MIRA INFORM REPORT

 

 

Report Date :

07.10.2014

 

IDENTIFICATION DETAILS

 

Name :

KSP CO., LTD.

 

 

Registered Office :

43, Noksansandan 381-ro 86beon-gil, Gangseo-gu, Busan, Korea, 618-270

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

28.06.2000

 

 

Com. Reg. No.:

606-81-27539

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Manufacture of Internal Combustion Piston Engines

·         Forging of Metal

 

 

No of Employees :

118

 

 

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 :

Slow but correct

Litigation :

Exist

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

Company Name

KSP CO., LTD.

(Ex. Co. Name : KOREA SPECIAL PRECISION CO. “한국특수정밀”)

(Korean Company Name : “()케이에스피”)

Registered Address

43, Noksansandan 381-ro 86beon-gil, Gangseo-gu, Busan, Korea

Building

 

Zip Code

618-270

Tel

+82-51-831-6270~9

Fax

+82-51-831-6273

E-mail

kspvalve@kspvalve.com

Website

www.kspvalve.com

Trading Address

43, Noksansandan 381-ro 86beon-gil, Gangseo-gu, Busan, Korea

(Old Address System : 1658-6, Songjeong-dong, Gangseo-gu, Busan, Korea)

Tel

+82-51-979-5732

Fax

+82-51-831-6273

Other Address-Logistics Center

1540-4, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Internal Combustion Piston Engines

  Main Business

Forging of Metal

  Sub Business

Marine Engine Valve Spindle, Forging Products, Hardfacing Products, Friction Welding

Established (mm/dd/yyyy)

06/28/2000

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Engine valves(26101743)

Sell

Metal forging services(73121606)

Sell

Welding and brazing and soldering services(73181900)

Sell

Valves(40141600)

Sell

Pipe flanges(40142400)

Sell

Engine valves(26101743)

Sell

Steel bars(30101604)

Sell

Plate(30102200)

Sell

Stainless steel plate(30102205)

Sell

Steel bars(30101604)

 

 

CEO’s

 

Name

Ryu Heung-Mok

Address

 

Date of Birth

11/05/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

4,722,018,500

Employees

118

Formation

Listed Company (KOSDAQ : 073010) as of 12/17/2004

A Company of HANKOOK MACHINE TOOLS CO., LTD.

Bank Details

Busan Bank

Industrial Bank of Korea

Woori Bank

Kookmin Bank

Corporate Registered No.

180111-0328550

Business Registered No.

606-81-27539

Permit & Licenses

09/1998 ISO 9002 by BVQI

12/2001 ISO 9002 by DAS

01/2006 ISO 9001

 

Int’l Trade No.: 12076349

Shareholder Position

Name

Shares

%

HANKOOK MACHINE TOOLS CO., LTD.(194211-0000464)

4,028,000

42.65

NATIONAL PENSION 06-2 NEOPLUX CORPORATE RESTRUCTURING ASSOCIATION & OTHERS(1)

475,503

5.03

KTIC 15 HO CORPORATE RESTRUCTURING ASSOCIATION

552,050

5.85

ILHEUNG METAL CO., LTD.(194311-0001014)

271,850

2.88

OTHERS

4,388,484

46.47

TOTAL

9,444,037

100.00

Company History

12/2012 Awarded US$ 20 Million Export Top Prize

11/15/2010 Finished the Corporate Revival Procedure decided by Busan District Court

04/15/2010 Started the dealing of the subject’s Stocks at KOSDAQ Market again

03/25/2010 Stopped the dealing of the subject’s Stocks at KOSDAQ Market

04/09/2009 Decreased capital to 2,708,018,500 KRW from 5,907,672,500 KRW

01/2009 Approved of the Corporate Revival Plan by Busan District Court

12/31/2008 Designated as ‘Watchable Stock List’ by KOSDAQ Market

07/09/2008 Approved of the Corporate Revival Procedure by Busan District Court

06/02/2008 Applied the Corporate Revival Procedure to Busan District Court due to the financial struggling from misappropriation of public money by the ex management

02/2004 Applied for a patent of shock absorption system for forging (No.10-2004-0012356)

03/2004 Became supplier of HITACHI Shipping (Korea Atomic Corporation)

07/2004 Approved of preliminary registration examination (Korea Securities Dealers Association, 2004.7.21)

07/2004 Appointed as Good Manufacture Technology Research Lab. (No.2004-33 of Ministry of Commerce, Industry and Energy)

07/2004 Authorization of Good Quality (No.2004-28 of Ministry of Commerce, Industry and Energy)

09/2004 Qualified for Forging Factory (BV)

12/2004 Listed to KOSDAQ

12/2003 Developed noise and vibration reduction system for Hot Forging Technology (Korea Institute of Industrial Technology)

03/2003 Won valve manufacture approval by MAN B&W, and Sulzer

04/2003 Approved as forging factory (RINA, LR)

06/2003 Registered as cooperator of Toshiba

07/2003 Approved of preliminary registration examination (Korea Securities Dealers Association, 2004.7.21)

09/2003 Approved as Clean Workplace by Korean Ministry of Labor

09/2003 Awarded 2003 Venture Enterpriser by the Mayor of Busan Metropolitan City

11/2003 Selected as Excellent Techno-Enterprise (Korea Technology Credit Guarantee Fund)

11/2003 Million Dollar Export Tower Award (by the Korean President)

12/2003 Industrial Innovation Awards (by Korean Ministry of Commerce, Industry and Energy)

12/2003 Certified as Innovation Business by Small and Medium Business Administration

Company History

05/2002 Increase the capital from 2.65 billion won to 3.65 billion won

06/2002 Certification of KSP Metal Technology Laboratory

10/2002 Registration of utility model of an electrode for electrical upsetting preliminary molding process (No. 02903091)

10/2002 Appointed Promising Small and Medium Sized Companies (Busan-Ulsan Small and Medium Business Center)

11/2002 Certification of Part and Material Specializing Company (Ministry of Commerce, Industry and Energy)

11/2002 Certification of Venture Company (New Technology Development section

01/2001 Receives Appreciation Plaque from Hyundai Heavy Industry for Excellent Provider

01/2001 Registration of supplier of HSD Engine

02/2001 Registration of utility model of marine engine valve

05/2001 Registration of trademark (The Korean Intellectual Property Office Reg. No. 0493834)

07/2001 Development of high corrosion resistance martensite stainless steel forging manufacturing technology (Ministry of Commerce, Industry and Energy)

08/2001 Expansion move of main office (to 1658-6 Songjusn-Dong Gangseo-Gu Busan Korea)

09/2001 Appointed Promising Small and Medium Sized Companies (Busan Bank)

12/2001 Certification of ISO9001:2000 (DAS)

12/2001 Pass Military Safety Certification for service contractors (Korean Army No. 8206)

06/28/2000 Incorporated as KSP Co., Ltd

09/01/1993 Changed company name to KOREA SPECIAL PRECISION CO.

12/1991 Established as Korea Special Welding Industry Co.

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Ryu Heung-Mok

Korean

1954.11.05

Hanyang University, Korea

Director

Mr.

Sohn Byung-Young

Korean

1963.07.22

Busan National University, Korea

Director

Mr.

Seo Jung-Chul

Korean

1962.01

Busan National University, Korea

Outside Director

Mr.

Shim Kyu-Seok

Korean

1958.09.03

Busan Commercial High, Korea

Auditor

Mr.

Koo Shin-Hoi

Korean

1964.11.10

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2014

18,294,971,866

105,984,573,292

-1,481,740,250

(*)2013

38,018,375,160

86,163,230,904

1,600,021,882

(*)2012

50,060,174,436

84,401,755,556

405,977,115

(*)2011

60,100,196,831

86,595,919,902

6,909,024,627

(*)2010

36,052,947,813

74,676,098,106

-692,700,369

2009

50,171,474,306

73,686,129,180

18,088,804,573

2008

67,067,438,569

69,322,711,255

-36,213,648,178

2007

46,162,695,816

65,402,632,677

-549,262,368

2006

30,602,804,029

44,808,876,901

5,873,365,447

2005

20,594,835,400

32,241,556,847

4,275,938,295

2004

14,752,365,470

22,297,733,198

2,894,948,971

2003

10,288,954,663

15,835,948,648

1,816,293,800

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

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

4,722,018,500

Total Issues Shares

9,444,037

 

Balance Sheet

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

105,984,573,292

86,163,230,904

84,401,755,556

Current Assets

49,358,454,114

52,505,177,386

53,692,963,007

Cash & Cash Equivalents

2,007,753,342

14,910,694,974

13,020,833,870

National Subsidy

-123,672,704

-62,077,364

-145,628,685

Trade Receivables

10,790,293,179

11,199,889,801

10,109,595,311

Other Current Financial Instruments

10,251,151,811

1,006,819,119

268,101,827

Inventories

23,422,766,202

24,939,412,058

26,556,228,803

Deferred Income Tax Assets

10,281,540

0

185,689,891

Other Current Assets

36,821,925

357,865,788

334,983,044

Advance Payments

2,963,058,819

152,573,010

3,363,158,946

Non-Current Assets

56,626,119,178

33,658,053,518

30,708,792,549

Other Non-Current Financial Instruments

24,444,633,158

1,160,537,731

365,100,107

Tangibles

29,537,928,865

29,890,091,142

27,892,103,811

Intangibles

2,643,557,155

2,607,424,645

2,451,588,631

Total Liabilities

37,171,300,250

15,840,613,708

15,789,064,707

Current Liabilities

12,708,361,408

13,092,566,689

8,849,033,607

Trade Payables

7,346,039,320

5,480,449,108

4,921,653,909

Account Payables

4,980,395,202

6,391,150,794

1,459,986,572

Short-Term Borrowings

98,247,988

917,313,614

1,076,067,675

Other Current Financial Debts

126,606,154

83,055,558

79,627,353

Deferred Income Tax Credit

0

126,428,216

976,999,498

Other Current Liabilities

157,072,744

94,169,399

334,698,600

Non-Current Liabilities

24,462,938,842

2,748,047,019

6,940,031,100

Long-Term Account Payables

1,509,104,585

1,596,947,287

1,765,619,558

Long-Term Borrowings

22,322,000,000

322,000,000

322,000,000

Provision for Severance & Retirement

508,278,275

422,557,253

511,096,627

Provisions for Court Action

0

0

3,163,081,518

Deferred Income Tax Credit

123,555,982

406,542,479

1,178,233,397

Capital Stock

4,722,018,500

4,722,018,500

4,722,018,500

Capital Surplus

52,005,436,397

52,005,436,397

52,005,436,397

Capital Adjustment

-1,983,710,305

-1,983,710,305

-1,983,710,305

Profit Surplus

14,069,528,450

15,578,872,604

13,868,946,257

Total Equity

68,813,273,042

70,322,617,196

68,612,690,849

Liab. & Shareholder’s Equity

105,984,573,292

86,163,230,904

84,401,755,556

 

Income Statement

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

18,294,971,866

38,018,375,160

50,060,174,436

Cost of Sold Goods

18,190,672,623

34,817,992,440

46,248,215,378

Gross Profit

104,299,243

3,200,382,720

3,811,959,058

Selling & Admin. Expenses

1,398,758,889

2,808,543,349

2,915,880,290

Operating Income

-1,294,459,646

391,839,371

896,078,768

Other Income

37,444,653

1,214,167,269

1,058,117,068

Other Expenses

111,182,826

408,598,971

546,542,457

Finance Income

839,225,229

195,080,662

407,411,292

Finance Expenses

1,082,791,796

427,670,700

352,601,566

Income Before Taxes

-1,611,764,386

964,817,631

1,462,463,105

Income Taxes Expenses

-130,024,136

-635,204,251

1,056,485,990

Net Income

-1,481,740,250

1,600,021,882

405,977,115

 

Cash Flows

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

471,112,199

5,519,012,550

4,201,755,730

Cash Flows from Operating

1,172,192,645

6,176,377,537

4,119,623,875

Net Income

-1,611,764,386

964,817,631

1,462,463,105

Adjustment

1,529,090,224

1,841,617,907

1,652,037,992

Changes in Asset/ & Liability

1,254,866,807

3,369,941,999

1,005,122,778

Interests Received

71,073,953

188,275,183

420,882,516

Interests Paid

-490,267,999

-13,273,417

-111,677,004

Income Taxes

-281,886,400

-832,366,753

-227,073,657

Cash Flows from Investing

-32,521,539,200

-3,715,754,372

-3,019,702,015

Cash Flows from Financing

19,173,178,928

162,374,061

-3,114,059,364

Increase/Decrease in Cash

14,910,694,974

13,020,833,870

14,929,463,751

Cash at the Beginning of Year

-25,693,559

-75,771,135

23,375,768

Cash at the End of Year

2,007,753,342

14,910,694,974

13,020,833,870

 

 

Products, Technologies, Services Description

 

Main Products & Services

Ship Engine Valve

-Valve for middle-sized engine

 

Forging

-Flange

-Ring Gear

 

Hardfacing

-Welding Repair

-Axial Pump Sleeve

-Cold Pilfering Roller

-Seat Ring

-Power Plant Turbine Sleeve

-Valve Repair Welding

-Gate Disc

-Axial Pump Sleeve

Annual Production Capacity

(Unit : EA)

Item

09/2010

2009

2008

FLANGE

4,600

16,250

29,800

RING GEAR

7,200

24,400

40,650

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

SAMSUNG CARD CO., LTD.(110111-0346901) provides CNC Turning Center 2EA to the subject company by leasing base.  HYUNDAI CAPITAL SERVICES, INC.(110111-0995378) provides the vehicles leasing service to the subject company.

 

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

BAOSHAN IRON & STEEL(CHINA)

BOHLER(AUSTRIA)

ALLVAC(USA)

SANDVIC

ACCERARABA

DELORO STELLITE GMBH

Customers

HYUNDAI HEAVY INDUSTRIES CO., LTD.(181211-0000386)

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD.(194211-0000943)

DOOSAN INFRACORE CO., LTD.(120111-0234469)

DOOSAN ENGINE CO., LTD.(194211-0038423)

HYUNDAI-ROTEM COMPANY(194211-0036336)

KOREA NAVY

Competitors

S&W CORPORATION(180111-0095637)

KOREA FLANGE CO., LTD.(181211-0000443)

DAECHANG FORGING CO., LTD(180111-0039396)

 

NZK(JAPAN)

NITTAN VALVE(JAPAN)

MWH(GERMANY)

DAIDO(JAPAN)

BOHLER(AUSTRIA)

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HANKOOK MACHINE TOOLS CO., LTD.(194211-0000464)

HANKOOK PRECISION IND.CO.,LTD.( 190111-0011855)

IL HEUNG METAL CO., LTD.(194311-0001014)

HANKOOK MACHINE TOOLS SERVICES CO., LTD.(194211-0063157)

RYU JIN WON DEVELOPMENT CO., LTD.(110111-0997572)

Cooperative Enterprise

-Insured Company

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

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2014

2013

2012

Export

3,001

6,186

18,271

Domestic

15,294

31,832

31,789

Total

18,295

38,018

50,060

The Subject deals with the companies in Austria, China, Italy, Swiss, Japan and USA.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

Seoul Bukbu District Court

Cha Sang-Min

The Subject Company

Cancellation of Fraud Action

1,100,000,000

1st Round is proceeding.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

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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