MIRA INFORM REPORT

 

 

Report No. :

327036

Report Date :

17.06.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. SUNSON TEXTILE MANUFACTURER TBK

 

 

Registered Office :

Jalan Rancaekek Km. 25.5, Sumedang, Bandung, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

18.11.1972

 

 

Com. Reg. No.:

AHU-AH.01.10-15571

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Integrated Textile Industry.

 

 

No. of Employees :

1,628 Persons

 

 

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 :

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 has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. 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, a current account deficit, and unequal resource distribution among regions. President Joko WIDODO - elected in July 2014 - has emphasized maritime and other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will not be completed by the previously-set deadline of year-end 2015.

 

Source : CIA

 

 

BASIC SEARCH

 

Name of Company :

P.T. SUNSON TEXTILE MANUFACTURER Tbk

 

A d d r e s s :

Head Office & Factory I

Jalan Rancaekek Km. 25.5

Sumedang, Bandung

West Java

Indonesia

Phones             - (62-22) 7798289-90 (Hunting)

Fax                   - (62-22) 7798302

E-mail               - yarn@sunson.co.id

Land Area         - 27,600 sq. meters

Building Area    - 25,200 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory II

Jalan Cijerah No. 54

Bandung, 40213

West Java

Indonesia

Phones             - (62-22) 6033046 (Hunting)

Fax                   - (62-22) 6031735

Land Area         - 13,500 sq. meters

Building Area    - 12,200 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory III

Jalan Karawang No. 21-25

Bandung, 40272

West Java

Indonesia

Phones             - (62-22) 7200168 (Hunting)

Fax                   - (62-22) 7200169

Land Area         - 12,000 sq. meters

Building Area    - 10,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation :

a. 18 November 1972 as P.T. SANDANG USAHA NASIONAL INDONESIA TEXTILE INDUSTRI

b. 28 May 1976 as P.T. INDO-SUNTEX

c. 24 December 1993 as P.T. SUNSON TEXTILE MANUFACTURER

d. 2 June 1997 as P.T. SUNSON TEXTILE MANUFACTURER Tbk

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. Y.A.5/375/10

  Dated 16 August 1976

- No. AHU-68856.AH.01.02.TH.2008

  Dated 24 September 2008

- No. AHU-AH.01.10-15571

  Dated 10 September 2009

 

Company Status :

Private National and Domestic Investment (PMDN) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.118.504.8-054.000

The Capital Market Supervisory Agency

No. S-1709/PM/1997

Dated 28 July 1997

The Capital Investment Coordinating Board

No. 164/II/PMDN/1997

Dated 5 September 1997

 

Related Company :

A Member Company of the SUNSON Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 500,000,000,000.-

Issued Capital                                 : Rp. 292,727,295,250.-

Paid up Capital                               : Rp. 292,727,295,250.-

 

Shareholders/Owners :

a. P.T. SUNSONINDO TEXTILE INVESTAMA       - Rp. 120,000,000,000.-

b. EAST RISE CAPITAL LTD.                              - Rp.   42,451,695,750.-

c. EASEFULL ENTERPRISE LTD.                        - Rp.   41,098,849,500.-

d. Mr. Sundjono Suriadi                                      - Rp.   17,339,625,000.-

e. Mr. Bernardi Widjajakusuma                           - Rp.     3,507,875,000.-

f. Mr. Purnawan Suriadi                                      - Rp.     2,737,646,000.-

g. Publics                                                           - Rp.   65,591,604,000.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Textile Industry

 

Production Capacity :

a. Weaving Yarns                            -      123,500 bales p.a.

b. Texturizing                                  -   6,000,000 kg. p.a.

c. Weaving Fabrics                          - 25,200,000 meters p.a.

d. Knitting                                       -   1,600,000 kg. p.a.

e. Dyeing                                        -   9,600,000 meters p.a.

f. Yarns                                          -        68,000 bales p.a.

 

Total Investment :

a. Equity Capital                              - Rp.   50.3 billion

b. Reinvested Profit                        - Rp.   55.1 billion

c. Loan Capital                                - Rp. 210.4 billion

d. Total Investment                          - Rp. 315.8 billion

 

Started Operation :

1973

 

Brand Name :

Sunson

 

Technical Assistance :

None

 

Number of Employee :

1,628 persons

 

Marketing Area :

Export    - 62%

Local     - 38%

 

Main Customers :

a. P.T. SUNSONINDO TEXTILE INVESTAMA (Distributor)

b. PD. SURYA REZEKI (Distributor)

c. Textile industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ASIA COTTON SPINNING

b. P.T. NATATEX PRIMA

c. P.T. POLYFIN CANGGIH

d. P.T. SIPATEX PUTRI LESTARI

e. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank CIMB NIAGA Tbk

    Jalan Asia Afrika No. 122-128

    Bandung, West Java

    Indonesia

b. P.T. Bank INTERNATIONAL INDONESIA Tbk

    Jalan Asia Afrika No. 132

    Bandung, West Java

    Indonesia

c. Hongkong and Shanghai Banking Corp. Ltd.

    Bandung Main Branch

    Bandung, West Java

    Indonesia

 

Auditor :

Kap, Doli, Bambang, Sulistiyanti, Dadang & Ali (BKR International)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2012 – Rp. 554.5 billion

2013 – Rp. 573.7 billion

2014 – Rp. 519.8 billion

 

Net Loss :

2012 – Rp. 14.1 billion

2013 – Rp. 13.2 billion

2014 – Rp. 12.8 billion

 

Payment Manner :

Average

 

Financial Comments :

Weak

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Purnawan Suriadi

Directors                                         - a. Mr. Ir. Fransiscus Hadyanto

                                                        b. Mr. Edduardus Gunawan

 

Board of Commissioners :

President Commissioner                  - Mr. Sundjono Suriadi

Commissioners                               - a. Mrs. Mariah Suriadi

                                                        b. Mr. Drs. Sidarto Danusubroto, SH.

                                                        c. Mr. Bernardi Widjajakusuma

                                                        d. Mr. Ali Senitro

                                                        e. Mr. Sutomo

 

Signatories :

President Director (Mr. Purnawan Suriadi) or one of the Directors (Mr. Ir. Fransiscus Hadyanto or Mr. Edduardus Gunawan) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

Initially named P.T. SANDANG USAHA NASIONAL INDONESIA TEXTILE INDUSTRI, the company was established in November 1972 in Bandung, West Java with an authorized capital of Rp. 450,000,000 issued and paid-up capital of Rp. 100,000,000. The founding shareholders are Mr. Sundjono Suriadi, his wife Mrs. Mariah Suriadi and Mr. Oemar Suriadi, they are Chinese Indonesian business family. In December 1993 the company was renamed P.T. SUNSON TEXTILE MANUFACTURER. In June 1997 the company renamed to P.T. SUNSON TEXTILE MANUFACTURER Tbk (P.T. SSTM). In July 1997 P.T. SSTM go public through the Indonesian Stock Exchange (BEI). In June 1998 the issue capital was raised to Rp. 500,000,000,000 issued capital to Rp. 209.176,750,000 entirely paid up.

 

Then in June 2008 the issued capital was raised to Rp. 292,727,295,250 fully and paid up. The shareholders are P.T. SUNSONINDO TEXTILE INVESTAMA, EAST RISE CAPITAL LTD., EASEFULL ENETERPRISE LTD., Mr. Bernardi Widjajakusuma, Mr. Purnawan Suriadi, Mr. Sundjono Suriadi, Mrs. Mariah Suriadi and Publics. The latest based on notary deed of Mrs. Yohana Noor Indrajati SH, No. 06 dated 17 June 2009 the board of director and commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-15571 dated September 10, 2009. Based on Financial Statement per 31 December 2014 the composition of its shareholders has been changed to become P.T. SUNSONINDO TEXTILE INVESTAMA (41%), East-Rise Capital Limited (15%), Easefull Enterprise Limited (14%), Mr. Sudjono Suriadi (6%), Mr. Bernardi Widjajakusuma (1%), Mr. Purnawan Suriadi (1%) and Public (22%).

 

P.T. SSTM was established in the frame works of Domestic Investment (PMDN) facility to deal with integrated textile industry. The company is primarily engaged in the spinning, texturizing, weaving, knitting, dyeing, printing and finishing of yarns, fabrics and other textile products, as well as selling the products. The company has been operating since 1973 by manages three (3) plants located at Jalan Rancaekek Km. 25.5, Jalan Cijerah No. 54 and Jalan Karawang No. 21-25, all in West Java. P.T. SSTM is an Indonesia-based integrated textile company primarily engaged in weaving business. Its business is classified into three segments: spinning, weaving and others. Its products are comprised of polyester drawn textured yarns (DTY), and woven fabrics, including cotton fabrics, tetron cotton (TC) fabrics, cotton viscose (CVC) fabrics, tetron rayon (TR) fabrics and polyester (PE) fabrics.

 

P.T. SSTM is a medium-size producer of yarns and the company has expanded several times to increase production capacity. The plant produces Weaving Yarns of 123,500 bales, Texturizing of 6,000,000 kg, Weaving Fabrics of 25,200,000 meters, Knitting of 1,600,000 kg, Dyeing of 9,600,000 meters and Yarns of 68,000 bales per annum. Some of the raw materials bought from P.T. POLYCHEM INDONESIA Tbk, P.T. DAN LIRIS, P.T. INDORAMA SYNTHETICS Tbk, P.T. SOUTH PACIFIC VISCOSE and P.T. SEKAWAN. The company is prepared to serve the growing local and international market. Some 62% of the products are exported to almost 20 countries such as America, Australia, Germany, France, Belgium, Italy, Spain, Singapore, Malaysia, Hong Kong, China, Sri Lanka, Bengladesh, the Middle East, West Africa etc. Some 38% of its products are marketed in the country to local textile industries. Yarn products of spinning and texturizing units are marketed by its owned sale agents P.T. SUNSONINDO TEXTILE INVESTAMA and PD. SURYA REJEKI and also CV. PADA MAJU with Sunsonindo brand.

 

The occurring of the global economic crisis and sharp Rupiah depreciation against the US$ Dollar, Japanese Yen, EUR, followed by fast rising local bank interest rates has also had a negative impact on the company's finances for having resulted in a swelling of the company’s debts out of control. Meanwhile, the local TPT (Textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retributions, textile and garment machinery restructuring costs and the rising prices of production components (oil fuel prices and electric base tariffs).

 

The textile and textile product (TTP) industry is one of the industries that has contrived to with stand the protracted global economic crisis. At a time when the average national industrial utilization rate fell to under 20% in 2008, TTP plants on the other hand were operating at an utilization rate of above 81.6%. This was attributable to the ability of textile and garment producers to maintain the utilization rate of plants at a high level by aggressively stepping up exports. According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2002 amounted to 333,100 tons (US$ 3,887.2 million) to 339,000 tons (US$ 4,037.9 million) in 2003 to 327,300 tons (US$ 4,351.9 million) in 2004 to 369,500 tons (US$ 4,967.0 million) in 2005 to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010 rose to 450,900 ton (US$ 7,801.5 million) in 2011 decline to 450,200 tons (US$ (7,304.8 million) in 2012 and increased to 470,200 tons (7,501.0 million) in 2013.

 

The Indonesia textile products export in 2002 amounted to 1,425.9 tons (US$ 3,075.9 million) to 1,307.5 tons (US$ 3,064.6 million) in 2003 to 1,300.4 tons (US$ 3,354.6 million) in 2004 to 1,427.3 tons (US$ 3,704.0 million) in 2005 to 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010 decreased to 1,493.3 tons (US$ 5,563.3 million) in 2011 increase to 1,508.5 tons (US$ 5,278.1 million) in 2012 increased to 1,633.1 tons (US$ 5,293.6 million) in 2013. The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2013 are pictured on the following table.

 

 

Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

470.2

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

7,801.5

7,304.8

7,501.0

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

1,493.3

1,508.5

1,633.1

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

5,563.3

5,278.1

5,293.6

 

According to the financial statement of the company having been audited by public accountant, sales turnover of P.T. SSTM in 2012 amounted to Rp. 554.5 billion with a net loss of Rp. 14.1 billion increased to Rp. 573.7 billion with a net loss of Rp. 13.2 billion in 2013 drop to Rp. 519.8 billion with a net loss of Rp. 12.8 billion in 2014. We estimated the sales turnover will be higher by at least 4% in 2015. Based on information obtained from some customers, the payment habit of the company is smooth ranging from 1 to 3 months. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The condense financial statement is shown.

 

                                                                                                 (In million Rp)

 

Descriptions

31 December

2014

2013

2012

A.  ASSETS

 

 

 

a. Current Assets

398.785

415.053

428.479

b. Non Current Assets

374.878

386.813

381.796

c. Other Assets

-

-

-

TOTAL ASSETS = TOTAL

LIABILITIES & EQUITY

773.663

801.866

810.275

B. LIABILITIES

    &STOCKHOLDERS EQUITY

 

 

 

a. Current Liabilities

332.501

315.809

249.011

b. Non Current Liabilities

182.283

214.347

276.326

c. Stockholders Equity :

    - Paid Up Capital

    - Additional Paid Up Capital

    - Retained Earnings (Deficit)

Total Stock holders Equity

 

292.727

70.623

(104.480)

258.870

 

292.727

70.623

(91.640)

271.710

 

292.727

70.623

(78.412)

284.938

C. INCOME STATEMENT

 

 

 

a. Sales Net

519.855

573.749

554.471

b. Loss From Operation

22.639

3.484

25.828

c. Net Loss

(12.840)

(13.228)

(14.138)

            Notes: 31 December 2012, 2013 & 2014 audited by Doli, Sulistiyanti, Dadang & Ali

 

Management of P.T. SSTM is headed by Mr. Purnawan Suriadi (51), a professional manager with experience for some 27 years in integrated textile industry and trade. He is a Bachelor of Science in Business Administration, graduate of Indiana University, Bloomington, Indiana, the USA. But the prime mover is his father Mr. Sundjono Suriadi (79), a top figure and founder of the SUNSON Group. The management is also handled by a number of professional managers with experience and expertise in the business, having maintained a wide business relation among private companies at home and abroad as well as among government agencies. So far, we did not hear that the company’s management involved in a dirty business practice 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. Considering P.T. SUNSON TEXTILE MANUFACTURER Tbk suffering from loss is in the least three years we recommend to stop any new proposed loan to the company.

 

 

Attachment

 

List of the SUNSON Group Members

 

1.     BANDUNG PAKAR, P.T. (Real Estate Development and Management)

2.     Bank BISNIS INTERNATIONAL, P.T. (Banking)

3.     INVETCO  NUSANTARA, P.T. (Velvetins Manufacturing)

4.     MAHA  MUJUR TEXTILE, P.T. (Textiles Weaving, Dyeing, Printing and Finishing)

5.     MAJU  MUSTIKA  GARMENT, P.T. (Garments Manufacturing)

6.     PARAHYANGAN  POY  MILLS, P.T. (Synthetic Fiber Manufacturing)

7.     SUN ANTARNUSA INVESTMENT, P.T. (Trading of Textile Products)

8.     SUNSILON  UTAMA, P.T. (Spinning)

9.     SUNPU LEATHER INDUSTRY, P.T. (Leather Goods and Imitation Leather Goods

      Manufacturing)

10.  SUNSON TEXTILE MANUFACTURER Tbk., P.T.

11.  SUNSONINDO  TEXTILE  INVESTAMA, P.T. (Trading and Investment Holding)

12.  SURYA REJEKI, PD. (Trading of Textile Products)

13.  WINDU DEWA CHEMICAL INDUSTRY or WIWACI, P.T. (Glass Wools Manufacturing)

14.  Etc.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.15

UK Pound

1

Rs.100.04

Euro

1

Rs.72.27

 

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.