MIRA INFORM REPORT

 

 

Report Date :

05.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SUNG JIN GEOTEC CO., LTD.

 

 

Registered Office :

20-1, Seongam-dong, Nam-gu, Ulsan

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

15.06.1989

 

 

Com. Reg. No.:

610-81-08943

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Structural Metal Products

 

 

No. of Employees :

695

 

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP

Source : CIA

Basic

 

Company Name

SUNG JIN GEOTEC CO., LTD.

(Korean Company Name : “성진지오텍(주)”)

Registered Address

20-1, Seongam-dong, Nam-gu, Ulsan, Korea

Zip Code

680-140

Tel

+82-52-228-5801

Fax

+82-52-228-5987

E-mail

j550217@sgtkor.com

Website

www.sgtkor.com

Trading Address

14FL., IT Venture Donggwan, 78, Garak-dong, Songpa-gu, Seoul, Korea

Tel

+82-2-3402-1100

Fax

+82-2-3402-2100

Other Address-2nd Factory

134, Cheoyong-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-711-2000

Fax

+82-52-708-2000

Other Address-3rd Factory

919, Wonsan-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-711-3000

Fax

+82-52-708-3000

Other Address-4th Factory

30-1, Hwangseong-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-711-4000

Fax

+82-52-708-4000

Other Address-5th Factory

2, Ijin-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-711-5000

Fax

+82-52-708-5000

Type

Export

Industry

Manufacture of Other Structural Metal Products

  Main Business

Heat Exchanger, High Pressure Gas Facilities

Established (mm/dd/yyyy)

06/15/1989

The Subject owns the premises of registered HQ address, 2nd Factory and 3rd Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Fixed network equipment and components(43221700)

Sell

Naval architecture(81101506)

Sell

Heat exchangers(40101802)

Buy

Iron plate(30102203)

Buy

Tube and tubing(31231300)

Buy

Ferrous alloy tubing(31231301)

 

 

CEO’s

 

Name

Kim Jang-Jin

Address

Suite 102-302, 461, Mugeo-dong, Nam-gu, Ulsan, Korea

Date of Birth

04/01/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

27,323,359,000

Employees

695

Formation

Listed Company (Korea Stock Exchange : 051310) as of 11/29/2007

A Company of POSCO GROUP

Bank Details

Shinhan Bank

Busan Bank

Korea Development Bank

Corporate Registered No.

181211-0010898

Business Registered No.

610-81-08943

Permit & Licenses

04/26/1993 KS Mark

 

Int’l Trade No.: 914536

Shareholder Position

Name

Shares

%

POSCO(174611-0000741)

12,345,110

23.71

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

4,848,400

9.31

JEON JUNG-DO

5,498,965

10.56

YU YOUNG METAL CO., LTD.(181211-0047544)

4,550,910

8.74

KOREA DEVELOPMENT BANK(110135-0000937)

6,979,927

13.41

SAMSUNG ENGINEERING CO., LTD.(110111-0240509)

5,206,671

10.00

OTHERS

12,636,735

24.27

TOTAL

52,066,718

100.00

Company History

06/15/1989 Incorporated as Sungjin Machinery Co., Ltd.

12/15/2000 Changed company name to the present name

11/15/2004 Designated as a Venture Business

11/2006 Awarded US$100 Million Export Top Prize

12/2008 Awarded US$300 Million Export Top Prize

03/18/2009 Agreed with the 8 Creditors(banks) on Execution of Management Normalization Plan

11/2009 Awarded US$400 Million Export Top Prize

06/01/2010 Joined as a Company of POSCO GROUP

12/23/2011 Completed Fast Track Program

01/11/2012 Increased capital to 27,323,359,000 KRW from 24,720,023,500 KRW

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Jang-Jin

Male

Korean

1955.04.01

Vice President

Mr.

Sohn Yong-Ho

Male

Korean

1953.01.08

Director

Mr.

Lee Young-Hoon

Male

Korean

1959.08.19

Director

Mr.

Shin Seok-Cheol

Male

Korean

1960.12.22

Outside Director

Mr.

Hwang Tae-Hyun

Male

Korean

1948.11.25

Outside Director

Mr.

Kim Kwan-Ho

Male

USA

1958.10.02

Auditor

Mr.

Kim Woong-Rak

Male

Korean

1954.10.12

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2012

228,376,463,303

747,885,908,457

-6,193,765,095

(*)2011

632,849,524,871

717,389,329,936

-59,180,844,111

(*)2010

395,936,146,352

601,147,725,595

16,026,206,338

2009

380,143,415,599

588,858,361,490

-6,368,828,873

2008

520,147,104,194

682,154,196,426

-191,037,240,536

2007

361,712,402,715

382,622,231,264

10,402,866,870

2006

214,861,678,841

217,632,483,298

13,232,292,428

2005

181,749,101,780

159,370,437,799

5,537,650,337

(*)Figures are based on the K-IFRS Accounting System.

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

27,323,359,000

Total Issued Shares

52,066,718

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

747,885,908,457

717,389,329,936

601,147,725,595

Current Assets

476,950,066,240

444,985,480,263

343,236,983,801

Cash & Cash Equivalents

11,010,068,628

28,714,622,074

14,084,169,683

Current Financial Instruments

5,380,620,549

5,389,559,700

4,459,769,267

Trade Receivables & Other Receivables

99,915,712,779

86,958,990,048

25,135,653,367

Other Receivables-Construction

301,602,812,760

284,855,956,920

260,741,941,001

Marketable Financial Instruments

-　

-

16,080,000

Inventories

31,375,200,986

16,888,407,234

18,473,558,557

Other Current Assets

27,665,650,538

22,177,944,287

20,325,811,926

Non-Current Assets

270,935,842,217

272,403,849,673

257,910,741,794

Non-Current Financial Instruments

1,725,000,000

2,298,000,000

1,504,543,664

Long-Term Trade Receivables & Other Receivables

3,928,958,537

3,923,712,286

5,729,551,206

Marketable Financial Instruments

1,932,035,183

2,041,453,165

2,467,412,522

Investment_Subsidiaries

3,000,070,872

3,000,070,872

2,999,993,809

Investment_Related Companies

2,056,527,500

2,056,527,500

2,000,000,000

Tangibles

199,352,638,725

202,626,218,679

204,530,884,037

Intangibles

8,165,512,130

6,188,706,984

1,366,304,980

Deferred Income Tax Assets

50,775,099,270

50,269,160,187

37,312,051,576

Total Liabilities

587,971,065,145

611,547,926,289

456,981,746,267

Current Liabilities

423,663,450,153

445,799,585,879

230,948,269,854

Trade Payables & Other Payables

104,895,792,042

125,984,239,396

84,081,747,297

Short-Term Borrowings

122,295,797,861

79,035,207,995

12,910,323,882

Bond With Warrant

4,983,426,062

19,593,657,979

18,343,994,455

Derivatives

3,897,424,305

22,594,585,016

124,790,699

Provisions

4,655,101,635

5,462,145,269

1,757,393,625

Current Portion of Long-Term Debts

142,627,258,871

164,769,540,590

104,118,075,978

Other Payables-Construction

35,450,891,048

22,975,150,947

2,660,321,607

Other Current Liabilities

4,857,758,329

5,385,058,687

6,951,622,311

Non-Current Liabilities

164,307,614,992

165,748,340,410

226,033,476,413

Long-Term Trade Payables & Other Payables

0

0

21,330,829,433

Long-Term Borrowings

159,601,528,110

161,601,528,110

203,783,295,152

Derivatives

194,308,121

258,690,116

0

Provision for Severance & Retirement

2,721,640,271

2,097,983,694

919,351,828

Provisions

1,790,138,490

1,790,138,490

0

Capital Stock

27,323,359,000

24,720,023,500

24,720,023,500

Capital Surplus

319,143,538,828

265,011,630,483

242,789,350,557

Others

-2,839,273

-79,617,974

-61,205,267

Profit Surplus

-186,549,215,243

-183,810,632,362

-123,282,189,462

Total Equity

159,914,843,312

105,841,403,647

144,165,979,328

Liab. & Shareholder’s Equity

747,885,908,457

717,389,329,936

601,147,725,595

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

228,376,463,303

632,849,524,871

395,936,146,352

Cost of Sold Goods

215,018,620,479

629,420,870,855

356,194,986,397

Gross Profit

13,357,842,824

3,428,654,016

39,741,159,955

Selling Expenses

1,781,919,268

11,233,501,106

2,648,361,225

Admin. Expenses

4,749,483,388

17,754,984,032

19,347,468,108

R&D

761,310,843

2,125,802,411

1,136,719,504

Other Operating Income

1,762,418,113

8,741,929,690

1,322,882,050

Other Operating Expenses

963,755,090

4,011,213,605

6,351,110,041

Operating Income

6,863,792,348

-22,954,917,448

11,580,383,127

Finance Income

1,704,432,885

3,970,484,543

14,825,727,666

Finance Expenses

10,227,886,722

53,110,776,859

26,459,368,560

Profits from Foreign Exchange Rate

-6,186,962,915

1,364,617,972

-11,464,160,621

Income Before Taxes

-7,846,624,404

-70,730,591,792

-11,517,418,388

Income Taxes Expenses

-1,652,859,309

-11,549,747,681

-27,543,624,726

Net Income

-6,193,765,095

-59,180,844,111

16,026,206,338

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

-75,186,368,899

-59,858,571,064

-144,376,016,260

Net Income

-2,688,415,910

-59,180,844,111

16,026,206,338

Adjustment

-59,848,611,847

32,387,935,440

-143,246,865,446

Dividends Received

112,864,604

62,161,984

172,542,277

Interests Received

160,546,460

601,306,102

780,187,855

Interests Paid

-12,984,821,928

-32,917,391,864

-18,141,244,804

Income Taxes

62,069,722

-811,738,615

33,157,520

Cash Flows from Investing

-6,582,353,088

-14,644,249,476

-8,728,667,983

Cash Flows from Financing

64,153,836,978

89,144,104,064

137,860,392,587

Increase/Decrease in Cash

-17,704,553,446

14,630,452,391

-15,320,381,232

Cash at the Beginning of Year

28,714,622,074

14,084,169,683

29,404,550,915

Cash at the End of Year

11,010,068,628

28,714,622,074

14,084,169,683

 

 

Products, Technologies, Services Description

 

Main Products & Services

Plant Business

-Column & Tower

-Reactor

-Pressure Vessel

-Heat Exchanger

 

Module Business

-Gas Treatment

-Manifold Unit (Offshore)

-Deck Module(Top Side Module)

-Desalination

 

Marine Business

-Semi & Compete Product for Offshore Floaters & Semi-Submergership Rig

-PE & Mega Block, Shipbuilding Block

-Drilling Module, Jack-Up Rigs

 

Power & Energy Business

-Angle Type

-Pipe Type

-HRSG

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

HYUNDAI HYSCO(110111-0302416)

SAEWOON STEEL CO., LTD.(180111-0030261)

PUSAN STEEL CO., LTD.(180111-0049345)

INDUSTEEL(EUROPE)

J.F.E(JAPAN)

Customers

LARSEN & TURBO LIMITED(INDIA)

KRUPP CANADA(CANADA)

SK ENGINEERING & CONSTRUCTION CO., LTD.(110111-0038805)

IMPERIAL OIL RESOURCES VENTURES LTD.

ESSAR CONSTRUCTIONS LTD.

Competitors

DBI CORP.

123-1, SINBOK-RI, YONGHYEON-MYEON, SACHEON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-835-7690~3  FAX:+82-55-835-7694~5

 

ENERGYEN CORPORATION

RM. 920, RAEMIAN SEOCHO UNIVILLE, 1445-4, SEOCHO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-583-9762  FAX:+82-2-583-9761

 

ILSUNG CORPORATION

917, WONSAN-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-231-7514~5  FAX:+82-52-239-0333

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

POSCO(174611-0000741)

POSCO COATED & COLOR STEEL CO., LTD.(174611-0006492)

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(174611-0001947)

POS-A.C. CO., LTD.(174611-0003448)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSCO RESEARCH INSTITUTE(110111-1042350)

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

POSCO MACHINERY CO., LTD.(206411-0010175)

POSMEC(POSCO MACHINERY & ENGINEERING CO., LTD.(174611-0012176)

POSCO POWER CORPORATION(110111-1829576)

PHP CO., LTD.(120111-0421545)

POSBRO(110111-3528986)

SUWON GREEN ENVIRONMENT CORPORATION(134811-0133794)

POSCORE CO., LTD.(134811-0003343)

RIZTECH BIZ CO., LTD.(171711-0076115)

POSWITH CO., LTD.(171711-0075927)

UITRANS CO., LTD.(110111-3792309)

BASYS INDUSTRY CO. LTD.(110111-0954647)

METAPOLIS CO., LTD.(134811-0094475)

CHEONGNA IBT CO., LTD.(120111-0454520)

POHANG FEUL CELL CO., LTD.(171711-0076256)

MEGA ASSET CO., LTD.(161511-0097480)

DAEWOO ENGINEERING COMPANY CO., LTD.(110111-0203268)

MEDICAL MATERIALS CO.,LTD.(171711-0082766)

DAEWOO INTERNATIONAL CORPORATION(110111-2137358)

Affiliates-Domestic

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSDATA CO., LTD.(110111-0658637)

SAMJUNG PACKING AND ALUMINUM CO., LTD.(174611-0000866)

POSCON(174611-0002242)

POSCO TERMINAL CO., LTD.(204611-0017575)

POSTEEL(110111-0344591)

POSTECH VENTURE CAPITAL COOPERATION(174611-0029080)

POSMATE CO., LTD.(110111-0739841)

SNNC CO., LTD.(204611-0023415)

P&R CO., LTD.(171711-0076545)

SEOUNG GWANG CO., LTD.(120111-0222844)

ENTOB CORPORATION(110111-2059362)

POSFINE

POSCOAST CO., LTD.(131411-0191529)

DAIMYUNG TMS CO., LTD.(110111-0803141)

PURE GIMPO.CO., LTD.(110111-4290394)

Affiliates-Overseas

POSCO SOUTH EAST ASIA PTE. LTD.

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

POSCON(174611-0002242)

POSMEC(POSCO MACHINERY & ENGINEERING CO., LTD.)(174611-0012176)

POSCO MACHINERY CO., LTD.(206411-0010175)

POS-A.C.CO.,LTD.(174611-0003448)

POSTEEL(110111-0344591)

SEOUNG GWANG CO., LTD.(120111-0222844)

POSCO RESEARCH INSTITUTE(110111-1042350)

POSTECH VENTURE CAPITAL COOPERATION (174611-0029080)

POSCO TERMINAL CO., LTD.(204611-0017575)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSCO POWER CORPORATION(110111-1829576)

POSWITH CO., LTD.(171711-0075927)

PT.ISI (PT.INTERNATIONAL STEEL INDONESIA)

PT. MRI (PT. MOTTA RESOURCES INDONESIA)

POSCO CORE INDIA PVT. LTD.

POSCO (YANTAI) AUTOMOTIVE PROCESSING CENTER CO., LTD.

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

Ulsan District Court

-

The Subject Company

Claim for Compensation from Damages

150,515,000

proceeding

 

 

News Clipping

 

---

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.97

UK Pound

1

Rs.83.67

Euro

1

Rs.67.19

 

 

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%)

 

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