MIRA INFORM REPORT

 

 

 

Report Date :

10.07.2012

 

IDENTIFICATION DETAILS

 

Name :

ARMEPHACO JOINT STOCK COMPANY 

 

 

Formerly Known As :

ARMY MEDICAL EQUIPMENT AND PHARMACEUTICAL COMPANY

 

 

Registered Office :

No. 118, Vu Xuan Thieu Str., Phuc Loi Ward, Long Bien District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

17.04.1996

 

 

Com. Reg. No.:

0100109191

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Producing and trading in medicine

 

 

No. of Employees :

500

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 


 

Status :

Satisfactory

Payment Behaviour :

Slow but Correct 

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)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

s
SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

ARMEPHACO JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN ARMEPHACO

Trade name

 

ARMEPHACO JSC

Type of Business

 

Joint stock company

Year Established

 

1996

Establishment Decision

 

470/QD-QP

Date of Issuance

 

17 Apr 1996

Place of Issuance

 

Ministry of Defense

Business Registration No.

 

0100109191

Date of Registration

 

23 Jun 2010

Place of Registration

 

Hanoi Planning and Investment Department

Chartered capital

 

VND 130,000,000,000

Status

 

Public Company

Stock symbol

 

ARMEPHACO

Stock Market

 

OTC

Outstanding stock

 

13,000,000

Tax code

 

0100109191

Total Employees

 

500

Size

 

Large

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 0106001022 (21/8/1996) Changed to: 0100109191

23 Jun 2010

2

Subject has got former Chartered capital: VND 114,940,000,000 Changed to: VND 130,000,000,000

23 Jun 2010

3

Subject has got former Registered Vietnamese Name: CONG TY DUOC VA TRANG THIET BI Y TE QUAN DOI

Changed to: CONG TY CO PHAN ARMEPHACO

23 Jun 2010

4

Subject has got former Registered English Name: ARMY MEDICAL EQUIPMENT AND PHARMACEUTICAL COMPANY

Changed to: ARMEPHACO JOINT STOCK COMPANY

23 Jun 2010

5

Subject has got former Board of Director: Mr. NGUYEN HOAI NAM - General Director, changed to Mr. DOAN VAN THUY - General Director Changed to: Mr. NGUYEN VAN DUNG

01 Nov 2009

6

Subject has got former Address: No. 1, Tran Thanh Tong Str., Hai Ba Trung Dist, Hanoi City, Vietnam

Changed to: No. 118 Vu Xuan Thieu Str., Phuc Loi Ward, Long Bien Dist, Hanoi City, Vietnam

2008

 

 

 

company ADDRESSES

 

Head Office and factory

Address

 

No. 118, Vu Xuan Thieu Str., Phuc Loi Ward, Long Bien District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3875 9473 / 9466 / 9477

Fax

 

(84-4) 3875 9476

Email

 

armephaco@armephaco.com.vn

Website

 

www.armephaco.com.vn

 

Factory Address (Medical equipment 130 factory)

Address

 

Ngoc Hoi Commune, Thanh Tri District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38614172

Fax

 

(84-4) 3861 4173

 

Branch in Ho Chi Minh (Pharmaceutical 150 factory)

Address

 

No. 112, Tran Hung Dao Street, Pham Ngu Lao Ward, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38379138

Fax

 

(84-8) 3920 3341

 

Branch in Can Tho

Address

 

No. 84, Ly Tu Trong Street, An Cu Ward, Ninh Kieu District, Can Tho City, Vietnam

Telephone

 

(84-710) 625 2199

Fax

 

(84-710) 625 2109

 

Branch in Gia Lai

Address

 

No. 148A, Hai Ba Trung Street, Yen Do Ward, Pleiku City, Gia Lai Province, Vietnam

Telephone

 

(84-59) 625 1399

Fax

 

(84-59) 388 3625

 

Branch in Da Nang

Address

 

57 Nguyen Huu Tho Str., Hoa Thuan Tay Ward, Hai Chau District, Da Nang City, Vietnam

Telephone

 

(84-511) 656 2979

Fax

 

(84-511) 361 4686

 

Branch in Ha Noi

Address

 

No. 8, Tang Bat Ho Str., Pham Dinh Ho Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Telephone

 

(84-4) 39717436 / 7439 /3972 3752

Fax

 

(84-4) 39717436

 

Branch in Hai Phong

Address

 

275 Lach Tray Str., Dang Giang Ward, Ngo Quyen District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3261 328

Fax

 

(84-31) 3261 329

 

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN VAN DUNG

Position

 

Chairman cum General Director

Date of Birth

 

07 Oct 1963

ID Number/Passport

 

87052951

ID Issue Date

 

15 Jan 2010

Resident

 

No 5, Lane 16, Nhan Hoa Street, Nhan Chinh Ward, Thanh Xuan District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. DO CHI

Position

 

Deputy General Director

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-69) 555358

 

3. NAME

 

Ms. NGUYEN THI HUONG

Position

 

Deputy General Director

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-69) 555358

 

4. NAME

 

Mr. DO VAN BE

Position

 

Deputy General Director

ID Number/Passport

 

3A8E022021

Nationality

 

Vietnamese

 

 

5. NAME

 

Mr. BUI VIET TUAN

Position

 

Chief Accountant

Resident

 

No. 118 Vu Xuan Thieu, Phuc Loi Ward, Long Bien District, Ha Noi City, Vietnam

Tel/Mobile phone

 

+84 914 283 868

 

BUSINESS NATURE AND ACTIVITIES

 

- Producing and trading in medicine;
- Importing and exporting medicine material;
- Trading medical machines and equipment.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Equipment and chemical essential

·         Market

 

Germany, America, Japan, China, India...

·         Ratio

 

N/A

·         Mode of payment

 

L/C, T/T

 

EXPORT:

·         Types of products

 

Pharmaceutical products

·         Market

 

Cambodia

·         Ratio

 

Small

 

 

BANKERS

 

1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM THANH DO BRANCH

Address

 

No. 463, Nguyen Van Linh, Phuc Dong Ward, Long Bien District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38757952

VND Account

 

15110000027726

 

2. MILITARY COMMERCIAL JOINT STOCK BANK HOAN KIEM BRANCH

Address

 

No. 35 Hai Ba Trung Street, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3936 7799

Fax

 

(84-4) 3938 6107

 

 

SHAREHOLDERS

 

1. NAME

 

Ministry of Defense

Number of shares

 

6,630,000

Value of shares

 

VND 66,300,000,000

Percentage

 

51%

 

2. NAME

 

Other Shareholders

Number of shares

 

6,370,000

Value of shares

 

VND 63,700,000,000

Percentage

 

49%

 

 

FINANCIAL DATA

 

These financial statements are made following form of Ministry of Defense. So they are different to normal. On 23 Jun 2010, subject has just equitized so from 24 Jun 2010 subject has the new financial statement which was audited by Vietnam Auditing & Evaluation Company Limited.

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

-

Audited Status

Audited

Audited

 

ASSETS

A – CURRENT ASSETS

544,675,192,475

226,179,657,113

I. Cash and cash equivalents

89,946,053,156

63,852,439,476

1. Cash

89,946,053,156

63,852,439,476

2. Cash equivalents

0

0

II. Short-term investments

144,000,000

0

1. Short-term investments

144,000,000

0

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

300,279,282,045

101,757,064,613

1. Receivable from customers

207,742,306,109

51,734,972,528

2. Prepayments to suppliers

82,087,498,237

40,418,112,116

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

10,449,477,699

9,603,979,969

6. Provisions for bad debts

0

0

IV. Inventories

128,513,961,270

51,154,290,891

1. Inventories

128,513,961,270

51,154,290,891

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

25,791,896,004

9,415,862,133

1. Short-term prepaid expenses

4,148,141,664

969,326,647

2. VAT to be deducted

4,909,467,032

2,571,005,548

3. Taxes and other accounts receivable from the State

280,369,198

260,799

4. Other current assets

16,453,918,110

5,875,269,139

B. LONG-TERM ASSETS

120,055,286,718

113,820,498,626

I. Long term accounts receivable

0

0

1. Long term account receivable from customers

0

0

2. Working capital in affiliates

0

0

3. Long-term inter-company receivable

0

0

4. Other long-term receivable

0

0

5. Provisions for bad debts from customers

0

0

II. Fixed assets

97,576,412,187

102,401,393,335

1. Tangible assets

97,576,412,187

102,401,393,335

- Historical costs

153,904,467,612

149,437,742,074

- Accumulated depreciation

-56,706,843,317

-47,036,348,739

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

378,787,892

0

- Initial costs

545,454,546

0

- Accumulated amortization

-166,666,654

0

4. Construction-in-progress

0

0

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

20,469,488,791

11,369,488,791

1. Investments in affiliates

0

0

2. Investments in business concerns and joint ventures

20,447,488,791

11,347,488,791

3. Other long-term investments

22,000,000

22,000,000

4. Provisions for devaluation of long-term investments

0

0

V. Other long-term assets

2,009,385,740

49,616,500

1. Long-term prepaid expenses

2,009,385,740

49,616,500

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

664,730,479,193

340,000,155,739

 

LIABILITIES

A- LIABILITIES

515,744,594,686

207,785,063,515

I. Current liabilities

511,986,232,769

205,207,848,612

1. Short-term debts and loans

89,452,060,132

20,000,000,000

2. Payable to suppliers

180,348,471,489

60,269,359,104

3. Advances from customers

125,585,541,154

18,220,400,733

4. Taxes and other obligations to the State Budget

4,519,693,907

772,788,335

5. Payable to employees

2,062,569,696

3,941,536,119

6. Accrued expenses

769,926,136

13,200,000

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

109,247,970,254

101,990,564,321

10. Provisions for short-term accounts payable

0

0

II. Long-Term Liabilities

3,758,361,917

2,577,214,903

1. Long-term accounts payable to suppliers

0

0

2. Long-term inter-company payable

0

0

3. Other long-term payable

2,234,452,000

934,452,000

4. Long-term debts and loans

0

0

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

1,523,909,917

1,642,762,903

7. Provisions for long-term accounts payable

 

0

B- OWNER’S EQUITY

148,985,884,507

132,215,092,224

I. OWNER’S EQUITY

148,834,960,313

130,857,112,242

1. Capital

130,000,000,000

130,000,000,000

2. Share premiums

0

0

3. Other sources of capital

0

0

4. Treasury stocks

0

0

5. Differences on asset revaluation

0

0

6. Foreign exchange differences

0

0

7. Business promotion fund

428,556,121

428,556,121

8. Financial reserved fund

428,556,121

428,556,121

9. Other funds

0

0

10. Retained earnings

17,977,848,071

0

11. Construction investment fund

0

0

II. Other sources and funds

150,924,194

1,357,979,982

1. Bonus and welfare funds

0

1,202,055,788

2. Sources of expenditure

0

5,000,000

3. Fund to form fixed assets

150,924,194

150,924,194

MINORITY’S INTEREST

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

664,730,479,193

340,000,155,739

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

From 24/06/2010 to 31/12/2010

1. Total Sales

886,466,363,220

269,178,527,525

2. Deduction item

3,374,062,458

35,884,040

3. Net revenue

883,092,300,762

269,142,643,485

4. Costs of goods sold

828,881,122,522

251,836,062,693

5. Gross profit

54,211,178,240

17,306,580,792

6. Financial income

7,329,996,256

3,405,288,159

7. Financial expenses

6,121,621,407

718,348,290

- In which: Loan interest expenses

5,121,642,324

604,972,637

8. Selling expenses

21,253,003,401

5,618,366,611

9. Administrative overheads

11,614,731,808

8,947,832,970

10. Net operating profit

22,551,817,880

5,427,321,080

11. Other income

182,317,980

142,250,232

12. Other expenses

167,120,949

286,561,638

13. Other profit /(loss)

15,197,031

-144,311,406

14. Total accounting profit before tax

22,567,014,911

5,283,009,674

15. Current corporate income tax

4,476,666,839

666,841,311

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

18,090,348,071

4,616,168,363

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

From 24/06/2010 to 31/12/2010

Average Industry

Current liquidity ratio

1.06

1.10

1.65

Quick liquidity ratio

0.81

0.85

1.04

Inventory circle

6.45

4.92

4.14

Average receive period

124.11

138.00

105.37

Utilizing asset performance

1.33

0.79

1.20

Liability by total assets

77.59

61.11

53.11

Liability by owner's equity

346.17

157.16

159.74

Ebit / Total assets (ROA)

4.17

1.73

10.37

Ebit / Owner's equity (ROE)

18.58

4.45

23.03

Ebit / Total revenue (NPM)

3.12

2.19

10.15

Gross profit / Total revenue (GPM)

6.12

6.43

25.88

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Good

Liquidity

 

Medium

Payment status

 

Above Average

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

L/C

Sale Methods

 

Wholesaler

Public opinion

 

Good

 

 

INTERPRETATION ON THE SCORES

 

Beginning as a state owned company, subject was established in 1996 according to Decision No. 470/QD-QP of Ministry of Defense. Its initial chartered capital was VND 114,940 million. In 2010, subject became a joint stock company and increased its chartered capital to VND 130 billion. The business registration number was also changed to No. 0100109191 which is also its tax code.

Facilities of subject are fair. Beside head office at No. 118, Vu Xuan Thieu Str., Long Bien Dist., it has three factories and some branches in other places such as Hochiminh, Da Nang, Can Tho... Its force labor is relative stably with 500 persons. Manufacturing medicine is main field of subject. Equipment and chemical for production are imported from many countries, in which China and India are main markets. Most of products service for Ministry of National Defense. So, these products are not much popular as others in the market. A small amount is exported to Cambodia.

Financially, business results in 2011 of subject were increased strongly. Subject gained VND 886,466 million in total sales, increased 229.3% in comparison with its one in 2010. Its profit after tax was also gone up sharply from VND 4,616 million to VND 18,090 million.

In financial structure, subject trended to use more liability. Its liability by owner's equity went up from VND 157.16 in 2010 to 346.17 in 2011. However, subject still guaranteed financial security principles. Current liquidity ratio was higher than 1 unit. Although most of financial ratios in 2011 were higher than its ones in 2010, these ratios were still limited compared with average industry. Subject should be tried more to develop its activities.

In general, after being equitized, business activities of subject are effective and its growth speed is much better. Its future prospect seems bright. At the moment, subject can meet small and normal business transactions.

APPENDIX

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2009

Total employees 2010

(Thous.pers.)

Annual average capital of enterprises 2009

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,749

23,896.3

81,559

Industry and Construction

5.53

7.70

85,115

10,630

2,751,975

Trade and Services

6.69

7.52

154,978

14,522

4,939,069

 

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.56.02

UK Pound

1

Rs.86.78

Euro

1

Rs.68.83

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.