MIRA INFORM REPORT

 

 

Report Date :

17.06.2013

 

IDENTIFICATION DETAILS

 

Name :

SIX FOUR SEVEN AERONAUTICS PROJECT CONSTRUCTION JOINT STOCK COMPANY

 

 

Registered Office :

127 Dinh Tien Hoang Street, Ward 3, Binh Thanh District, Ho Chi Minh City,

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

2007

 

 

Com. Reg. No.:

0305143877

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Construction of buildings

 

 

No. of Employees :

80

 

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

 

SIX FOUR SEVEN AERONAUTICS PROJECT CONSTRUCTION JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN XAY DUNG CONG TRINH HANG KHONG SAU BON BAY

Trade name

 

SIX FOUR SEVEN AERONAUTICS PROJECT CONSTRUCTION JOINT STOCK COMPANY

Type of Business

 

Joint stock company

Year Established

 

2007

Business Registration No.

 

0305143877

Date of Registration

 

19 Jun 2010

Place of Registration

 

Business registration office – Planning And Investment Department of Ho Chi Minh City

Chartered capital

 

VND 20,000,000,000

Tax code

 

0305143877

Total Employees

 

80

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 4103007664 issued on 29 Aug 2007

Changed to: 0305143877

19 Jun 2010

 

 

ADDRESSES

 

Head Office

Address

 

127 Dinh Tien Hoang Street, Ward 3, Binh Thanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3551 2714

Fax

 

(84-8) 3510 2753

Email

 

saubonbay@acjc647.com.vn; mail.acjc647.com.vn

Website

 

acjc647.com.vn

 

 

DIRECTORS

 

NAME

 

Mr. NGUYEN CHIEN THANG

Position

 

Director

Date of Birth

 

21 Apr 1956

ID Number/Passport

 

023147695

ID Issue Date

 

30 Jul 1999

ID Issue Place

 

Police station of Ho Chi Minh City

Resident

 

32/F1 Nguyen Van Luong Street, Ward 16, Go Vap District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

Construction of buildings

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Note: N/A

 

EXPORT:

Note: N/A

 

 

BANKERS

 

BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM

Address

 

No. 117 Nguyen Hue Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3914 1729

Fax

 

(84-8) 3914 1979

 

 

SHAREHOLDERS

 

1. NAME

 

CONG TY TNHH XAY DUNG SAN XUAT THUONG MAI VA DICH VU PHUC THINH

Business Registration

 

4602001022

Address

 

Lot B2, No. 54, Tan Dong Hiep B IP, Di An Town, Binh Duong Province, Vietnam

Representative

 

Mr. Nguyen Quoc Khanh

Number of shares

 

719,300

Value of shares

 

VND 7,193,000,000

Percentage

 

35.97%

 

2. NAME

 

CONG TY CO PHAN CO KHI XAY DUNG CONG TRINH 623

Business Registration

 

4103002717

Address

 

127 Dinh Tien Hoang Street, Ward 3, Binh Thanh District, Ho Chi Minh City, Vietnam

Representative

 

Mr. Hoang Minh Dung

Number of shares

 

200,000

Value of shares

 

VND 2,000,000,000

Percentage

 

10%

 

3. NAME

 

CONG TY CO PHAN XAY DUNG CONG TRINH GIAO THONG 710

Business Registration

 

4103002567

Address

 

127 Dinh Tien Hoang Street, Ward 3, Binh Thanh District, Ho Chi Minh City, Vietnam

Representative

 

Mr. Vo Phi Anh

Number of shares

 

200,000

Value of shares

 

VND 2,000,000,000

Percentage

 

10%

 

4. NAME

 

CIVIL ENGINEERING CONSTRUCTION CORPORATION No 6

Business Registration

 

0300487137

Date of Registration

 

25 Jan 2011

Place of Registration

 

Business registration office - Planning and Investment Department of Ho Chi Minh City

Registered Capital

 

VND 538,227,305,772

Tax code

 

0300487137

Address

 

127 Dinh Tien Hoang Str Ward 3, Binh Thanh District, Ho Chi Minh City, Vietnam

Tel

 

(84 8) 3510 1863 -35101867

Fax

 

(84 8) 3510 1858

Email

 

cienco6@cienco6.com.vn 

Website

 

www.cienco6.com.vn 

Representative

 

Mr. Nguyen Chien Thang

Number of shares

 

165,700

Value of shares

 

VND 1,657,000,000

Percentage

 

8.29%

 

5. NAME

 

674 CIVIL ENGINEERING JOINT STOCK COMPANY

Business Registration

 

1100111114

Date of Registration

 

18 Sep 2009

Place of Registration

 

Planning and Investment Department of Long An Province

Tax code

 

1100111114

Address

 

No. 216 Highway 1, Ward 2, Tan An City, Long An Province, Vietnam

Representative

 

Mr. Pham Quoc Tan

Number of shares

 

115,000

Value of shares

 

VND 1,150,000,000

Percentage

 

5.74%

 

6. NAME

 

Ms. NGUYEN THI KIM CHUNG

ID Number/Passport

 

241000985

Issued Place

 

Police station of Daak Lak Province

Resident

 

Group 8, Ea Tam Commune, Buon Ma Thuot City, Dak Lak Province, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

520,000

Value of shares

 

VND 5,200,000,000

Percentage

 

26%

 

7. NAME

 

Ms. LE HONG THANH

ID Number/Passport

 

023037896

Issued Place

 

Police station of Ho Chi Minh City

Resident

 

93/28 Hoang Hoa Tham Street, Ward 6, Binh Thanh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

80,000

Value of shares

 

VND 800,000,000

Percentage

 

4%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

192,690,000,000

180,331,000,000

I. Cash and cash equivalents

13,276,000,000

2,490,000,000

1. Cash

13,276,000,000

2,490,000,000

2. Cash equivalents

0

0

II. Short-term investments

200,000,000

10,000,000,000

1. Short-term investments

200,000,000

10,000,000,000

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

13,721,000,000

16,899,000,000

1. Receivable from customers

6,407,000,000

13,001,000,000

2. Prepayments to suppliers

7,091,000,000

3,647,000,000

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

223,000,000

251,000,000

6. Provisions for bad debts

0

0

IV. Inventories

151,281,000,000

131,993,000,000

1. Inventories

151,281,000,000

131,993,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

14,212,000,000

18,949,000,000

1. Short-term prepaid expenses

1,580,000,000

7,920,000,000

2. VAT to be deducted

1,899,000,000

3,284,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

10,733,000,000

7,745,000,000

B. LONG-TERM ASSETS

48,188,000,000

43,857,000,000

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

40,421,000,000

33,457,000,000

1. Tangible assets

38,691,000,000

30,805,000,000

- Historical costs

51,247,000,000

37,168,000,000

- Accumulated depreciation

-12,556,000,000

-6,363,000,000

2. Financial leasehold assets

1,724,000,000

2,090,000,000

- Historical costs

2,200,000,000

2,200,000,000

- Accumulated depreciation

-476,000,000

-110,000,000

3. Intangible assets

6,000,000

10,000,000

- Initial costs

20,000,000

20,000,000

- Accumulated amortization

-14,000,000

-10,000,000

4. Construction-in-progress

0

552,000,000

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

5,300,000,000

5,300,000,000

1. Investments in affiliates

0

0

2. Investments in business concerns and joint ventures

0

0

3. Other long-term investments

5,300,000,000

5,300,000,000

4. Provisions for devaluation of long-term investments

0

0

V. Other long-term assets

2,467,000,000

5,100,000,000

1. Long-term prepaid expenses

2,319,000,000

4,982,000,000

2. Deferred income tax assets

0

0

3. Other long-term assets

148,000,000

118,000,000

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

240,878,000,000

224,188,000,000

 

LIABILITIES

A- LIABILITIES

226,366,000,000

213,534,000,000

I. Current liabilities

216,344,000,000

207,633,000,000

1. Short-term debts and loans

23,353,000,000

11,000,000,000

2. Payable to suppliers

48,293,000,000

52,487,000,000

3. Advances from customers

141,375,000,000

142,139,000,000

4. Taxes and other obligations to the State Budget

2,494,000,000

1,340,000,000

5. Payable to employees

181,000,000

385,000,000

6. Accrued expenses

29,000,000

0

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

619,000,000

282,000,000

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

0

0

II. Long-Term Liabilities

10,022,000,000

5,901,000,000

1. Long-term accounts payable to suppliers

0

0

2. Long-term inter-company payable

0

0

3. Other long-term payable

0

720,000,000

4. Long-term debts and loans

7,498,000,000

5,152,000,000

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

20,000,000

29,000,000

7. Provisions for long-term accounts payable

2,504,000,000

0

8. Unearned Revenue

0

0

9. Science and technology development fund

0

0

B- OWNER’S EQUITY

14,512,000,000

10,654,000,000

I. OWNER’S EQUITY

14,376,000,000

10,710,000,000

1. Capital

8,961,000,000

8,961,000,000

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

0

0

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

5,415,000,000

1,749,000,000

11. Construction investment fund

0

0

12. Business arrangement supporting fund

0

0

II. Other sources and funds

136,000,000

-56,000,000

1. Bonus and welfare funds (Elder form)

0

0

2. Sources of expenditure

136,000,000

-56,000,000

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

240,878,000,000

224,188,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

185,945,000,000

190,054,000,000

2. Deduction item

0

0

3. Net revenue

185,945,000,000

190,054,000,000

4. Costs of goods sold

168,010,000,000

180,334,000,000

5. Gross profit

17,935,000,000

9,720,000,000

6. Financial income

1,735,000,000

1,201,000,000

7. Financial expenses

1,993,000,000

731,000,000

- In which: Loan interest expenses

1,808,000,000

604,000,000

8. Selling expenses

0

0

9. Administrative overheads

11,014,000,000

7,976,000,000

10. Net operating profit

6,663,000,000

2,214,000,000

11. Other income

372,000,000

451,000,000

12. Other expenses

68,000,000

180,000,000

13. Other profit /(loss)

304,000,000

271,000,000

14. Total accounting profit before tax

6,967,000,000

2,485,000,000

15. Current corporate income tax

1,742,000,000

736,000,000

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

5,225,000,000

1,749,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

0.89

0.87

1.49

Quick liquidity ratio

0.19

0.23

0.76

Inventory circle

1.19

1.37

4.15

Average receive period

26.93

32.45

428.99

Utilizing asset performance

0.77

0.85

0.47

Liability by total assets

93.98

95.25

68.68

Liability by owner's equity

1,559.85

2,004.26

399.20

Ebit / Total assets (ROA)

3.64

1.38

4.58

Ebit / Owner's equity (ROE)

60.47

28.99

22.45

Ebit / Total revenue (NPM)

4.72

1.63

17.51

Gross profit / Total revenue (GPM)

9.65

5.11

19.94

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Through the bank

Sale Methods

 

To projects

Public opinion

 

Well-known

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - SIX FOUR SEVEN AERONAUTICS PROJECT CONSTRUCTION JOINT STOCK COMPANY was established in 2007. At present, the subject is operating under business registration No. 0305143877 (the same with tax code) and registered capital VND 20,000,000,000.

The subject is one of member of CIVIL ENGINEERING CONSTRUCTION CORPORATION No 6 (CIENCO 6).  The subject is specializing in building airport construction, harbor, transport constructions, civil works, hydropower projects, supplying construction consultancy services… The subject has joined many projects such as: Can Tho Airport, Can Tho Station, leveling international terminal of Tan Son Nhat Airport, upgrading aircraft parking of Tan Son Nhat Airport, Da Nang Airport, Lien Khuong Airport, Phu Quoc Airport…

The premised and facility of the subject is relative. Its head office located at 127 Dinh Tien Hoang Street, Ward 3, Binh Thanh District, Ho Chi Minh City, Vietnam. Beside the subject, this location also office of many companies - members of CIENCO 6 such as CONG TY CO PHAN XAY DUNG CONG TRINH GIAO THONG 710, CONG TY CO PHAN CO KHI XAY DUNG CONG TRINH 623…

In general, the subject operates fair effective with over 80 employees. It received great support from CIENCO 6. In our opinion, the subject has capacity to meet all small – 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.57.74

UK Pound

1

Rs.90.64

Euro

1

Rs.77.02

 

 

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.