MIRA INFORM REPORT

 

 

Report Date :

16.01.2014

 

IDENTIFICATION DETAILS

 

Name :

ABCO ELECTRONICS CO., LTD.

 

 

Registered Office :

31, Dunchon-daero 388beon-gil, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea, Zip Code 462-120

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

19.10.1973

 

 

Com. Reg. No.:

129-81-00692

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Electronic components such as  Lead Resistor, Chip Resistor, Lead Inductor, Chip Inductor, Noise Filter, Fixed Resistors, Power Inductors & Electric Double Layer Capacitors

 

 

No. of Employees :

131

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

ABCO ELECTRONICS CO., LTD.

(Korean Company Name : “아비코전자()”)

Registered Address

31, Dunchon-daero 388beon-gil, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea

Zip Code

462-120

Tel

+82-31-730-5114

Fax

+82-31-730-5123

E-mail

wjkim@abco.co.kr

Website

www.abco.co.kr

Trading Address

31, Dunchon-daero 388beon-gil, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea

(Old Address System : 5448-4, Sangdaewon 2-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea)

Tel

+82-31-730-5114

Fax

+82-31-730-5123

Type

Export/Import

Industry

Manufacture of Electronic Coils, Transformers and Other Inductors

  Main Business

Manufacturer of Electronic components such as  Lead Resistor, Chip Resistor, Lead Inductor, Chip Inductor, Noise Filter, Fixed Resistors, Power Inductors & Electric Double Layer Capacitors

Established (mm/dd/yyyy)

10/19/1973

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Electronic Components and Supplies(32000000)

Sell

Resistors(32121600)

Sell

Inductors(32121702)

 

 

CEO’s

 

Name

Lee Jong-Man

Date of Birth

06/21/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,090,500,000

Employees

131

Formation

Listed Company (KOSDAQ : 036010) as of 07/03/2002

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank-Sungnam Industrial Complex Breanch

Corporate Registered No.

131111-0000718

Business Registered No.

129-81-00692

Permit & Licenses

Int’l Trade No.: 522234

Shareholder Position

Name

Shares

%

HAENG JIN DEVELOPMENT CO., LTD.(110111-0197924)

2,299,500

18.88

KIM JE-YOUNG

2,006,960

16.48

LEE JONG-MAN

554,510

4.55

JUNG YOUNG-HEE

96,970

0.80

LEE YO-HAN

6,000

0.05

OTHERS

7,217,060

59.25

TOTAL

12,181,000

100.00

Company History

10/19/1973 Incorporated as the present name

11/2008 Awarded US$ 30 Million Export Top Prize

06/2009 Designated as an Inno-Biz Company

06/2012 Designated as an Inno-Biz Company again

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Inauguration Date

President & CEO

Mr.

Lee Jong-Man

Korean

1954.06.21

Seoul National University, Korea

Chairman

Mr.

Kim Je-Young

Korean

1952.04.13

Seoul National University, Korea

Vice President

Mr.

Jung Young-Hee

Korean

1957.02.22

Sungkyunkwan University, Korea

Outside Director

Mr.

Lee Ju-Seok

Korean

1954.07

Seoul National University, Korea

Auditor

Mr.

Jang Hwa-Duck

Korean

1954.10.01

Myungji University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2013

43,717,120,618

93,062,847,359

3,713,500,159

(*)2012

43,891,486,124

79,679,782,075

-3,866,603,355

(*)2011

46,550,956,096

82,610,080,227

2,747,200,381

2010

47,767,872,946

77,434,510,712

1,258,401,043

2009

37,702,128,361

71,852,331,283

1,707,416,963

2008

38,805,748,783

74,464,919,234

-2,257,070,982

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

6,090,500,000

Total Issued Shares

12,181,000

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

93,062,847,359

79,679,782,075

82,610,080,227

Current Assets

44,973,654,770

37,500,678,854

44,080,464,580

Cash & Cash Equivalents

15,181,592,724

12,739,761,070

15,062,660,882

Current Financial Instruments

7,511,421,485

6,258,788,459

7,181,395,846

Trade Receivables & Other Receivables

12,407,101,023

9,343,204,661

13,008,406,034

Current Financial Instruments

3,461,789,300

3,475,705,061

2,997,839,863

Inventories

6,411,750,238

5,683,219,603

5,830,161,955

Non-Current Assets

48,089,192,589

42,179,103,221

38,529,615,647

Non-Current Financial Instruments

2,700,110,352

1,402,371,265

1,059,032,900

Long-Term Trade Receivables & Other Receivables

2,211,424,000

2,081,084,000

694,048,560

Investment_Subsidiaries

13,414,591,239

13,414,591,239

12,064,923,734

Investment_Related Companies

128,325,753

128,325,753

278,325,853

Tangibles

25,227,292,259

20,821,433,438

20,876,492,170

Intangibles

631,710,421

353,486,483

36,760,383

Investment_Real Estates

3,430,351,480

3,468,786,010

3,520,032,047

Deferred Income Tax Assets

345,387,085

509,025,033

-

Total Liabilities

30,340,497,091

24,234,901,991

21,653,273,145

Current Liabilities

25,481,120,946

24,000,364,176

21,162,293,341

Trade Payables & Other Payables

7,247,099,285

5,764,927,367

6,862,111,241

Short-Term Borrowings

17,872,071,682

18,151,672,205

13,474,956,831

Deferred Income Tax Credit

309,797,075

 

541,782,575

Other Current Liabilities

52,152,904

83,764,604

283,442,694

Non-Current Liabilities

4,859,376,145

234,537,815

490,979,804

Long-Term Trade Payables & Other Payables

4,366,278,682

4,100,000

4,100,000

Provision for Severance & Retirement

493,097,463

230,437,815

251,853,490

Deferred Income Tax Credit

 

 

235,026,314

Capital Stock

6,090,500,000

6,090,500,000

6,090,500,000

Capital Surplus

24,290,296,761

23,254,432,234

23,254,432,234

Others

-454,572,890

-3,325,619,305

-2,361,827,110

Installments

67,914,599

82,373,666

59,342,400

Profit Surplus

32,728,211,798

29,343,193,489

33,914,359,558

Total Equity

62,722,350,268

55,444,880,084

60,956,807,082

Liab. & Shareholder’s Equity

93,062,847,359

79,679,782,075

82,610,080,227

 

 

Income Statement

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

43,717,120,618

43,891,486,124

46,550,956,096

Cost of Sold Goods

36,332,705,482

39,247,206,411

40,679,779,592

Gross Profit

7,384,415,136

4,644,279,713

5,871,176,504

Selling & Admin. Expenses

3,398,183,830

4,150,025,768

5,266,459,978

Operating Income

3,986,231,306

494,253,945

604,716,526

Other Income

424,226,131

516,008,810

8,841,697,932

Other Expenses

527,622,323

5,713,562,850

4,949,535,630

Finance Income

2,089,905,821

2,205,575,163

1,499,994,680

Finance Expenses

1,977,896,563

2,118,553,616

1,942,725,871

Income from Investment on Related Companies

- 

- 

173,600

Expenses from Investment on Related Companies

- 

- 

307,598,539

Income Before Taxes

3,994,844,372

-4,616,278,548

3,746,722,698

Income Taxes Expenses

281,344,213

-749,675,193

999,522,317

Net Income

3,713,500,159

-3,866,603,355

2,747,200,381

 

 

Cash Flows

 

Unit : Korean Won

01/01/2013~09/30/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

5,975,871,684

3,228,027,632

1,599,619,693

Net Income

3,617,974,814

-3,866,603,355

2,747,200,381

Interests Received

482,850,167

712,529,353

400,539,588

Interests Paid

-497,789,030

-674,783,927

-596,223,625

Dividends Received

5,210,000

13,807,300

600,000

Income Taxes

37,359,893

-702,523,690

-846,769,267

Cash Flows from Investing

-11,141,152,843

-8,581,859,273

11,500,690,092

Cash Flows from Financing

7,713,304,845

3,092,725,464

-221,006,076

Increase/Decrease in Cash

2,548,023,686

-2,261,106,177

12,879,303,709

Cash at the Beginning of Year

12,739,761,070

15,062,660,882

2,206,691,813

Cash at the End of Year

15,181,592,724

12,739,761,070

15,062,660,882

 

Products, Technologies, Services Description

 

Main Products & Services

Lead Resistor, Chip Resistor, Lead Inductor, Chip Inductor, Noise Filter, Fixed Resistors, Power Inductors & Electric Double Layer Capacitors

 

 

Trade Partners & Competitors

 

Customers

SAMSUNG ELECTRONICS CO., LTD.(130111-0006246)

SK HYNIX INC.(134411-0001387)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TIANJIN HANA INTERNATIONAL TRADE CO., LTD.(CHINA)

(49.00% held by the subject company)

 

JOY PLANET CO., LTD.(110111-3191189)

(35.00% held by the subject company)

Subsidiary

CTC CO., LTD.(131411-0158496)

 

YOUNGSUNG ABCO ELECTRONICS CO., LTD.(CHINA)

(100.00% held by the subject company)

DOWNTOWN,GANGXI-ZHEN,RONGCHENG-CITY, SHANDONG PROVINCE, CHINA

 

SHIMYANG HAENGJINSA ELECTRONICS CO., LTD.(CHINA)

(100.00% held by the subject company)

NO.3-1 ZUXING ROAD HUNHE NATIONDEVELOPMENT ZONE OF DONGLING DISTRICT SHENYANG, CHINA

 

YEONTAI CTC ELECTRONICS CO., LTD.(CHINA)

(100.00% held by the subject company)

#5-7 AOKEMA ROAD LAISHAN ECONOMIC DEVELOPMENT ZONE LAISHAN DISTRIC YANTAI SHANDONG PROVICE. CHINA

 


Sales by Region

(Activity & Markets)

 

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.59

UK Pound

1

Rs.101.09

Euro

1

Rs.83.99

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.