MIRA INFORM REPORT

 

 

Report No. :

334450

Report Date :

01.08.2015

 

IDENTIFICATION DETAILS

 

Name :

ABCO ELECTRONICS CO., LTD.

 

 

Registered Office :

31, Dunchon-Daero 388beon-Gil, Jungwon-Gu, Seongnam-Si, Gyeonggi-Do, Korea 462-120

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

19.10.1973

 

 

Com. Reg. No.:

129-81-00692

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Manufacture of Electronic Coils, Transformers and Other Inductors

Manufacture of Electronic Resistors

 

 

No. of Employees :

157

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 

 

 

 


Basic Information

 

Company Name

ABCO ELECTRONICS CO., LTD.

Registered Address

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

Building

 

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

Lead Resistor, Chip Resistor, Lead Inductor, Chip Inductor, Noise Filter, Fixed Resistors, Power Inductors

  Sub Business

Manufacture of Electronic Resistors

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

Address

 

Date of Birth

06/21/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,402,313,000

Employees

157

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)

2,854,221

22.29

KIM JE-YOUNG

1,706,960

13.33

LEE JONG-MAN

554,510

4.33

JUNG YOUNG-HEE

61,120

0.48

LEE YO-HAN

17,169

0.13

OTHERS

7,610,646

59.44

TOTAL

12,804,626

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

Chairman

Mr.

Kim Je-Young

Korean

1952.04.13

Seoul National University, Korea

Co-President & CEO

Mr.

Lee Jong-Man

Korean

1954.06.21

Seoul National University, Korea

Co-President & CEO

Mr.

Kim Chang-Soo

Korean

1978.12

University of California, Irvine, USA

Vice President

Mr.

Jung Young-Hee

Korean

1957.02.22

Sungkyunkwan University, Korea

Outside Director

Mr.

Lim Sang-Hern

Korean

1953.10

Korea University, Korea

Outside Director

Mr.

Lee Joon-Il

Korean

1967.08

-

Auditor

Mr.

Jang Hwa-Duck

Korean

1954.10.01

Myungji University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

15,773,105,220

96,225,369,499

1,733,005,236

(*)2014

57,000,171,401

88,710,837,792

4,413,034,288

(*)2013

57,415,941,513

89,989,842,501

3,185,451,013

(*)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

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

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

6,402,313,000

Total Issued Shares

12,804,626

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

96,225,369,499

88,710,837,792

89,989,842,501

Current Assets

59,436,834,465

51,031,382,477

44,742,270,246

Cash & Cash Equivalents

25,428,436,541

23,520,827,610

16,578,754,227

Current Financial Instruments

10,565,240,242

6,367,843,628

7,514,299,831

Trade Receivables & Other Receivables

14,318,809,363

12,424,536,219

11,608,479,605

Current Financial Instruments

3,441,057,618

3,187,325,727

3,165,340,193

Inventories

5,683,290,701

5,530,849,293

5,875,396,390

Non-Current Assets

36,788,535,034

37,679,455,315

45,247,572,255

Non-Current Financial Instruments

846,344,429

758,394,410

1,844,033,019

Long-Term Trade Receivables & Other Receivables

969,652,000

970,252,000

2,198,624,000

Investment_Subsidiaries

10,427,122,222

10,427,122,222

12,478,631,239

Investment_Related Companies

651,237,688

651,237,688

128,325,753

Tangibles

19,089,243,286

20,411,182,013

24,316,081,921

Intangibles

561,752,416

571,244,713

619,545,808

Investment_Real Estates

3,600,731,730

3,381,168,936

3,434,114,973

Deferred Income Tax Assets

642,451,263

508,853,333

228,215,542

Total Liabilities

27,441,379,975

22,790,023,640

27,767,075,244

Current Liabilities

26,815,702,174

22,230,636,370

23,030,375,519

Trade Payables & Other Payables

8,798,483,559

7,355,534,443

6,637,307,753

Short-Term Borrowings

14,351,164,093

12,972,490,921

16,145,287,108

Current Portion of Long-Term Debts

187,500,000

125,000,000

 

Deferred Income Tax Credit

1,236,429,928

1,416,401,932

100,132,994

Other Current Liabilities

2,242,124,594

361,209,074

147,647,664

Non-Current Liabilities

625,677,801

559,387,270

4,736,699,725

Long-Term Trade Payables & Other Payables

5,100,000

5,100,000

4,100,000

Long-Term Borrowings

312,500,000

375,000,000

 

Bond with Warrant

 

0

4,468,879,405

Provision for Severance & Retirement

308,077,801

179,287,270

263,720,320

Capital Stock

6,402,313,000

6,090,500,000

6,090,500,000

Capital Surplus

26,815,799,565

24,290,296,761

24,290,296,761

Others

-107,586,788

-152,591,120

-392,830,670

Installments

19,031,532

19,031,532

60,885,775

Profit Surplus

35,654,432,215

35,673,576,979

32,173,915,391

Total Equity

68,783,989,524

65,920,814,152

62,222,767,257

Liab. & Shareholder’s Equity

96,225,369,499

88,710,837,792

89,989,842,501

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

15,773,105,220

57,000,171,401

57,415,941,513

Cost of Sold Goods

12,900,942,095

44,390,129,260

48,304,442,268

Gross Profit

2,872,163,125

12,610,042,141

9,111,499,245

Selling & Admin. Expenses

1,244,512,347

5,919,361,608

4,641,506,739

Operating Income

1,627,650,778

6,690,680,533

4,469,992,506

Other Income

95,335,228

439,358,810

547,852,688

Other Expenses

20,728,997

2,160,046,424

1,524,000,090

Finance Income

812,342,471

4,779,926,670

2,579,748,446

Finance Expenses

438,992,288

4,033,958,869

2,652,235,767

Income Before Taxes

2,075,607,192

5,715,960,720

3,421,357,783

Income Taxes Expenses

342,601,956

1,302,926,432

235,906,770

Net Income

1,733,005,236

4,413,034,288

3,185,451,013

 

Cash Flows

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

2,012,353,248

13,453,587,120

8,411,440,498

Net Income

1,733,005,236

4,413,034,288

3,185,451,013

Interests Received

168,087,135

844,497,619

703,500,370

Interests Paid

-103,748,812

-523,833,707

-642,677,641

Dividends Received

0

317,480,456

5,860,000

Income Taxes

-653,564,000

-228,497,174

-309,638

Adjustment

868,573,689

8,630,905,638

5,159,616,394

Cash Flows from Investing

-4,304,260,171

2,045,008,376

-10,456,481,759

Cash Flows from Financing

4,200,324,883

-8,638,427,108

5,955,304,845

Increase/Decrease in Cash

1,908,417,960

6,860,168,388

3,910,263,584

Cash at the Beginning of Year

23,520,827,610

16,578,754,227

12,739,761,070

 

 

Products, Technologies, Services Description

 

Main Products & Services

Lead Resistor, Chip Resistor, Lead Inductor, Chip Inductor, Noise Filter, Fixed Resistors, Power Inductors

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

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

SK HYNIX INC.(134411-0001387)

Competitors

 

 

 

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)

 

DONGGUAN CNA ELECTRONICS CO., LTD.(CHINA)

 

 

Subsidiary

CTC CO., LTD.(131411-0158496)

(100.00% held by the subject company)

 

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.64.01

UK Pound

1

Rs.99.84

Euro

1

Rs.70.16

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

NIT

 

 

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.