|
Report Date : |
07.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
HWACHEON
MACHINERY CO., LTD. |
|
|
|
|
Registered Office : |
1022-7, Bangbae 3-dong, Seocho-gu, Seoul, Korea 137-851 |
|
|
|
|
Country : |
South Korea |
|
|
|
|
Financials (as on) : |
30.09.2012 |
|
|
|
|
Date of Incorporation : |
14.06.1975 |
|
|
|
|
Com. Reg. No.: |
114-81-45488 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Manufacture of Metal Cutting Machines |
|
|
|
|
No. of Employees : |
331 |
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 Complaint |
|
Litigation : |
Clears |
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 (31.03.2012) |
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 |
|
Company
Name |
HWACHEON
MACHINERY CO., LTD. (Korean Company
Name : “화천기계(주)”) |
|
Registered Address |
1022-7, Bangbae 3-dong, Seocho-gu, Seoul,
Korea |
|
Building |
|
|
Zip Code |
137-851 |
|
Tel |
+82-2-523-7766 |
|
Fax |
+82-2-523-2867 |
|
E-mail |
hdy@hwacheon.com |
|
Website |
www.hwacheon.co.kr |
|
Trading Address |
1022-7, Bangbae 3-dong, Seocho-gu, Seoul,
Korea |
|
Tel |
+82-2-523-7766 |
|
Fax |
+82-2-523-2867 |
|
Other Address-Changwon Factory |
41, Ungnam-dong, Seongsan-gu, Changwon-si,
Gyeongsangnam-do, Korea |
|
Tel |
+82-55-282-2161 |
|
Fax |
+82-55-282-1527 |
|
Type |
Export/Import |
|
Industry |
Manufacture of Metal Cutting Machines |
|
Main Business |
CNC Lathe, CNC Milling Machine, Machining Center, Turning Center,
Drilling Machine, Grinding Machine, Milling Machine General Lathe, Cylinder
Block Sub Assembly |
|
Sub
Business |
Manufacture of Parts and Accessories for Motor Engines |
|
Established (mm/dd/yyyy) |
06/14/1975 |
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Milling machines(23101513) |
|
Sell |
Grinding machines(23101506) |
|
Sell |
Drilling machines(23101502) |
|
Sell |
Machine tools(23171600) |
|
Sell |
Lathes(23171606) |
|
Buy |
Power supply transformers(39121002) |
|
Buy |
Circuit protection devices and
accessories(39121600) |
|
Buy |
Aluminum(11101705) |
|
Buy |
Computers(43211500) |
|
Buy |
Switches and controls and relays and
accessories(39121500) |
|
Buy |
Ball bearings(31171504) |
|
Buy |
Electrical wire(26121500) |
|
Buy |
Steel(11101704) |
|
Buy |
Servomotors(26101606) |
|
Buy |
Indicating and recording
instruments(41111900) |
|
Buy |
Iron(11101713) |
|
Name |
Cho Kyoo-Seung |
|
Date of Birth |
08/20/1945 |
|
Title |
President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
|
Capital (KRW) |
11,000,000,000 |
||||||||||||||||||
|
Employees |
331 |
||||||||||||||||||
|
Formation |
Listed Company (Korea Stock Exchange : 010660) as of 12/12/1988 |
||||||||||||||||||
|
Bank Details |
Shinhan Bank-HQ Office |
||||||||||||||||||
|
Corporate Registered No. |
110111-0342181 |
||||||||||||||||||
|
Business Registered No. |
114-81-45488 |
||||||||||||||||||
|
Permit & Licenses |
12/01/1994 ISO 9001 11/01/1999 CE Mark 06/27/2002 QS 9000 10/23/2005 ISO 14001 11/2006 ISO 14001 Int’l Trade No.: 804196 |
||||||||||||||||||
|
Shareholder Position |
|
||||||||||||||||||
|
Company History |
06/14/1975 Incorporated as HWACHEON MACHINERY INDUSTRY CO., LTD. 03/18/2011 Changed company name to the
present name |
||||||||||||||||||
|
|
|
|
Job Description |
Title |
Name |
Date of Birth |
Nationality |
Education |
|
Chairman |
Mr. |
Kwon Young-Ryual |
1947.07.11 |
Korean |
Hanyang University, Korea |
|
President & CEO |
Mr. |
Cho Kyoo-Seung |
1945.08.20 |
Korean |
Hanyang University, Korea |
|
Vice President |
Mr. |
Jung June-Mo |
1954.02.19 |
Korean |
Kunkook University, Korea |
|
Vice President |
Mr. |
Lee Jong-Tae |
1953.09.09 |
Korean |
Bukyung University, Korea |
|
Sr. Executive Director |
Mr. |
Kwon Hyung-Seok |
1973.12.20 |
Korean |
Sungkyunkwan University, Korea |
|
Director |
Mr. |
Kwon Hyung-Woon |
1980.09 |
Korean |
Chosung University, Korea |
|
Auditor |
Mr. |
Nam Kwang |
1959.09 |
Korean |
Korea University, Korea |
|
Outside Director |
Mr. |
Park Yong-Oh |
1948.09 |
Korean |
Seoul National University, Korea |
|
Outside Director |
Mr. |
Chang Kyung-Soo |
1971.01 |
Korean |
Korea University, Korea |
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
199,840,577,791 |
185,078,094,796 |
10,039,928,020 |
|
|
(*)2011 |
296,247,103,669 |
194,379,195,403 |
15,720,179,783 |
|
(*)2010 |
223,002,997,748 |
179,854,366,301 |
9,945,945,329 |
(*)Figures are based
on the K-IFRS Accounting System.
|
Authorized Capital(KRW) |
22,400,000,000 |
|
Paid-Up Capital(KRW) |
11,000,000,000 |
|
Total Issued Shares |
2,200,000 |
Balance Sheet
|
|||
|
Unit : Korean Won |
01/01/2012~09/30/2012 |
As of 12/31/2011 |
As of 12/31/2010 |
|
Total Assets |
185,078,094,796 |
194,379,195,403 |
179,854,366,301 |
|
Current Assets |
108,103,747,097 |
110,526,587,229 |
104,147,109,643 |
|
Cash & Cash
Equivalents |
2,662,241,917 |
2,093,132,990 |
11,672,650,113 |
|
Trade Receivables
& Other Receivables |
65,873,478,893 |
66,157,122,629 |
57,299,760,394 |
|
Inventories |
20,571,732,761 |
21,274,774,226 |
19,591,531,760 |
|
Current Financial
Instruments |
18,614,143,526 |
20,774,347,278 |
15,263,306,923 |
|
Other Current Assets |
382,150,000 |
227,210,106 |
319,860,453 |
|
Non-Current Assets |
76,974,347,699 |
83,852,608,174 |
75,707,256,658 |
|
Long-Term Trade
Receivables & Other Receivables |
5,417,291,502 |
12,673,725,990 |
10,089,783,742 |
|
Tangibles |
58,441,072,726 |
58,710,190,696 |
58,208,352,174 |
|
Intangibles |
2,880,720,778 |
2,880,720,778 |
2,766,572,577 |
|
Investment_Real
Estates |
1,312,544,677 |
1,315,781,971 |
1,322,256,560 |
|
Non-Current Financial
Instruments |
8,556,121,769 |
7,971,158,579 |
3,020,599,219 |
|
Deferred Income Tax
Assets |
366,596,247 |
301,030,160 |
299,692,386 |
|
Total
Liabilities |
72,452,310,283 |
89,533,150,565 |
88,830,203,194 |
|
Current Liabilities |
66,177,447,416 |
77,156,183,208 |
74,778,091,300 |
|
Trade Payables &
Other Payables |
43,675,194,016 |
49,304,063,469 |
46,586,064,265 |
|
Short-Term Borrowings |
1,088,964,899 |
337,660,867 |
302,759,482 |
|
Current Portion of
Long-Term Debts |
5,017,195,189 |
11,290,991,442 |
11,688,771,044 |
|
Other Current
Liabilities |
16,396,093,312 |
16,223,467,430 |
16,200,496,509 |
|
Non-Current Liabilities |
6,274,862,867 |
12,376,967,357 |
14,052,111,894 |
|
Confirmed Salaries |
2,222,946,149 |
930,556,246 |
2,196,633,031 |
|
Long-Term Borrowings |
4,051,916,718 |
11,446,411,111 |
11,855,478,863 |
|
Capital Stock |
11,000,000,000 |
11,000,000,000 |
11,000,000,000 |
|
Capital Surplus |
7,012,000,000 |
7,012,000,000 |
7,012,000,000 |
|
Others |
-1,753,288,310 |
-1,753,288,310 |
-1,753,288,310 |
|
Installments |
79,142,306 |
43,361,218 |
149,289,541 |
|
Profit Surplus |
96,287,930,517 |
88,543,971,930 |
74,616,161,876 |
|
Total Equity |
112,625,784,513 |
104,846,044,838 |
91,024,163,107 |
|
Liab. &
Shareholder’s Equity |
185,078,094,796 |
194,379,195,403 |
179,854,366,301 |
Income Statement
|
|||
|
Unit : Korean Won |
01/01/2012~09/30/2012 |
As of 12/31/2011 |
As of 12/31/2010 |
|
Sales |
199,840,577,791 |
296,247,103,669 |
223,002,997,748 |
|
Cost of Sold Goods |
174,458,910,676 |
259,632,759,161 |
193,047,616,263 |
|
Gross Profit |
25,381,667,115 |
36,614,344,508 |
29,955,381,485 |
|
Selling & Admin.
Expenses |
14,541,223,946 |
19,529,293,024 |
16,721,191,478 |
|
Other Operating
Income |
1,471,431,484 |
3,312,356,506 |
1,698,324,937 |
|
Other Operating
Expenses |
10,380,300 |
823,240,260 |
2,055,837,155 |
|
Operating Income |
12,301,494,353 |
19,574,167,730 |
12,876,677,789 |
|
Finance Income |
691,888,580 |
1,154,090,177 |
853,866,835 |
|
Finance Expenses |
144,772,579 |
501,602,453 |
745,082,504 |
|
Income Before Taxes |
12,848,610,354 |
20,226,655,454 |
12,985,462,120 |
|
Income Taxes Expenses |
2,808,682,334 |
4,506,475,671 |
3,039,516,791 |
|
Net Income |
10,039,928,020 |
15,720,179,783 |
9,945,945,329 |
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 |
15,402,052,164 |
6,884,349,984 |
2,404,487,007 |
|
Cash Flows from
Operating |
19,107,473,874 |
9,553,007,132 |
3,973,048,289 |
|
Interests Received |
627,189,125 |
814,189,926 |
587,267,798 |
|
Interests Paid |
-108,179,177 |
-299,862,333 |
-532,916,324 |
|
Dividends Received |
62,308,200 |
50,638,200 |
36,833,200 |
|
Income Taxes |
-4,286,739,858 |
-3,233,622,941 |
-1,659,745,956 |
|
Cash Flows from
Investing |
63,877,907 |
-13,908,338,786 |
-5,766,998,005 |
|
Cash Flows from
Financing |
-14,896,821,144 |
-2,553,943,029 |
9,313,165,007 |
|
Increase/Decrease in
Cash |
569,108,927 |
-9,579,517,123 |
5,958,084,337 |
|
Cash at the Beginning
of Year |
2,093,132,990 |
11,672,650,113 |
5,714,565,776 |
|
Cash at the End of
Year |
2,662,241,917 |
2,093,132,990 |
11,672,650,113 |
|
Main Products & Services |
Hi-TECH Series VESTA Series SIRIUS Series |
|
Suppliers |
DAE HAN CAST IRON CO., LTD.(170111-0017089) SEOAM MACHINERY INDUSTRY CO., LTD.(204211-0000784) HYUNDAI WIA
CORPORATION(194211-0000125) |
|
Competitors |
HYUNDAI WIA CORPORATION(194211-0000125) DOOSAN INFRACORE CO., LTD.(120111-0234469) S&T DYNAMICS CO.,LTD.(110111-0042880) TONG IL HEAVY INDUSTRIES HYUNDAI POWER TECH KOREA FLANGE CO., LTD. |
|
Affiliates |
SEOAM MACHINERY INDUSTRY CO., LTD.(204211-0000784) FNGUIDE INC.(110111-2017922) TPS KOREA CO., LTD.(194211-0020090) INSTECH CO., LTD.(KOREA) SEOAM CULTURE FOUNDATION(200122-0017849) HWACHEON MACHINERY EUROPE GMBH (HME :
GERMANY) HWACHEON MACHINERY AMERICA (HMA : USA) HWACHEON ASIA PACIFIC PTE, LTD.(HAP :
SINGAPORE) HWACHEON MACHINE TOOL INDIA PVT. LTD.(HMI :
INDIA) |
|
Sales/ Unit :Mil KRW |
09/2012 |
2011 |
2010 |
|
Export |
20,935 |
23,460 |
22,296 |
|
Domestic |
178,905 |
272,787 |
200,707 |
|
Total |
199,840 |
296,247 |
223,003 |
The Subject deals
with the companies in Europe, USA and India.
No.
---
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.70 |
|
UK Pound |
1 |
Rs.82.78 |
|
Euro |
1 |
Rs.71.42 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.