MIRA INFORM REPORT

 

 

Report No. :

328484

Report Date :

19.06.2015

 

IDENTIFICATION DETAILS

 

Name :

HYUNDAI FORGING CO., LTD.

 

 

Registered Office :

146-1, Hyeonpo-Ro, Gunbuk-Myeon, Haman-gun, Gyeongsangnam-Do, Korea 637-824

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

18.02.1997

 

 

Com. Reg. No.:

609-81-29138

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Forging of Metal (Forging for Wind Power, Petrochemical Plant Power Generator Equipment, Shipbuilding Industrial Plant)

 

 

No. of Employees :

57

 

 

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 – 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, and is currently the world's 12th largest economy. 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 sluggish growth because of external market slowdowns. 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.

 

Source : CIA

 

Basic Information

 

Company Name

HYUNDAI FORGING CO., LTD.

Registered Address

146-1, Hyeonpo-ro, Gunbuk-myeon, Haman-gun, Gyeongsangnam-do, Korea

Building

--

Zip Code

637-824

Tel

+82-55-580-6500

Fax

+82-55-580-6510

E-mail

hdf6600@chol.com

Website

www.hd-forging.co.kr

 

 

Trading Address

146-1, Hyeonpo-ro, Gunbuk-myeon, Haman-gun, Gyeongsangnam-do, Korea

(Old Address System : 822-7, Yuhyeon-ri, Gunbuk-myeon, Haman-gun, Gyeongsangnam-do, Korea)

Tel

+82-55- 580-6554

Fax

+82-55-580-6510

 

 

Type

Export

Industry

Forging of Metal

  Main Business

Forging for Wind Power, Petrochemical Plant Power Generator Equipment, Shipbuilding Industrial Plant

  Sub Business

 

Established (mm/dd/yyyy)

02/18/1997

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Forging for Wind Power

Sell

Petrochemical Plant Power Generator Equipment

Sell

Shipbuilding Industrial Plant

 

 

CEO’s

 

Name

Ma Pyung-Soo

Address

Suite 514-1402, 45-1, Sangnam-dong, Masanhappo-gu, Changwon-si, Gyeongsangnam-do, Korea

Date of Birth

03/18/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,191,670,000

Employees

57

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea

Shinhan Bank

Kookmin Bank

Gyungnam Bank

Corporate Registered No.

194211-0025298

Business Registered No.

609-81-29138

Permit & Licenses

12/1997 ISO 9002

01/2004 ISO 9001

03/2007 ISO 14001

06/2009 CE Mark

 

Int’l Trade No.: 24014641

 

Shareholder Position

Name

Shares

%

MA PYUNG-SOO

1,364,340

57.24

JEON BONG-HWA

385,000

16.15

GLOBAL STAR KOREA FUND LP.

368,000

15.44

ILSHIN U & VENTURE INVESTMENT ASSOCIATION

80,000

3.36

STONEBRIDGE CAPITAL INC.(110111-4020113)

32,000

1.34

SEO BAIK-YONG

77,000

3.23

CHO MYUNG-RAE

77,000

3.23

TOTAL

2,383,340

100.00

 

 

 

Company History

02/15/1995 Established as HYUNDAI FORGING CO.(Sole Proprietorship)

02/18/1997 Incorporated as HYUNDAI FORGING INDUSTRY CO., LTD.

12/20/2006 Changed company name to the present name

12/28/2006 Moved to the present HQ address from 431-29, Gasul-ri, Daesan-myeon, Uichang-gu, Changwon-si, Gyeongsangnam-do, Korea

11/11/2008 Increased capital to 1,624,990,000 KRW from 1,552,770,000 KRW

06/18/2009 Increased the authorized shares to 50,000,000 shares from 10,000,000 KRW

07/22/2009 Spin off the par value to 500 KRW from 10,000 KRW

11/2009 Awarded US$30 Million Export Top Prize

06/12/2013 Agreed on the Execution of Management Normalization Plan with Financial Institutes Creditors’ Association

10/14/2014 Decreased capital to 1,191,670,000 KRW from 1,624,990,000 KRW

 

 

 

 

 


Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Ma Pyung-Soo

Male

Korean

03/17/2000

Director

Mr.

Park Jae-Deok

Male

Korean

06/18/2009

Outside Director

M/S.

Kim Hye-Sung

Female

Korean

08/30/2010

Auditor

Mr.

Cho Myung-Rae

Male

Korean

09/02/2008

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

43,751,330,946

39,837,170,370

-4,125,932,742

2013

33,682,184,762

36,827,551,769

-5,405,777,389

2012

40,951,058,458

44,664,206,632

-15,733,867,811

2011

63,891,465,076

67,270,190,721

-1,192,477,616

2010

40,081,520,592

67,022,676,331

-5,870,682,619

2009

53,860,878,125

71,351,981,215

-1,481,342,535

2008

69,170,023,540

86,383,297,909

4,413,141,378

2007

28,529,440,216

49,119,413,899

1,275,782,673

2006

16,875,645,799

26,676,234,812

1,107,960,698

2005

11,809,838,634

9,845,707,829

877,844,974

 

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

1,191,670,000

Total Issues Shares

2,383,340 (Common : 2,053,340 / Preferable : 330,000)

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

39,837,170,370

36,827,551,769

44,664,206,632

Current Assets

21,936,008,004

19,639,574,019

23,420,463,591

-Quick Assets

7,023,337,704

6,682,161,460

10,313,927,904

-Inventories

14,912,670,300

12,957,412,559

13,106,535,687

Fixed Assets

17,901,162,366

17,187,977,750

21,243,743,041

-Investment

101,999,000

9,230,000

1,137,030,000

-Tangibles

17,793,783,366

17,173,367,750

20,087,735,961

-Intangibles

 

 

 

-Others

5,380,000

5,380,000

18,977,080

Total Liabilities

38,840,276,499

34,629,992,826

37,060,870,300

Current Liabilities

37,340,874,734

27,483,371,648

23,450,495,101

Fixed Liabilities

1,499,401,765

7,146,621,178

13,610,375,199

Capital Stock

1,191,670,000

1,624,990,000

1,624,990,000

Capital Surplus

22,107,867,944

21,674,547,944

21,674,547,944

Profit Surplus

-25,227,911,743

-21,101,979,001

-15,696,201,612

Capital Adjustment

2,925,267,670

 

 

Total Equity

996,893,871

2,197,558,943

7,603,336,332

Liab. & Shareholder’s Equity

39,837,170,370

36,827,551,769

44,664,206,632

 

Current Liabilities

37,340,874,734

27,483,371,648

23,450,495,101

Trade Payables

7,408,579,528

2,966,538,957

3,046,873,288

Short-Term Borrowings

24,356,345,886

18,163,285,423

12,977,000,000

Short-Term Borrowings to Shareholders/ Executives/ Employees

400,623,678

1,400,623,678

1,450,623,678

Account Payables

673,355,345

510,122,569

761,695,935

Advance Receipts

213,181,050

66,803,760

4,939,760

Withholdings

25,568,220

21,593,700

21,648,980

Accrued Expenses

631,406,827

521,639,361

395,731,667

Accrued Dividends

8,484,200

8,484,200

8,484,200

Debentures

2,900,000,000

2,900,000,000

3,000,000,000

Current Portion of Long-Term Debts

723,330,000

924,280,000

1,791,560,000

Fixed Liabilities

1,499,401,765

7,146,621,178

13,610,375,199

Long-Term Borrowings

610,840,000

6,281,340,000

12,730,101,500

Provision for Severance & Retirement

1,259,580,890

1,198,378,956

1,308,925,081

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

43,751,330,946

33,682,184,762

40,951,058,458

Cost of Sold Goods

43,475,873,521

34,957,909,579

45,369,817,379

Gross Profit

275,457,425

-1,275,724,817

4,418,758,921

Selling & Admin. Expenses

3,921,138,279

3,617,205,848

6,580,376,604

Operating Income

-3,645,680,854

-4,892,930,665

-10,999,135,525

Non-Operating Income

587,081,250

868,020,355

1,288,281,725

Non-Operating Expenses

1,067,333,138

1,380,867,079

2,943,353,985

Income Before Taxes

-4,125,932,742

-5,405,777,389

-12,654,207,785

Income Taxes Expenses

-

-

3,079,660,026

Net Income

-4,125,932,742

-5,405,777,389

-15,733,867,811

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

1,075,768,046

-1,173,709,753

3,205,370,755

-Net Income

-4,125,932,742

-5,405,777,389

-15,733,867,811

-Exp. without Cash Outflow

3,253,175,838

3,502,265,334

3,593,550,531

-Revenue without Cash Inflows

-286,052,647

-643,052,411

-698,577,804

-Changes in Asset/ & Liability

2,234,577,597

1,372,854,713

16,044,265,839

Cash Flows from Investing

-747,434,644

2,871,208,632

-621,466,485

-Cash Inflow from Investing

169,895,000

3,119,484,232

2,440,847,746

-Cash Outflows for Investing

-917,329,644

-248,275,600

-3,062,314,231

Cash Flows from Financing

-500,070,000

-1,636,848,694

-2,835,810,000

-Cash Inflows from Financing

1,424,210,000

2,000,000,000

5,710,000,000

-Cash Outflows from Financing

-1,924,280,000

-3,636,848,694

-8,545,810,000

Increase/Decrease in Cash

-171,736,598

60,650,185

-251,905,730

Cash at the Beginning of Year

222,854,447

162,204,262

414,109,992

Cash at the End of Year

51,117,849

222,854,447

162,204,262

 

 

Products, Technologies, Services Description

 

Main Products & Services

Forging for Wind Power, Petrochemical Plant Power Generator Equipment, Shipbuilding Industrial Plant

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

KISCO CORP.(194211-00943180

POSTEEL CO., LTD.(110111-0344591)

SEAH BESTEEL CORPORATION(110111-0035794)

Customers

DOOSAN MECATEC CO., LTD.(110111-0126022)

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

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

SUNG JIN GEOTEC CO., LTD.(181211-0010898)

Competitors

DAECHANG FORGING CO., LTD.

1072-1, BONGRIM-RI, SAENGNIM-MYEON, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-329-3911  FAX:+82-55-329-5097

 

DONG EUN FORGING CO., LTD.

1217-2, JISA-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-974-9700  FAX:+82-51-974-9797

 

HANIL FORGING INDUSTRIAL CO., LTD.

604-7, NAMSAN-DONG, SEONGSAN-GU, CHANGWON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-282-3201  FAX:+82-55-284-7023

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

 

 

The Subject Company

-

3,169,000,000

2nd round is proceeding

 

News Clipping

 

----------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.85

UK Pound

1

Rs.100.99

Euro

1

Rs.72.46

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

 

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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.