MIRA INFORM REPORT

 

 

Report No. :

309265

Report Date :

27.02.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. FUGUI FLOUR & GRAIN INDONESIA

 

 

Registered Office :

Jl. Raya Sukomulyo Km. 24, Kav. 5, Manyar, Gresik 61151, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

08.07.2005

 

 

Com. Reg. No.:

AHU-AH.01.10-20382

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Wheat Flour Mills Industry

 

 

No. of Employees :

1,820

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Indonesia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

Source : CIA

 

BASIC SEARCH

 

Name of Company :

P.T. FUGUI FLOUR & GRAIN INDONESIA

 

A d d r e s s :

Head Office & Factory

Jl. Raya Sukomulyo Km. 24, Kav. 5

Manyar, Gresik 61151

East Java

Indonesia

Phones             - (62-31) 7095 6989, 3990547

Fax                   - (62-31) 3930679

Land Area         - 5.5 hectares

Building Area    - 2.3 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

08 July 2005

 

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. C-25137 HT.01.01.TH.2005

      Dated 12 September 2005

  b.  No. AHU-86497.AH.01.02.Tahun 2008

      Dated 17 November 2008

  c.  No. AHU-AH.01.10-20382

      Dated 16 November 2009

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 02.193.052.4-057.000

 

b. The Investment Coordinating Board

    No. 262/I/PMA/2005

    Dated 29 March 2005

 

Affiliated/Associated Companies :

a. FUGUI FLOUR & GRAIN (Hongkong) Ltd., of Hong Kong (Investment Holding)

b. YU HONG ENTERPRISES Ltd., of British Virgin Islands

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital      - US$. 12,500,000.- (Rp. 117,812,500,000.-)

Issued Capital            - US$. 12,500,000.- (Rp. 117,812,500,000.-)

Paid up Capital          - US$. 12,500,000.- (Rp. 117,812,500,000.-)

 

Shareholders/Owners :

a. FUGUI FLOUR & GRAIN (Hongkong) Ltd.           - US$. 12,490,000.- (99.92%)

    Address : Suites 2012-13 LT 20TWO

                    Pacific Place 88

                    Queensway – Hong Kong

                    Indonesia

b. YU HONG ENTERPRISES Ltd.,                         - US$.        10,000.- (  0.08%)

    Address : PO BOX 957 Road Town Tortola

                    British Virgin Islands

 

BUSINESS ACTIVITIES

 

Lines of Business :

Wheat Flour Mills Industry

 

Production Capacity :

Wheat Flour      - 324,000 tons p.a.

 

Total Investment :

a. Equity Capital            - US$. 12,500,000

b. Loan Capital              - US$. 25,000,000

c. total Investment         - US$. 37,500,000

 

Started Operation :

May 2007

 

Brand Name :

FUGUI

 

Technical Assistance :

FUGUI FLOUR & GRAIN (Hong Kong) Ltd., of Hong Kong

 

Number of Employee :

1,820 persons

 

Marketing Area :

Local          - 100%

 

 

Main Customers :

a. P.T. KARUNIA ALAM SEGAR (Mie Sedaap) – Gresik, East Java

b. P.T. PRAKARSA ALAM SEGAR (Mie Sedaap) - Jakarta

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. ISM Bogasari Flour Mills

b. PT. Eastern Pearl Flour Mills

c. PT. Sriboga Ratu Raya flour Mills

d. PT. Panganmas Inti Persada

e. PT. Purnomo Sejati Flour Mills, etc

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

  a.  P.T. Bank NEGARA INDONESIA Tbk.

      Jalan Rajawali No. 10

      Surabaya, East Java, Indonesia

 

  b.                                                 P.T. Bank MANDIRI Tbk.

      Jalan Slompretan No. 43

      Surabaya, East Java, Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Income (estimated) :

2010 – Rp. 1,040.0 billion

2011 – Rp. 1,160.0 billion

2012 – Rp. 1,290.0 billion

2013 – Rp. 1,440.0 billion

2014 – Rp. 1,620.0 billion

 

Net Profit (estimated) :

2010 – Rp.  68.0 billion

2011 – Rp.  76.0 billion

2012 – Rp.  84.5 billion

2013 – Rp.  93.8 billion

2014 – Rp.105.0 billion

 

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Ir. Kayata Abadi

 

Board of Commissioners :

Commissioner                                 - Mr. Utomo Tanto

 

Signatories :

Director (Mr. Ir. Kayata Abadi) which must be approved by Board of Commissioners (Mr. Utomo Tanto)

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. FUGUI FLOUR & GRAIN INDONESIA (P.T. FFGI) was established on July 8, 2005 with an authorized capital of  US$.12,500,000.- (Rp. 117,812,500,000.-) entirely was issued and fully paid up.  The founding shareholders of the company are FUGUI FLOUR & GRAIN (Hong Kong) Ltd., of Hong Kong (99.92%) and YU HONG ENTERPRISES Ltd., of British Virgin Islands (0.08%).  The Deed of establishment was approved by the Minister of Law and Human Rights through its Decree No. C-25137 HT.01.01.TH.2005 dated September 12, 2005.  Initially, the composition of the board of directors and the board of commissioners shall be as follows:

 

 

      President Director                          - Mr. Utomo Tanto

      Director                           - Miss Tin Wai Ting

 

      President Commissioner   - Mr. Cheung Sik Fei

      Commissioner                  - Mrs. Cheung Oi Gyn

 

On August 8, 2008 the composition of the board of directors and the board of commissioner was changed.  The amendment to Deed has obtained registration number from the Department of Law and Human Rights under No. AHU-86497.AH.01.02.Tahun 2008 dated November 17, 2008.  Composition of the board of directors and the board of commissioner shall be as follows:

 

      President Director                     - Mr. Thomas Suseno

      Director                                    - Mr. Ir. Kayata Abadi

 

      President Commissioner            - Mr. Ronald Suciawan

      Commissioner                           - Mr. Utomo Tanto

 

Latest on September 8, 2009 the composition of the board of directors and the board of commissioner was changed.  But, no changes have been effected in term of its shareholding composition and capital structures to date.  The amendment to Deed has obtained registration number from the Department of Law and Human Rights under No. AHU-AH.01.10-20382 dated November 16, 2009. Latest composition of the board of directors and the board of commissioner shall be as follows:

 

      Director                                    - Mr. Ir. Kayata Abadi

 

      Commissioner                           - Mr. Utomo Tanto

 

We are extremely difficult to trace or investigate the shareholders of FUGUI FLOUR & GRAIN (Hong Kong) Ltd., as this company is incorporated under law of the Republic of Hong Kong. But we allege or estimate that the owners of this company are Mr. Johannes Ferdinand Katuari AKA Oen Jong Khing and Mr. Harjo Sutanto AKA Tan Siek Miauw, both are the founders and majority business stakes owners of the WINGS Group, a large business group specializing in detergent product industry in the country.

 

P.T. FFGI was established within the framework of foreign investment (PMA), which has received permit from the Investment Coordinating Board (BKPM) in 2005 in the field of wheat flour industry.   The company operates a plant located at Jl. Raya Sukomulyo Km. 24 Kav. 5, Manyar, Gresik 61151, East Java situated on 25 km north from Surabaya city.   According to business permit issued by the BKPM, its production capacity of 270,000 tons of wheat flour per annum or 1,000 tons per day.  The plant has absorbed an investment of US$ 37.5 million come from owned capital of US$ 12.5 million and the rest come from loans. The company has been operating since May 2007 and the annual production capacity of the plant has frequently been expanded. Today, the plant has annual production capacity of 324,000 tons of wheat flour per annum.  Main customers of the company are instant noodle manufacturing such as; Mie Sedaap (produced by PT. Karunia Alam Segar - Gresik and PT. Prakarsa Alam Segar - Jakarta), both are the member of WINGS Group, a large-size business group in Indonesia.  Mie Sedaap, an Indonesia’s second largest instant noodles after Indomie (produced by PT. ISM Bogasari Flour Mills).  We observed that P.T. FFGI is classified as a medium-sized company of its kind in the country of which the operation has been growing in the last three years.

 

We note that generally the domestic demand for wheat flour has kept on increasing in the last five years. The increasing demand was in keeping with the development and growth of domestic industries processing food materials like instant noodles, bread, biscuit, etc. from wheat flour as the main raw material. However since 2008, the wheat flour industries have facing problem because there are lot of cheap wheat flour imports marketed in the country especially from Turkey. Indonesian Flour Producers Association (APTINDO) has accused flour importers of intervening with the Government to avoid imposition of antidumping duties against flour from Turkey. Cheap flour imported from Turkey continued to flood the Indonesian market has brought bad impact to the Indonesian producer of wheat flour industries.

 

Besides that, competition is very sharp in the wheat flour trade with 15 companies now operating in this industry in Indonesia and the largest are PT. ISM Bogasari Flour Mills (4,338,000 tons per annum), PT. Eastern Pearl Flour Mills, (675,000 tons per annum), PT. Sriboga Ratu Raya Flour Mills (420,000 tons per annum), PT. Fugui Flour & Grain Indonesia (324,000 tons per annum), PT. Pundi Kencana (324,000 tons per annum), PT. Panganmas Inti Persada (300,000 tons per annum and PT. Cerestar Flour Mills (150,000 tons per annum).

 

Until this time P.T. FFGI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2012 amounted to Rp. 1,290.0 billion increased to Rp. 1,440.0 billion in 2013 rose again to Rp. 1,620.0 billion in 2014 and projected to go on rising by at least 8% in 2015. The operation in 2014 yielded an estimated net profit of at least Rp. 105.0 billion and the company has an estimated total networth of at least Rp. 560.0 billion.  We observe that P.T. FFGI is supported by foreign partner with has financially strong and sound behind it and the WINGS Group of Indonesia. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

 

P.T. FFGI's management headed by Mr. Ir. Kayata Abadi (60), a professional manager having experienced for more than 7 years in wheat flour mills industry. He is a former commissioner of PT. Bank CENTRAL ASIA Tbk., one of the largest private banks in Indonesia.  In daily operations, he is assisted by Mr. Utomo Anto (47) as commissioner and a number of professional staff, having maintained a wide business relation with private businessmen at home and abroad as well as with government sector. So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

We appraise that P.T. FUGUI FLOUR & GRAIN INDONESIA is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.96.24

Euro

1

Rs.70.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.