MIRA INFORM REPORT

 

 

Report No. :

338172

Report Date :

22.08.2015

 

IDENTIFICATION DETAILS

 

Name :

TAE KWANG CORPORATION

 

 

Registered Office :

117-12, Noksansaneop-daero, Gangseo-gu, Busan, Korea, 46752

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

01.09.1982

 

 

Com. Reg. No.:

603-81-07233

 

 

Legal Form :

Listed Company (KOSDAQ : 023160) as of 09/07/1994

 

 

Line of Business :

Manufacture of Pipes and Tubes, of Non-cast Iron or Steel.

 

 

No. of Employees :

440

 

 

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

TAE KWANG CORPORATION

(Trade Name : TK CORP.)

(Korean Company Name : “()태광”)

Registered Address

117-12, Noksansaneop-daero, Gangseo-gu, Busan, Korea

Building

 

Zip Code

46752

Tel

+82-51-970-6600

Fax

+82-51-831-6969

E-mail

tk@tkbend.co.kr

Website

www.tkbend.co.kr

Trading Address

117-12, Noksansaneop-daero, Gangseo-gu, Busan, Korea

(Old Address System : 1499-1, Songjeong-dong, Gangseo-gu, Busan, Korea)

Tel

+82-51-970-6600

Fax

+82-51-831-6969

Other Address-Seoul Office

Rm.607, 25-4, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-3775-3400

Fax

+82-2-3775-3404

Other Address-Overseas Business Office

Rm.801, Jungsun Bldg., 1270-1, Jwa-3 dong, Haeundae-gu, Busan, Korea

Tel

+82-51-747-8103

Fax

+82-51-747-8444~5

Type

Export

Industry

Manufacture of Pipes and Tubes, of Non-cast Iron or Steel

  Main Business

Elbow, Tee, Reducer, Cap

  Sub Business

 

Established (mm/dd/yyyy)

09/01/1982

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Pipe fittings(40142300)

Sell

Tube fittings(40142600)

Sell

Valves(40141600)

Sell

Diaphragm valves(40141621)

Buy

Non ferrous alloy(11101711)

Buy

Nylon(13111010)

Buy

Steel(11101704)

Buy

Fluoropolymer resin(13111007)

Buy

Aluminum(11101705)

 

 

CEO’s

 

Name

Yoon Sung-Duk

Address

 

Date of Birth

03/20/1958

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

13,250,000,000

Employees

440

Formation

Listed Company (KOSDAQ : 023160) as of 09/07/1994

Bank Details

Woori Bank

Korea Exchange Bank

Corporate Registered No.

180111-0045559

Business Registered No.

603-81-07233

Permit & Licenses

07/2011 ISO 14001

06/2009 OHSAS 18001

 

Int’l Trade No.: 966144

Shareholder Position

Name

Shares

%

DAE SIN INTERNATIONAL.INC(180111-0390508)

6,547,347

24.71

YOON SUNG-DUK

2,287,541

8.63

DAESHIN CO., LTD.(180111-0201391)

1,737,529

6.56

MASSACHUSETTS FINANCIAL SERVICES COMPANY(111 HUNTINGTON AVENUE, BOSTON, MASSACHUSETTS, USA 02199)

2,744,623

10.36

FIDELITY FUNDS(KANSALLIS HOUSE, PLACE DE L'ETOILE, L-1021 LUXEMBOURG)

1,329,479

5.02

NATIONAL PENSION SERVICE(110171-0007134)

1,027,764

3.88

SHINYOUNG ASSET MANAGEMENT CO., LTD.(110111-1304148)

1,339,062

5.05

TREASURY STOCK

632,758

2.39

OTHERS

8,853,897

33.41

TOTAL

26,500,000

100.00

Company History

09/01/1982 Incorporated as TAEKWANG BEND IND. CO., LTD.

03/23/2001 Changed company name to the present name

05/2001 Moved to the present HQ address from 534, Sinpyeong 1-dong, Saha-gu, Busan, Korea

03/27/2015 Increased capital to 13,250,000,000 KRW from 12,500,000,000 KRW

 

 


Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Yoon Sung-Duk

Korean

1958.03.20

Hanyang University, Korea

Chairman

Mr.

Yoon Jong-Kyu

Korean

1930.04.23

Geoje High School, Korea

Director

Mr.

Yoon Sang-Won

Korean

1963.01.

Busan National University, Korea

Outside Director

Mr.

Park Yoon-Seok

Korean

1949.03.02

Donga University, Korea

Auditor

Mr.

Lee Kyu-Joong

Korean

1957.12.17

Donga University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

133,285,957,901

467,250,301,319

6,438,970,065

(*)2014

271,572,718,962

466,624,793,870

8,839,454,462

(*)2013

310,840,197,499

468,623,315,691

28,533,425,380

(*)2012

356,879,822,600

449,366,566,433

33,191,972,374

(*)2011

258,887,936,233

422,467,427,180

27,564,143,895

2010

215,938,676,054

330,057,106,562

1,549,064,531

2009

262,239,513,248

342,788,652,044

44,441,080,525

2008

343,223,361,823

330,732,906,474

82,225,827,734

2007

286,998,723,584

228,736,345,577

44,868,838,500

2006

191,473,345,539

180,017,462,025

19,079,748,091

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

 

Financial Description

 

Authorized Capital(KRW)

15,000,000,000

Paid-Up Capital(KRW)

13,250,000,000

Total Issued Shares

26,500,000

 

Balance Sheet

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

467,250,301,319

466,624,793,870

468,623,315,691

Current Assets

306,419,920,187

304,785,197,770

301,537,670,523

Cash & Cash Equivalents

40,630,399,543

21,930,309,526

33,651,496,220

Trade Receivables & Other Receivables

101,966,475,703

106,356,895,434

92,389,622,948

Other Financial Assets

14,124,371,668

17,078,118,840

32,060,152,565

Inventories

149,271,452,205

159,041,498,421

143,034,448,051

Other Current Assets

427,221,068

378,375,549

401,950,739

Non-Current Assets

160,830,381,132

161,839,596,100

167,085,645,168

Other Long-Term Receivables

1,610,897,546

1,989,655,954

1,788,316,316

Other Non-Current Financial Assets

12,865,378,035

14,659,649,848

17,634,941,084

Tangibles

145,218,006,954

144,026,347,853

146,283,266,943

Intangibles

1,136,098,597

1,163,942,445

1,184,899,712

Other Non-Current Assets

 

 

194,221,113

Total Liabilities

48,905,125,631

53,640,610,328

54,293,315,696

Current Liabilities

33,766,474,390

39,855,103,966

42,433,760,944

Trade Payables & Other Payables

31,511,305,148

38,578,205,851

34,375,338,924

Other Current Financial Debts

136,660,490

304,172,383

18,002,272

Other Current Liabilities

804,036,360

340,346,488

4,748,465,480

Deferred Income Tax Credit

1,314,472,392

632,379,244

3,291,954,268

Non-Current Liabilities

15,138,651,241

13,785,506,362

11,859,554,752

Provision for Severance & Retirement

4,031,313,732

2,794,337,578

 

Deferred Income Tax Credit

11,107,337,509

10,991,168,784

11,859,554,752

Capital Stock

13,250,000,000

12,875,000,000

12,500,000,000

Capital Surplus

34,425,403,063

34,427,786,303

34,430,188,143

Others

-11,222,622,405

-11,187,138,746

-4,727,128,418

Installments

-1,628,391,597

-1,669,215,765

-108,227,394

Profit Surplus

383,520,786,627

378,537,751,750

372,235,167,664

Total Equity

418,345,175,688

412,984,183,542

414,329,999,995

Liab. & Shareholder’s Equity

467,250,301,319

466,624,793,870

468,623,315,691

 

Income Statement

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

133,285,957,901

271,572,718,962

310,840,197,499

Cost of Sold Goods

115,001,133,305

237,436,122,872

250,850,983,827

Gross Profit

18,284,824,596

34,136,596,090

59,989,213,672

Selling & Admin. Expenses

11,362,929,996

22,033,871,661

25,153,167,141

Operating Income

6,921,894,600

12,102,724,429

34,836,046,531

Other Income

733,433,311

1,378,928,917

1,317,280,319

Other Expenses

666,219,354

3,252,109,513

1,549,097,024

Finance Income

3,371,931,345

4,943,245,808

5,913,729,261

Finance Expenses

2,075,236,403

3,959,441,900

3,751,533,379

Income Before Taxes

8,285,803,499

11,213,347,741

36,766,425,708

Income Taxes Expenses

1,846,833,434

2,373,893,279

8,233,000,328

Net Income

6,438,970,065

8,839,454,462

28,533,425,380

 

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

16,485,467,511

-17,799,299,451

50,592,406,403

Cash Flows from Operating

16,568,121,758

-14,312,161,600

58,889,543,654

Interests Received

630,772,309

1,271,125,452

1,171,558,896

Interests Paid

-22,989,248

-44,973,433

-42,045,570

Income Taxes

-690,437,308

-4,713,289,870

-9,426,650,577

Cash Flows from Investing

2,080,721,750

12,861,308,532

-42,990,379,022

Cash Flows from Financing

-34,301,099

-6,462,412,168

-72,224,698

Increase/Decrease in Cash

18,700,090,017

-11,721,186,694

7,305,550,923

Cash at the Beginning of Year

21,930,309,526

33,651,496,220

26,345,945,297

Cash at the End of Year

40,630,399,543

21,930,309,526

33,651,496,220

 

 

Products, Technologies, Services Description

 

Main Products & Services

Elbow, Tee, Reducer, Cap

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD.(110111-2095837)

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

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

DAELIM INDUSTRIAL CO., LTD.(110111-0084915)

SAMSUNG HEAVY INDUSTRIES CO., LTD.(110111-0168595)

SHELL

EXXON MOBILE

ARAMCO

BP

Competitors

TECTUBI(EUROPE)

TECNOFORGE(EUROPE)

SUNG KWANG BEND CO., LTD.(180111-0036425)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAE SIN INTERNATIONAL.INC(180111-0390508)

DAESHIN CO., LTD.(180111-0201391)

TK BEND CO., LTD.(110111-2677122)

Overseas Office

 

Liaison Office

 

Overseas Branch

US BRANCH

TK FITTING USA INC, 10575 KATY FREEWAY SUITE #205, HOUSTON, TX 77024

TEL:+1-713-464-5100 FAX:+1-713-464-5105

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : Thousand KRW

06/2015

2014

2013

Export

85,736,753

184,497,558

201,367,845

Domestic

47,549,205

87,075,161

109,472,352

Total

133,285,958

271,572,719

310,840,197

The Subject exports to Europe.

 

 

Court Action

 

No.

 

 

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 :

DIV

 

 

Report Prepared by :

TPT

 

               

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