MIRA INFORM REPORT

 

 

Report Date :

26.06.2013

 

IDENTIFICATION DETAILS

 

Name :

SUHEUNG CAPSULE CO., LTD.

 

 

Formerly Known As :

SUHEUNG CHEMICAL INDUSTRIAL CO., LTD.

 

 

Registered Office :

683, Yeonje-Ri, Osong-Eup, Cheongwon-Gun, Chungcheongbuk-Do, Korea, Zip Code 363-951

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

30.01.1973

 

 

Com. Reg. No.:

130-81-00576

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Medicinal Medicaments

 

 

No. of Employees :

651

 

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)

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 is currently the world's 12th largest economy. 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. Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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

 

Company Name

SUHEUNG CAPSULE CO., LTD.

(Korean Company Name : “()서흥캅셀”)

Registered Address

683, Yeonje-ri, Osong-eup, Cheongwon-gun, Chungcheongbuk-do, Korea

(New Address System : 61, Osongsaengmyeong-ro, Osong-eup, Cheongwon-gun, Chungcheongbuk-do, Korea)

Zip Code

363-951

Tel

+82-43-249-4100

Fax

+82-43-249-4199

E-mail

hsmoon@suheung.co.kr;inquiries@suheung.com

Website

www.suheung.co.kr

Trading Address

6th Fl., Jung-An Bldg., 435-5, Jangan 3-dong, Dongdaemun-gu, Seoul, Korea

Tel

+82-2-2210-8175

Fax

+82-2-2217-2356

Other Address- 2nd Factory

1731-4, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-831-8803

Fax

+82-51-831-8806

Type

Export

Industry

Manufacture of Medicinal Medicaments

  Main Business

Empty Hard Capsules, Soft Capsule, Health Food, Encapsulation Machine

Established (mm/dd/yyyy)

01/30/1973

 

The Subject owns the premises of the registered address/Factory(18,142m2) and 2nd Factory(13,386m2).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Capsule tubes or caps(24141709)

Sell

Health & Nutrition Food

Sell

Hard Capsule

Sell

Soft Capsule

Sell

Automatic Capsule Filling Machine

Sell

Paint Ball

 

 

CEO’s

 

Name

Yang Joo-Hwan

Date of Birth

03/13/1952

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

6,084,556,500

Employees

651

Formation

Listed Company (Korea Stock Exchange: 008490) as of 03/27/1990

A Company of SUHEUNG CAPSULE CO., LTD.

Bank Details

Citi Bank, Korea-HQ Branch

Kookmin Bank

Korea Development Bank

Hana Bank

Woori Bank

Corporate Registered No.

124311-0004252

Business Registered No.

130-81-00576

Permit & Licenses

01/03/1998 ISO 9001

Patent(26161) : EMBO CAPS

 

Int’l Trade No.: 814492

Shareholder Position

Name

Shares

%

YANG JOO-HWAN

3,793,020

31.17

YANG JOO-CHUL

895,830

7.36

BARING ASSET MANAGEMENT KOREA LIMITED(110111-0563208)

592,835

4.87

YUDANG JANGHAKHOI(114122-0004164)

577,580

4.75

OTHERS

6,309,848

51.85

TOTAL

12,169,113

100.00

Company History

01/30/1973 Incorporated as SUHEUNG CHEMICAL INDUSTRIAL CO., LTD.

01/30/1980 Changed company name to the present name

06/01/1982 Acquired Jinhung Pharm. Co., Ltd.

03/27/1990 Listed at KSE Market

11/30/1992 Awarded US$5 Million Export Top Prize

11/30/1994 Awarded US$10 Million Export Top Prize

11/30/2003 Awarded US$20 Million Export Top Prize

11/30/2008 Awarded US$30 Million Export Top Prize

11/30/2012 Moved to the present HQ address from 317, Songnae 1-dong, Sosa-gu, Bucheon-si, Gyeonggi-do, Korea

06/19/2013 Decided to acquire SH PHARM. CO., LTD.(121111-0112531) as of 08/21/2013

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Yang Joo-Hwan

Korean

1952.03.13

Yonsei University, Korea

Vice President

Mr.

Yoon Sung-Gerl

Korean

1952.02.10

Kyungbuk National University

Executive Director

Mr.

Kim Bae-Sung

Korean

1951.01.20

Dankuk University, Korea

Outside Director

Mr.

Lee Byung-Kil

Korean

1937.06.15

Myungji University, Korea

Auditor

Mr.

You Young-Keun

Korean

1954.02.11

Hankuk University of Foreign Studies, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2013

51,623,612,945

388,488,493,884

1,650,350,765

(*)2012

153,891,469,724

375,282,780,073

-11,432,173,261

(*)2011

142,896,131,721

359,613,541,572

15,837,267,309

(*)2010

124,860,736,612

257,332,849,483

13,934,050,775

2009

107,816,084,492

174,448,247,930

12,341,777,483

2008

101,606,218,474

171,911,838,049

10,640,188,356

2007

82,180,764,151

165,845,450,904

11,452,762,741

2006

76,710,971,354

138,611,568,949

2,953,156,089

2005

79,038,672,652

134,356,104,317

10,190,368,933

2004

67,146,608,615

97,988,295,464

4,225,936,857

2003

61,617,857,772

88,006,173,647

5,053,581,380

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

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

6,084,556,500

Total Issues Shares

12,169,113

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

388,488,493,884

375,282,780,073

359,613,541,572

Current Assets

95,854,115,165

83,543,381,002

80,379,255,337

Cash & Cash Equivalents

2,162,983,692

788,158,830

1,483,515,273

Current Financial Instruments

200,000,000

0

0

Trade Receivables

45,943,651,967

37,634,065,742

32,209,614,170

Inventories

43,490,422,271

41,763,107,205

36,503,169,706

Other Receivables

947,098,436

892,987,254

9,862,109,022

Deferred Income Tax Assets

432,002,193

430,983,373

0

Other Current Assets

2,677,956,606

2,034,078,598

320,847,166

Assets to be Sold

45,745,000,000

45,745,000,000

0

Non-Current Assets

246,889,378,719

245,994,399,071

279,234,286,235

Marketable Financial Instruments

17,100,000

17,100,000

179,535,000

Held-to-Maturity Financial Assets

400,000,000

400,000,000

400,000,000

Non-Current Financial Instruments

112,560,000

581,108,536

1,190,416,468

Investment_Related Companies

32,452,670,630

32,452,670,630

32,652,670,630

Investment_Real Estates

0

0

3,381,081,486

Tangibles

208,545,044,055

207,122,070,778

235,321,477,992

Intangibles

3,997,078,109

3,997,078,109

3,975,078,109

Other Receivables

707,134,950

777,134,950

1,151,414,950

Other Non-Current Assets

657,790,975

647,236,068

982,611,600

Total Liabilities

225,001,914,951

211,748,684,955

179,960,427,384

Current Liabilities

48,741,256,113

39,205,879,543

76,740,366,263

Trade Payables

8,093,781,326

7,414,363,733

6,570,706,196

Debentures

29,300,000,000

22,200,000,000

63,681,694,825

Other Payables

6,565,812,446

4,620,464,959

4,773,994,258

Deferred Income Tax Assets

0

0

311,713,022

Other Current Liabilities

4,781,662,341

4,971,050,851

1,402,257,962

Non-Current Liabilities

176,260,658,838

172,542,805,412

103,220,061,121

Long-Term Borrowings

168,000,000,000

165,000,000,000

89,951,058,220

Long-Term Finance Guarantee Debts

657,790,975

647,236,068

982,611,600

Confirmed Salaries

1,281,049,068

570,587,086

0

Deferred Income Tax Credit

6,219,485,465

6,207,148,928

11,957,057,971

Other Long-Term Payables

102,333,330

117,833,330

329,333,330

Capital Stock

6,084,556,500

6,084,556,500

6,084,556,500

Capital Surplus

38,377,468,436

38,377,468,436

38,377,468,436

Others

3,122,903,456

3,122,903,456

3,122,903,456

Profit Surplus

115,901,650,541

115,949,166,726

132,068,185,796

Total Equity

163,486,578,933

163,534,095,118

179,653,114,188

Liab. & Shareholder’s Equity

388,488,493,884

375,282,780,073

359,613,541,572

 

 

Income Statement

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

51,623,612,945

153,891,469,724

142,896,131,721

Cost of Sold Goods

44,690,989,702

132,841,596,550

110,002,851,937

Gross Profit

6,932,623,243

21,049,873,174

32,893,279,784

Selling & Admin. Expenses

3,646,629,982

14,429,070,472

12,024,907,747

R&D

548,771,087

2,182,053,218

0

Operating Income

2,737,222,174

4,438,749,484

20,868,372,037

Investment Profits on Related Companies

214,200,000

4,121,300,000

428,400,000

Finance Income

446,976,223

853,844,354

2,614,924,634

Finance Expenses

2,041,921,251

9,676,627,198

4,009,204,005

Other  Income

1,105,761,400

3,265,000,735

1,175,274,922

Other Expenses

799,551,244

19,577,103,528

1,345,284,708

Income Before Taxes

1,662,687,302

-16,574,836,153

19,732,482,880

Income Taxes Expenses

12,336,537

-5,142,662,892

3,895,215,571

Net Income

1,650,350,765

-11,432,173,261

15,837,267,309

 

 

Cash Flows

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

-3,926,334,927

918,688,881

6,009,305,969

Net Income

1,650,350,765

-11,432,173,261

15,837,267,309

Adjustment

4,671,862,759

28,748,492,624

6,205,601,511

Changes in Asset/ & Liability

-8,527,813,150

-7,781,058,818

-9,438,853,415

Interests Received

55,388,977

126,658,052

152,217,542

Dividends Received

0

200,000

200,000

Interests Paid

-1,775,105,458

-7,821,498,346

-3,066,611,515

Income Taxes

-1,018,820

-921,931,370

-3,680,515,463

Cash Flows from Investing

-3,125,261,874

-31,987,762,832

-92,225,470,050

Cash Flows from Financing

8,402,133,050

30,397,895,315

83,687,828,905

Increase/Decrease in Cash

1,374,824,862

-695,356,443

-2,574,949,983

Cash at the Beginning of Year

788,158,830

1,483,515,273

4,058,465,256

Cash at the End of Year

2,162,983,692

788,158,830

1,483,515,273

 

 

Products, Technologies, Services Description

 

Main Products & Services

Empty Hard Capsules, Soft Capsule, Health Food, Encapsulation Machine, Paintball for Leisure

 

Brand Name: EMBO CAPS

 

 

Trade Partners & Competitors

 

Suppliers

GELITA SWEDEN AB

PB LEINER USA

GELTECH CO., LTD(180111-0262476)

 

BMW FINANCIAL SERVICES KOREA CO., LTD.(110111-2278756) provides vehicle leasing services to the Subject company.

Customers

Major Pharmaceutical companies and manufacturers

Competitors

HAN KOOK CAPSULE INDUSTRY CO., LTD.

13-164, SEONGSU 1-GA 2-DONG, SEONGDONG-GU, SEOUL, KOREA

TEL:+82-2-464-0621  FAX:+82-2-464-9503

 

(*) The Subject is ranked as the 1st player in domestic market shares(85%).

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

GELTECH CO., LTD(180111-0262476)

(42.84% held by the subject company)

 

SUHUNG PLAZMA CO., LTD.(110111-2003567)

(36.19% held by the subject company)

 

NUTROJIN CO., LTD.(110111-3388215)

(30.00% held by the subject company)

 

UNI-CAPS CO., LLC.

(50.00% held by SUHEUNG AMERICA)

 

J&S CAPSULE LLC.

(50.00% held by SUHEUNG AMERICA)

 

SH ASSET MANAGEMENT LLC.

(99.00% held by SUHEUNG AMERICA)

Overseas Office

SUHEUNG-VIETNAM CO., LTD

3RD FLOOR, ROOM 6, 268 TO HIEN THANH ST., WARD 15, DIST 10, HCMC. VIETNAM

TEL:+84-83-868-1363 FAX:+84-83-868-1366

 

SUHEUNG-EUROPE REPRESENTATIVE OFFICE

A. SENOE 3 VARAZDIN 42000 CROATIA

TEL:+38-599-509-8469 FAX:+38-542-71-2212

 

SUHEUNG-AMERICA CORPORATION

350 RANGER AVE. UNIT A BREA, CA, 92821

TEL:+1-714.996.7700 FAX:+1-714.996.7100

 

SUHEUNG-JAPAN CO., LTD.

POST CODE 101-0035 SUZUNO BLDG. 3F 11 BANCHI, KANDA-KONYACHO, CHIYODA-KU, TOKYO, JAPAN

TEL:+81-3-5256-7501  FAX:+81-3-5256-8008

Subsidiary

GELTECH CO., LTD(180111-0262476)

(42.84% held by the subject company)

 

SUHUNG PLAZMA CO., LTD.(110111-2003567)

(36.19% held by the subject company)

 

SUHEUNG-AMERICA CORPORATION

(100.0% held by the subject company)

 

SUHEUNG-VIETNAM CO., LTD

(100.00% held by the subject company)

 

SUHEUNG-JAPAN CO., LTD.

(100.00% held by the subject company)

 

SH PHARM. CO., LTD.(121111-0112531)

(100.00% held by the subject company)

 

SUHEUNG NEW ZEALAND CO., LTD.

(100.00% held by the subject company)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

LIG INSURANCE CO., LTD(110111-0017859)

KOREA LIFE INSURANCE CO., LTD.(110111-0003204)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2012

2011

2010

Export

20,836

35,173

34,215

Domestic

55,668

107,723

90,646

Total

76,504

142,896

124,861

 

The Subject exports to France, Germany, Japan, Turkey and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.92.25

Euro

1

Rs.78.38

 

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%)

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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.