MIRA INFORM REPORT
|
Report Date : |
16.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
P.T. CHEIL JEDANG |
|
|
|
|
Registered Office : |
Menara Jamsostek, 21st Floor, Jalan Jend. Gatot Subroto Kav. 38, Jakarta
Selatan, 12710 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
28.10.1996 |
|
|
|
|
Com. Reg. No.: |
No. AHU-29907.AH.01.02.Tahun 2011 |
|
|
|
|
Legal Form : |
Limited
Liability Company |
|
|
|
|
Line of Business : |
MSG, Lysine and
L-Threonine and Nucleid Acid Manufacturing |
|
|
|
|
No. of Employees
: |
1176 |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
US$ 168 million
|
|
|
|
|
Status : |
Good |
|
|
|
|
Payment
Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Indonesia |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
P.T. CHEIL JEDANG
INDONESIA
Head Office
Menara Jamsostek,
21st Floor
Jalan Jend. Gatot Subroto Kav. 38
Jakarta Selatan, 12710
Indonesia
Phones -
(62-21) 5299 5000 (Hunting)
Fax - (62-21) 5299 5192-4
Building Area - 28 storey
Office Space - 400 sq. meters
Region - Commercial
Status - Rent
Factory I
Jalan Raya Brantas Km. 3.5
Desa Jati Gedong, Kecamatan Ploso
Kabupaten Jomang
61453
East Java
Indonesia
Phones -
(62-321) 887700 (Hunting)
Fax - (62-321) 887711
Land Area - 320,000 sq.
meters
Building Area - 220,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Factory II
Desa Arjosari, Kecamatan Rejoso
Pasuruan 67101, East Java
Indonesia
Phones -
(62-343) 482333 (Hunting), 401333
Fax - (62-343) 482768, 482788
Land Area - 310,600 sq.
meters
Building Area - 180,000 sq.
meters
Region - Industrial
Zone
Status - Owned
28 October 1996
P.T. (Perseroan
Terbatas) or Limited Liability Company
The Ministry of Law and Human Rights
- No.
C-230871.HT.01.04.TH.2004
Dated 22 December 2004
- No.
AHU-54920.AH.01.02.TH.2008
Dated 25 August 2008
- No.
AHU-AH.01.10-03817
Dated 16 April 2009
- No.
AHU-29907.AH.01.02.Tahun 2011
Dated 15 June 2011
Foreign
Investment Company (PMA)
a. The Department of Finance
NPWP No. 01.071.816.1-057.000
b. The Capital Investment Coordinating Board
- No.
739/I/PMA/1996
Dated 2 October 1996
- No. 463/III/PMA/1999
Dated 26 April 1999
-
No. 172/II/PMA/2000
Dated 26 July 2000
- No. 1211/III/PMA/2004
Dated 6 December 2004
- No. 120/II/PMA/2005
Dated 11 May 2005
- No. 65/II/PMA/2006
Dated 9 March 2006
a. P.T. AGROBIS
PANCA EKATAMA (Day Old Chicks Farming)
b. P.T. BUMI
TAPIOKA JAYA (Tapioca Manufacturing)
c. P.T. CHEIL
JEDANG SUPERFEED (Animal Feed Milling)
d. P.T. CJ FEED
JOMBANG (Animal Feed Milling)
e. P.T. SUPER
UNGGAS JAYA (Poultry)
Capital
Structure :
Authorized Capital - US$ 107,911,000.-
Issued Capital - US$ 107,911,000.-
Paid up Capital - US$ 107,911,000.-
Shareholders/Owners
:
a. CJ CHEIL
JEDANG CORP., of Korea - US$
107,910,000.- (99,999%)
Address : 12 Floor, CJ Building
500,
5-GA,
Namdaemoon-Ro, Ciang-Ku
South
Korea
b. CJ CHINA
LTD., of China -
US$ 1,000.- (
0.001%)
Address : Suite 1 R/F New Henry
House
10 Ice House
Street
China
Lines of
Business :
a. MSG, Lysine
and L-Threonine and Nucleid Acid Manufacturing
b. Investment
Holding
Production
Capacity :
a. MSG/GA - 20,000 tons p.a.
b. L-lysine HCL - 140,000 tons
p.a.
c. Liquid Organic
Fertilizers - 594,090 tons
p.a.
d. Solid Organic
Fertilizers - 279,000 tons
p.a.
e. Cell Protein - 30,000 tons p.a.
f. Gypsums - 8,600 tons p.a.
g. Humus - 4,000 tons p.a.
h. Animal Feeds - 240,000 tons
p.a.
i. L-Threonine - 40,000 tons p.a.
j. Food Seasoning - 1,500 tons p.a.
k. Guanosine
Monophospats - 2,500 tons p.a.
l. Inosine
Monophospats - 1,000 tons p.a.
m. Dextrose (SOD) - 890,000 tons p.a.
Total
Investment :
a. Equity Capital - US$ 102.2
million
b. Loan Capital - US$ 298.5
million
c. Total
Investment - US$
400.7 million
Started
Operation :
1998
Brand Name :
JCITIDE
Technical
Assistance :
CHEIL JEDANG
CORPORATION of South Korea
Number of
Employee :
1,176 persons
Marketing Area
:
Export - 90%
Local -
10%
Main Customers
:
Buyers in Asia
Pacific, Europe Union and the USA
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. AJINOMOTO
INDONESIA
b. P.T. AJINEX INDONESIA
c. P.T. MIWON INDONESIA
d. P.T. SASA INTERNATIONAL
e. Etc.
Business Trend
:
Growing
Bankers :
a. P.T. Bank WOORI INDONESIA
Jalan Jenderal Sudirman Kav.
52-53
Jakarta
Selatan
Indonesia
b. P.T. Bank DANAMON INDONESIA Tbk
Jalan Raya Darmo No. 59
Surabaya,
East Java
Indonesia
c. P.T. Bank KEB INDONESIA
Jalan Jend. Sudirman No. 28
Jakarta Pusat
Indonesia
Auditor :
Tanudiredja,
Wibisana & Rekan (a member of PWC)
Litigation :
No litigation
record in our database
Annual Sales :
2009 – US$. 801.4 million
2010 – US$.
1,344.3 million
2011 – US$.
1,550.0 million (Estimated)
Net Profit
(Loss) :
2009 – US$. 41.0
million
2010 – US$. 72.7
million
2011 – US$. 83.0
million (Estimated)
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Jeong Tae Jin
Vice President Directors -
a. Mr. Lim Seung Ho
b. Mr. Son Young
Director -
Mr. Jeong Hwan Kim
Board of Commissioners :
President Commissioner -
Mr. Ha Dae Joong
Commissioners -
a. Mr. Lee Jay Hyun
b. Mrs. Man Jo Kim
c. Mr. Kim Chul Ha
d. Mr. Bernard Kent Sondakh
Signatories :
President Director (Mr. Jeong Tae Jin) or one of the Vice
President Directors (Mr. Lim
Seung Ho or Mr. Son Young) or Director (Mr. Jeong Hwan Kim) which must be
approved by Board of Commissioners.
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Below average
Credit Recommendation :
Credit can be proceeded normally
Proposed
Credit Limit :
Moderate amount
Maximum Credit Limit :
US$ 168 million
on 90 days D/A
P.T. CHEIL JEDANG INDONESIA (P.T. CJI) was established in October 1996 in Surabaya, East Java with the authorized capital of US$ 15,000,000 entirely issued and paid up. The founding shareholders are CHEIL JEDANG CORPORATION (90%) of South Korea and P.T. CHEIL SAMSUNG INDONESIA (10%). The articles of association of the company have frequently been revised. In December 2004, its holding company P.T. CHEIL SAMSUNG INDONESIA was merged into P.T. CJI and concurrently the authorized capital of the company was raised to US$ 102,225,000 wholly issued and paid up. Since the merging of P.T. CHEIL SAMSUNG INDONESIA into P.T. CJI, whole properties, assets, liabilities, employees and businesses of P.T. CHEIL SAMSUNG INDONESIA ware taken over by P.T. CHEIL JEDANG INDONESIA and since that time P.T. CHEIL SAMSUNG INDONESIA was dispersed by law without prior liquidation. At the same time, whole shares of the company were controlled by CHEIL JEDANG CORPORATION of South Korea (99.99%) and CHEIL JEDANG CHINA LIMITED of China (0.01%).
The latest in May 2011, the authorized capital was raised again to US$ 107,911,000.- entirely was issued and paid up. Concurrently, the latest shareholders of the company are CJ CHEIL JEDANG CORPORATION of South Korea (99.999%) and CJ CHINA LIMITED of China (0.001%). The latest amendment to articles of association was made by Mr. I Gede Buda Gunamanta, SH., a public notary in Jakarta and it was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-03817, dated April 16, 2009 and No. AHU-29907.AH.01.02.Tahun 2011 dated June 15, 2011.
P.T. CJI obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with food seasoning and animal feed processing. P.T. CJI the first CJ Group`s investment in Indonesia has demonstrated itself as one of the biggest producer of Lysine, MSG and L-Threonine in the world. Located in Pasuruan, East Java, the area`s abundant natural resources and good infrastructure add to the growing success of P.T. CJI, with four times lysine production capacity expansion ended in 1995 and 1998. Located in Jombang of East Jawa region, P.T.CJI is the second largest manufacturer of nucleic acid in the world. Nucleic acids have put Cheil Jedang on the globe, and its manufacturing technology has been further refined and developed in PT.CJI.
The plant is equipped with the most modern and sophisticated facilities and hopes to add amino acid, a promising product for the future, to its product portfolio. Thus, in the near future, it will become CJ Indonesia’s second amino acids complex, following P.T.CJI in Pasuruan. Currently, P.T.CJI manages a massive manufacturing complex, armed with latest technology practices and the most skillful resources. Its plant is located at Jalan Raya Brantas Km. 3.5, Jati Gedong Village, Ploso, Jombang on a land of 32.0 hectares. According to its license, the plant has annual production capacity of 1,500 tons of food seasoning, 2,500 tons of guanosine and 1,000 tons of inosine monophospats. The plant has been in operation since July 1998 with an investment of US$ 75.4 million coming from own capital of US$ 15.0 million and the rest from loans. Mr. Heri, a staff of the company said that the company just produces food seasoning such as IMP, GMP and I & G.
In December 2004, since the merging of P.T. CHEIL SAMSUNG INDONESIA into P.T. CJI, the company operates a plant of P.T. CHEIL SAMSUNG INDONESIA located in Arjosari Village, Rejoso, Pasuruan, West Java on a land of 31.6 hectares. The plant has been in commercial operations in 1990 and expanded for a couple of times to increasing production capacity. The plant produces of 20,000 tons of monosodium glutamate (MSG)/glutamate acid (GA), 140,000 tons of L-Lysine HCL, 10,000 tons of L-Threonine, 594,000 tons of Liquid Organic Fertilizer, 279,650 tons of Solid Organic Fertilizer, 240,000 tons of chicken feed mill, 30,000 tons of cell protein, 8,600 ton of gypsum and 4,000 ton of humus. The main products are Lysine, MSG/GA and chicken feed. The company's product in the form of Lysine uses the L-Lysine HCL brand, its MSG uses the MIPUNG brand for the local market and MIPOONG for the export market, while its chicken feed uses the SUPERFEED brand. Some 90% of the company products is exported to Asia, Europe and the USA using JCITIDE brand and the remaining 10% being marketed in the country. Meanwhile, chicken feed, liquid and solid organic fertilizer are entirely marketed in the country.
P.T. CJI is also engaged in vestment holding by controlling 99.99% shares of CJ Do Brasil Industria Commercio de Produtos Alimenticios (Brazil) dealing with production and sale of foodstufts and other chemical products, and 100% shares of CJ International Asia Pte., Ltd., (Singapore) dealing with trading. We observed that P.T. CJI is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.
We find that the demand for MSG (Monosodium Glutamate) has fluctuated in the last five years in line with the fluctuating domestic animal feed production under the impact of the economic and monetary crisis in Indonesia since end 1997. Up to now the domestic MSG production has been largely for the consumption of the animal feed industry. Competition is very tight in the MSG business on account of the many brands of this commodity being available in the domestic market, including Ajinomoto, Sasa, Miwon, Mikimoto, Indomoto, Intimoto and others. Meanwhile, the company's Lysine production faces strong competition from comparable products of the USA and Japan. Generally, the business position of P.T CJI is favorable for having wide marketing networks in the country. The company is the largest animal feed industry in Indonesia. The operation of the company is backed up by the CHEIL JEDANG Group based in South Korea.
According to the financial statement of the company being audited by Tanudiredja, Wibisana & Rekan, a Public Accountant, that sales turnover of the company in 2009 amounted to US$ 801.4 million with a net profit of US$ 41.0 million increased to US$ 1,334.3 million with a net profit of US$ 72.7 million in 2010. We estimated the total sales turnover in 2011 amounted to US$ 1,550.0 million with a net profit of US$ 83.0 million. We note that P.T. ISI is supported by a financially strong and healthy foreign partner. So far, we have never heard of the company having been black listed by the Central Bank (Central Bank) and registered in the court for detrimental cases. Financial Statement of the company as of 31 December 2009 and 2010 are below:
(Expressed
in US Dollars)
|
DESCRIPTION |
2010 |
2009 |
|
ASSETS |
|
|
|
Current Assets |
|
|
|
- Cash and cash equivalents |
114,871,878 |
49,593,064 |
|
- Trade receivables |
120,333,483 |
168,283,359 |
|
- Other receivables |
609,193 |
1,263,448 |
|
- Prepaid expenses and advances |
6,139,235 |
9,464,962 |
|
- Inventories |
98,787,648 |
47,902,715 |
|
- Derivative receivables |
220,611 |
1,182,063 |
|
- Prepaid taxes |
26,722,007 |
11,009,390 |
|
- Other current assts |
15,198 |
1,655,738 |
|
Total current Assets |
367,699,253 |
290,354,739 |
|
Non-current assets |
|
|
|
- Investment |
191,447 |
191,447 |
|
- Prepaid Taxes |
35,058,748 |
35,857,876 |
|
- Fixed assets |
364,419,395 |
344,600,430 |
|
- Refundable deposits |
1,962,424 |
1,873,745 |
|
- Other non-current assets |
1,109,448 |
1,619,060 |
|
Total Non-current Assets |
402,741,462 |
384,142,558 |
|
TOTAL ASSETS = TOTAL LIABILITIES
AND EQUITY |
770,440,715 |
674,497,297 |
|
LIABILITIES |
|
|
|
Current Liabilities |
|
|
|
- Trade payables |
151,994,532 |
131,776,450 |
|
- Other payables |
8,306,419 |
13,811,082 |
|
- Taxes payables |
20,552,632 |
3,371,638 |
|
- Accrued expenses |
18,386,419 |
26,885,529 |
|
- Derivative payable |
459,505 |
3,517,799 |
|
- Bank loans |
287,782,585 |
191,498,984 |
|
Total Current Liabilities |
487,482,092 |
370,861,482 |
|
Non-current Liabilities |
|
|
|
- Bank loans |
-- |
93,981,191 |
|
- Deferred tax liabilities, net |
36,851,890 |
34,101,654 |
|
- Derivative payable |
-- |
1,899,402 |
|
- Employee benefits obligation |
1,798,949 |
1,363,017 |
|
Total Non-current Liabilities |
38,650,839 |
131,345,264 |
|
- Minority Interest |
3,126 |
4,095 |
|
Equity |
|
|
|
- Issued and paid up capital |
107,911,000 |
102,225,000 |
|
- Additional paid-in capital |
7,914,000 |
-- |
|
- Difference from restructuring transactions |
285,965 |
766,811 |
|
- Foreign exchange translation of subsidiary’s f.s. |
14,216,000 |
13,252,645 |
|
Retained earnings |
113,977,693 |
56,042,000 |
|
Total Equity |
244,304,658 |
172,286,456 |
|
Income Statement |
|
|
|
- Net Sales/revenue |
1,344,321,762 |
801,386,115 |
|
- Cost of goods sold |
(1,026,112,031) |
(650,471,602) |
|
- Gross profit |
308,209,731 |
150,914,513 |
|
- Operating expenses |
(194,650,533) |
(101,015,027) |
|
- Operating income |
113,559,198 |
49,899,486 |
|
- Other (expenses) income |
(9,723,384) |
12,205,764 |
|
- Profit before income tax |
103,835,814 |
62,105,250 |
|
- Income tax expenses |
(31,113,0569) |
(21,053,863) |
|
- Profit before minority interest |
72,722,745 |
41,051,387 |
|
- Minority interest |
1,110 |
(682) |
|
- Net Profit |
72,723,855 |
41,050,705 |
Audited by Tanudiredja, Wibisana
& Rekan, a public accountant (a member of PWC)
P.T. CJI's management is led by Mr. Jeong Tae Jin (50) as president
director. He is a professional manager of South Korea with 16 years experience
in food seasoning processing and animal feed milling. In daily operation, he is assisted by two
vice president directors namely Mr. Eom Ki Yong (53) and Mr. Son Young (46),
and four directors namely Mr. Choi Seung Ho (49), Mr. Lim Seung Ho (49), Mr.
Jeong Sang Han (44) and Mr. Jeong Jin Kim (56).
The management is having wide relation with home and overseas private
businessmen as well as with government sectors. So far, we did not hear that
the company’s management involved in a business malpractice or detrimental
cases that settled in the country. The company’s litigation record is clean and
it has not registered with the black list of Bank of Indonesia.
P.T. CHEIL JEDANG INDONESIA is sufficiently fairly good for business
transaction.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.42 |
|
UK Pound |
1 |
Rs.81.93 |
|
Euro |
1 |
Rs.67.67 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.