholders' Name No
of Shares
--------------------------
------------------
TAI CHIANG INVESTMENT CO LTD 33,446,427
Mr. Tien-shang Hsieh
2,762,812
Mr. Sung-lin Shih
1,305,576
Mr. Chin-yu Chang
788,941
Mr. Chen-hsiung Pan 180,321
Mr. Tai-shan Chen
167,379
Mr. Tony Lieh-lin Chan
119,915
Mr. Ming-hsin Hsu 119,915
Mr. Chi-hsiung Chiu
71,980
Management: Ms. Yu-hsing Huang,
Manager
Mr. Ming-yu Chen, Director
Mr. Wei-li Lee, Manager
Name Nationality
Job Description Dept. / Division
Ms. Yu-hsing Huang Taiwanese
Manager Account
Mr. Ming-yu Chen Taiwanese
Director Administration
Mr. Wei-li Lee Taiwanese
Manager Audit
Mr. Ju-chin Chang Taiwanese
Director Factory
Mr. Tony Lieh-lin Chan Taiwanese
Director Finance
Mr. Phil Wei-ming Chen Taiwanese
Director Marketing
Mr. Alex Chao-yang Chang Taiwanese
Manager Marketing
Mr. Tzu-hsing Tsai Taiwanese
Director Production
Mr. Sheng-yu Chiu Taiwanese Manager Production
Mr. Mark Han-chou Chang Taiwanese
Manager Quality Control
Mr. Ming-hsin Hsu Taiwanese
Director Sales
Mr. Chin-hsien Cheng Taiwanese
Manager Sales
Mr. Tony Chin-peng Chang Taiwanese
Manager Sales
Ms. Sandy Shu-ying Chang Taiwanese
Manager Sales
Mr. Chin-yu Chang Taiwanese
General Manager
*Key Personnel*
=============
Mr. Ching-ko Chang
Founder : Co-founder
Work experience : More than 30 years experience.
Responsibilities : Handles the
daily operation of the firm including all financials, sales and legal matters.
Resident status :
*Main Products & Services*
======================
Specializes in the following areas of work :
1. Manufacturing of a range of stainless steel products and materials
2. Marketing and selling to both domestic and international markets.
Stainless steel pipes passed the following tests:
- Hydrostatic
- Flattening
- Flaring
- Reverse Flattening
- Reverse bending
- Tension
Products: Coils, stainless steel
Gas
chromatograph
Plates, stainless
steel
Stainless steel
Stainless steel
pipes
*Brand*
======
YC
YEUN CHYANG
*Payment Terms*
=============
Sales
------
Local : 30 - 90 days credit
Cash
Export : Letter of Credit (L/C)
Telegraphic Transfer
(T/T)
Purchases
--------------
Local : 30 - 90 days credit
Import : Letter of Credit (L/C)
Telegraphic Transfer
(T/T)
Open account /DA
terms with settlement using Telegraphic Transfer (T/T)
*Machinery & Equipment*
=====================
Machinery/Equipment include:
- Pipe Making Machines
- Heat Treatment Processing Machinery
- Chamfering Machine
- Pickles
- Cutters
- Buffing Machines
*Associations*
============
Member of :
-
*Competitors*
===========
The following locally based companies supply similar range of products :
- KAI CHING INDUSTRY CORP
- TON YI INDUSTRIAL CORP
- KOOLAND IRON & STEEL WORKS LTD
- RIGHT WAY INDUSTRIAL CO LTD
- FOREVER FORTUNE STEEL CO LTD
- RAY & ROD INT'L LTD
- TRUEMARK INDUSTRIAL CORP
- CHING HAI ENTERPRISE CO LTD
- JAN METAL INDUSTRY CO LTD
- YIEH MAU CORP
*Quality Certification*
==================
Type of certification : ISO 9002
Year of certification : 1994
Certified Items :
Hardware Products and Building Materials
*Sub-contractors*
=============
Pipe fittings are sub-contracted to it's affiliate companies.
*Domestic Raw Material Supplier*
==========================
Major local suppliers include:
(1)
Company name : TANG ENG
IRON WORKS CO LTD
Material/Component : Stainless steel
Quantity supplied : 10,000 tons per year
(2)
Company name : YIEH UNITED
STEEL CORP
*Imports*
========
Products such as stainless steel are imported from
*Local Distribution Network*
=======================
Approximately 31% of the annual turnover is attributed to local sales.
*Export Markets*
=============
Approximately 69% of the annual turnover is attributed to export.
Breakdown of exports as per country is as follows:
Country % of Exports
------------
-----------------
*International Trade Ranking*
======================
The firm has been ranked among
Details of rank are as follows :
Year Rank
------ -------
1997 0081
2001 0670
2002 0757
2003 0635
2004 0360
2005 0252
*LOCAL BRANCHES & MANAGEMENT*
================================
Branch : YEUN CHYANG INDUSTRIAL
CO LTD - WUKU HSIANG
Branch Address : 2Fl
Branch Tel : [+886] 2-22991266
Branch Fax : [+886] 2-22991277
Branch Email : ychyang.ysn@msa.hinet.net
Branch Employees : 15
Branch Management
Name Job Description Nationality
Mr. Chin-hsien Cheng Manager Taiwanese
Branch : YEUN CHYANG INDUSTRIAL CO LTD - TALIAO HSIANG
Branch Address : 2Fl, 293,
Branch Tel : [+886] 7-7335568
Branch Fax : [+886] 7-7335633
Branch Email : ychyang.ysh@msa.hinet.net
Branch Employees : 13
Branch Management
Name Job Description Nationality
Mr. Tony Chin-peng Chang Manager Taiwanese
Branch : YEUN CHYANG INDUSTRIAL CO LTD - PUHSIN HSIANG
Branch Address :
Branch Tel : [+886] 4-8292226
Branch Fax : [+886] 4-8292741
Branch Email : ychyang.ym@msa.hinet.net
Branch Employees : 150
Branch Management
Name Job Description Nationality
Mr. Ju-chin Chang Manager Taiwanese
*(Subsidiaries, Joint-ventures & Affiliates)
===============================
Company Name : CHI MAO INVESTMENT CO LTD
Address :
Country :
Relationship : Affiliate
Legal Form : Private company with limited liability
Company Type : Service
Industry : Financial Services - General
PAYMENT RATING : 1 OBTAINED SCORES : 90
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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 LARGE amounts depending on individual judgement
experience.
*Bank Details*
===============
Bank Name : BANK OF
Branch : Chungcheng Dist,
Branch Address :
SWIFT Code : BKTWTWTP
Bank Name : CHANG HWA COMMERCIAL BANK LTD
Branch : Central Dist,
Branch Address :
SWIFT Code : CCBCTWTP
Bank Name : CHINA DEVELOPMENT INDUSTRIAL BANK INC
Branch : Sungshan Dist,
Branch Address : 13Fl
SWIFT Code : CDIBTWTP
Bank Name : TAIWAN COOPERATIVE BANK
Branch : Chungcheng Dist,
Branch Address :
SWIFT Code : TACBTWTP
Bank Name : TAIPEI FUBON COMMERCIAL BANK CO LTD
Branch : Chungshan Dist,
Branch Address :
SWIFT Code : TPBKTWTP
*Financial History*
==============
1989 - Obtained an estimated
monthly turnover of over NTD 30 million.
Balance Sheet
Currency : NTD
Denomination : in Thousand
2002 2003 2004 2005 2006 31 March, 2007
-------- -------- -------- -------- -------- ---------------------
Current assets
1,198,566 1,472,474 2,704,153 3,148,517 6,842,701 7,255,116
Funds & long-term
investments 415,160 268,046 209,014 219,552 291,936 343,009
Property
1,135,242 1,156,812 1,175,687 1,268,556 1,760,785 1,965,941
Intangible assets
29,673 29,147 21,722 20,620 17,184 17,184
Other assets
21,005 23,642 46,814 60,457 99,510 104,134
Total assets
2,799,646 2,950,121 4,157,390 4,717,702 9,012,116 9,485,384
Current liabilities (Before)
892,990 915,184 998,444 1,203,684 3,230,641 2,761,154
(After) 899,332 1,051,491 1,514,410 1,218,012 -- --
Long-term liabilities
452,125 413,995 526,273 710,140 571,740 860,324
Other liabilities 84,799 93,994 98,891 97,612 104,006 107,508
Total liabilities (Before)
1,429,914 1,423,173 1,623,608 2,011,436 3,906,387 3,728,986
(After) 1,436,256 1,559,480 2,139,574 2,025,764 -- --
Common stock
10,565,651 1,117,600 1,292,697 1,492,864 2,184,335 2,245,460
Capital reserve
167,549 138,659 499,018 759,356 1,114,399 1,204,153
Retained Earnings (Before)
194,206 270,389 742,067 458,649 167,071 2,172,245
(After) 187,864 134,082 226,101 444,321 -- --
Income Statement
Currency : NTD
Denomination : in Thousand
2002 2003 2004 2005 2006 31 March, 2007
-------- -------- -------- -------- -------- ---------------------
Operating revenue
3,048,519 4,384,671 7,834,940 8,663,369 16,890,165 6,346,854
Gross profit 330,605 418,618 874,608 554,404 2,187,891 653,583
Operating income
151,457 195,551 589,958 232,290 1,633,819 491,349
Non-operating income
40,293 50,321 202,769 181,821 268,379 181,554
Non-operating expense
(63,167) (39,419) (34,403) (101,246) (67,502) (34,137)
Net income 98,431 163,594 607,985 232,548 1,453,665 501,175
Earnings (losses)
per share (after) 0.85 1.46 5.09 1.37 7.73 2.3
*Financial Ratios*
==============
2002 2003 2004 2005 2006 31 March, 2007
-------- -------- -------- -------- -------- ---------------------
Ratio of liabilities to assets %
51.08 48.24 39.05 42.64 43.34 29.1
Ratio of long-term capital to
fixed assets % 160.48 167.78 260.28 269.31 322.43 374.68
Current ratio %
134.22 160.89 270.84 261.57 211.8 262.75
Quick ratio % 74.82 87.04 102.78 88.28 82.31 95.44
Interest coverage 3.29 7.84 38.28 12.74 30.44 20.25
Turnover of receivable (times)
6.01 6.93 10.04 10.57 11.85 12.44
Average collection period
of receivable 61 53 36 35 30 29
Turnover of inventories (times)
4.77 6.87 6.03 4.45 4.79 5.21
Turnover of expense (times)
52.10 54.43 42.42 41.57 46.48 51.54
Average days of sales
7 53 61 82 76 70
Turnover of fixed assets (times) 2.67 3.83 6.72 7.09 9.59 14.37
Turnover of total assets (times)
1.09 1.53 2.20 1.95 1.87 2.67
Return on total assets%
5.04 6.48 17.54 5.69 16.56 5.68
Return on shareholder's equity %
7.32 11.30 29.94 8.88 37.21 9.22
Operating income
14.33 17.50 46.43 15.56 75.24 22.49
Net income before tax
12.17 18.47 59.68 20.96 84.49 29.24
Profit margin% 3.23 3.73 7.77 2.68 8.6 7.89
Retroactive 0.70 1.20 4.17 1.37 7.73 2.3
Cash flows ratio% 26.70 15.84 (40.09) (7.08) (38.17) 8.92
Cash flows adequacy% 21.29 27.09 23.35 (11.27) (25.08) (23.35)
Cash reinvestment ratio%
10.62 5.84 (14.65) (14.24) (19.57) 3.39
Degree of operating leverage
2.37 2.14 1.45 2.12 1.23 1.18
Degree of financial leverage
1.59 1.18 1.04 1.13 1.03 1.07
*Financial Summary (Currency:
===============================
Year Sales Assets Net Income
1992 $35,437,500.00 $33,031,250.00 $743,750.00
1998 $88,740,740.74 $69,814,814.81 $2,555,555.56
2001 $80,876,378.41 $80,673,244.34 -$203,134.07
2002 $87,626,300.66 $80,472,722.05 $2,829,290.03
2003 $126,432,266.44 $85,066,926.18 $4,717,243.37
2004 $235,637,293.23 $125,034,285.71 $18,285,263.16
2005 $273,724,139.02 $149,058,515.01 $7,347,488.15
2006 $510,585,399.03 $272,433,978.23 $43,943,923.82
*Int´l Trade Activity (Currency:
=============================
Year Imports Exports Total
1992 $200,000.00 $6,800,000.00 $7,000,000.00
1996 $4,400,000.00 $14,800,000.00 $19,200,000.00
1997 $6,500,000.00 $19,100,000.00 $25,600,000.00
1998 $800,000.00 $32,100,000.00 $32,900,000.00
2004 $5,150,370.02 $100,898,443.01 $106,048,813.03
2005 $10,564,649.00 $147,586,070.02 $158,150,719.02
2006 $5,000,000.00 $161,000,000.00 $166,000,000.00
Over the past 34 years, SC has made a stable growth with satisfactory
profit. Credit dealings with SC in favorable terms can be considered.
Attached:
trade references
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 3317 Steel
Pipe & Tubes
Exporting 3441 Fabricated
structural metal products,
Exporting 3462 Iron
& steel forgings
Importing 3316 Cold-Rolled
Steel Products
Importing 3325 Steel
Foundries, NEC
Importing 3569 General industrial machinery and
equipment, and parts,
Manufacturing 3317 Steel
Pipe & Tubes
Manufacturing 3441 Fabricated
structural metal products,
Manufacturing 3462 Iron
& steel forgings
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 721913 Flat rolled
products of stainless steel of a width of
rolled
in coils; of a thickness of
Exporting 721935 Flat rolled
products of stainless steel of a width of
a
thickness of less than
Exporting 7222190000 Other
bars and rods of stainless steel, hot-rolled, other than circular cross-
section
Exporting 7222300000 Other
bars and rods stainless steel further worked than cold- formed or cold-
finished)
Exporting 7306 Tubes,
pipes & hollow profiles, iron & steel
Exporting 7306401000 Other
tubes, pipes and hollow profiles, welded, circular crs sec, of stainless steel,
having
a wall thickness of less than
Exporting 7306401015 Other
stainless steel pipes, tubes, hollow profiles, welded, circular cross section,
wall under
Exporting 7306901000 Other
tubes, pipes and hollow profiles, of iron or nonalloy steel
Exporting 7307 Tube
or pipe fittings, of iron or steel
Exporting 7307225000 Stainless
steel pipe elbows and bends
DETAILED PRODUCT CLASSIFICATION & ACTIVITY
Activity Product/Service Description
Importer Stainless
steel
Importer Steel cold and
hot rolled
Importer Gas
chromatograph
Manufacturer Tubes
Manufacturer Stainless steel
tubes
Manufacturer Stainless steel
pipes
Manufacturer Coils, stainless
steel
Manufacturer Plates, stainless
steel
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. |
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%)