MIRA INFORM REPORT

 

 

Report Date :

18.02.2013

 

IDENTIFICATION DETAILS

 

Name :

DAEKYUNG MACHINERY & ENGINEERING CO., LTD.

 

 

Registered Office :

125-2, Bugok-dong, Nam-gu, Ulsan, Korea 680-110

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

30.09.1981

 

 

Com. Reg. No.:

610-81-02779

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Distilling Machinery, Heat exchange unit and Gas Generators

 

 

No. of Employees :

508

 

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 :

No Complaints

Litigation :

Exist

 

 

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

(31.03.2011)

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 Information

 

Company Name

DAEKYUNG MACHINERY & ENGINEERING CO., LTD.

(Trade Name : DKME)

(Korean Company Name : “대경기계기술()”)

Registered Address

125-2, Bugok-dong, Nam-gu, Ulsan, Korea

Zip Code

680-110

Tel

+82-52-278-9000

Fax

+82-52-273-9898

E-mail

webmaster@dkme.com

Website

www.dkme.com

Trading Address

125-2, Bugok-dong, Nam-gu, Ulsan, Korea

(New Address System : 260-37, Cheoyong-ro, Nam-gu, Ulsan, Korea)

Tel

+82-52-278-9000

Fax

+82-52-273-9898

Other Address-Yeosu Branch

588-1, Wolha-dong, Yeosu-si, Jeollanam-do, Korea

Tel

+82-61-690-9000

Fax

+82-61-685-5618

Other Address-Yeosu 2nd Factory

11-8-1B, Small Medium Businesses Danji, 12-4, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea

Tel

+82-61-690-9161

Fax

+82-61-690-9199

Other Address-Ulsan 2nd Factory

916-3, Wonsan-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-2-52-237-1950

Fax

+82-52-237-1997

Other Address- Ulsan 3rd Factory

1296, Hwasan-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-711-9200

Fax

+82-52-711-9299

Other Address-Energy Business Div. & Seoul Office

Rm.516, 550-1, Gasan-dong, Geumcheon-gu, Seoul, Korea

Tel

+82-2-3109-9000

Fax

+82-2-588-4380 +82-2-3019-9118

Type

Export

Industry

Manufacture of Distilling Machinery, Heat exchange unit and Gas Generators

  Main Business

Heat Exchanger, Pressure Vessels, Tower Column, Tank, Industrial Boiler, HRSG

Established (mm/dd/yyyy)

09/30/1981

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Heat exchangers(40101802)

Sell

Fire tube boilers(40102001)

Sell

Boilers(40102000)

Sell

Water tube boiler(40102002)

Sell

Gas generators(26111604)

Sell

Thermal power plants(26131510)

Sell

Reactors or fermenters or digesters(23151804)

Sell

Ambient pressure adsorber vessel(23201102)

Sell

Plate columns(23201001)

Buy

Pipe(40142100)

Buy

Gaskets(31181500)

Buy

Welding rods(23171512)

Buy

Nuts(31161700)

Buy

Optical filters(31241800)

Buy

Iron plate(30102203)

Buy

Pipe flanges(40142400)

Buy

Tube and tubing(31231300)

Buy

Bolts(31161600)

 

 

CEO’s

 

Name

Park Kyu-Hong

Address

-

Date of Birth

09/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

27,369,945,000

Employees

508

Formation

Listed Company ( Korea Stock Exchange : 015590) as of 05/27/1989

A Company of TAIHAN ELECTRIC WIRE GROUP

Bank Details

Korea Exchange Bank-Ulsan Branch

Corporate Registered No.

181211-0002275

Business Registered No.

610-81-02779

Permit & Licenses

06/30/1993 ISO 9001 (TUV)

03/11/12003 CE

10/06/2005 ISO 14001 (TUV)

10/06/2005 ISO 9001 (TUV)

Acquired STAM from ASME CODE-USA

 

Int’l Trade No.: 966151

Shareholder Position

Name

Shares

%

NATIONAL PENSION 07-1 CORPORATE RESTRUCTURING ASSOCIATION QCP12 HO

37,000,000

67.59

OTHERS

17,739,890

32.41

TOTAL

54,739,890

100.00

Company History

09/30/1981 Established Daekyung Maintenance & Engineering Co., Ltd.

02/06/1987 Changed company name to the present name

06/02/2008 Joined as a company of TAIHAN ELECTRIC WIRE GROUP

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Park Kyu-Hong

Korean

1955.09.

Hanyang University, Korea

Executive Director

Mr.

Jung Keun-Ho

Korean

1960.10.

Sejong University, Korea

Director

Mr.

Jeon Min-Ho

Korean

1963.06.

Hanyang University, Korea

Director

Mr.

Lee Je-Yong

Korean

1949.03.

Seoul National University, Korea

Director

Mr.

You Eun-Sang

Korean

1959.09.

London Cubs Finance, UK

Director

Mr.

Park Ha-Young

Korean

1962.09.

Yonsei University, Korea

Outside Director

Mr.

Cho Cheol-Sik

Korean

1949.08.

Seoul National University, Korea

Outside Director

Mr.

Kang Jung-Il

Korean

1942.06.

University of Missouri, USA

Auditor

Mr.

Hwang Dae-Hyun

Korean

1950.08.

Korea University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

09/2012

197,633,183,516

267,446,074,049

5,320,212,386

2011

243,654,611,080

271,155,188,790

-20,497,354,187

2010

201,900,657,778

244,511,390,898

7,790,236,197

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

27,369,945,000

Total Issued Shares

54,739,890

 


 


Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

267,446,074,049

271,155,188,790

244,511,390,898

Current Assets

158,383,174,243

161,170,328,345

141,595,858,726

Inventories

3,870,488,037

4,274,267,811

4,761,837,084

Trade Receivables & Other Receivables

125,087,867,505

144,801,310,172

121,788,274,975

Deferred Income Tax Assets

16,183,154

21,029,698

871,623,920

Cash & Cash Equivalents

20,599,303,162

2,839,482,277

3,582,884,656

Derivatives

2,663,746,058

2,070,572,243

3,386,956,040

Other Current Assets

6,145,586,327

7,163,666,144

7,204,282,051

Non-Current Assets

109,062,899,806

109,984,860,445

102,915,532,172

Non-Current Financial Instruments

1,587,701,880

646,547,860

589,728,400

Long-Term Trade Receivables & Other Receivables

1,887,513,626

965,941,286

624,010,605

Tangibles

94,407,310,552

95,055,694,837

94,194,827,013

Intangibles

530,786,514

470,926,579

600,798,765

Investment_Related Companies

5,611,559,138

5,611,559,138

5,611,559,138

Deferred Income Tax Assets

4,010,393,714

6,092,138,994

 

Non-Current Non-Financial Instruments

1,027,634,382

1,142,051,751

1,294,608,251

Total Liabilities

200,287,800,823

211,877,617,289

161,737,181,497

Current Liabilities

181,135,254,180

185,583,763,898

131,983,494,914

Current Portion of Provisions

5,711,206,244

4,578,673,566

6,700,269,104

Trade Payables & Other Payables

69,478,684,944

90,000,719,479

69,322,173,536

Short-Term Borrowings

96,924,000,000

78,444,000,000

47,170,000,000

Current Portion of Long-Term Debts

8,042,886,000

8,042,886,000

8,042,899,000

Derivatives

978,476,992

4,517,484,853

748,153,274

Non-Current Liabilities

19,152,546,643

26,293,853,391

29,753,686,583

Long-Term Borrowings

14,564,329,000

22,607,215,000

26,150,101,000

Provision for Severance & Retirement

4,588,217,643

3,686,638,391

3,077,182,453

Deferred Income Tax Credit

 

 

526,403,130

Capital Stock

27,369,945,000

27,369,945,000

27,369,945,000

Capital Surplus

11,982,675,397

11,982,675,397

11,982,675,397

Profit Surplus

27,301,217,809

21,981,005,423

42,960,963,025

Others

504,435,020

-2,056,054,319

460,625,979

Total Equity

67,158,273,226

59,277,571,501

82,774,209,401

Liab. & Shareholder’s Equity

267,446,074,049

271,155,188,790

244,511,390,898

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

197,633,183,516

243,654,611,080

201,900,657,778

Cost of Sold Goods

176,649,699,686

261,444,223,208

181,385,994,830

Gross Profit

20,983,483,830

-17,789,612,128

20,514,662,948

Selling & Admin. Expenses

8,733,592,357

11,359,122,241

12,154,988,678

Other Operating Income

7,412,559,174

18,433,612,903

15,334,119,074

Other Operating Expenses

6,682,197,379

9,242,151,667

9,261,755,373

Operating Income

12,980,253,268

-19,957,273,133

14,432,037,971

Finance Income

667,049,096

1,319,050,668

2,107,484,974

Finance Expenses

6,967,533,998

7,614,582,171

5,868,639,521

Income Before Taxes

6,679,768,366

-26,252,804,636

10,670,883,424

Income Taxes Expenses

1,359,555,980

-5,755,450,449

2,880,647,227

Net Income

5,320,212,386

-20,497,354,187

7,790,236,197

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

13,444,454,613

-22,843,986,392

-16,491,229,067

Net Income

5,320,212,386

-20,497,354,187

7,790,236,197

Adjustment

14,494,485,243

5,578,881,397

-16,563,423,144

Interests Paid

-6,506,907,911

-7,225,243,030

-5,592,491,683

Interests Received

115,635,197

150,323,650

1,064,521,805

Income Taxes

21,029,698

-850,594,222

-3,190,072,242

Cash Flows from Investing

-5,917,070,227

-5,630,003,661

-32,228,987,369

Cash Flows from Financing

10,437,114,000

27,731,101,000

34,700,000,000

Increase/Decrease in Cash

17,759,820,885

-743,402,379

-14,046,778,530

Cash at the Beginning of Year

2,839,482,277

3,582,884,656

17,629,663,186

Cash at the End of Year

20,599,303,162

2,839,482,277

3,582,884,656

 

 

Products, Technologies, Services Description

 

Main Products & Services

-Chemical Equipment

Heat Exchanger

-Manufacturing of steam generator and power plant equipment for co-genration

-Various boiler system as like water tube boiler heat recovery steam generator system included HRSG.

Column

Pressure Vessel

Reactor with Agitator

 

-Energy Plant

Combined Cycle Power Plant

- Heat Recovery Steam Generator

Co-Generation Power Plant

- Water Tube Boiler

- Waste Heat Boiler

Industrial & Utility Plant

- Water Tube Boiler

- Waste Heat Boiler

 

The Industry is expected to grow rapidly due to China’s 2008’s Olympic game and the gradual recovering of USA Market.

 

The subject is mainly focus on exporting than domestic market because of the tough competition and limited market size. And is considered as a company having competitiveness. The export portion accounts for 86% (2005), 82% (2004) and 69% (2004).

 

 

Trade Partners & Competitors

 

Customers

SUNCOR ENERGY INC-CANADA

SHELL EASTERN PETROLEUM LTD-SINGAPORE

CME ENGINEERING FZCO-QATAR

SAUDI ARAMCO-SAUDI ARABIA

AMEC / COLT-CANADA

TOYO ENGINEERING KOREA LIMITED-QATAR

TECHNIP-YEMEN

Competitors

KANGRIM HEAVY INDUSTRIES CO., LTD.

40, UNGNAM-DONG, SEONGSAN-GU, CHANGWON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-269-7700  FAX:+82-55-269-7795~6

 

ILSUNG CORPORATION

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

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

 

DKT CO., LTD.

916-1, WONSAN-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-231-7300  FAX:+82-52-238-7291

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TAIHAN ELECTRIC WIRE CO., LTD.

TAIHAN TECHREN CO., LTD.(110111-3354711)

TEC & CO., LTD.(110111-0264343)

NAMKWANG ENGINEERING & CONSTRUCTION CO., LTD.(110111-0017411)

OPTOMAGIC CO., LTD.(134111-0003545)

ALDEX CO., LTD.(110111-03696640

DAE CHUNG CO., LTD.(161511-0002140 )

PAN-GYO 1ST FERCILITIES LAND DEVELOPMENT PFV CO., LTD.(110111-3873000)

TEC&R CO., LTD.(110111-3891177)

TAI HAN BULK TERMINAL CO., LTD.(120111-00074360

KOREA INDUSTRIAL INVESTMENT CORPORATION(110111-0511083)

TAIHAN REACH CO., LTD.(110111-2306531)

SAMYANG METAL CO., LTD.(170111-0123688)

SUNWOON LAKEVALLEY CO., LTD.(214611-0003035)

TEC NETWORKS CO., LTD.(110111-3208025)

TAIHAN ST CO., LTD.(131411-0191529 )

DASAN SOLAR GENERATION CO., LTD.(205311-0004220)

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

TEC CONSTRUCTION CO., LTD.(110111-0018203)

ALDEX NETWORKS CO., LTD.(124611-0284600)

SJD CO., LTD.(110111-1539349)

TEC MEDIA CO., LTD.(110111-3927625)

NT DEVELOPMENT 1 CO., LTD.(110111-3934703)

DOK-SAN 1ST COMMERCIAL-RESIDENTIAL BUILDING DEVELOPMENT PFV CO., LTD.(110111-3959115)

Joint Venture

P.T. DAEKYUNG INDAH HEAVY INDUSTRY

(98.99% held by the subject company)

Subsidiary

BIO TONIC CO., LTD.

DAEKYUNG ENVIRONMENTAL GROUP

 

 

Sales by Region

 (Activity & Markets)

 

The Subject exports to Middle East, Indonesia, Japan and China.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

 

The Subject Company

Daechang HRSG CO., LTD.(Korea)

Claim for Compensation from Damages

1,257,072,750

1st round is proceeding

 

 

Kongyoung Engineering Co., Ltd.(Korea)

The Subject Company

Claim for Compensation from Damages

202,232,110

1st round is proceeding

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.99

UK Pound

1

Rs.83.72

Euro

1

Rs.72.08

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.