MIRA INFORM REPORT

 

 

Report Date :

21.02.2013

 

IDENTIFICATION DETAILS

 

Name :

ESTECHPHARMA CO., LTD.

 

 

Registered Office :

34-10B, Baran Local Industrial Complex 1407-9, Hagil-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, korea 445-938

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

01.01.1999

 

 

Com. Reg. No.:

123-81-47345

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Medicinal Chemicals and Antibiotics

 

 

No. of Employees :

130

 

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 :

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

(31.03.2011)

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

ESTECHPHARMA CO., LTD.

(Korean Company Name : “()에스텍파마”)

Registered Address

1407-9, Hagil-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, korea

Building

34-10B, Baran Local Industrial Complex

Zip Code

445-938

Tel

+82-31-831-4800

Fax

+82-31-831-4801

E-mail

gorrtest@estechpharma.com

Website

www.estechpharma.com

Trading Address

5FL., Daekwon Bldg., 15-1, Yangjae-dong, Seocho-gu, Seoul, Korea

Tel

+82-2-3471-2078

Fax

+82-2-3471-2079

Other Address-Ansan Factory

445-1, Mongnae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-494-3431

Fax

+82-31-495-3431

Type

Export

Industry

Manufacture of Medicinal Chemicals and Antibiotics

  Main Business

Acamprosate Calcium, Triflusal, Pranlukast Hemihydate, Glimepiride

Established (mm/dd/yyyy)

01/01/1999

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Antiulcer and related gastrointestinal GI drugs(51171900)

Sell

Nonsteroidal anti inflammatory drugs NSAIDs(51142100)

Sell

Centrally acting skeletal muscle relaxants(51151900)

Sell

Glimepiride(51181504)

Sell

Antacids and antiflatulents(51171500)

Sell

Vasodilators(51122100)

Sell

Nonsteroidal anti inflammatory drugs NSAIDs(51142100)

Sell

Drugs and Pharmaceutical Products(51000000)

 

 

CEO’s

 

Name

Kim Jae-Chul

Date of Birth

07/20/1960

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

4,931,417,500

Employees

130

Formation

Listed Company(KOSDAQ : 041910) as of 02/06/2004

Venture Business

Bank Details

Industrial Bank of Korea-Hogye Dong Branch

Corporate Registered No.

135111-0047782

Business Registered No.

123-81-47345

Permit & Licenses

Int’l Trade No.: 11635376

Shareholder Position

Name

Shares

%

KIM JAE-CHUL

1,626,969

16.50

BAE SUN-HEE

1,069,850

10.85

TRUSTON ASSET MANAGEMENT CO., LTD.(110111-1531519)

690,444

7.00

NATIONAL PENSION SERVICE(110171-0007134)

921,051

9.34

OTHERS

5,554,521

56.32

TOTAL

9,862,835

100.00

Company History

06/01/1996 Established as ESTECH CHEMICAL CO.(Sole Proprietorship)

12/1998 Designated as a Venture Business

01/01/1999 Incorporated as ESTECH CO., LTD.

01/12/2001 Changed company name to the present name

08/04/2004 Designated as an INNO-BIZ Company

12/15/2011 Awarded US$ 30 Million Export Top Prize

12/28/2011 Designated as a Venture Business again

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Kim Jae-Chul

Male

Korean

1960.07.20

Sr. Executive Director

Mr.

Kang Sung-Kil

Male

Korean

1966.01.13

Sr. Executive Director

Mr.

Seo Kyung-Jae

Male

Korean

1965.12.25

Auditor

Mr.

Kwon Nak-Joong

Male

Korean

1957.12.09

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

39,017,442,852

98,051,179,185

6,466,868,179

(*)2011

56,025,831,396

77,683,161,129

8,470,057,837

(*)2010

45,545,864,925

66,537,476,885

4,911,106,814

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

 

 

 

Financial Description

 

Authorized Capital(KRW)

30,000,000,000

Paid-Up Capital(KRW)

4,931,417,500

Total Issued Shares

9,862,835

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

98,051,179,185

77,683,161,129

66,537,476,885

Current Assets

43,715,492,889

42,011,427,928

34,458,359,818

Cash & Cash Equivalents

9,108,527,323

5,644,401,388

3,579,313,042

Trade Receivables & Other Receivables

16,482,272,109

17,508,050,308

16,122,294,591

Current Financial Instruments

122,583,907

100,000,000

267,826,131

Inventories

16,994,822,170

17,619,540,872

13,834,974,489

Other Current Assets

1,007,287,380

1,139,435,360

653,951,565

Non-Current Assets

54,335,686,296

35,671,733,201

32,079,117,067

Marketable Financial Instruments

4,020,073,100

250,000,000

150,000,000

Tangibles

47,731,910,906

32,763,155,420

28,851,409,837

Intangibles

2,240,949,571

2,210,834,102

2,635,431,602

Non-Current Financial Instruments

283,189,240

400,806,634

400,510,663

Other Non-Current Assets

59,563,479

46,937,045

41,764,965

Total Liabilities

41,729,911,976

28,013,091,085

26,481,418,791

Current Liabilities

21,502,945,782

21,180,946,722

17,697,801,833

Short-Term Borrowings

12,490,677,358

7,820,000,000

9,961,150,000

Trade Payables & Other Payables

8,677,789,338

11,421,838,741

6,790,030,771

Other Current Financial Debts

0

282,936,809

4,012,184

Other Current Liabilities

28,040,830

75,366,710

16,695,060

Accrued Income Tax

306,438,256

1,580,804,462

925,913,818

Non-Current Liabilities

20,226,966,194

6,832,144,363

8,783,616,958

Long-Term Borrowings

14,700,000,000

5,010,000,000

7,030,000,000

Confirmed Salaries

1,315,153,443

762,966,589

433,321,954

Deferred Income Tax Credit

933,599,810

1,059,177,774

1,320,295,004

Bonds With Warrant

4,000,000,000

 

 

Capital Stock

4,931,417,500

4,931,417,500

4,494,846,000

Capital Surplus

17,581,124,195

16,622,683,627

14,918,852,941

Others

-348,367,242

-528,484,330

-234,377,380

Profit Surplus

34,157,092,756

28,644,453,247

20,876,736,533

Total Equity

56,321,267,209

49,670,070,044

40,056,058,094

Liab. & Shareholder’s Equity

98,051,179,185

77,683,161,129

66,537,476,885

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

39,017,442,852

56,025,831,396

45,545,864,925

Cost of Sold Goods

26,113,317,928

38,701,051,039

32,113,286,868

Gross Profit

12,904,124,924

17,324,780,357

13,432,578,057

Revenues

-5,539,728,497

-6,167,602,574

-6,394,770,410

Selling & Admin. Expenses

-5,174,920,895

-6,020,097,553

-5,757,081,394

Other Operating Income

432,942,972

974,348,197

583,766,981

Other Operating Expenses

-797,750,574

-1,121,853,218

-1,221,455,997

Operating Income

7,364,396,427

11,157,177,783

7,037,807,647

Non-Operating Profits

973,904,606

-781,683,813

-1,578,655,944

Finance Income

213,918,418

245,650,246

84,258,502

Finance Expenses

758,711,188

-1,020,144,059

-1,657,014,446

Other Non-Operating Profits

1,275,000

-7,190,000

-5,900,000

Income Before Taxes

6,818,328,657

10,375,493,970

5,866,647,990

Income Taxes Expenses

351,460,478

1,905,436,133

955,541,176

Net Income

6,466,868,179

8,470,057,837

4,911,106,814

 

 

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

7,525,273,830

10,031,298,170

8,012,948,229

Net Income

6,466,868,179

8,470,057,837

4,911,106,814

Adjustment

3,717,472,137

6,730,985,589

5,829,702,689

Changes in Asset/ & Liability

-2,659,066,486

-5,169,745,256

-2,727,861,274

Cash Flows from Investing

-21,041,002,257

-6,625,571,189

-1,290,329,443

Cash Flows from Financing

17,016,661,995

-1,333,419,832

-4,727,354,547

Increase/Decrease in Cash

3,500,933,568

2,072,307,149

1,995,264,239

Cash at the Beginning of Year

5,644,401,388

3,579,313,042

1,596,223,285

Cash at the End of Year

9,108,527,323

5,644,401,388

3,579,313,042

 

 

Products, Technologies, Services Description

 

Main Products & Services

Acamprosate Calcium, Triflusal, Pranlukast Hemihydate, Glimepiride

 


Trade Partners & Competitors

 

Competitors

DAEBONGLSCO.,LTD(124311-0016976)

122B-9L, NAMDONG INDUSTRIAL COMPLEX, 692-8, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-817-8800~7 FAX:+82-32-817-8808

 

HANMIFINECHEMICAL CO.,LTD.(131111-0005106)

1248-8, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-2541  FAX:+82-31-499-2540

 

DAEWOONG BIO INC.(131112-0004827)

906-5, SANGSIN-RI, HYANGNAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-353-5271~3  FAX:+82-31-353-5626

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Thousand KRW

09/2012

2011

2010

Export

27,117,727

41,413,206

29,321,974

Domestic

11,646,972

14,039,400

16,196,489

Others

252,744

573,225

0

Total

39,017,443

56,025,831

45,518,463

The Subject exports to USA, Swiss, Europe, Japan, India, Taiwan and China.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.05

UK Pound

1

Rs.83.45

Euro

1

Rs.72.53

 

 

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%)

 

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.