MIRA INFORM REPORT

 

 

Report No. :

338329

Report Date :

22.08.2015

 

IDENTIFICATION DETAILS

 

Name :

POSCO M-TECH CO., LTD.

 

 

Registered Office :

131, Hyeongsangangbuk-Ro, Nam-Gu, Pohang-Si, Gyeongsangbuk-Do, Korea 37835

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

27.12.1973

 

 

Com. Reg. No.:

506-81-00055

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Basic Iron and Steel n. e. c.

(Pellet, Ingot, Coil Master, Sealing Products, Packaging Service)

 

 

No. of Employees :

1,103

 

 

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

POSCO M-TECH CO., LTD.

Registered Address

131, Hyeongsangangbuk-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Building

 

Zip Code

37835

Tel

+82-54-280-8114

Fax

+82-54-280-8301~3

E-mail

webmaster@sjpna.co.kr;jws0424@sjpna.co.kr;wjh@sjpna.co.kr

Website

www.sjpna.co.kr

Trading Address

131, Hyeongsangangbuk-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

(Old Address System : 608, Hyoja-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea)

Tel

+82-54-280-8114

Fax

+82-54-280-8301~3

Other Address-2nd Factory / Steel Materials Business

431, Cheolgang-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

(Old Address System : 616, Ho-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea)

Tel

+82-54-288-8114

Fax

+82-54-288-1130

Other Address-Gwangyang Office

465, Hangman-daero, Gwangyang-si, Jeollanam-do, Korea

(Old Address System : 1390, Hwanggil-dong, Gwangyang-si, Jeollanam-do, Korea)

Tel

+82-61-798-5114

Fax

+82-61-792-0198

Other Address-Seoul Office

479, Gangnam-daero, Seocho-gu, Seoul, Korea

(Old Address System : 748-4, Banpo 1-dong, Seocho-gu, Seoul, Korea)

Tel

+82-2-554-7785

Fax

+82-2-554-7913

Other Address-Gangneung Factory

104, Geumjinsolbat-gil, Okgye-myeon, Gangneung-si, Gangwon-do, Korea

Tel

 

Fax

 

Other Address-Hwaseong Factory

757, Seobong-ro, Jeongnam-myeon, Hwaseong-si, Gyeonggi-do, Korea

Tel

 

Fax

 

Type

Export

Industry

Manufacture of Other Basic Iron and Steel n. e. c.

  Main Business

Pellet, Ingot, Coil Master, Sealing Products, Packaging Service

 

 

Established (mm/dd/yyyy)

12/27/1973

 

 


Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Oxygen scavengers(12163802)

Sell

Packaging machinery(23152900)

Sell

Securing and protecting supplies(24141500)

Sell

Corner guards(30161504)

Sell

Seals(31181600)

Buy

Aluminum(11101705)

Buy

Iron(11101713)

 

 

CEO’s

 

Name

Lee Hee-Myung

Address

-

Date of Birth

03/06/1959

Title

Vice President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

20,821,351,500

Employees

1,103

Formation

Listed Company (KOSDAQ : 009520) as of 11/10/1997

A Company of POSCO GROUP

Bank Details

Woori Bank-Pohang Branch

Korea EXIM Bank

Corporate Registered No.

174611-0000866

Business Registered No.

506-81-00055

Permit & Licenses

12/22/1995 ISO 9002

10/31/2002 KS Mark

 

Int’l Trade No.: 13047498

Shareholder Position

Name

Shares

%

POSCO(174611-0000741)

20,342,460

48.85

POSTECH(174631-0000129)

1,965,600

4.72

POSCO CHUNGAM FOUNDATION(174671-0003947)

983,950

2.36

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

433,903

1.04

OTHERS

17,916,790

43.03

TOTAL

41,642,703

100.00

Company History

12/27/1973 Incorporated as SAMJUNG STEEL CO., LTD.

03/2001 Changed company name to SAMJUNG PACKING & ALUMINUM CO., LTD.

07/2005 Joined as an Affiliated Company of POSCO GROUP

08/20/2010 Moved to the present HQ address from 967, Goedong-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

03/18/2011 Changed company name to the present name

01/01/2013 Acquired 9 DIGIT CO., LTD.(110111-2084731) and LIKO METAL CO., LTD.(110111-1763237)

06/13/2014 Imposed of Additional Taxes Charged amounting 43,478,163,540KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

Vice President & CEO

Mr.

Lee Hee-Myung

Male

Korean

1959.03.06

Auditor

Mr.

Park Chang-Soo

Male

Korean

1956.05.

Director

Mr.

Jung Ki-Sub

Male

Korean

1961.10.

Outside Director

Mr.

Jang Young-Won

Male

Korean

1948.07.

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

183,244,828,335

196,722,843,725

1,673,504,530

(*)2014

432,236,013,966

223,697,475,405

-100,512,762,348

(*)2013

695,632,378,293

346,576,893,825

-10,648,876,452

(*)2012

618,316,162,216

340,876,750,010

14,737,277,528

(*)2011

602,154,803,665

316,952,932,640

12,447,431,399

2010

524,625,435,726

291,437,740,644

7,949,406,546

2009

303,349,675,495

165,140,974,072

3,933,499,164

2008

373,682,038,605

154,668,445,112

-10,030,648,754

2007

257,630,339,769

144,941,720,671

10,727,303,880

2006

226,423,716,934

129,853,032,659

9,444,421,405

2005

296,101,018,682

131,814,887,038

11,318,722,110

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

 

 

Financial Description

 

Authorized Capital(KRW)

35,000,000,000

Paid-Up Capital(KRW)

20,821,351,500

Total Issues Shares

41,642,703

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

196,722,843,725

223,697,475,405

346,576,893,825

Current Assets

111,936,148,488

139,573,044,192

232,923,861,441

Cash & Cash Equivalents

1,115,753,603

2,038,508,637

3,987,832,182

Trade Receivables

32,477,366,516

48,729,087,081

97,287,048,136

Current Financial Instruments

42,851,835,718

43,103,210,868

72,318,935,540

Inventories

23,497,876,979

33,419,623,000

55,014,208,013

Other Current Assets

615,920,271

778,747,141

4,315,837,570

Assets to be Sold

11,377,395,401

11,503,867,465

 

Non-Current Assets

84,786,695,237

84,124,431,213

113,653,032,384

Long-Term Trade Receivables

893,894,478

 

 

Non-Current Financial Instruments

40,409,166,061

37,474,917,291

39,431,976,229

Investment_Subsidiaries

6,892,792,825

7,516,261,625

13,411,940,000

Tangibles

17,936,321,325

19,152,706,535

46,011,778,297

Intangibles

1,891,052,120

2,444,700,491

10,676,603,904

Deferred Income Tax Assets

16,763,468,428

17,535,845,271

4,120,733,954

Total Liabilities

145,657,969,172

174,205,798,431

193,375,200,857

Current Liabilities

136,271,935,436

165,857,566,816

185,917,501,900

Trade Payables

14,084,613,288

18,159,553,358

28,175,717,041

Short-Term Borrowings

106,761,356,973

126,347,827,213

144,416,929,182

Other Current Financial Debts

13,337,388,993

18,001,018,970

10,198,928,965

Deferred Income Tax Credit

 

100,691,907

214,410,809

Provisions

518,084,334

1,238,372,038

927,730,325

Other Current Liabilities

1,570,491,848

1,790,103,330

1,983,785,578

Liabilities to be Sold

 

220,000,000

 

Non-Current Liabilities

9,386,033,736

8,348,231,615

7,457,698,957

Long-Term Borrowings

1,478,500,000

1,583,700,000

4,262,100,000

Confirmed Salaries

7,346,555,290

5,499,354,342

1,818,058,788

Other Non-Current Financial Debts

560,978,446

1,265,177,273

1,377,540,169

Capital Stock

20,821,351,500

20,821,351,500

20,821,351,500

Capital Surplus

28,670,406,467

68,242,165,942

68,242,165,942

Others

-80,993

-80,993

-80,993

Profit Surplus

1,573,197,579

-39,571,759,475

64,138,256,519

Total Equity

51,064,874,553

49,491,676,974

153,201,692,968

Liab. & Shareholder’s Equity

196,722,843,725

223,697,475,405

346,576,893,825

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

183,244,828,335

432,236,013,966

695,632,378,293

Cost of Sold Goods

167,454,340,055

413,694,256,873

669,282,831,476

Gross Profit

15,790,488,280

18,541,757,093

26,349,546,817

Selling & Admin. Expenses

9,299,379,238

-35,678,490,711

-17,915,919,911

Operating Income

6,491,109,042

-17,136,733,618

8,433,626,906

Finance Profits

-1,659,160,271

-4,657,739,366

-3,495,221,902

Finance Income

814,941,208

3,573,242,950

7,210,519,522

Finance Expenses

-2,474,101,479

-8,230,982,316

-10,705,741,424

Non-Operating Profits

-3,566,657,562

-23,232,675,520

389,955,497

Non-Operating Income

470,643,013

892,206,872

4,595,865,034

Non-Operating Expenses

-4,037,300,575

-24,124,882,392

-4,205,909,537

Income Before Taxes

1,265,291,209

-45,027,148,504

5,328,360,501

Income Taxes Expenses

505,725,651

-11,808,991,600

-3,082,238,637

Income from Continuous Business

759,565,558

-33,218,156,904

8,410,599,138

Income from Stopped Business

913,938,972

-67,294,605,444

-19,059,475,590

Net Income

1,673,504,530

-100,512,762,348

-10,648,876,452

 

Cash Flows

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

23,652,245,829

1,060,241,521

12,004,315,559

Cash Flows from Operating

29,502,464,108

36,034,902,809

14,275,496,677

Net Income

759,565,558

-33,218,156,904

8,410,599,138

Adjustment

9,909,306,357

46,500,382,660

13,495,498,960

Changes in Asset/ & Liability

18,833,592,193

22,752,677,053

-7,630,601,421

Interests Received

458,139,621

5,212,390,177

1,104,002,734

Interests Paid

-1,920,852,155

-5,655,982,829

-5,394,025,686

Dividends Received

1,135,000

535,000

1,343,650

Income Taxes

194,250,989

-2,069,381,424

-3,831,020,992

Cash Flows from Investing

-4,760,892,606

18,919,799,364

4,030,383,554

Cash Flows from Financing

-19,820,171,162

-21,930,061,654

-14,770,552,172

Increase/Decrease in Cash

-928,817,939

-1,950,020,769

1,264,146,941

Cash at the Beginning of Year

2,038,508,637

3,987,832,182

2,835,105,221

Cash at the End of Year

1,115,753,603

2,038,508,637

3,987,832,182

 

 

Products, Technologies, Services Description

 

Main Products & Services

PACKAGING SERVICE

Steel Product Packaging Service

 

PACKAGING EQUIPMENT ORDER/SALES/DESIGN

Coil Master

Steel Packaging Line Engineering

Equipment/facilities for packaging steel

  -Dispenser

  -Inner ring/outer ring

  -Side molder etc

 

PACKAGING MATERIAL SALES

Seal

Side protector(Steel)

Inner ring/Outer ring

Quenching

 

AL, MO PRODUCT SALES

Pellet

Mini Pellet

Ingot

Jumbo Ingot

Mo-Oxide Briquette

Fe-Mo

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

POSCO(174611-0000741)

AP METAL COMPANY LIMITED

Competitors

PJ METAL CO., LTD.

13TH FL., SAMAN BLDG., 945, DAECHI 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-555-4451  FAX:+82-2-558-5599

 

UWRAPCO CO., LTD.

15B-16, BANWOL INDUSTRIAL COMPLEX, 449, MONGNAE-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-492-6277~9  FAX:+82-31-492-6276

 

BARDIA PACK CO., LTD.

365-13, DAESSANGRYEONG-RI, CHOWOL-EUP, GWANGJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-767-0661  FAX:+82-31-767-0662

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

POSCO(174611-0000741)

POSCO COATED & COLOR STEEL CO., LTD.(174611-0006492)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSDATA CO., LTD.(110111-0658637)

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(174611-0001947)

POSCO CHEMTECH CO., LTD.(174611-0001947)

POS-A.C. CO., LTD.(174611-0003448)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSCO RESEARCH INSTITUTE(110111-1042350)

POSTEEL(110111-0344591)

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

POSMEC(POSCO MACHINERY & ENGINEERING CO., LTD.)(174611-0012176)

POSCO TERMINAL CO., LTD.(204611-0017575)

POSTECH VENTURE CAPITAL COOPERATION (174611-0029080)

POSMATE CO., LTD.(110111-0739841)

POSCO POWER CORPORATION(110111-1829576)

SNNC CO., LTD.(204611-0023415)

PHP CO., LTD.(120111-0421545)

POSBRO(110111-3528986)

SUWON GREEN ENVIRONMENT CORPORATION(134811-0133794)

POSCORE CO., LTD.(134811-0003343)

RIZTECH BIZ CO., LTD.

POSWITH CO., LTD.(171711-0075927)

P&R CO., LTD.

UITRANS CO., LTD.(110111-3792309)

BASYS INDUSTRY CO. LTD.(110111-0954647)

UNIVERSAL STUDIOS RESORT DEVELOPMENT CORPORATION(134811-0167222)

METAPOLIS CO., LTD.(134811-0094475)

SEOUNG GWANG CO., LTD.(120111-0222844)

CHEONGNA IBT CO., LTD.(120111-0454520)

POHANG FEUL CELL CO., LTD.(171711-0076256)

MEGA ASSET  CO., LTD.(161511-0097480)

DAEWOOENGINEERING COMPANY CO., LTD.(110111-0203268)

POS ECO HOUSING CO., LTD.(171711-0085893)

DAKOS CO., LTD.(131111-0246297)

MAPO HYBROAD PARKING CO., LTD.(110111-4250140)

GWANGYANG FSC CO., LTD.(204611-0031385)

POSPLATE CO., LTD.(204611-0031252)

POS CALCIUM CO., LTD.(171711-0086180)

POS-MINERALS CORPORATION

(15.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

PT. POSCO MTECH INDONESIA

(60.00% held by the subject company)

Corporate Ownership

POSCO(174611-0000741)

Major Shareholders

POSCO(174611-0000741)

Cooperative Enterprise

-Technical support for Coil Master License from

K.C METAL PRODUCTS PTY.(AUSTRALIA)

 

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : KRW

2010

2009

2008

Export

126,333,103,154

61,692,014,541

98,919,070,823

Domestic

398,292,332,572

241,657,660,954

274,762,967,782

Total

524,625,435,726

303,349,675,495

373,682,038,605

The Subject deals with the companies in Australia.

 

 

Court Action

 

There are 3 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 1,072,746,000 KRW, and 9 cases filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) as of 06/30/2015.

 

 

News Clipping

 

-----------

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.83

UK Pound

1

Rs.103.39

Euro

1

Rs.74.27

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.