MIRA INFORM REPORT

 

 

Report Date :

06.04.2014  

 

IDENTIFICATION DETAILS

 

Name :

POSCO M-TECH CO., LTD.

 

 

Registered Office :

131, Hyeongsangangbuk-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

27.12.1973

 

 

Com. Reg. No.:

506-81-00055

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Basic Iron and Steel

 

 

No. of Employees

1,265

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge 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 about half of GDP

 

Source : CIA


Basic Information

 

Basic

 

Company Name

POSCO M-TECH CO., LTD.

(Korean Company Name : “()포스코엠텍”)

Registered Address

131, Hyeongsangangbuk-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Building

 

Zip Code

790-330

Tel

+82-54-280-8114

Fax

+82-54-280-8301~3

E-mail

webmaster@sjpna.co.kr;jws0424@sjpna.co.kr;wjh@sjpna.co.kr

Website

www.sjpna.co.kr

Trading Address

131, Hyeongsangangbuk-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

(Old Address System : 608, Hyoja-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea)

Tel

+82-54-280-8114

Fax

+82-54-280-8301~3

Other Address- 2nd Factory

616, Ho-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-288-8114

Fax

+82-54-288-1130

Other Address-Gwangyang Office

1655-1, Taein-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-798-5114

Fax

+82-61-792-0198

Other Address-Seoul Office

748-4, Banpo 1-dong, Seocho-gu, Seoul, Korea

Tel

+82-2-554-7785

Fax

+82-2-554-7913

Type

Export

Industry

Manufacture of Other Basic Iron and Steel n. e. c.

  Main Business

Pellet, Ingot, Coil Master, Sealing Products, Packaging Service

  Sub Business

 

Established (mm/dd/yyyy)

12/27/1973

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Oxygen scavengers(12163802)

Sell

Packaging machinery(23152900)

Sell

Securing and protecting supplies(24141500)

Sell

Corner guards(30161504)

Sell

Seals(31181600)

Buy

Aluminum(11101705)

Buy

Iron(11101713)

 


 

CEO’s

 

Name

Lee Kyung-Mok

Address

-

Date of Birth

09/27/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

20,821,351,500

Employees

1,265

Formation

Listed Company (KOSDAQ : 009520) as of 11/10/1997

A Company of POSCO GROUP

Bank Details

Woori Bank-Pohang Branch

Corporate Registered No.

174611-0000866

Business Registered No.

506-81-00055

Permit & Licenses

12/22/1995 ISO 9002

10/31/2002 KS Mark

 

Int’l Trade No.: 13047498

Shareholder Position

Name

Shares

%

POSCO(174611-0000741)

20,342,460

48.85

POSTECH(174631-0000129)

1,965,600

4.72

POSCO CHUNGAM FOUNDATION(174671-0003947)

983,950

2.36

OTHERS

18,350,693

44.07

TOTAL

41,642,703

100.00

Company History

12/27/1973 Incorporated as SAMJUNG STEEL CO., LTD.

03/2001 Changed company name to SAMJUNG PACKING & ALUMINUM CO., LTD.

07/2005 Joined as an Affiliated Company of POSCO GROUP

08/20/2010 Moved to the present HQ address from 967, Goedong-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

03/18/2011 Changed company name to the present name

01/01/2013 Acquired 9 DIGIT CO., LTD.(110111-2084731) and LIKO METAL CO., LTD.(110111-1763237)

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Lee Kyung-Mok

Male

Korean

1955.09.27

Director

Mr.

Yoon Dong-Joon

Male

Korean

1958.10.

Sr. Executive Director

Mr.

Lee Hee-Myung

Male

Korean

1959.03.

Auditor

Mr.

Park Chang-Soo

Male

Korean

1956.05.

Outside Director

Mr.

Lim Woong-Soon

Male

Korean

1966.03.17

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2013

902,540,717,801

346,576,893,825

-10,648,876,452

(*)2012

618,316,162,216

340,876,750,010

14,737,277,528

(*)2011

602,154,803,665

316,952,932,640

12,447,431,399

2010

524,625,435,726

291,437,740,644

7,949,406,546

2009

303,349,675,495

165,140,974,072

3,933,499,164

2008

373,682,038,605

154,668,445,112

-10,030,648,754

2007

257,630,339,769

144,941,720,671

10,727,303,880

2006

226,423,716,934

129,853,032,659

9,444,421,405

2005

296,101,018,682

131,814,887,038

11,318,722,110

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

 

 

Financial Description

 

Authorized Capital(KRW)

35,000,000,000

Paid-Up Capital(KRW)

20,821,351,500

Total Issues Shares

41,642,703

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

346,576,893,825

340,876,750,010

316,952,932,640

Current Assets

232,923,861,441

236,186,782,829

236,785,557,767

Cash & Cash Equivalents

3,987,832,182

2,835,105,221

265,446,740

Current Financial Instruments

72,318,935,540

74,630,150,181

94,195,473,034

Trade Receivables

97,287,048,136

102,233,599,289

87,249,038,125

Inventories

55,014,208,013

53,248,672,015

48,960,969,775

Other Current Assets

4,315,837,570

3,239,256,123

6,114,630,093

Non-Current Assets

113,653,032,384

104,689,967,181

80,167,374,873

Non-Current Financial Instruments

39,431,976,229

38,274,014,650

32,314,058,650

Investment_Subsidiaries

13,411,940,000

32,846,273,600

20,639,736,410

Tangibles

46,011,778,297

30,214,642,440

24,211,146,208

Intangibles

10,676,603,904

3,355,036,491

3,002,433,605

Deferred Income Tax Assets

4,120,733,954

 

 

Total Liabilities

193,375,200,857

169,150,265,381

153,876,073,183

Current Liabilities

185,917,501,900

160,972,291,654

148,630,247,243

Trade Payables

28,175,717,041

43,833,446,335

30,082,845,076

Short-Term Borrowings

144,416,929,182

103,447,679,069

109,584,047,525

Other Current Financial Debts

10,198,928,965

10,316,492,825

6,633,321,472

Deferred Income Tax Credit

214,410,809

2,057,849,638

1,034,005,551

Provisions

927,730,325

 

 

Other Current Liabilities

1,983,785,578

1,316,823,787

1,296,027,619

Non-Current Liabilities

7,457,698,957

8,177,973,727

5,245,825,940

Long-Term Borrowings

4,262,100,000

1,998,800,000

2,234,500,000

Confirmed Salaries

1,818,058,788

5,033,001,308

1,867,125,172

Deferred Income Tax Credit

 

1,146,172,419

1,144,200,768

Other Non-Current Financial Debts

1,377,540,169

 

 

Capital Stock

20,821,351,500

20,820,000,000

20,820,000,000

Capital Surplus

68,242,165,942

75,669,385,684

75,669,385,684

Others

-80,993

 

 

Profit Surplus

64,138,256,519

75,237,098,945

66,587,473,773

Total Equity

153,201,692,968

171,726,484,629

163,076,859,457

Liab. & Shareholder’s Equity

346,576,893,825

340,876,750,010

316,952,932,640

 

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

902,540,717,801

618,316,162,216

602,154,803,665

Cost of Sold Goods

884,961,503,468

585,307,762,862

572,547,657,340

Gross Profit

17,579,214,333

33,008,399,354

29,607,146,325

Admin. Expenses

-17,772,355,523

-14,492,495,486

-12,588,970,046

Selling & Logistics Expenses

-975,672,000

-545,601,906

-594,142,186

Operating Income

-1,168,813,190

17,970,301,962

16,424,034,093

Other Profits

-8,921,823,638

479,042,335

-418,816,624

Other Income

4,686,484,899

1,112,606,620

222,430,735

Other Expenses

-13,608,308,537

-633,564,285

-641,247,359

Finance Profits

-3,727,447,104

574,970,399

-895,037,797

Finance Income

7,241,844,205

7,862,933,694

7,506,589,920

Finance Expenses

-10,969,291,309

-7,287,963,295

-8,401,627,717

Income Before Taxes

-13,818,083,932

19,024,314,696

15,110,179,672

Income Taxes Expenses

-3,169,207,480

4,287,037,168

2,662,748,273

Net Income

-10,648,876,452

14,737,277,528

12,447,431,399

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

12,004,315,559

16,376,738,080

-5,787,949,583

Cash Flows from Operating

19,162,027,439

20,617,645,384

2,303,994,347

Net Income

-10,648,876,452

14,737,277,528

12,447,431,399

Adjustment

30,276,605,154

13,782,067,706

12,557,621,310

Changes in Asset/ & Liability

-465,701,263

-7,901,699,850

-22,701,058,362

Interests Received

1,141,109,683

2,116,512,399

2,758,925,260

Interests Paid

-5,675,155,896

-3,932,917,271

-3,489,829,824

Dividends Received

1,343,650

535,000

1,770,000

Income Taxes

-2,625,009,317

-2,425,037,432

-7,362,809,366

Cash Flows from Investing

4,030,383,554

-4,680,581,139

-34,314,404,465

Cash Flows from Financing

-14,770,552,172

-9,126,498,460

16,051,215,673

Increase/Decrease in Cash

1,264,146,941

2,569,658,481

-24,051,138,375

Cash at the Beginning of Year

2,835,105,221

265,446,740

24,316,585,115

Cash at the End of Year

3,987,832,182

2,835,105,221

265,446,740

 

 

Products, Technologies, Services Description

 

Main Products & Services

PACKAGING SERVICE

Steel Product Packaging Service

 

PACKAGING EQUIPMENT ORDER/SALES/DESIGN

Coil Master

Steel Packaging Line Engineering

Equipment/facilities for packaging steel

  -Dispenser

  -Inner ring/outer ring

  -Side molder etc

 

PACKAGING MATERIAL SALES

Seal

Side protector(Steel)

Inner ring/Outer ring

Quenching

 

AL, MO PRODUCT SALES

Pellet

Mini Pellet

Ingot

Jumbo Ingot

Mo-Oxide Briquette

Fe-Mo

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

POSCO(174611-0000741)

AP METAL COMPANY LIMITED

Competitors

PJ METAL CO., LTD.

13TH FL., SAMAN BLDG., 945, DAECHI 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-555-4451  FAX:+82-2-558-5599

 

UWRAPCO CO., LTD.

15B-16, BANWOL INDUSTRIAL COMPLEX, 449, MONGNAE-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-492-6277~9  FAX:+82-31-492-6276

 

BARDIA PACK CO., LTD.

365-13, DAESSANGRYEONG-RI, CHOWOL-EUP, GWANGJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-767-0661  FAX:+82-31-767-0662

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

POSCO(174611-0000741)

POSCO COATED & COLOR STEEL CO., LTD.(174611-0006492)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSDATA CO., LTD.(110111-0658637)

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(174611-0001947)

POSCO CHEMTECH CO., LTD.(174611-0001947)

POS-A.C. CO., LTD.(174611-0003448)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSCO RESEARCH INSTITUTE(110111-1042350)

POSTEEL(110111-0344591)

POSCO SPECIALTY STEEL CO., LTD. (194211-0025248)

POSMEC(POSCO MACHINERY & ENGINEERING CO., LTD.)(174611-0012176)

POSCO TERMINAL CO., LTD.(204611-0017575)

POSTECH VENTURE CAPITAL COOPERATION (174611-0029080)

POSMATE CO., LTD.(110111-0739841)

POSCO POWER CORPORATION(110111-1829576)

SNNC CO., LTD.(204611-0023415)

PHP CO., LTD.(120111-0421545)

POSBRO(110111-3528986)

SUWON GREEN ENVIRONMENT CORPORATION(134811-0133794)

POSCORE CO., LTD.(134811-0003343)

RIZTECH BIZ CO., LTD.

POSWITH CO., LTD.(171711-0075927)

P&R CO., LTD.

UITRANS CO., LTD.(110111-3792309)

BASYS INDUSTRY CO. LTD.(110111-0954647)

UNIVERSAL STUDIOS RESORT DEVELOPMENT CORPORATION(134811-0167222)

METAPOLIS CO., LTD.(134811-0094475)

SEOUNG GWANG CO., LTD.(120111-0222844)

CHEONGNA IBT CO., LTD.(120111-0454520)

POHANG FEUL CELL CO., LTD.(171711-0076256)

MEGA ASSET  CO., LTD.(161511-0097480)

DAEWOOENGINEERING COMPANY CO., LTD.(110111-0203268)

POS ECO HOUSING CO., LTD.(171711-0085893)

DAKOS CO., LTD.(131111-0246297)

MAPO HYBROAD PARKING CO., LTD.(110111-4250140)

GWANGYANG FSC CO., LTD.(204611-0031385)

POSPLATE CO., LTD.(204611-0031252)

POS CALCIUM CO., LTD.(171711-0086180)

POS-MINERALS CORPORATION

(15.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

PT. POSCO MTECH INDONESIA

(60.00% held by the subject company)

 

POS-HIAL CO., LTD.(205411-0020175)

(51.00% held by the subject company)

Corporate Ownership

POSCO(174611-0000741)

Major Shareholders

POSCO(174611-0000741)

Cooperative Enterprise

-Technical support for Coil Master License from

K.C METAL PRODUCTS PTY.(AUSTRALIA)

 

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : KRW

2010

2009

2008

Export

126,333,103,154

61,692,014,541

98,919,070,823

Domestic

398,292,332,572

241,657,660,954

274,762,967,782

Total

524,625,435,726

303,349,675,495

373,682,038,605

The Subject deals with the companies in Australia.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

               

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.