MIRA INFORM REPORT

 

 

Report Date :

06.05.2013

 

IDENTIFICATION DETAILS

 

Name :

Armephaco Joint Stock company

 

 

Registered Office :

No. 118 Vu Xuan Thieu Str, Phuc Loi Ward, Long Bien District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1996

 

 

Com. Reg. No.:

0100109191

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Producing and trading in medicine and medical equipment.

 

 

No. of Employees :

500

 

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

 

ARMEPHACO JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN ARMEPHACO

Trade name

 

ARMEPHACO JSC

Type of Business

 

Joint stock company

Year Established

 

1996

Establishment Decision

 

470/QD-QP

Date of Issuance

 

17 Apr 1996

Place of Issuance

 

Ministry of Defense

Business Registration No.

 

0100109191

Date of Registration

 

23 Jun 2010

Place of Registration

 

Hanoi Planning and Investment Department

Chartered capital

 

VND 130,000,000,000

Status

 

Public Company

Stock symbol

 

ARMEPHACO

Stock Market

 

OTC

Outstanding stock

 

13,000,000

Tax code

 

0100109191

Total Employees

 

500

Size

 

Large

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 0106001022 (granted on 21st Aug 1996)

Changed to: 0100109191

23 Jun 2010

2

Subject has got former Chartered capital: VND 114,940,000,000 Changed to: VND 130,000,000,000

23 Jun 2010

3

Subject has got former Registered Vietnamese Name: CONG TY DUOC VA TRANG THIET BI Y TE QUAN DOI

Changed to: CONG TY CO PHAN ARMEPHACO

23 Jun 2010

4

Subject has got former Registered English Name: ARMY MEDICAL EQUIPMENT AND PHARMACEUTICAL COMPANY

Changed to: ARMEPHACO JOINT STOCK COMPANY

23 Jun 2010

5

Subject has got former General Director: Mr. NGUYEN HOAI NAM

Changed to Mr. DOAN VAN THUY

Changed to: Mr. NGUYEN VAN DUNG

01 Nov 2009

6

Subject has got former Head Office Address: No.1 Tran Thanh Tong Str, Hai Ba Trung Dist- Hanoi City

Changed to: No. 118 Vu Xuan Thieu Str., Phuc Loi Ward, Long Bien Dist, Hanoi City

2008

 

 

ADDRESSES

 

Head Office –  Pharmaceutical 120 Factory (APHARMA)

Address

 

No. 118 Vu Xuan Thieu Str, Phuc Loi Ward, Long Bien District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3875 9473 / 9466 / 9477

Fax

 

(84-4) 3875 9476

Email

 

armephaco@armephaco.com.vn

Website

 

www.armephaco.com.vn

 

Medical Equipment 130 Factory (MEF)

Address

 

Ngoc Hoi Commune, Thanh Tri District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38614172

Fax

 

(84-4) 3861 4173

 

Branch No. 1 in Ho Chi Minh – Pharmaceutical 150 Factory (COPHAVINA)

Address

 

No. 112 Tran Hung Dao Street, Pham Ngu Lao Ward, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38379138

Fax

 

(84-8) 3920 3341

Tax code

 

0100109191-005

 

Branch No. 2 in Ho Chi Minh

Address

 

Lot P9, Medical Equipment and Pharmaceutical Trade Center, No. 1 To Hien Thanh, Ward 15, District 10, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3 9797 331

Fax

 

(84-8) 3 9797 348

Tax code

 

0100109191-016

Branch’s Director

 

Mr. DUONG DINH SON

 

Branch in Can Tho

Address

 

No. 84 Ly Tu Trong Street, An Cu Ward, Ninh Kieu District, Can Tho City, Vietnam

Telephone

 

(84-710) 625 2199

Fax

 

(84-710) 625 2109

Tax code

 

0100109191-006

 

Branch in Gia Lai

Address

 

No. 148A Hai Ba Trung Street, Yen Do Ward, Pleiku City, Gia Lai Province, Vietnam

Telephone

 

(84-59) 625 1399

Fax

 

(84-59) 388 3625

Tax code

 

0100109191-007

 

Branch in Da Nang

Address

 

57 Nguyen Huu Tho Str. Hoa Thuan Tay Ward, Hai Chau District, Da Nang City, Vietnam

Telephone

 

(84-511) 656 2979

Fax

 

(84-511) 361 4686

Tax code

 

0100109191-008

Branch’s Director

 

Mr. NGUYEN VAN CUONG

 

Branch in Ha Noi

Address

 

No. 8 Tang Bat Ho Str., Pham Dinh Ho Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Telephone

 

(84-4) 39717436 /3971 7439 /3972 3752

Fax

 

(84-4) 39717436

Tax code

 

0100109191-009

Branch’s Director

 

Mr. NGUYEN CHI THANH

 

Branch in Hai Phong

Address

 

275 Lach Tray Str. Dang Giang Ward, Ngo Quyen District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3261 328

Fax

 

(84-31) 3261 329

Tax code

 

0100109191-014

Branch’s Director

 

Mr. Le Thanh Ha

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

 

1. GOOD FIVE PHARMACEUTICAL JOINT STOCK COMPANY

Business Registration

 

0105213566

Date of Registration

 

25 Mar 2011

Place of Registration

 

Ha Noi Department of Planning and Investment

Registered Capital

 

VND 26,000,000,000

Tax code

 

0105213566

Address

 

No. 118 Vu Xuan Thieu Street, Phuc Loi Ward, Long Bien District, Ha Noi City, Vietnam

 

2. VINAHANKOOK MEDICAL SUPPLIES CO., LTD

Address

 

R601 Thang Long Building 105 Lang Ha Str., Dong Da District, Ha Noi City, Vietnam

Tel

 

(84-4) 3 5622874/5 - (84-4) 3 5622873

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN VAN DUNG

Position

 

Chairman cum General Director

Date of Birth

 

07 Oct 1963

ID Number/Passport

 

87052951

ID Issue Date

 

15 Jan 2010

Resident

 

No 5, Lane 16, Nan Ho Street Nan Chin Ward, Thant Xuan District, Ha Noie City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. DO CHI

Position

 

Deputy General Director

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-69) 555358

 

3. NAME

 

Ms. NGUYEN THI HUONG

Position

 

Deputy General Director

Nationality

 

Vietnamese

Tel/Mobile phone

 

(84-69) 555358

 

4. NAME

 

Mr. DO VAN BE

Position

 

Deputy General Director

ID Number/Passport

 

3A8E022021

Nationality

 

Vietnamese

 

5. NAME

 

Mr. DUONG DINH SON

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

6. NAME

 

Mr. DO DUC THINH

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

7. NAME

 

Mr. BUI VIET TUAN

Position

 

Chief Accountant

Resident

 

No. 118 Vu Xuan Thiru, Phu Loi Ward, Long Bien District, Ha Noie City, Vietnam

Tel/Mobile phone

 

+84 914 283 868

 

 

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is mainly involving in:

- Producing and trading in medicine and medical equipment.
- Importing and exporting medicine material.
- Trading medical machines and equipment.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Equipment and chemical essential

·         Market

 

Germany, America, Japan, China, India...

·         Ratio

 

N/A

·         Mode of payment

 

L/C, T/T

 

EXPORT:

·         Types of products

 

Pharmaceutical products

·         Market

 

Cambodia, Laos

·         Ratio

 

Small

 

 

BANKERS

 

1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM THANH DO BRANCH

Address

 

No.463 Nguyen Van Linh, Phuc Dong Ward, Long Bien District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38757952

VND Account

 

15110000027726

 

2. MILITARY COMMERCIAL JOINT STOCK BANK HOAN KIEM BRANCH

Address

 

No.35 Hai Ba Trung Street, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3936 7799

Fax

 

(84-4) 3938 6107

 

3. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT HA THANH BRANCH

Address

 

No.236 Le Thanh Nghi Street, Hai Ba Trung District, Ha Noi City, Vietnam

Telephone

 

(84-4) 36284026

Fax

 

(84-4) 36284027

 

SHAREHOLDERS

 

1. NAME

 

Ministry of Defense

Number of shares

 

6,630,000

Value of shares

 

VND 66,300,000,000

Percentage

 

51%

 

2. NAME

 

Other Shareholders

Number of shares

 

6,370,000

Value of shares

 

VND 63,700,000,000

Percentage

 

49%

 

 

FINANCIAL DATA

 

These financial statements are made following to form of Ministry of Defense. So they are different form to others. In 23 Jun 2010, subject has just equitized so from 24 Jun 2010 subject has the new financial statement which was audited by Vietnam Auditing & Evaluation Company Limited.

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2012

31/12/2011

From 24/06/2010 to 31/12/2010 

Number of weeks

52

52

-

ASSETS

A – CURRENT ASSETS

617,415,371,821

544,675,192,475

226,179,657,113

I. Cash and cash equivalents

72,277,090,868

89,946,053,156

63,852,439,476

1. Cash

72,277,090,868

89,946,053,156

63,852,439,476

2. Cash equivalents

0

0

0

II. Short-term investments

0

144,000,000

0

1. Short-term investments

0

144,000,000

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

366,750,086,592

300,279,282,045

101,757,064,613

1. Receivable from customers

318,484,351,865

207,742,306,109

51,734,972,528

2. Prepayments to suppliers

34,313,461,085

82,087,498,237

40,418,112,116

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

13,952,273,642

10,449,477,699

9,603,979,969

6. Provisions for bad debts

0

 

0

IV. Inventories

147,319,046,833

128,513,961,270

51,154,290,891

1. Inventories

147,319,046,833

128,513,961,270

51,154,290,891

2. Provisions for devaluation of inventories

0

 

0

V. Other Current Assets

31,069,147,528

25,791,896,004

9,415,862,133

1. Short-term prepaid expenses

12,874,628,015

4,148,141,664

969,326,647

2. VAT to be deducted

3,708,814,003

4,909,467,032

2,571,005,548

3. Taxes and other accounts receivable from the State

0

280,369,198

260,799

4. Other current assets

14,485,705,510

16,453,918,110

5,875,269,139

B. LONG-TERM ASSETS

122,971,515,577

120,055,286,718

113,820,498,626

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

101,314,210,306

97,576,412,187

102,401,393,335

1. Tangible assets

100,203,515,582

97,576,412,187

102,401,393,335

- Historical costs

164,146,398,639

153,904,467,612

149,437,742,074

- Accumulated depreciation

-63,942,883,057

-56,706,843,317

-47,036,348,739

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

1,110,694,724

378,787,892

0

- Initial costs

1,459,179,546

545,454,546

0

- Accumulated amortization

-348,484,822

-166,666,654

0

4. Construction-in-progress

0

0

0

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

20,469,488,791

20,469,488,791

11,369,488,791

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

20,447,488,791

20,447,488,791

11,347,488,791

3. Other long-term investments

22,000,000

22,000,000

22,000,000

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

1,187,816,480

2,009,385,740

49,616,500

1. Long-term prepaid expenses

1,187,816,480

2,009,385,740

49,616,500

2. Deferred income tax assets

0

0

0

3. Other long-term assets

0

0

0

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

740,386,887,398

664,730,479,193

340,000,155,739

 

LIABILITIES

A- LIABILITIES

595,532,550,317

515,744,594,686

207,785,063,515

I. Current liabilities

593,078,098,317

511,986,232,769

205,207,848,612

1. Short-term debts and loans

150,810,437,705

89,452,060,132

20,000,000,000

2. Payable to suppliers

257,462,286,495

180,348,471,489

60,269,359,104

3. Advances from customers

69,044,069,746

125,585,541,154

18,220,400,733

4. Taxes and other obligations to the State Budget

3,545,939,851

4,519,693,907

772,788,335

5. Payable to employees

4,252,764,290

2,062,569,696

3,941,536,119

6. Accrued expenses

582,697,529

769,926,136

13,200,000

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

107,379,902,701

109,247,970,254

101,990,564,321

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

0

0

II. Long-Term Liabilities

2,454,452,000

3,758,361,917

2,577,214,903

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

2,234,452,000

2,234,452,000

934,452,000

4. Long-term debts and loans

0

0

0

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

1,523,909,917

1,642,762,903

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

220,000,000

0

0

9. Science and technology development fund

0

0

0

B- OWNER’S EQUITY

144,854,337,081

148,985,884,507

132,215,092,224

I. OWNER’S EQUITY

144,757,505,453

148,834,960,313

130,857,112,242

1. Capital

130,000,000,000

130,000,000,000

130,000,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

1,964,949,670

428,556,121

428,556,121

8. Financial reserved fund

1,987,838,811

428,556,121

428,556,121

9. Other funds

0

0

0

10. Retained earnings

10,504,716,972

17,977,848,071

0

11. Construction investment fund

300,000,000

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

96,831,628

150,924,194

1,357,979,982

1. Bonus and welfare funds (Elder form)

0

0

1,202,055,788

2. Sources of expenditure

0

0

5,000,000

3. Fund to form fixed assets

96,831,628

150,924,194

150,924,194

MINORITY’S INTEREST

0

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

740,386,887,398

664,730,479,193

340,000,155,739

 

 

PROFIT & LOSS STATEMENT

Description

FY2012

FY2011

From 24/06/2010 to 31/12/2010  

1. Total Sales

893,315,541,407

886,466,363,220

269,178,527,525

2. Deduction item

1,322,755,756

3,374,062,458

35,884,040

3. Net revenue

891,992,785,651

883,092,300,762

269,142,643,485

4. Costs of goods sold

833,494,737,667

828,881,122,522

251,836,062,693

5. Gross profit

58,498,047,984

54,211,178,240

17,306,580,792

6. Financial income

9,995,323,236

7,329,996,256

3,405,288,159

7. Financial expenses

7,173,667,965

6,121,621,407

718,348,290

- In which: Loan interest expenses

5,855,690,163

5,121,642,324

604,972,637

8. Selling expenses

32,819,357,782

21,253,003,401

5,618,366,611

9. Administrative overheads

16,946,823,462

11,614,731,808

8,947,832,970

10. Net operating profit

11,553,522,011

22,551,817,880

5,427,321,080

11. Other income

250,012,289

182,317,980

142,250,232

12. Other expenses

467,104,664

167,120,949

286,561,638

13. Other profit /(loss)

-217,092,375

15,197,031

-144,311,406

14. Total accounting profit before tax

11,336,429,636

22,567,014,911

5,283,009,674

15. Current corporate income tax

853,904,057

4,476,666,839

666,841,311

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

10,482,525,579

18,090,348,071

4,616,168,363

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2012

FY2011

FY2010

Average Industry

Current liquidity ratio

1.04

1.06

1.10

1.80

Quick liquidity ratio

0.79

0.81

0.85

1.12

Inventory circle

5.66

6.45

4.92

3.56

Average receive period

150.07

124.11

138.00

117.46

Utilizing asset performance

1.20

1.33

0.79

1.10

Liability by total assets

80.44

77.59

61.11

50.87

Liability by owner's equity

411.13

346.17

157.16

169.03

Ebit / Total assets (ROA)

2.32

4.17

1.73

12.05

Ebit / Owner's equity (ROE)

11.87

18.58

4.45

27.25

Ebit / Total revenue (NPM)

1.92

3.12

2.19

12.32

Gross profit / Total revenue (GPM)

6.55

6.12

6.43

29.69

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

 

 

CASH FLOW STATEMENT

(Direct method)

Items

FY2012

FY2011

I. Cash flows from operating activities

1.Cash received from customers

1,118,434,140,553

988,603,521,515

2. Cash paid to suppliers

-1,155,719,577,538

-1,041,571,581,477

3. Cash paid to employees

-23,142,596,624

-22,018,059,619

4. Interest paid

-5,586,317,686

-3,737,253,137

5. Income taxes paid

-4,463,325,875

-982,505,318

6. Other operating cash receipts

32,460,066,820

58,152,259,153

7. Other operating payments

-34,563,593,815

-7,810,005,765

Net cash flows from operating activities

-72,581,204,165

-29,363,624,648

II. Cash flows from investing activities

1. Purchases and construction of fixed assets and other long-term assets

-3,359,836,757

-6,127,530,822

2. Gains from disposals and liquidation of fixed assets and other long-term assets

0

0

3. Loans given and purchases of debt instruments of other entities

0

-83,954,333,030

4. Recovery of loans given and disposals of debt instruments of other entities

144,000,000

83,810,333,030

5. Investments into other entities

0

-9,100,000,000

6. Withdrawals of investments in other entities

0

0

7. Receipts of loan interests, dividends and profit shared

4,002,037,494

2,955,908,518

Net cash flows from investing activities

786,200,737

-12,415,622,304

III. Cash flows from financing activities

1. Gains from stock issuance and capital contributions from shareholders

0

138,999,799,330

2. Repayment for capital contributions and re-purchases of stocks already issues

0

-69,547,739,198

3. Short-term and long-term loans received

294,569,460,130

0

4. Loan principal amounts repaid

-233,211,082,557

0

5. Payments for financial leasehold assets

0

0

6. Dividends and profit already paid to the owners

-7,230,636,250

-1,579,199,500

Net cash flows from financing activities

54,127,741,323

67,872,860,632

Net cash flows during the year

-17,667,262,105

26,093,613,680

Beginning cash and cash equivalents

89,946,053,156

63,852,439,476

Effects of fluctuations in foreign exchange rates

-1,700,183

0

Ending cash and cash equivalents

72,277,090,868

89,946,053,156

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Good

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

 

Wholesaler

Public opinion

 

Good

 

 

INTERPRETATION ON THE SCORES

 

 

 

The subject company was founded in 1996 as a state owned company according to Decision No. 470/QD-QP issued by Ministry of Defense. Its initial chartered capital was VND 114,940 million. In 2010, the subject changed to operate under model of a joint stock company and increased its chartered capital to VND 130 billion. The business registration number was also changed to No. 0100109191 for the tax code coincidence.

Premises and facilities of subject are fair. Beside head office at No. 118, Vu Xuan Thieu Str., Long Bien Dist., it has three factories named APHARMA, MEF and COPHAVINA which all are equipped with full machines and equipment and meet the standard of GMP-WHO and quality standard of ISO 9001-2000. In addition, it has some branches in provinces and big cities such as Hochiminh, Da Nang, Can Tho... Its force labor is relatively stable with around 500 persons.

ARMEPHACO JSC specialized in manufacturing medicine and medical equipments.  Equipments and chemicals for production are imported from many countries, in which China and India are main markets. Most of products serve for Ministry of National Defense. So, these products are not so much popular as others in the market. A small amount is exported to some neighbor countries including Cambodia, Laos, etc.

Financially, in reference to 2011, both total assets and total sales in 2012 have increased. In which total sales slightly rose about nearly VND 7 billion and total sales was up about 11.4% to more than VND 740 billion. However, profit before tax decreased nearly a half to VND 11,336,429,636 mainly because of high administrative overheads. The profitability ratios are acceptable but rather low in relation with the average indexes.

About the subject's capital structure, around 80% its assets are invested by liability which also covered 411.13% the owner's equity in 2012. These ratios are much higher than the average industry and indicate a risk for creditors. However its operation is relatively stable and the company still receives strong support from Ministry of Defense. Therefore, its solvency is rated at medium level.

In general, its operation scale is rather large, operation history is long. The future prospect seems bright. With current financial situation, the subject has capacity to meet small and medium financial commitments. Caution is needed for large transactions.

 

 

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.70.50

Euro

1

Rs.83.81

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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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