MIRA INFORM REPORT

 

 

Report Date :

10.06.2014

 

IDENTIFICATION DETAILS

 

Name :

SUHEUNG CO., LTD.

 

 

Formerly Known As :

SUHEUNG CAPSULE CO., LTD.,

 

 

Registered Office :

61, Osongsaengmyeong-ro, Osong-eup, Cheongwon-gun, Chungcheongbuk-do 363-951

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

30.01.1973

 

 

Com. Reg. No.:

130-81-00576

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Medicinal Medicaments

 

 

No of Employees :

685

 

 

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 :

Slow But Correct

 

 

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)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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. South 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. South 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-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, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP

 

Source : CIA

 

 


Basic Information

 

Basic

 

Company Name

SUHEUNG CO., LTD.

(Ex. Company Name : SUHEUNG CAPSULE CO., LTD., “()서흥캅셀”)

(Korean Company Name : “()서흥”)

Registered Address

61, Osongsaengmyeong-ro, Osong-eup, Cheongwon-gun, Chungcheongbuk-do, Korea

(Old Address System : 683, Yeonje-ri, Osong-eup, Cheongwon-gun, Chungcheongbuk-do, Korea)

Building

 

Zip Code

363-951

Tel

+82-43-249-4100

Fax

+82-43-249-4199

E-mail

hsmoon@suheung.co.kr;inquiries@suheung.com

Website

www.suheung.co.kr

Trading Address

6th Fl., Jung-An Bldg., 435-5, Jangan 3-dong, Dongdaemun-gu, Seoul, Korea

Tel

+82-2-2210-8175

Fax

+82-2-2217-2356

Other Address- 2nd Factory

1731-4, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-831-8803

Fax

+82-51-831-8806

Type

Export

Industry

Manufacture of Medicinal Medicaments

  Main Business

Empty Hard Capsules, Soft Capsule, Health Food, Encapsulation Machine, Cosmetics

  Sub Business

 

Established (mm/dd/yyyy)

01/301/1973

The Subject owns the premises of the registered address/Factory(18,142m2) and 2nd Factory(13,386m2).

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Capsule tubes or caps(24141709)

Sell

Cosmetics(53131619)

Sell

Health & Nutrition Food

Sell

Hard Capsule

Sell

Soft Capsule

Sell

Automatic Capsule Filling Machine

Sell

Paint Ball

 

CEO’s

 

Name

Yang Joo-Hwan

Address

 

Date of Birth

03/13/1952

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

6,084,556,500

Employees

685

Formation

Listed Company (Korea Stock Exchange: 008490) as of 03/27/1990

A Company of SUHEUNG CAPSULE CO., LTD.

Bank Details

Citi Bank, Korea-HQ Branch

Kookmin Bank

Korea Development Bank

Hana Bank

Woori Bank

Corporate Registered No.

124311-0004252

Business Registered No.

130-81-00576

Permit & Licenses

01/03/1998 ISO 9001

Patent(26161) : EMBO CAPS

 

Int’l Trade No.: 814492

Shareholder Position

Name

Shares

%

YANG JOO-HWAN

3,793,020

31.17

YANG JOO-CHUL

895,830

7.36

National Pension Service(110171-0007134)

1,163,357

9.56

YUDANG JANGHAKHOI(114122-0004164)

577,580

4.75

OTHERS

5,739,326

47.16

TOTAL

12,169,113

100.00

Company History

01/301/1973 Incorporated as SUHEUNG CHEMICAL INDUSTRIAL CO., LTD.

01/30/1980 Changed company name to SUHEUNG CAPSULE CO., LTD.

06/01/1982 Acquired Jinhung Pharm. Co., Ltd.

03/27/1990 Listed at KSE Market

11/30/1992 Awarded US$5 Million Export Top Prize

11/30/1994 Awarded US$10 Million Export Top Prize

11/30/2003 Awarded US$20 Million Export Top Prize

11/30/2008 Awarded US$30 Million Export Top Prize

11/30/2012 Moved to the present HQ address from 317, Songnae 1-dong, Sosa-gu, Bucheon-si, Gyeonggi-do, Korea

06/19/2013 Decided to acquire SH PHARM. CO., LTD.(121111-0112531) as of 08/21/2013

03/26/2014 changed company name to the present name

 

 


 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Yang Joo-Hwan

Korean

1952.03.13

Yonsei University, Korea

Vice President

Mr.

Yoon Sung-Gerl

Korean

1952.02.10

Kyungbuk National University

Director & CFO

Mr.

Kim Sang-Sun

Korean

1962.12.

Yonsei University, Korea

Outside Director

Mr.

Lee Byung-Kil

Korean

1937.06.15

Myungji University, Korea

Auditor

Mr.

You Young-Keun

Korean

1954.02.11

Hankuk University of Foreign Studies, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

61,394,706,865

377,274,264,358

3,181,140,169

(*)2013

220,654,663,404

374,450,727,887

6,668,177,906

(*)2012

153,891,469,724

375,282,780,073

-11,432,173,261

(*)2011

142,896,131,721

359,613,541,572

15,837,267,309

(*)2010

124,860,736,612

257,332,849,483

13,934,050,775

2009

107,816,084,492

174,448,247,930

12,341,777,483

2008

101,606,218,474

171,911,838,049

10,640,188,356

2007

82,180,764,151

165,845,450,904

11,452,762,741

2006

76,710,971,354

138,611,568,949

2,953,156,089

2005

79,038,672,652

134,356,104,317

10,190,368,933

2004

67,146,608,615

97,988,295,464

4,225,936,857

2003

61,617,857,772

88,006,173,647

5,053,581,380

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

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

6,084,556,500

Total Issues Shares

12,169,113

 

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

377,274,264,358

374,450,727,887

375,282,780,073

Current Assets

126,157,670,989

123,338,049,462

83,543,381,002

Cash & Cash Equivalents

11,850,726,143

8,504,499,826

788,158,830

Current Financial Instruments

200,000,000

2,000,000,000

0

Trade Receivables

52,712,152,683

45,493,679,225

37,634,065,742

Inventories

58,801,009,583

64,805,261,223

41,763,107,205

Other Receivables

780,095,687

1,241,759,660

892,987,254

Deferred Income Tax Assets

0

0

430,983,373

Other Current Assets

1,813,686,893

1,292,849,528

2,034,078,598

Assets to be Sold

0

0

45,745,000,000

Non-Current Assets

251,116,593,369

251,112,678,425

245,994,399,071

Marketable Financial Instruments

17,100,000

17,100,000

17,100,000

Held-to-Maturity Financial Assets

400,000,000

400,000,000

400,000,000

Non-Current Financial Instruments

136,680,000

130,650,000

581,108,536

Investment_Related Companies

26,050,665,738

26,050,665,738

32,452,670,630

Tangibles

216,736,922,666

217,783,531,527

207,122,070,778

Intangibles

4,969,388,108

3,972,233,109

3,997,078,109

Other Receivables

1,193,437,170

1,180,494,950

777,134,950

Other Non-Current Assets

1,612,399,687

1,578,003,101

647,236,068

Total Liabilities

200,860,218,796

198,903,999,894

211,748,684,955

Current Liabilities

70,571,796,475

78,091,029,624

39,205,879,543

Trade Payables

9,779,521,151

10,196,814,519

7,414,363,733

Debentures

54,557,700,000

61,429,150,000

22,200,000,000

Other Payables

5,284,947,120

4,933,549,534

4,620,464,959

Deferred Income Tax Assets

686,289,181

1,049,617,071

0

Other Current Liabilities

263,339,023

481,898,500

4,971,050,851

Non-Current Liabilities

130,288,422,321

120,812,970,270

172,542,805,412

Long-Term Borrowings

120,142,300,000

111,570,850,000

165,000,000,000

Long-Term Finance Guarantee Debts

1,612,399,687

1,578,003,101

647,236,068

Confirmed Salaries

2,117,467,371

1,241,601,128

570,587,086

Deferred Income Tax Credit

6,383,921,933

6,390,182,711

6,207,148,928

Other Long-Term Payables

32,333,330

32,333,330

117,833,330

Capital Stock

6,084,556,500

6,084,556,500

6,084,556,500

Capital Surplus

38,543,614,684

38,543,614,684

38,377,468,436

Others

10,433,033,050

10,433,033,050

3,122,903,456

Profit Surplus

121,352,841,328

120,485,523,759

115,949,166,726

Total Equity

176,414,045,562

175,546,727,993

163,534,095,118

Liab. & Shareholder’s Equity

377,274,264,358

374,450,727,887

375,282,780,073

 

 

 

Income Statement

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

61,394,706,865

220,654,663,404

153,891,469,724

Cost of Sold Goods

53,007,976,722

188,155,773,891

132,841,596,550

Gross Profit

8,386,730,143

32,498,889,513

21,049,873,174

Selling & Admin. Expenses

3,590,793,760

14,104,022,110

14,429,070,472

R&D

805,299,908

2,671,693,172

2,182,053,218

Operating Income

3,990,636,475

15,723,174,231

4,438,749,484

Investment Profits on Related Companies

321,300,000

214,200,000

4,121,300,000

Finance Income

386,452,936

917,170,819

853,844,354

Finance Expenses

1,725,914,801

8,536,929,519

9,676,627,198

Other Income

419,698,067

1,316,174,589

3,265,000,735

Other Expenses

89,265,806

2,042,882,301

19,577,103,528

Income Before Taxes

3,302,906,871

7,590,907,819

-16,574,836,153

Income Taxes Expenses

121,766,702

922,729,913

-5,142,662,892

Net Income

3,181,140,169

6,668,177,906

-11,432,173,261

 

 

Cash Flows

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

4,537,335,121

-13,050,899,614

918,688,881

Net Income

3,181,140,169

6,668,177,906

-11,432,173,261

Adjustment

5,090,106,687

23,734,949,260

28,748,492,624

Changes in Asset/ & Liability

-1,709,666,023

-35,139,842,454

-7,781,058,818

Interests Received

54,880,194

196,879,860

126,658,052

Dividends Received

0

0

200,000

Interests Paid

-1,587,770,536

-7,256,680,727

-7,821,498,346

Income Taxes

-491,355,370

-1,254,383,459

-921,931,370

Cash Flows from Investing

-589,343,159

27,453,974,289

-31,987,762,832

Cash Flows from Financing

-613,822,600

-6,674,310,048

30,397,895,315

Increase/Decrease in Cash

3,346,226,317

7,716,340,996

-695,356,443

Cash at the Beginning of Year

8,504,499,826

788,158,830

1,483,515,273

Cash at the End of Year

11,850,726,143

8,504,499,826

788,158,830

 

 

Products, Technologies, Services Description

 

Main Products & Services

Empty Hard Capsules, Soft Capsule, Health Food, Encapsulation Machine, Paintball for Leisure

 

Brand Name: EMBO CAPS

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

GELITA SWEDEN AB

PB LEINER USA

GELTECH CO., LTD(180111-0262476)

 

BMW FINANCIAL SERVICES KOREA CO., LTD.(110111-2278756) provides vehicle leasing services to the Subject company.

Customers

Major Pharmaceutical companies and manufacturers

Competitors

HAN KOOK CAPSULE INDUSTRY CO., LTD.

13-164, SEONGSU 1-GA 2-DONG, SEONGDONG-GU, SEOUL, KOREA

TEL:+82-2-464-0621  FAX:+82-2-464-9503

 

(*) The Subject is ranked as the 1st player in domestic market shares(85%).

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

GELTECH CO., LTD(180111-0262476)

(42.84% held by the subject company)

 

SUHUNG PLAZMA CO., LTD.(110111-2003567)

(36.19% held by the subject company)

 

NUTROJIN CO., LTD.(110111-3388215)

(30.00% held by the subject company)

 

UNI-CAPS CO., LLC.

(50.00% held by SUHEUNG AMERICA)

 

J&S CAPSULE LLC.

(50.00% held by SUHEUNG AMERICA)

 

SH ASSET MANAGEMENT LLC.

(99.00% held by SUHEUNG AMERICA)

 

CS PROPERTY MANAGEMENT LLC.

(50.00% held by SUHEUNG AMERICA)

 

SUHEUNG-VIETNAM CO., LTD

3RD FLOOR, ROOM 6, 268 TO HIEN THANH ST., WARD 15, DIST 10, HCMC. VIETNAM

TEL:+84-83-868-1363 FAX:+84-83-868-1366

 

SUHEUNG-EUROPE REPRESENTATIVE OFFICE

A. SENOE 3 VARAZDIN 42000 CROATIA

TEL:+38-599-509-8469 FAX:+38-542-71-2212

 

SUHEUNG-AMERICA CORPORATION

350 RANGER AVE. UNIT A BREA, CA, 92821

TEL:+1-714.996.7700 FAX:+1-714.996.7100

 

SUHEUNG-JAPAN CO., LTD.

POST CODE 101-0035 SUZUNO BLDG. 3F 11 BANCHI, KANDA-KONYACHO, CHIYODA-KU, TOKYO, JAPAN

TEL:+81-3-5256-7501  FAX:+81-3-5256-8008

Subsidiary

GELTECH CO., LTD(180111-0262476)

(42.84% held by the subject company)

 

SUHUNG PLAZMA CO., LTD.(110111-2003567)

(36.19% held by the subject company)

 

SUHEUNG-AMERICA CORPORATION

(100.0% held by the subject company)

 

SUHEUNG-VIETNAM CO., LTD

(100.00% held by the subject company)

 

SUHEUNG-JAPAN CO., LTD.

(100.00% held by the subject company)

 

SH PHARM. CO., LTD.(121111-0112531)

(100.00% held by the subject company)

 

SUHEUNG NEW ZEALAND CO., LTD.

(100.00% held by the subject company)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

LIG INSURANCE CO., LTD(110111-0017859)

KOREA LIFE INSURANCE CO., LTD.(110111-0003204)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2012

2011

2010

Export

20,836

35,173

34,215

Domestic

55,668

107,723

90,646

Total

76,504

142,896

124,861

The Subject exports to France, Germany, Japan, Turkey and USA.

 

 

News Clipping

 

--

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.06

UK Pound

1

Rs. 99.34

Euro

1

Rs. 80.61

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.