MIRA INFORM REPORT

 

 

Report Date :

22.02.2011

 

IDENTIFICATION DETAILS

 

Name :

KSP CO., LTD.

 

 

Formerly Known As :

KOREA SPECIAL PRECISION CO.

 

 

Registered Office :

1658-6, Songjeong-dong, Gangseo-gu, Busan, Korea, Zip Code 618-270

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2010

 

 

Date of Incorporation :

28.06.2000

 

 

Com. Reg. No.:

606-81-27539

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Internal Combustion Piston Engines

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Exists

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

South Korea

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Basic

 

Company Name

KSP CO., LTD.

(Ex. Co. Name : KOREA SPECIAL PRECISION CO. “한국특수정밀”)

(Korean Company Name : “(주)케이에스피”)

Registered Address

1658-6, Songjeong-dong, Gangseo-gu, Busan, Korea

Zip Code

618-270

Tel

+82-51-831-6270~9

Fax

+82-51-831-6273

E-mail

kspvalve@kspvalve.com

Website

www.kspvalve.com

Trading Address

1658-6, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-831-6270~9

Fax

+82-51-831-6273

Other Address-Logistics Center

1540-4, Songjeong-dong, Gangseo-gu, Busan, Korea

Type

Export/Import

Industry

Manufacture of Internal Combustion Piston Engines

  Main Business

Forging of Metal

  Sub Business

Marine Engine Valve Spindle, Forging Products, Hardfacing Products

Established (mm/dd/yyyy)

06/28/2000

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Engine valves(26101743)

Sell

Metal forging services(73121606)

Sell

Welding and brazing and soldering services(73181900)

Sell

Valves(40141600)

Sell

Pipe flanges(40142400)

Sell

Engine valves(26101743)

Sell

Steel bars(30101604)

Sell

Plate(30102200)

Sell

Stainless steel plate(30102205)

Sell

Steel bars(30101604)

 

 

CEO’s

 

Name

Ryu Heung-Mok

Address

 

Date of Birth

11/05/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

4,722,018,500

Employees

87

Formation

Listed Company (KOSDAQ : 073010) as of 12/17/2004

A Company of HANKOOK MACHINE TOOLS CO., LTD.(

Bank Details

Busan Bank

Industrial Bank of Korea

Woori Bank

Kookmin Bank

Corporate Registered No.

180111-0328550

Business Registered No.

606-81-27539

Permit & Licenses

09/1998 ISO 9002 by BVQI

12/2001 ISO 9002 by DAS

01/2006 ISO 9001

 

Int’l Trade No.: 12076349

Shareholder Position

Name

Shares

%

HANKOOK MACHINE TOOLS CO., LTD.(194211-0000464)

4,028,000

42.65

NATIONAL PENSION 06-2 NEOPLUX CORPORATE RESTRUCTURING ASSOCIATION & OTHERS(1)

540,983

5.73

KTIC 15 HO CORPORATE RESTRUCTURING ASSOCIATION

552,050

5.85

OTHERS

4,323,004

45.77

TOTAL

9,444,037

100.00

Company History

11/15/2010 Finished the Corporate Revival Procedure decided by Busan District Court

04/15/2010 Started the dealing of the subject’s Stocks at KOSDAQ Market again

03/25/2010 Stopped the dealing of the subject’s Stocks at KOSDAQ Market

04/09/2009 Decreased capital to 2,708,018,500 KRW from 5,907,672,500 KRW

01/2009 Approved of the Corporate Revival Plan by Busan District Court

12/31/2008 Designated as ‘Watchable Stock List’ by KOSDAQ Market

07/09/2008 Approved of the Corporate Revival Procedure by Busan District Court

06/02/2008 Applied the Corporate Revival Procedure to Busan District Court due to the financial struggling from misappropriation of public money by the ex management

02/2004 Applied for a patent of shock absorption system for forging (No.10-2004-0012356)

03/2004 Became supplier of HITACHI Shipping (Korea Atomic Corporation)

07/2004 Approved of preliminary registration examination (Korea Securities Dealers Association, 2004.7.21)

07/2004 Appointed as Good Manufacture Technology Research Lab. (No.2004-33 of Ministry of Commerce, Industry and Energy)

07/2004 Authorization of Good Quality (No.2004-28 of Ministry of Commerce, Industry and Energy)

09/2004 Qualified for Forging Factory (BV)

12/2004 Listed to KOSDAQ

12/2003 Developed noise and vibration reduction system for Hot Forging Technology (Korea Institute of Industrial Technology)

03/2003 Won valve manufacture approval by MAN B&W, and Sulzer

04/2003 Approved as forging factory (RINA, LR)

06/2003 Registered as cooperator of Toshiba

07/2003 Approved of preliminary registration examination (Korea Securities Dealers Association, 2004.7.21)

09/2003 Approved as Clean Workplace by Korean Ministry of Labor

09/2003 Awarded 2003 Venture Enterpriser by the Mayor of Busan Metropolitan City

11/2003 Selected as Excellent Techno-Enterprise (Korea Technology Credit Guarantee Fund)

11/2003 Million Dollar Export Tower Award (by the Korean President)

12/2003 Industrial Innovation Awards (by Korean Ministry of Commerce, Industry and Energy)

12/2003 Certified as Innovation Business by Small and Medium Business Administration

Company History

05/2002 Increase the capital from 2.65 billion won to 3.65 billion won

06/2002 Certification of KSP Metal Technology Laboratory

10/2002 Registration of utility model of an electrode for electrical upsetting preliminary molding process (No. 02903091)

10/2002 Appointed Promising Small and Medium Sized Companies (Busan-Ulsan Small and Medium Business Center)

11/2002 Certification of Part and Material Specializing Company (Ministry of Commerce, Industry and Energy)

11/2002 Certification of Venture Company (New Technology Development section

01/2001 Receives Appreciation Plaque from Hyundai Heavy Industry for Excellent Provider

01/2001 Registration of supplier of HSD Engine

02/2001 Registration of utility model of marine engine valve

05/2001 Registration of trademark (The Korean Intellectual Property Office Reg. No. 0493834)

07/2001 Development of high corrosion resistance martensite stainless steel forging manufacturing technology (Ministry of Commerce, Industry and Energy)

08/2001 Expansion move of main office (to 1658-6 Songjusn-Dong Gangseo-Gu Busan Korea)

09/2001 Appointed Promising Small and Medium Sized Companies (Busan Bank)

12/2001 Certification of ISO9001:2000 (DAS)

12/2001 Pass Military Safety Certification for service contractors (Korean Army No. 8206)

06/28/2000 Incorporated as KSP Co., Ltd

09/01/1993 Changed company name to KOREA SPECIAL PRECISION CO.

12/1991 Established as Korea Special Welding Industry Co.

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Ryu Heung-Mok

Korean

1954.11.05

Hanyang University, Korea

Director

Mr.

Kim Duck-Yoon

Korean

1959.04.11

Gyungnam University, Korea

Director

Mr.

Sohn Byung-Young

Korean

1963.07.22

Busan National University, Korea

Auditor

Mr.

Park Kwan-Ho

Korean

1951.01.08

Dong Ah University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)12/2010

36,052,947,813

72,706,862,305

2,616,192,686

09/2010

24,528,173,428

118,949,028,550

974,010,862

2009

50,171,474,306

73,686,129,180

18,088,804,573

2008

67,067,438,569

69,322,711,255

(-)36,213,648,178

2007

46,162,695,816

65,402,632,677

(-)549,262,368

2006

30,602,804,029

44,808,876,901

5,873,365,447

2005

20,594,835,400

32,241,556,847

4,275,938,295

2004

14,752,365,470

22,297,733,198

2,894,948,971

2003

10,288,954,663

15,835,948,648

1,816,293,800

(*)The financials (2010) are released by the subject company as tentative figures as of 02/10/2011. It can be changeable by the Auditors confirmation.

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

4,722,018,500

Total Issues Shares

9,444,037

 

Balance Sheet

 

Unit : Korean Won

01/01/2010~09/30/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

118,949,028,550

73,686,129,180

69,322,711,255

Current Assets

93,973,407,937

47,479,411,564

40,908,961,567

-Quick Assets

80,127,394,158

26,963,208,407

19,817,746,890

-Inventories

13,846,013,779

20,516,203,157

21,091,214,677

Fixed Assets

24,975,620,613

26,206,717,616

28,413,749,688

-Investment

35,724,240

83,389,179

28,050,000

-Tangibles

22,365,570,674

23,496,313,357

25,231,197,116

-Intangibles

2,230,976,662

2,210,172,043

2,721,361,535

-Others

343,349,037

416,843,037

433,141,037

Total Liabilities

58,184,427,990

48,898,859,482

62,624,246,130

Current Liabilities

8,073,610,986

9,545,189,214

58,161,146,180

Fixed Liabilities

50,110,817,004

39,353,670,268

4,463,099,950

Capital Stock

4,722,018,500

2,708,018,500

5,907,672,500

Capital Surplus

53,211,406,528

20,222,086,528

17,022,432,528

Profit Surplus

-2,646,098,474

-3,620,109,336

-21,708,913,909

Capital Adjustment

5,477,274,006

5,477,274,006

5,477,274,006

Total Equity

60,764,600,560

24,787,269,698

6,698,465,125

Liab. & Shareholder’s Equity

118,949,028,550

73,686,129,180

69,322,711,255

 

Current Liabilities

8,073,610,986

9,545,189,214

58,161,146,180

Trade Payables

1,385,950,013

703,668,308

3,367,717,371

Account Payables

479,891,677

630,411,132

24,144,536,149

Withholdings

26,255,420

49,144,300

49,823,840

VAT Withhold

33,303,049

-　

-　

Advance Receipts

311,401,373

713,082,088

255,153,306

Short-Term Borrowings

-

-

24,418,235,073

Accrued Expenses

59,347,096

59,347,096

1,620,556,785

Accrued Income Tax

174,512,550

212,324,733

-

Current Portion of Long-Term Debts

-

-

3,375,305,946

Guarantee Deposit Withhold

5,000,000

5,000,000

5,000,000

Provisions for Payment Guarantee

915,312,920

915,312,920

924,817,710

Others Current Portion of Debts

4,790,209,809

6,464,831,833

-

Fixed Liabilities

50,110,817,004

39,353,670,268

4,463,099,950

Debentures

20,000,000,000

-　

　

Long-Term Borrowings

-

-

3,447,010,000

Reviving Debts

32,702,058,887

42,936,136,965

-

Provisions for Court Action

2,990,756,242

2,858,053,685

-

Long-Term Account Payables

379,646,896

475,962,146

642,500,027

Provision for Severance & Retirement

466,065,018

307,491,180

489,867,060

Non-Current Portion of Deferred Income Tax Credit

854,469,174

1,054,729,085

-

 

 

Income Statement

 

Unit : Korean Won

01/01/2010~09/30/2010

As of 12/31/2009

As of 12/31/2008

Sales

24,528,173,428

50,171,474,306

67,067,438,569

Cost of Sold Goods

19,680,409,344

38,998,591,272

60,907,857,217

Gross Profit

4,847,764,084

11,172,883,034

6,159,581,352

Selling & Admin. Expenses

2,050,867,310

2,797,000,342

4,736,073,168

Operating Income

2,796,896,774

8,375,882,692

1,423,508,184

Non-Operating Income

1,201,935,563

18,295,055,701

2,190,669,198

Non-Operating Expenses

2,617,415,006

7,672,348,688

40,166,986,147

Ordinary Income

1,381,417,331

18,998,589,705

-36,552,808,765

Special Income

-

-

-

Income Before Taxes

1,381,417,331

18,998,589,705

-36,552,808,765

Income Taxes Expenses

407,406,469

909,785,132

-339,160,587

Net Income

974,010,862

18,088,804,573

-36,213,648,178

 

 

Cash Flows

 

Unit : Korean Won

01/01/2010~09/30/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

10,733,746,533

13,525,805,979

7,117,414,259

-Net Income

974,010,862

18,088,804,573

-36,213,648,178

-Exp. without Cash Outflow

2,981,929,822

7,866,435,969

37,719,184,556

-Revenue without Cash Inflows

-218,971,840

-17,312,972,354

-424,765,824

-Changes in Asset/ & Liability

6,996,777,689

4,883,537,791

6,036,643,705

Cash Flows from Investing

-10,853,367,689

-7,422,546,443

-29,014,557,896

-Cash Inflow from Investing

20,454,854,964

31,125,180,796

23,151,328,570

-Cash Outflows for Investing

-31,308,222,653

-38,547,727,239

-52,165,886,466

Cash Flows from Financing

43,248,477,830

-215,157,352

23,010,137,723

-Cash Inflows from Financing

55,044,768,000

90,057,400

61,555,659,700

-Cash Outflows from Financing

-11,796,290,170

-305,214,752

-38,545,521,977

Increase/Decrease in Cash

43,128,856,674

5,888,102,184

1,112,994,086

Cash at the Beginning of Year

8,706,678,832

2,818,576,648

1,705,582,562

Cash at the End of Year

51,835,535,506

8,706,678,832

2,818,576,648

 

Products, Technologies, Services Description

 

Main Products & Services

Ship Engine Valve

-Valve for middle-sized engine

 

Forging

-Flange

-Ring Gear

 

Hardfacing

-Welding Repair

-Axial Pump Sleeve

-Cold Pilfering Roller

-Seat Ring

-Power Plant Turbine Sleeve

-Valve Repair Welding

-Gate Disc

-Axial Pump Sleeve

Annual Production Capacity (Unit : EA)

Item

2008

2007

2006

FLANGE

29,800

32,500

32,500

RING GEAR

40,650

48,750

37,500

 

 

Trade Partners & Competitors

 

Suppliers

SAMSUNG CARD CO., LTD.(110111-0346901) provides CNC Turning Center 2EA to the subject company by leasing base.  HYUNDAI CAPITAL SERVICES, INC.(110111-0995378) provides the vehicles leasing service to the subject company.

 

POSCO SPECIALTY STEEL CO., LTD.(194211-0025248)

BAOSHAN IRON & STEEL(CHINA)

BOHLER(AUSTRIA)

ALLVAC(USA)

SANDVIC

ACCERARABA

DELORO STELLITE GMBH

Customers

HYUNDAI HEAVY INDUSTRIES CO., LTD.(181211-0000386)

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD.(194211-0000943)

DOOSAN INFRACORE CO., LTD.(120111-0234469)

HYUNDAI-ROTEM COMPANY(194211-0036336)

KOREA NAVY

Competitors

S&W CORPORATION(180111-0095637)

KOREA FLANGE CO., LTD.(181211-0000443)

DAECHANG FORGING CO., LTD(180111-0039396)

 

NZK(JAPAN)

NITTAN VALVE(JAPAN)

MWH(GERMANY)

DAIDO(JAPAN)

BOHLER(AUSTRIA)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HANKOOK MACHINE TOOLS CO., LTD.(194211-0000464)

HANKOOK PRECISION IND.CO.,LTD.( 190111-0011855)

IL HEUNG METAL CO., LTD.(194311-0001014)

HANKOOK MACHINE TOOLS SERVICES CO., LTD.(194211-0063157)

RYU JIN WON DEVELOPMENT CO., LTD.(110111-0997572)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2010

2009

2008

Export

14,457

33,289

37,057

Domestic

10,098

16,882

30,010

Total

24,528

50,171

67,067

The Subject deals with the companies in Austria, China, Italy, Swiss, Japan and USA.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

2009GAHAP269

 

The Subject Company

KYOBO SECURITIES CO.,LTD.(110111-0018089)

Related to the confirmation of the Receivables by the Court

5,053,698,630

The Subject has been defeated.

2010NA2732

 

Choi Kyu-Ho

The Subject Company

Related to the confirmation of the Receivables by the Court

4,500,000,000

The Subject Company won.

2010NA2725

 

Choi Kyu-Ho

The Subject Company

Related to the confirmation of the Receivables by the Court

3,500,000,000

The Subject Company won.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.11

UK Pound

1

Rs.73.25

Euro

1

Rs.61.70

 

 

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

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

 

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%)

 

 

 

 

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