MIRA
INFORM REPORT
|
Report Date : |
29.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TAIWAN PROSPERITY CHEMICAL CORP |
|
|
|
|
Registered Office : |
9FL Taiwan Cement Bldg 113 Chung Shan North Rd, Section 2
Chungshan Dist Taipei City 104, |
|
|
|
|
Country : |
Taiwan |
|
|
|
|
Financials (as on) : |
2006 |
|
|
|
|
Date of Incorporation : |
28.05.1991 |
|
|
|
|
Com. Reg. No.: |
86120031 |
|
|
|
|
Legal Form : |
Public Listed Company |
|
|
|
|
Line of Business : |
Importing a wide range of phenol raw materials |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 5,000, |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
COMPANY NAME & ADDRESS
TAIWAN PROSPERITY CHEMICAL CORP
9FL TAIWAN CEMENT BLDG 113 CHUNG SHAN NORTH RD, SECTION 2 CHUNGSHAN DIST TAIPEI CITY 104, TAIWAN
TEL: 886-2-25633228
FAX: 886-2-25635181
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 28, 1991
REGISTRATION NO. : 86120031
LEGAL FORM : PUBLIC LISTED COMPANY
CHIEF EXECUTIVE : MR. YUAN-SHUN HSU (MANAGER)
STAFF STRENGTH : 163
CAPITAL : US$ 120,700,060
BUSINESS LINE : MANUFACTURER
TURNOVER : NTD 13,351,848,000 (AS OF 2006)
EQUITIES : NTD 4,586,332,000 (AS OF 2006)
PAYMENT : ABOVE AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 5,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
TWD 32.30584 = 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 –Taiwan New Dollars
*Company History*
===============
2 October, 2007 - Listed on the Taiwan Stock Exchange.
*Licenses & Permits*
=================
License number : 9966182901
Date issued : 16 January, 1995
Issuing authority : Industrial Development Bureau, MOEA
Type of license : Factory license
*Capital Details*
=============
Authorized capital : NTD 4,000,000,000.00
Paid-up capital : NTD 2,919,750,000.00
*Office & Facilities*
===============
Size : 1,370 sq. meters (Approx.)
Location : Center Business District (CBD)
Property status : Rented
Type of building : Commercial building
Comment : Premises is shared with an affiliated company, TCC INFORMATION SYSTEMS CORP.
*Factories, Size & Locations*
======================
Size : 9,187 sq. meters (Approx.)
Location : Kaohsiung Hsien
Type of building : Industrial building
Property status : Owned by TAIWAN PROSPERITY CHEMICAL CORP
*Corporate & Organization Structure*
============================
A medium-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
------ -------
2004 193
2005 182
2006 187
*Sales Ranking*
============
Generally regarded as one of the Top 500 Companies in terms of sales.
Details of rank are as follows:
Year Rank
------ -------
1996 291
1997 278
1998 244
*Reputation*
==========
Reference checking for the purpose of establishing the firm's reputation within the respective industry failed to reveal any negative information.
*Auditors*
=========
DELOITTE & TOUCHE
*Registrar*
=========
CHINA TRUST COMMERCIAL BANK
Web site: www.taiwancement.com/shin the design is professional and the content is well organized. At present it is in Chinese version.
E-mail: charles@tpcc.com.tw
For the past two years there is no record of litigation.
SC’s shareholder details are not available at present.
Management: Mr. Chih-pin Yang, Supervisor
Mr. Yuan-shun Hsu, Manager
Mr. Ching-tien Wu, Director
Name Nationality Job Description Dept. / Division
Mr. Chih-pin Yang Taiwanese Supervisor Account
Mr. Yuan-shun Hsu Taiwanese Manager Administration
Mr. Ching-tien Wu Taiwanese Director Factory
Mr. Chang-ching Liu Taiwanese Manager Finance
Ms. Miao-yu Lee Taiwanese Manager Sales
Mr. Chih-feng Lin Taiwanese Auditor -
Mr. Wen-cheng Hsieh Taiwanese Chief -
Mr. Fu-lung Chen Taiwanese General Manager -
Mr. Ming-jen Huang Taiwanese Manager -
Mr. Li-chien Lu Taiwanese Vice General Manager -
Mr. Shih-lung Huang Taiwanese Vice General Manager -
*Main Products & Services*
=====================
Specializes in the following areas of work:
1. Importing a wide range of phenol raw materials.
2. Research and development of technologies related to isopropyl, phenol and other chemical products.
3. Manufacturing of various types of chemical products.
4. Selling of products to domestic and international markets.
Products: Acetone
Air compressor
Aluminium chloride
Benzene
Cenfrifugal pumps
*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 TelegraphicTransfer (T/T)
*Competitors*
===========
The following locally based companies supply similar range of products :
- DAIGIN CHEMICAL CO LTD
- MERCK ELECTRONIC CHEMICALS LTD
- CHANG CHUN PETROCHEMICAL CO LTD
- HANDY CHEMICAL CORP
*Domestic Raw Materials Suppliers*
============================
Major local suppliers include:
- CHINA PETROCHEMICAL DEVELOPMENT CORP
- TAIWAN POLYPROPYLENE CO LTD
- TASCO CHEMICAL CORP
- CHIENG SHYONG MACHINERY CO LTD
- CHINA STEEL CHEMICAL CORP
*Domestic Customers*
==================
Major local customers include:
- CHANG CHUN PLASTICS CO LTD
- CHIMEI-ASAHI CORP
- METHYL CO LTD
*Local Distribution Network*
=======================
Approximately 52% of the annual turnover is attributed to local sales.
*International Trade Activity*
=======================
Note : At the time of preparing this report, the Ministry of Economic Affairs had not yet released trade figures for 2007.
*Export Markets*
=============
Approximately 48% of the annual turnover is attributed to export.
*International Trade Ranking*
=======================
The firm has been ranked among Taiwan's Top Importers/Exporters based on the standard measured by the Board of Foreign Trade (BOFT).
Details of rank are as follows:
Year Rank
------ -------
2001 301
2002 290
2003 208
2004 174
2005 150
2006 149
SC is not known to have
any subsidiary at present.
PAYMENT RATING : 2 OBTAINED SCORES : 80
|
Rating Key |
Implication |
Implications |
|
1 |
Scores 85–100 |
Excellent |
|
2 |
Scores 75 – 84 |
Above Average |
|
3 |
Scores 50 – 74 |
Average |
|
4 |
Scores 35 – 49 |
Fair |
|
5 |
Scores 15 – 34 |
Below Average |
|
6 |
Scores 01 – 14 |
Poor |
|
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 : CHINATRUST COMMERCIAL BANK LTD
Branch : Chungshan Dist,Taipei City
Branch Address : 16 Nanking East Rd Section 1
SWIFT Code : CTCBTWTP
Balance Sheet
Currency :
NTD
Denomination : in Thousands
2002 2003 2004
2005 2006
--------- --------- --------- ---------
---------
Current assets 1,611,654 2,990,527 3,457,897
3,191,230 3,692,325
Funds &
long-term investments 2,150 2,150
2,150 - -
Property 2,448,739 2,015,119 1,918,869
2,441,676 2,999,601
Intangible
assets 4,820 4,419 4,017 -
1,902
Other assets
191,464 175,623 153,023 119,429
92,514
Total assets
4,258,827 5,187,838 5,535,956 5,752,335
6,786,342
Current liabilities
(Before)
1,129,986 1,615,916 1,479,963 1,688,920
1,291,641
(After) 1,419,536 2,259,316 2,387,268 1,688,920 -
Long-term
liabilities - - - - 800,000
Other
liabilities
67,371 89,109 105,756
93,337 108,369
Total liabilities
(Before)
1,197,357 1,705,025 1,585,719 1,782,257
2,200,010
(After) 1,486,907 2,348,425
2,493,024 1,782,257 -
Common stock
2,689,750 2,689,750 2,689,750 2,689,750
2,689,750
Retained earnings
(Before)
373,924 807,758 1,279,702 1,280,328
1,839,180
(After) 84,374 164,358 372,397
1,280,328 -
Income Statement
Currency : NTD
Denomination : in
Thousands
2002 2003 2004 2005
2006
--------- --------- ---------
--------- ---------
Operating
revenue 5,130,545 7,231,865 10,652,425 12,261,558 13,351,848
Gross profit
560,212 1,074,187 1,765,385 1,557,921
1,169,645
Operating
income 369,311 863,621 1,542,690
1,266,476 857,695
Non-operating
income 7,593 5,405 3,562
41,126 9,524
Non-operating
expense
24,153 19,642 55,908 107,770
66,367
Net income
318,277 723,384 1,115,344 907,931
558,852
Earnings (losses)
per share (After) 1.18 2.69 4.15
3.38 2.08
*Financial Ratios*
==============
Year Net Worth Net Worth
Return on Return on Return on Return on
Debt to
(NTDM) (NTD100 M)
Sales (%) Assets(%) Equity(%) Net Worth (%)
Assets(%)
------- ------------------ -------------
------------- ------------ ------------ ------------------
------------
1998 2,395.00 11.84 8.59 20.21 57.48
2001 27.74 1.36 1.36 2.09 35.02
2002 2003 2004 2005
2006
--------- --------- ---------
--------- ---------
Ratio of liabilities
to Assets %
28.11 32.87 28.64 30.98
32.42
Ratio of long-term
capital to fixed Assets%
125.02 172.83 205.86 162.60
179.57
Current ratio%
142.63 185.07 233.65 188.95 285.86
Quick ratio% 107.36 163.03 175.19
159.77 247.41
Interest
coverage 19.49 111.50
341.86 211.52 21.28
Turnover of
receivable (times) 8.03 9.75
10.15 10.05 9.28
Average collection
period of receivable 45 37 36 36
39.34
Turnover of
inventories (times)
16.45 20.30 21.02 21.47
25.92
Turnover of expense (times) 16.72 17.73 19.16
22.04 20.08
Average days of
sales 22 18 17 17 14.08
Turnover of fixed
assets (times)
2.10 3.59 5.55 5.02
4.45
Turnover of total
assets (times)
1.20 1.39 1.92
2.13 1.97
Return on total
assets% 7.47 13.94 20.15
15.78 8.23
Return on
shareholder's Equity%
10.40 22.77 28.23 22.87
12.19
Operating
Income 13.73 32.11 57.35
47.09 31.89
Net Income before
tax 13.11 31.58
55.41 44.61 29.77
Profit margin% 6.20 10.00 10.47
7.40 4.19
Retroactive 1.18 2.69 4.15 3.38 2.08
Cash flows ratio% 81.37 95.91 90.76 107.51 53.59
Cash flows adequacy% 319.01 304.01 189.21 144.79 125.39
Cash reinvestment ratio% 12.79 16.10 8.43 10.39 6.00
Degree of operating
leverage
2.71 1.77 1.47 1.55
1.51
Degree of financial
leverage 1.05 1.01 1.00
1.00 1.05
*Financial Summary
(Currency: U.S. $'s)
=============================
Year Sales Assets
Net Income
1998 $151,407,407.41 $208,629,629.63 $88,703,703.70
2001 $124,027,858.39 $123,882,762.62 $1,683,110.85
2002 $147,471,830.99 $122,415,263.01 $9,148.52
2003 $208,531,286.04 $149,591,637.83 $20,858,823.53
2004 $320,373,684.21 $166,494,917.29 $33,544,180.45
2005 $387,410,995.26 $181,748,341.23 $28,686,603.48
2006 $403,622,974.61 $205,149,395.41 $16,893,954.05
Int´l Trade Activity
(Currency: U.S. $'s)
==============================
Year Imports Exports
Total
1996 $23,100,000.00 $47,700,000.00 $70,800,000.00
1997 $18,400,000.00 $36,400,000.00 $54,800,000.00
1998 $15,200,000.00 $43,000,000.00 $58,200,000.00
2004 $115,472,169.95 $192,840,294.74 $308,312,464.69
2005 $76,108,618.01 $195,912,324.01 $272,020,942.02
2006 $79,953,343.02 $146,727,912.82 $226,681,255.84
Over the past 17 years, SC has made a
stable growth with satisfactory profit. It is considered a credit line up to
USD 5,000,000 appears to be within SC’s capacities.
Attached: trade references
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 2800 Chemicals
and Allied Products
Exporting 2899 Chemical
preparations,
Importing 3500 Industrial
Machinery & Equipment
Importing 3561 Pumps
and pumping equipment, except fluid power pumps
Importing 3563 Air
and gas compressors, and parts and attachments, nspf
Importing 3586 Measuring
and dispensing pumps for liquids; and force-feed, pneumatic, hand-held lubricating
equipment, and parts,
Importing 5169 Chemicals/Allied
Prdts, NEC
Manufacturing 2800 Chemicals
and Allied Products
Manufacturing 2869 Industrial
organic chemicals,
Manufacturing 2899 Chemical
preparations,
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 2902700000 Cumene
Exporting 2902909500 Cyclic hydrocarbons not elsewhere specified or included
Exporting 2907110000 Phenol (hydroxybenzene) and its salts
Exporting 2907230000 4,4'-isopropylidenediphenol (bisphenol a, diphenylolpropane)
and its salts
Exporting 2914110000 Acetone (propanone)
Exporting 2914221000 Cyclohexnone
Exporting 3800 Miscellaneous
chemical products
Exporting 3823905050 Chemical products and preparations of the chemical or allied
industries
Exporting 3903900000 Polymers of styrene, in primary forms
Importing 2827320000 Aluminum chloride
DETAILED PRODUCT
CLASSIFICATION & ACTIVITY
Activity Product/Service Description
Importer
Hydrocarbons
Importer Reaction
initiators
Importer Vacuum
pumps
Importer Distillery
plants
Importer Centrifuges
Importer Heat exchange
units
Importer Air
compressor
Importer Cenfrifugal
pumps
Importer Cumene
Importer Aluminium
chloride
INTERNATIONAL
TRADE: ACTIVITY & MARKETS
Exporting to Asia
Exporting to Australia
Exporting to Bahrain
Exporting to Chile
Exporting to China
Exporting to Egypt
Exporting to Europe
Exporting to Hong Kong
Exporting to India
Exporting to Indonesia
Exporting to Iran
Exporting to Israel
Exporting to Italy
Exporting to Japan
Exporting to Malaysia
Exporting to Middle East
Exporting to Netherlands
Exporting to Nigeria
Exporting to North America
Exporting to Oceania
Exporting to Pakistan
Exporting to Philippines
Exporting to Singapore
Exporting to South Korea
Exporting to Sri Lanka
Exporting to Thailand
Exporting to Turkey
Exporting to UAE
Exporting to USA
Exporting to Vietnam
Importing from Asia
Importing from Brazil
Importing from China
Importing from Europe
Importing from India
Importing from Indonesia
Importing from Iran
Importing from Japan
Importing from Middle East
Importing from North America
Importing from Singapore
Importing from South Korea
Importing from USA
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%)