MIRA INFORM REPORT

 

 

Report Date :

08.06.2013

 

IDENTIFICATION DETAILS

 

Name :

TOAN PHAT COPPER TUBE JOINT STOCK COMPANY

 

 

Formerly Known as:

TOAN PHAT COPPER PIPE JOINT STOCK COMPANY

 

 

Registered Office :

Road No. 206, Zone D Pho Noi A Industrial Zone, Trung Trac Commune, Van Lam District, Hung Yen Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishments:

2006

 

 

Com. Reg. No.:

0900246768

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

manufacturing and trading copper tube for refrigeration, shipping, construction industry, and trading copper materials

 

 

No. of Employees :

200

 

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 – 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

English Name

 

TOAN PHAT COPPER TUBE JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN ONG DONG TOAN PHAT

Type of Business

 

Joint stock company

Year Established

 

2006

Business Registration No.

 

0900246768

Date of Registration

 

04 May 2012

Place of Registration

 

Hung Yen Department of Planning and Investment

Chartered capital

 

VND 45,000,000,000

Status

 

Unlisted

Tax code

 

0900246768

Total Employees

 

200

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Registered English Name: TOAN PHAT COPPER PIPE JOINT STOCK COMPANY

Changed to: TOAN PHAT COPPER TUBE JOINT STOCK COMPANY

N/A

 

 

 

company ADDRESSES

 

Head Office

Address

 

Road No. 206, Zone D Pho Noi A Industrial Zone, Trung Trac Commune, Van Lam District, Hung Yen Province, Vietnam

Telephone

 

+84 919358358

Note:  The exact address of the subject is above. This is subject's factory.

 

Transaction office in Ha Noi

Address

 

No. 11 Thinh Hao Alley, Ton Duc Thang street, Dong Da District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37326291/ 92

Fax

 

(84-4) 37326290/ 96

Email

 

toanphatcopper@fpt.vn

Website

 

http://rubycopper.vn

 

 

Branch in Ha Noi

Address

 

No. 75 Ton Duc Thang, Quoc Tu Giam Ward, Dong Da District, Ha Noi City, Vietnam

Note:  Tax code 0900246768-001. This is also address of HOANG DAT REFRIGERATION ENGINEERING JOINT STOCK COMPANY, a distributor of the subject.

 

Branch in Ho Chi Minh

Address

 

No. 88 Pho Co Dieu, Ward 4, 11 District, Ho Chi Minh City, Vietnam

Note:  Tax code 0900246768-002

 

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN HUU KHOI

Position

 

Director

Date of Birth

 

15 Nov 1982

ID Number/Passport

 

012908782

ID Issue Date

 

06 Sep 2006

ID Issue Place

 

Hanoi Police Department

Resident

 

No. 58 Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 919358358

 

2. NAME

 

Ms. NGUYEN THI DIEM HANG

Position

 

Deputy Director

Nationality

 

Vietnamese

 

3. NAME

 

Ms. PHAM THI THU HIEN

Position

 

Deputy Director

Nationality

 

Vietnamese

 

4. NAME

 

Ms. PHAM THI THUY LUA

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in manufacturing and trading copper tube for refrigeration, shipping, construction industry, and trading copper materials.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Material, components, equipments

·         Market

 

China and Southeast Asian countries, Thailand

 

EXPORT:

·         Types of products

 

Copper tube

·         Market

 

Malaysia, India, etc

 

 

 

BANKERS

 

JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HA NOI BRANCH

Address

 

No. 78 Nguyen Du Str, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38268035

Fax

 

(84-4) 38228039

 

 

 

SHAREHOLDERS

 

Following is founding shareholders as in the latest business registration of the subject

1. NAME

 

Ms. BUI THI MAI HOA

ID Number/Passport

 

012837350

Resident

 

Residential Quarter of Academy of Journalism & communication, Dich Vong Hau Ward, Cau Giay District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Share Percentage

 

N/A

 

2. NAME

 

Ms. BUI THI HOA MAI

ID Number/Passport

 

011229151

Resident

 

No. 75B Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Share Percentage

 

N/A

 

3. NAME

 

Mr. BUI QUOC CHINH

ID Number/Passport

 

010412819

Resident

 

No. 205, Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Share Percentage

 

N/A

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

Audit status

Unaudited

Unaudited

ASSETS

A – CURRENT ASSETS

45,412

39,185

I. Cash and cash equivalents

21,586

2,467

1. Cash

14,286

2,467

2. Cash equivalents

7,300

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

2,194

7,592

1. Receivable from customers

1,399

7,537

2. Prepayments to suppliers

778

55

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

17

0

6. Provisions for bad debts

0

0

IV. Inventories

19,675

26,712

1. Inventories

19,675

26,712

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

1,957

2,414

1. Short-term prepaid expenses

516

681

2. VAT to be deducted

1,441

1,583

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

0

150

B. LONG-TERM ASSETS

48,763

47,776

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

47,897

47,176

1. Tangible assets

44,099

43,475

- Historical costs

65,076

59,445

- Accumulated depreciation

-20,977

-15,970

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

3,597

3,686

- Initial costs

4,099

4,099

- Accumulated amortization

-502

-413

4. Construction-in-progress

201

15

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

866

600

1. Long-term prepaid expenses

866

600

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

 

 

1. Goodwill

 

 

TOTAL ASSETS

94,175

86,961

 

LIABILITIES

A- LIABILITIES

41,960

35,085

I. Current liabilities

41,960

35,085

1. Short-term debts and loans

31,903

33,401

2. Payable to suppliers

821

1,016

3. Advances from customers

6,717

503

4. Taxes and other obligations to the State Budget

23

3

5. Payable to employees

1,018

162

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

1,478

0

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

 

 

II. Long-Term Liabilities

0

0

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

0

0

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

0

0

7. Provisions for long-term accounts payable

0

0

8. Unearned Revenue

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

52,215

51,876

I. OWNER’S EQUITY

52,215

51,876

1. Capital

45,000

45,000

2. Share premiums

0

0

3. Other sources of capital

0

0

4. Treasury stocks

0

0

5. Differences on asset revaluation

0

0

6. Foreign exchange differences

-80

-220

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

7,295

7,096

11. Construction investment fund

0

0

12. Business arrangement supporting fund

 

 

II. Other sources and funds

0

0

1. Bonus and welfare funds (Elder form)

0

0

2. Sources of expenditure

0

0

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

 

 

TOTAL LIABILITIES AND OWNER’S EQUITY

94,175

86,961

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

344,252

219,764

2. Deduction item

1,432

261

3. Net revenue

342,820

219,503

4. Costs of goods sold

326,237

207,901

5. Gross profit

16,583

11,602

6. Financial income

243

442

7. Financial expenses

5,809

5,956

- In which: Loan interest expenses

4,851

3,467

8. Selling expenses

174

36

9. Administrative overheads

3,560

2,334

10. Net operating profit

7,283

3,718

11. Other income

354

32

12. Other expenses

342

0

13. Other profit /(loss)

12

32

14. Total accounting profit before tax

7,295

3,750

15. Current corporate income tax

0

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

 

 

18. Profit after tax

7,295

3,750

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.08

1.12

1.15

Quick liquidity ratio

0.61

0.36

0.55

Inventory circle

14.07

7.78

4.67

Average receive period

2.34

12.62

95.82

Utilizing asset performance

3.64

2.52

1.12

Liability by total assets

44.56

40.35

65.92

Liability by owner's equity

80.36

67.63

234.28

Ebit / Total assets (ROA)

12.90

8.30

6.27

Ebit / Owner's equity (ROE)

23.26

13.91

18.68

Ebit / Total revenue (NPM)

3.53

3.28

6.92

Gross profit / Total revenue (GPM)

4.82

5.28

10.11

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

L/C, T/T

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

TOAN PHAT COPPER TUBE JOINT STOCK COMPANY was founded in 2006 as a company characterized in copper field. Currently, it is running under the business registration No. 0900246768 with chartered capital of 45 billion VND. Ownership percentage of founding shareholders is not shown in latest business registration license.

The subject's factory is located at Road No. 206 - Zone D - Pho Noi A Industrial Zone - Van Lam District - Hung Yen Province. Transaction office is located at No. 11 Thinh Hao - Ton Duc Thang - Dong Da District - Hanoi City. Besides, it also has two branches in Hanoi and Ho Chi Minh city. The branch in nearby address (No. 75 Ton Duc Thang, Quoc Tu Giam Ward, Dong Da District, Ha Noi City, Vietnam) is also address of HOANG DAT REFRIGERATION ENGINEERING JOINT STOCK COMPANY, a distributor of the subject.

The company is engaged in manufacturing copper tube and trading copper materials. Copper tubes include level wound coil, pancake copper coil, straight copper tube, etc serving for air conditioning, shipbuilding and construction field. Its quality management system and products is accepted following standards: ISO 9001:2008, ASTM B280-03, ASTM B68/B68M-11, JIS H 3300:2006. The subject imports equipments, and copper materials from various Asian countries as Thailand, China, India.

Financially, the subject maintained growth in total assets and sales revenue in 2011. Total assets grew by 8.3% while total sales soared by 56.6%. Profit after tax nearly doubled in 2011. ROE, and ROA were fairly good, however, NPM and GPM seemed inferior to the industry average. In terms of solvency capability, quick liquidity ratio improved thanks to enhancement of cash and cash equivalents. Debt ratios were low, and remained at safety level in two years.

In general, the subject is operating normally. Its future prospect is bright. Financial situation is above average. It can meet small and medium 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.56.74

UK Pound

1

Rs.88.53

Euro

1

Rs.75.20

 

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.