MIRA INFORM REPORT

 

 

Report Date :

29.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SUNJIN VINA CO., LTD

 

 

Registered Office :

Lot II-11, Ho Nai Industrial Park , Trang Bom District, Dong Nai Province

 

 

Country :

Viet Nam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

2004

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Producing and trading in animal feed, aquaculture feed and feed materials, additives

 

 

No. of Employees :

200

 

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Viet Nam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

vietnam - ECONOMIC OVERVIEW

 

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

 

Source : CIA

 


SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

SUNJIN VINA CO., LTD

Vietnamese Name

 

CONG TY TNHH SUNJIN VINA

Trade name

 

SUNJIN VINA CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2004

Investment Certificate No

 

472043000073

Date Of Issuance

 

12 Feb 2007

Place of Issuance

 

Industrial Zones Management Board of Dong Nai province

Registered Investment Capital

 

USD 9,000,000

Chartered capital

 

USD 4,000,000

Investment Duration

 

50 years

Status

 

Unlisted

Tax code

 

3600665280

Total Employees

 

200

Size

 

Medium

Note: Mr. SAIL CHANG is subject’s former CEO

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Investment Certificate No: 264/GP-KCN-DN (issued 7 Jan 2004) Changed to: 472043000073

12 Feb 2007

2

Subject has got former Registered Investment Capital: 7,000,000 USD Changed to: 9,000,000 USD

N/A

3

Subject has got former Chartered capital: 3,000,000 USD

Changed to: 4,000,000 USD

N/A

 

 

ADDRESSES

 

Head Office

Address

 

Lot II-11, Ho Nai Industrial Park , Trang Bom District, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3985 995 - 3985991

Fax

 

(84-61) 3985990/ 3985989

 

 

Branch in Dong Nai

Address

 

Thanh Binh Commune, Trang Bom District, Dong Nai Province, Vietnam

Note:  This is subject's pig farm

 

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

1. PARENT COMPANY - SUNJIN CO., LTD

Address

 

114-1 Sadong-ri, Taewol-myon Ichon, Kyonggi-do 467-850 , Korea, South

Tel

 

(82-31) 637 1180

Fax

 

(82-31) 637 1260

Website

 

http://www.sj.co.kr

 

 

 

DIRECTORS

 

1. NAME

 

Mr. BAE KEUK HWAN

Position

 

General Director

Nationality

 

Korean

 

2. NAME

 

Mr. KIM YOUNG GUN

Position

 

Deputy General Director

Nationality

 

Korean

 

3. NAME

 

Ms. TRAN XUAN TRANG

Position

 

Chief Accountant

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-61) 3985995 Ext: 119

 

4. NAME

 

Ms. TRAN PHUONG LOAN

Position

 

Chief of Administration & Human Resource Department

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-61) 3985 995 Ext: 311

 

5. NAME

 

Ms. NGUYEN THI TUYET MAI

Position

 

Purchasing Manager

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-61) 3985995 Ext: 206

 

6. NAME

 

Mr. SAIL CHANG

Position

 

Former CEO

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

- Producing and trading in animal feed, aquaculture feed and feed materials, additives.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials

·         Market

 

India, Australia, The USA, Indonesia

·         Mode of payment

 

L/C, TT

 

EXPORT:

Note: Currently, the subject does not export

 

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM DONG NAI BRANCH

Address

 

No 77C Hung Dao Vuong,Trung Dung Ward, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3823666

Fax

 

(84-61) 3824191

 

2. SHINHANVINA JOINT VENTURE BANK

Address

 

100 Nguyen Thi Minh Khai Street- Ward 6-, 3 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38291581 - 38315130

Fax

 

(84-8) 38211648 - 38315130

 

3. KOREA EXCHANGE BANK

Address

 

No.34 Le Duan Str, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

84-8.38274273

 

 

 

SHAREHOLDERS

 

1. NAME

 

SUNJIN CO., LTD

Address

 

114-1 Sadong-ri, Taewol-myon Ichon, Kyonggi-do 467-850 , Korea, South

Tel

 

(82-31) 637 1180

Fax

 

(82-31) 637 1260

Website

 

http://www.sj.co.kr 

Percentage

 

100%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2011

31/12/2010

31/12/2009

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

225,771

223,148

128,913

I. Cash and cash equivalents

61,351

69,118

35,567

1. Cash

36,351

59,118

21,567

2. Cash equivalents

25,000

10,000

14,000

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

97,889

75,570

48,421

1. Receivable from customers

87,391

73,533

30,626

2. Prepayments to suppliers

0

0

0

3. Inter-company receivable

0

1,500

17,300

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

10,498

537

495

6. Provisions for bad debts

0

0

0

IV. Inventories

65,151

77,488

44,049

1. Inventories

65,151

77,488

44,049

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

1,380

972

876

1. Short-term prepaid expenses

554

199

164

2. VAT to be deducted

0

0

0

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

826

773

712

B. LONG-TERM ASSETS

192,460

100,989

68,671

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

68,453

75,769

66,514

1. Tangible assets

68,354

65,897

65,929

- Historical costs

125,964

112,625

103,275

- Accumulated depreciation

-57,610

-46,728

-37,346

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

0

0

0

- Initial costs

0

0

0

- Accumulated amortization

0

0

0

4. Construction-in-progress

99

9,872

585

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

119,900

23,250

0

1. Investments in affiliates

119,900

23,250

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

4,107

1,970

2,157

1. Long-term prepaid expenses

4,107

1,970

2,157

2. Deferred income tax assets

0

0

0

3. Other long-term assets

0

0

0

VI. Goodwill

0

0

 

1. Goodwill

0

0

 

TOTAL ASSETS

418,231

324,137

197,584

 

LIABILITIES

A- LIABILITIES

272,323

215,872

141,858

I. Current liabilities

271,598

215,147

141,358

1. Short-term debts and loans

202,034

158,423

99,511

2. Payable to suppliers

62,344

51,609

38,888

3. Advances from customers

169

248

42

4. Taxes and other obligations to the State Budget

6,522

2,718

1,608

5. Payable to employees

328

2,087

1,284

6. Accrued expenses

0

0

0

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

201

62

25

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

725

725

500

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

0

0

0

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

725

725

500

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

 

 

 

9. Science and technology development fund

 

 

 

B- OWNER’S EQUITY

145,908

108,265

55,726

I. OWNER’S EQUITY

145,908

108,265

55,726

1. Capital

63,206

63,205

63,205

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

82,702

45,060

-7,479

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

 

 

 

II. Other sources and funds

0

0

0

1. Bonus and welfare funds

0

 

0

2. Sources of expenditure

0

 

0

3. Fund to form fixed assets

0

 

0

MINORITY’S INTEREST

0

 

 

TOTAL LIABILITIES AND OWNER’S EQUITY

418,231

324,137

197,584

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

979,471

808,366

532,923

2. Deduction item

96,282

76,036

39,319

3. Net revenue

883,189

732,330

493,604

4. Costs of goods sold

748,805

605,289

395,498

5. Gross profit

134,384

127,041

98,106

6. Financial income

3,668

1,669

906

7. Financial expenses

25,898

13,721

13,730

- In which: Loan interest expenses

9,351

9,126

5,909

8. Selling expenses

32,483

29,611

30,084

9. Administrative overheads

40,404

33,449

24,811

10. Net operating profit

39,267

51,929

30,387

11. Other income

719

980

556

12. Other expenses

685

372

0

13. Other profit /(loss)

34

608

556

14. Total accounting profit before tax

39,301

52,537

30,943

15. Current corporate income tax

1,658

0

0

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

 

18. Profit after tax

37,643

52,537

30,943

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

0.83

1.04

0.91

1.21

Quick liquidity ratio

0.59

0.68

0.60

0.41

Inventory circle

11.49

7.81

8.98

4.09

Average receive period

40.46

37.66

35.81

35.22

Utilizing asset performance

2.11

2.26

2.50

1.99

Liability by total assets

65.11

66.60

71.80

64.75

Liability by owner's equity

186.64

199.39

254.56

199.02

Ebit / Total assets (ROA)

11.63

19.02

18.65

12.59

Ebit / Owner's equity (ROE)

33.34

56.96

66.13

36.14

Ebit / Total revenue (NPM)

4.97

7.63

6.92

6.48

Gross profit / Total revenue (GPM)

13.72

15.72

18.41

12.11

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low/Medium

Payment status

 

Above Average

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No

Bankruptcy

 

No

Payment Methods

 

L/C, T/T

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

SUNJIN VINA COMPANY LIMITED was established in 2004 as 100% Korean invested company under the former investment certificate No. 264/GP-KCN-DN. Then on 12 February 2007, the subject's investment certificate number was changed to 472043000073. The subject's parents company that is SUNJIN CO., LTD focuses on manufacturing animal feed and meat processing. SUNJIN CO., LTD runs other feed mill in North of Vietnam as SUNJIN FARMSCO CO., LTD. Recently, in Mar 2012; this corporation inaugurated another feed manufacturing company named SUNJIN VINA MEKONG CO., LTD in Tien Giang province. Mr. BAE KEUK HWAN is also General Director of this newly established company.

The subject mainly engages in producing and trading in animal, aquaculture feed and additives. Its head office, which is located at Lot II-11, Ho Nai Industrial Park, is a modern animal feed processing factory cover total area of 25,015 m2. It is operating with modern machinery and advanced technology. Its factory has the closing processing lines system, using all equipments imported from Korea. In investment license, it also registered exporting activities, however, currently; its products serve domestic market only.

Financially, as can be seen in the following charts, there was upward trend in total assets and sales scale. In term of profitability, the highest sales growth (103.84%) was seen in 2007. Total sales increased by 610% in five-year period from 2006 to 2011. However, it was not until 2008 that the subject started to yield profit and all profitability ratios turned positive. In 2011, profit declined and profitability ratios showed reducing sign because of increased COGS and double financial cost.

 

 Inventory circle moved faster in three recent years, and higher than the industry average whereas receivable period ranged around 40 days. In addition, utilizing assets performance maintained high, which all showed efficient operation. In terms of capital structure, liabilities took up high proportion in total assets, especially in early stage of operation. In recent years, thanks to increasing retained earnings, which accelerated equity capital, liabilities over equity ratio declined. In liability structure, long-term ones was trivial, therefore, liquidity was fairly low.

 In general, the subject has been operating for quite a long time. In 2011, it was ranked 16th among feed manufacturing companies in Vietnam in terms of scale. Currently, FDI companies like CP, EMIVEST, CARGILL, PROCONCO, GREENFEED, etc still dominates feed manufacturing market in Vietnam. These companies took up approximately 70% market share as they have capital, technology; foreign parent supports advantages over domestic companies. The subject is a medium one in the field with upward development trend. It is reliable for small and normal commitments. 

 

 

 

 

 

 


APPENDIX

 

INDUSTRY DATA

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,887

24,362.9

95,227

Industry and Construction

5.53

7.70

95,217

10,718.9

3,641,376

Trade and Services

6.69

7.52

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2011 

2010 

2009 

Population (Million person)

87.84

86.93

86.02

Gross Domestic Products (USD billion)

119

102.2

91

GDP Growth (%)

5.89

6.78

5.32

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2011 

2010 

2009 

Exports

96.3

72.2

57.1

Imports

105.8

84.8

69.9

Trade Balance

-9.5

-12.6

-12.8

Source: General Statistics Office

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.84

UK Pound

1

Rs.88.39

Euro

1

Rs.72.62

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.