MIRA INFORM REPORT

 

 

Report Date :

25.04.2014

 

IDENTIFICATION DETAILS

 

Name :

PT. SUNG HYUN INDONESIA

 

 

Registered Office :

Dusun Pajejeran, Desa Gununggangsir, Beji, Pasuruan, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

25.08.2008

 

 

Com. Reg. No.:

No. AHU-AH.01.10-37440

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of Shoes

 

 

No. of Employees :

6,146

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

Source : CIA


BASIC SEARCH

 

Name of Company :

PT. SUNG HYUN INDONESIA

 

A d d r e s s :

Head Office and Factory

Dusun Pajejeran

Desa Gununggangsir

Beji, Pasuruan

East Java

Indonesia

Phones             - (62-343) 659 901-903

F a x                 - (62-343) 659 905

Land Area         - 8.0 hectares

Building Area    - 2.5 hectares

Region  - Industrial Zone

Status   - Owned

 

Date of Incorporation :

25 August 2008

 

Legal Form :

PT. (Perseroan Terbatas) or Limited Liability Company

 

Company Reg. No. :

The Ministry of Law and Human Right

a.         No. AHU-85721.AH.01.01.Tahun.2008

            Dated 13 November 2008

b.         No. AHU-AH.01.10-23515

            Dated 28 December 2009

c.         No. AHU-AH.01.10-10294

            Dated 29 April 2010

d.         No. AHU-AH.01.10-02608

            Dated 25 January 2011

e.         No. AHU-AH.01.10-37440

            Dated 09 September 2013

 

Company Status :

Foreign Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.843.833.1-624.000

 

Related/affiliated Company :

SUNG HYUN & MANUFACTURE CO. LTD (Investment Holding)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - US$ 3,400,000.-

Issued Capital               - US$ 3,400,000.-

Paid up Capital             - US$ 3,400,000.-

 

Shareholders/Owners :

a.         SUNG HYUN & MANUFACTURE CO. LTD          - US$ 2,856,000.- (84%)

            Address :          South Korea

b.         Mr. Lee Young Man                   - US$    272,000.-   (8%)

            Address :          Room 303 Dongsan

                                    Apt. 1106 Youngsun-Dong 46A Busan

                                    South Korea

c.         Ms. Yeo Jum Sig                      - US$    272,000.-   (8%)

            Address :          101-506 Gaya

                                    Bandobora Vil, Gaya 2 Dong

                                    Busan-Jin

                                    South Korea

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Shoes Manufacturing

 

Production Capacity :

Kids Shoes                               - On the Order Basis

 

Total Investment :

Owned Capital                           - US$ 14.2 million

 

Started Operation :

2008

 

Brand Name :

GEOX

 

Technical Assistance :

SUNG HYUN & MANUFACTURE CO. LTD of South Korea

 

Number of Employee :

6,146 Persons

 

Marketing Area :

Export  - 100%

 

 

Main Customers :

Overseas Buyer in USA

 

Market Situation :

Competitive

 

Main Competitors :

a. PT. HARDAYA ANEKA SHOES INDUSTRY

b. PT. NAGASAKTI PARAMASHOES INDUSTRY

c. PT. SPOTEC INDONESIA, etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

            a.         PT. BANK CENTRAL ASIA Tbk

            Jalan Perwira 200

            Pasuruan, East Java

            Indonesia

            b          CITIBANK N.A.

            Jalan Basuki Rahmat No. 86

            Surabaya, East Java

            Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – US$ 43.0 million

2012 – US$ 49.0 million

2013 – US$ 56.0 million

 

Net Profit (estimated) :

2011 – US$ 2.0 million

2012 – US$ 2.3 million

2013 – US$ 2.6 million

 

Payment Manner :

Almost promptly

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director            - Mr. Jung Kwang Mo

 

Board of Commissioner :

President Commissioner            - Mr. Lee Young Man

Commissioner   - Ms. Yeo Jum Sig

 

Signatories :

The Director (Mr. Jung Kwang Mo) which must be approved by the Board of President Commissioner (Mr. Lee Young Man)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

 

OVERALL PERFORMANCE

 

P.T. SUNG HYUN INDONESIA (P.T. SHI) was established in Pasuruan (East Java) based on  Notarial Deed No. 07 dated August 25, 2008 made by Notary Ribka Avie Alreta, SH., M.Kn with an authorized capital of US$ 2,200,000.- entirely was issued and fully paid up. The founding shareholders of the company are SUNG HYUN & MANUFACTURE CO. LTD (84%), Mr. Lee Young Man (8%) and Ms. Yeo Jum Sig (8%). The Deed of establishment has been approved by the Minister of Justice and Human Rights of the Republic of Indonesia through its Decision Letter No. AHU-85721.AH.01.01.Tahun.2008 dated November 13, 2008.

 

The articles of association of the company have frequently been changed, most recently by notarial Deed No. 32 dated May 14, 2013 made by Notary Ribka Avie Alreta, SH., M.Kn the authorized capital was raised to US$ 3,400,000.- entirely was issued and fully paid up. The latest shareholders of the company are SUNG HYUN & MANUFACTURE CO. LTD (84%), Mr. Lee Young Man (8%) and Ms. Yeo Jum Sig (8%). The amendment to Deed has been approved by the Minister of Law and Human Rights through its Decision Letter No. AHU-AH.01.10-37440 dated September 09, 2013.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. SHI engaged in the manufacturing of shoes. Its plant located on Dusun Pajejeran, Desa Gununggangsir – Beji, Pasuruan, East Java on a land area of 8.0 hectares. The plant had been operating since 2008. The company’s products are kid shoes with trade-mark “Geox” brand. According to Mrs. Natalie, a marketing staff of the company said to our inquiry that the whole products (100%) are exported to USA.   We observed that P.T. SHI is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

 

We note that generally the demand for kids shoes has been rising by about 6% - 8% per year in the last five years. The demand of kids shoe is projected to go on rising each year in the next three years. However, the competition is very tight on account of lots of similar companies dealing with shoe safety manufacturing such as P.T. HARDAYA ANEKA SHOES INDUSTRY, P.T. NAGASAKTI PARAMASHOES INDUSTRY, P.T. SPOTEC INDONESIA, PT. SEPATU BATA Tbk., etc.  The business position of P.T. SHI is favorable for having established wide marketing networks outside the country especially the USA.

 

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. The management is very reclusive and unlikely to expose its financial condition to outsider. We estimate that sales turnover of the company in 2011 amounted to US$ 43.0 million increased to US$ 49.0 million in 2012  and rose again to US$ 56.0 million in 2013.  The operation of the company in 2013 yielded a net profit at least US$ 2.6 million and the company has a total net worth of US$ 25.2 million.  It is projected that total sales turnover of the company will increase at least 8% in 2014. So far we did not hear that P.T. SHI has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court. The company usually pays its debts punctually to suppliers.  

 

The management of P.T. SHI is led by Mr. Jung Kwang Mo (53) as director, a Korean businessman with experience for some 15 years in shoe manufacturing and trading.  In his daily activities, he is assisted by Mr. Lee Young Man (58) as President Commissioner and Ms. Yeo Jum Sig (46) as Commissioner. The management has maintained a wide relation with private businessmen at home and abroad as well as with government authorities. So far, we did not hear that the company's management having been involved in the business malpractices.

 

P.T. SHI is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.07

UK Pound

1

Rs.102.77

Euro

1

Rs.84.49

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NNA

 

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.