MIRA INFORM REPORT

 

 

Report Date :

24.07.2013

 

IDENTIFICATION DETAILS

 

Name :

TRUONG THO PHARMACEUTICAL JOINT STOCK COMPANY 

 

 

Formerly Known As :

TRUONG THO PHARMA COMPANY LIMITED

 

 

Registered Office :

No 93 Linh Lang Str, Cong Vi ward, Ba Dinh District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishments:

2000

 

 

Com. Reg. No.:

0100976733

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and trading in pharmaceutical products and raw material for pharmaceutical industry

 

 

No. of Employees :

300

 

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 :

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

vietnam ECONOMIC OVERVIEW

 

Vietnam is a densely-populated developing country that has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. Poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

 

Source : CIA

 

 


 

 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

Registered English Name

 

TRUONG THO PHARMACEUTICAL JOINT STOCK COMPANY

Registered Vietnamese Name

 

CONG TY CO PHAN DUOC PHAM TRUONG THO

Registered Short name

 

TRUONG THO PHARMA., JSC

Type of Business

 

Joint stock company

Year Established

 

2000

Business Registration No.

 

0100976733

Date of Registration

 

13 Dec 2012

Place of Registration

 

Department of Planning and Investment of Ha Noi city

Chartered capital

 

VND 10,000,000,000

Status

 

Unlisted

Tax code

 

0100976733

Total Employees

 

300

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 0103013520 dated on 15 Aug 2006 Changed to: 0100976733

13 Dec 2012

2

Subject has got former Trade Name: T.T PHARMA CO.,LTD

Changed to: TRUONG THO PHARMA., JSC

15 Aug 2006

3

Subject has got former Business Registration No: 0102000011 (Issuance on 30 Jan 2000) Changed to: No. 0103013520

15 Aug 2006

4

Subject has got former Registered English Name: TRUONG THO PHARMA COMPANY LIMITED Changed to: TRUONG THO PHARMACEUTICAL JOINT STOCK COMPANY

15 Aug 2006

5

Subject has got former Registered Vietnamese Name: CONG TY TNHH DUOC PHAM TRUONG THO

Changed to: CONG TY CO PHAN DUOC PHAM TRUONG THO

15 Aug 2006

6

Subject has got former Type of Business: Liability Limited Company

Changed to: Joint Stock Company

15 Aug 2006

7

Subject has got former Address: No 15, Bich Cau Str, Quoc Tu Giam ward, Dong Da Dist, Ha Noi city

Changed to: No 93, Linh Lang Str, Ba Dinh Dist, Ha Noi city

N/A

 

company ADDRESSES

 

Head Office

Address

 

No 93 Linh Lang Str, Cong Vi ward, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37666912 / 3766 6913

Fax

 

(84-4) 37666914

Email

 

webmaster@truongthopharma.com

Website

 

truongthopharma.com

Note: The exact address of the subject is as above.

 

Factory Address

Address

 

Lot M1, N3 Str., Hoa Xa Industrial Zone, Nam Dinh City, Nam Dinh Province, Vietnam

Telephone

 

(84-350) 3670733

 

Sales and Marketing Office Address

Address

 

No 352, Giai Phong St., Phuong Liet Ward, Thanh Xuan District, Ha Noi City, Vietnam

Telephone

 

(84-4) 36658212/09

Fax

 

(84-4) 36658210

 

Truong Tho Drugstore

Address

 

No. 48 Hai Ba Trung Str., Trang Tien Ward, Hoan Kiem District, Ha Noi City, Vietnam

 

Truong Tho Drugstore

Address

 

No.168 Ngoc Khanh St., Giang Vo Ward, Ba Dinh District, Ha Noi City, Vietnam

 

Branch in Cao Bang

Address

 

No.102, Be Van Dan St., Hop Giang Ward, Cao Bang Town, Cao Bang Province, Vietnam

 

Branch in Thanh Hoa

Address

 

No. 93, Quang Trung St., Thanh Hoa City, Thanh Hoa Province, Vietnam

Telephone

 

(84-37) 3727292

Fax

 

(84-37) 3951696

 

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN VAN HUNG

Position

 

General Director

Date of Birth

 

30 Mar 1962

ID Number/Passport

 

012711878

ID Issue Date

 

18 Aug 2004

ID Issue Place

 

Police Station of Ha Noi city

Resident

 

Room 302B-D4, Group 80, Dich Vong Ward, Cau Giay District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. PHAM TUAN HUNG

Position

 

Deputy General Director

ID Number/Passport

 

011685241

Resident

 

No 107, Giai Phong St., Dong Tam Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject operates in the following business activities:
• Manufacturing and trading in pharmaceutical products and raw material for pharmaceutical industry
• Import of raw materials for processing medicine, lens, absorbent cotton and bandage, essential oil, aroma, cosmetics, hygiene products and medical equipment.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Material and machine

·         Market

 

China, India, France, Germany, Singapore, Korea…

 

EXPORT:

·         Types of products

 

Pharmaceutical products

·         Market

 

Laos, Myanmar, and Cambodia

·         Ratio

 

Very little

 

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BA DINH BRANCH

Address

 

HANDI RESCO Building - No. 521 Kim Ma Str - Ngoc Khanh Ward, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37665311 - 37665312

Fax

 

(84-4) 37665313

 

2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK HA NOI BRANCH

Address

 

No.65 Ngo Thi Nham, Hai Ba Trung District, Ha Noi City, Vietnam

Telephone

 

(84-4) 39436007

Fax

 

(84-4) 39432988

 

3. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK BA DINH BRANCH

Address

 

No.132- 138 Kim Ma str, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3734 3233

Fax

 

(84-4) 3734 3238

 

4. ASIA COMMERCIAL BANK HA NOI BRANCH

Address

 

No.184-186 Ba Trieu, Hai Ba Trung District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3943 3508

Fax

 

(84-4) 3943 9283

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. NGUYEN KE SEU

ID Number/Passport

 

011898027

Resident

 

Station 47C, Group 18C, Khuong Mai Ward, Thanh Xuan District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

3,000

Value of shares

 

VND 30,000,000

 

2. NAME

 

Mr. LE TUAN MINH

ID Number/Passport

 

164001148

Resident

 

No. 613 Truong Trinh Str., Ha Long Ward, Nam Dinh City, Nam Dinh Province, Vietnam

Nationality

 

Vietnamese

Note:  His share is transferred

 

3. NAME

 

Mr. TRAN QUOC LOI

ID Number/Passport

 

012400402

Resident

 

No. 101, Alley 714, Giai Phong Str., Giap Bat Ward, Hoang Mai District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

10,500

Value of shares

 

VND 105,000,000

 

4. NAME

 

Mr. TRINH VAN VINH

ID Number/Passport

 

090602496

Resident

 

Group 6, Road 3, Phan Dinh Phung Ward, Thai Nguyen City, Thai Nguyen Province, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

12,000

Value of shares

 

VND 120,000,000

 

5. NAME

 

Mr. PHAM TUAN HUNG

Position

 

Deputy General Director

ID Number/Passport

 

011685241

Resident

 

No 107, Giai Phong St., Dong Tam Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

400,000

Value of shares

 

VND 4,000,000,000

 

6. NAME

 

Mr. NGUYEN VAN HUNG

Position

 

General Director

Date of Birth

 

30 Mar 1962

ID Number/Passport

 

012711878

Issued on

 

18 Aug 2004

Issued Place

 

Police Station of Ha Noi city

Resident

 

Room 302B-D4, Group 80, Dich Vong Ward, Cau Giay District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

450,000

Value of shares

 

VND 4,500,000,000

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

Audit status

Unknown

Unknown

ASSETS

A – CURRENT ASSETS

63,014,000,000

46,059,947,290

I. Cash and cash equivalents

5,946,000,000

3,778,361,996

1. Cash

5,946,000,000

3,778,361,996

2. Cash equivalents

0

0

II. Short-term investments

0

0

1. Short-term investments

0

0

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

19,475,000,000

17,551,371,937

1. Receivable from customers

18,879,000,000

17,410,525,537

2. Prepayments to suppliers

0

0

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

741,000,000

285,846,400

6. Provisions for bad debts

-145,000,000

-145,000,000

IV. Inventories

36,818,000,000

22,803,794,515

1. Inventories

36,818,000,000

22,803,794,515

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

775,000,000

1,926,418,842

1. Short-term prepaid expenses

337,000,000

831,296,703

2. VAT to be deducted

0

239,860,499

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

438,000,000

855,261,640

B. LONG-TERM ASSETS

45,576,000,000

58,122,260,997

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

45,423,000,000

57,084,735,209

1. Tangible assets

40,551,000,000

47,954,544,396

- Historical costs

66,949,000,000

63,271,532,141

- Accumulated depreciation

-26,398,000,000

-15,316,987,745

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

2,254,000,000

2,254,238,878

- Initial costs

2,723,000,000

2,723,471,688

- Accumulated amortization

-469,000,000

-469,232,810

4. Construction-in-progress

2,618,000,000

6,875,951,935

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

0

0

1. Investments in affiliates

0

0

2. Investments in business concerns and joint ventures

0

0

3. Other long-term investments

0

0

4. Provisions for devaluation of long-term investments

0

0

V. Other long-term assets

153,000,000

1,037,525,788

1. Long-term prepaid expenses

153,000,000

1,037,525,788

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

108,590,000,000

104,182,208,287

 

LIABILITIES

A- LIABILITIES

81,078,000,000

79,950,144,769

I. Current liabilities

53,417,000,000

44,510,030,876

1. Short-term debts and loans

38,980,000,000

31,845,593,525

2. Payable to suppliers

10,933,000,000

11,669,400,371

3. Advances from customers

762,000,000

0

4. Taxes and other obligations to the State Budget

543,000,000

0

5. Payable to employees

0

485,750,000

6. Accrued expenses

0

0

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

2,199,000,000

509,286,980

10. Provisions for short-term accounts payable

0

0

II. Long-Term Liabilities

27,661,000,000

35,440,113,893

1. Long-term accounts payable to suppliers

0

0

2. Long-term inter-company payable

0

0

3. Other long-term payable

0

0

4. Long-term debts and loans

27,485,000,000

35,304,413,893

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

176,000,000

135,700,000

7. Provisions for long-term accounts payable

0

0

8. Unearned Sale

0

0

9. Science and technology development fund

0

0

B- OWNER’S EQUITY

27,512,000,000

24,232,063,518

I. OWNER’S EQUITY

27,399,000,000

24,105,330,018

1. Capital

10,000,000,000

10,000,000,000

2. Share premiums

0

0

3. Other sources of capital

1,024,000,000

1,023,940,227

4. Treasury stocks

0

0

5. Differences on asset revaluation

0

0

6. Foreign exchange differences

0

0

7. Business promotion fund

2,565,000,000

2,565,000,000

8. Financial reserved fund

2,015,000,000

2,014,600,000

9. Other funds

0

0

10. Retained earnings

11,795,000,000

8,501,789,791

11. Construction investment fund

0

0

12. Business arrangement supporting fund

0

0

II. Other sources and funds

113,000,000

126,733,500

1. Bonus and welfare funds (Elder form)

113,000,000

126,733,500

2. Sources of expenditure

0

0

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

108,590,000,000

104,182,208,287

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

95,476,000,000

78,245,249,508

2. Deduction item

2,971,000,000

1,083,383,862

3. Net sale

92,505,000,000

77,161,865,646

4. Costs of goods sold

59,213,000,000

52,540,056,158

5. Gross profit

33,292,000,000

24,621,809,488

6. Financial income

180,000,000

28,870,000

7. Financial expenses

10,411,000,000

6,133,010,631

- In which: Loan interest expenses

0

0

8. Selling expenses

9,984,000,000

6,391,993,219

9. Administrative overheads

9,367,000,000

9,086,000,000

10. Net operating profit

3,710,000,000

3,039,675,638

11. Other income

0

1,644,035,000

12. Other expenses

0

1,112,861,600

13. Other profit /(loss)

0

531,173,400

14. Total accounting profit before tax

3,710,000,000

3,570,849,038

15. Current corporate income tax

417,000,000

437,862,903

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

3,293,000,000

3,132,986,135

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.18

1.03

1.80

Quick liquidity ratio

0.49

0.52

1.12

Inventory circle

1.61

2.30

3.56

Average receive period

76.84

83.02

117.46

Utilizing asset performance

0.85

0.74

1.10

Liability by total assets

74.66

76.74

50.87

Liability by owner's equity

294.70

329.94

169.03

Ebit / Total assets (ROA)

3.42

3.43

12.05

Ebit / Owner's equity (ROE)

13.49

14.74

27.25

Ebit / Total sale (NPM)

3.89

4.56

12.32

Gross profit / Total sale (GPM)

34.87

31.47

29.69

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

L/C, T/T, D/A, D/P

Sale Methods

 

Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was established in 2000 as a limited liability company. Up to 2009, it was transferred into joint stock company. Currently, it is operating under the business registration No. 0100976733 with the chartered capital of VND 10 billion. The subject has no plan to increase chartered capital in the next time.

The subject operates in the sector of processing and trading pharmaceutical products. The subject often imports pharmaceutical products, materials and equipment from China, India, and some European countries such as France, Germany, etc. It mainly distributes products domestically. The small amount is exported to Laos. It plans to export to Myanmar and Cambodia in coming time.

Head office of the subject is located at No.93 Linh Lang St., Cong Vi Ward, Ba Dinh Dist., Hanoi.  Besides, the subject has branches in Thanh Hoa and Cao Bang provinces. The premises and facilities of the subject are average. The management capacity of the subject is fair. Its business operation is now rather busy.

Currently, the pharmaceutical industry in Vietnam has developing prospect. Pharmaceutical products in Vietnam have high price, and companies in this industry gained comparatively high profit. Regarding the above financial data, in 2011, both sale and profit of the subject have increase against 2010 with growth ratios of 22% and 5% respectively. However, profitability is still modest compared with average industry. Ratios evaluate effective business such as NPM, GPM, ROA, ROE were humble and lower than average industry.

In general, the subject is an average scale company. The future prospect seems to be bright. The subject has capacity to meet small-medium business transactions.

 

 

 

APPENDIX

 

INDUSTRY DATA

 

Industry code

GDP growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2012

2011

Agriculture, Forestry and Fishing

2.72

4.00

8,887

24,362.9

95,227

Industry and Construction

4.52

5.53

95,217

10,718.9

3,641,376

Trade and Services

6.42

6.69

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2012 

2011 

2010 

Population (Million person)

88.78

87.84

86.93

Gross Domestic Products (USD billion)

136

119

102.2

GDP Growth (%)

5.03

5.89

6.78

GDP Per Capita (USD/person/year)

1,540

1,300

1,160

Inflation (% Change in Composite CPI)

9.21

18.58

11.75

State Budget Deficit compared with GDP (%)

4.8

4.9

5.8

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2012 

2011 

2010 

Exports

114.6

96.3

72.2

Imports

114.3

105.8

84.8

Trade Balance

0.3

-9.5

-12.6

Source: General Statistics Office

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.69

UK Pound

1

Rs.91.66

Euro

1

Rs.78.69

 

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.