MIRA INFORM REPORT

 

 

Report Date :

12.12.2013

 

IDENTIFICATION DETAILS

 

Name :

HEESUNG METAL LTD.

 

 

Formerly Known As :

HEESNG METAL INDUSTRY CO., LTD.

 

 

Registered Office :

548-1, Gajwa 3-dong, Seo-gu, Incheon, Korea, Zip Code 404-817

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.05.1974

 

 

Com. Reg. No.:

137-81-00577

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of other electronic valves, tubes and electronic components

 

 

No. of Employees :

466

 

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 is currently the world's 12th largest economy. 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. Korea''s export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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

HEESUNG METAL LTD.

(Korean Company Name : “희성금속()”)

Registered Address

548-1, Gajwa 3-dong, Seo-gu, Incheon, Korea

Zip Code

404-817

Tel

+82-32-578-1151

Fax

+82-32-581-4029

E-mail

insa@hsmetal.co.kr

Website

www.hsmetal.co.kr

Trading Address

9th Fl., Burim Bldg., 42, Euljiro 1-ga, Jung-gu, Seoul, Korea

Tel

+82-32-578-1151

Fax

+82-2-757-3160

Type

Export/Import

Industry

Manufacture of Other Electronic Valves, Tubes and Electronic Components

  Main Business

Bonding Wire, Electrical Contact Points, Gold Bonding Wire, Silver Alloy Wire ,Magnetron, Brazing Alloy, ITO Target

Established (mm/dd/yyyy)

05/01/1974

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Electrical contacts(39121522)

Sell

Solder(23171509)

Sell

Welding wire(23171510)

Sell

Magnetrons(32141003)

Sell

Connecting leads or wires(39121435)

Sell

Silver Ag(12141740)

Sell

Packaging tape(31201517)

Sell

Electronic component parts and raw materials and accessories(32131000)

Sell

Lead(11101714)

Sell

Compounds and mixtures(12350000)

 

 

CEO’s

 

Name

Kwon Young-Je

Date of Birth

11/1952

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

3,065,700,000

Employees

466

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank-Mygyo Corporate Finance Branch

Corporate Registered No.

120111-0003567

Business Registered No.

137-81-00577

Permit & Licenses

02/2002 QS 9000

05/2006 ISO 9001

05/2006 ISO 14001

 

Int’l Trade No.: 934798

Shareholder Position

Name

Shares

%

DANAKA JERLEY METAL INDUSTRIES CO., LTD.(JAPAN)

275,910

45.00

KOO BON-NEUNG

171,677

28.00

KOO BON-SIK

88,907

14.50

KU WUNG-MO

45,846

7.48

OTHERS

30,800

5.02

TOTAL

613,140

100.00

Company History

05/01/1974 Incorporated as HEESNG METAL INDUSTRY CO., LTD.

05/07/1975 Registered as a Foreign Direct Investment Corporation

08/1996 Changed company name to the present name

11/2007 Awarded US$ 200 Million Export Top Prize

12/2012 Awarded US$ 600 Million Export Top Prize

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Koo Bon-Neung

Male

Korean

1949.03

President & CEO

Mr.

Kwon Young-Je

Male

Korean

1952.11

Vice President & CFO

Mr.

Cho Eon-Joon

Male

Korean

1953.07

Sr. Executive Director

Mr.

Shin Dong-Yeol

Male

Korean

1953.07

Sr. Executive Director

Mr.

Yoon Won-Kyu

Male

Korean

1957.06

Director

Mr.

岡本英彌

Male

Japanese

1957.12

Director

Mr.

沼井 芳典

Male

Japanese

1946.11

Director

Mr.

田苗

Male

Japanese

1953.02

Director

Mr.

高齊

Male

Japanese

1951.03

Auditor

Mr.

Koo Bon-Sik

Male

Korean

1958.06

 

 


Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

827,701,098,204

464,674,076,977

16,965,292,348

2011

1,038,058,666,097

392,328,366,404

26,538,457,802

2010

958,331,801,051

338,675,097,316

26,257,939,070

 

 

Financial Description

 

Authorized Capital(KRW)

9,000,000,000

Paid-Up Capital(KRW)

3,065,700,000

Total Issued Shares

613,140

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

464,674,076,977

392,328,366,404

338,675,097,316

Current Assets

342,562,113,488

278,031,307,301

232,462,398,523

-Quick Assets

134,927,763,730

106,879,054,448

95,157,867,416

-Inventories

207,634,349,758

171,152,252,853

137,304,531,107

Fixed Assets

122,111,963,489

114,297,059,103

106,212,698,793

-Investment

63,258,926,137

60,231,107,213

54,475,964,245

-Tangibles

52,943,587,419

49,273,751,950

47,575,072,982

-Intangibles

1,925,200,401

796,583,961

183,976,914

-Others

3,984,249,532

3,995,615,979

3,977,684,652

Total Liabilities

  292,701,097,991

237,246,246,706

208,289,156,110

Current Liabilities

247,913,596,504

225,810,567,013

187,951,993,715

Fixed Liabilities

44,787,501,487

11,435,679,693

20,337,162,395

Capital Stock

3,065,700,000

3,065,700,000

3,065,700,000

Capital Surplus

8,132,277,945

8,132,277,945

8,132,277,945

Profit Surplus

157,947,704,206

142,055,406,858

117,138,298,789

Capital Adjustment

2,827,296,835

1,828,734,895

2,049,664,472

Total Equity

171,972,978,986

155,082,119,698

130,385,941,206

Liab. & Shareholder’s Equity

464,674,076,977

392,328,366,404

338,675,097,316

 

Current Liabilities

247,913,596,504

225,810,567,013

187,951,993,715

Trade Payables

109,127,436,032

111,167,069,643

109,070,520,457

Short-Term Borrowings

129,800,000,000

94,700,000,000

54,200,000,000

Account Payables

2,138,877,923

9,021,533,171

10,901,698,569

Accrued Expenses

2,207,988,645

6,228,399,057

4,050,433,357

Accrued Income Tax

2,444,175,061

2,679,151,512

5,601,209,996

Advance Receipts

515,364,597

367,971,270

1,166,711,362

Unearned Income

1,027,064,871

1,057,507,147

2,472,797,283

Withholdings

593,639,737

529,447,674

466,703,754

Derivatives

59,049,638

59,487,539

21,918,937

Fixed Liabilities

44,787,501,487

11,435,679,693

20,337,162,395

Long-Term Borrowings

30,000,000,000

-

10,000,000,000

Provision for Severance & Retirement

18,892,403,778

16,708,604,230

13,809,429,532

Non-Current Portion of Deferred Income Tax Credit

9,114,959,339

8,352,514,146

7,113,603,231

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

827,701,098,204

1,038,058,666,097

958,331,801,051

Cost of Sold Goods

794,051,394,535

992,377,244,143

916,350,622,377

Gross Profit

33,649,703,669

45,681,421,954

41,981,178,674

Selling & Admin. Expenses

11,175,924,977

16,756,252,206

14,404,558,530

Operating Income

22,473,778,692

28,925,169,748

27,576,620,144

Non-Operating Income

17,535,417,852

23,435,185,154

25,687,067,115

Non-Operating Expenses

17,627,544,369

18,792,987,550

20,667,905,010

Income Before Taxes

22,381,652,174

33,567,367,352

32,595,782,249

Income Taxes Expenses

5,416,359,826

7,028,909,550

6,337,843,179

Net Income

16,965,292,348

26,538,457,802

26,257,939,070

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-44,335,434,396

-27,992,616,298

9,911,987,547

-Net Income

16,965,292,348

26,538,457,802

26,257,939,070

-Exp. without Cash Outflow

11,057,590,613

12,218,358,112

12,096,889,271

-Revenue without Cash Inflows

-5,911,085,477

-9,653,076,410

-11,691,289,347

-Changes in Asset/ & Liability

-66,447,231,880

-57,096,355,802

-16,751,551,447

Cash Flows from Investing

-8,825,048,244

-7,128,385,219

-11,054,569,621

-Cash Inflow from Investing

2,563,148,142

3,660,630,411

5,524,176,715

-Cash Outflows for Investing

-11,388,196,386

-10,789,015,630

-16,578,746,336

Cash Flows from Financing

64,027,005,000  

29,427,005,000

6,430,290,000

-Cash Inflows from Financing

79,100,000,000

84,700,000,000

64,200,000,000

-Cash Outflows from Financing

-15,072,995,000

-55,272,995,000

-57,769,710,000

Increase/Decrease in Cash

10,866,522,360

-5,693,996,517

5,287,707,926

Cash at the Beginning of Year

1,353,856,627

7,047,853,144

1,760,145,218

Cash at the End of Year

12,220,378,987

1,353,856,627

7,047,853,144

 

Products, Technologies, Services Description

 

Main Products & Services

Bonding Wire, Electrical Contact Points, Gold Bonding Wire, Silver Alloy Wire ,Magnetron, Brazing Alloy, ITO Target

 

 

Trade Partners & Competitors

 

Competitors

HEESUNG ELECTRONICS LTD(110111-0031396)

HEESUNG CATALYSTS CORPORATION(130111-0010619)

HESUNG PRECISION LTD.(194211-0001595)

HEESUNG PMTECH CORPORATION(131411-0159311)

HEE SUNG MATERIAL LTD.(110111-3251082)

SAMBO ENGINEERING & CONSTRUCTION CO., LTD.(180111-0055722)

HEESUNG CHEMICAL LTD.(110111-0215037)

KLEANNARA CO., LTD.(110111-0063779)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Subsidiary

HEESUNG METAL (HONG KONG)

LONG HUA TOWN BAO ANZONE SHENSHEN,GUANGDONG, CHINA

(100.0% held by the subject company)

 

HEESUNG METAL TIANJIN CO., LTD.(CHINA)

LXINJISHU CHANYE PARK,TIANJIN, CHINA

(100.0% held by the subject company)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit : KRW

2012

2011

2010

Export

610,504,425,019

837,408,568,609

747,331,041,242

Domestic

217,196,673,185

200,650,097,488

211,000,759,809

Total

827,701,098,204

1,038,058,666,097

958,331,801,051

 

The Subject deals with the companies in USA and Asia.

 


Court Action

 

No.

 

 

News Clipping

 

-----

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.33

UK Pound

1

Rs.100.79

Euro

1

Rs.84.38

 

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.