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Report No. : |
321035 |
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Report Date : |
11.05.2015 |
IDENTIFICATION DETAILS
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Name : |
P.T. LINCOLN ELECTRIC INDONESIA |
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Formerly Known As : |
P.T. LINCOLN AUSTENITE INDONESIA |
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Registered Office : |
Bekasi International Industrial Estate, (BIIE - Hyundai Industrial Estate), Jl. Inti Raya Blok C-10 No. 12-A, Lippo Cikarang, Bekasi 17550,West Java |
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Country : |
Indonesia
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Date of Incorporation : |
30.08.1996 |
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Com. Reg. No.: |
AHU-AH.01.10-03642 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Welding Electrode Manufacturing |
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No. of Employees : |
120 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Indonesia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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. President Joko WIDODO - elected in
July 2014 - has emphasized domestic economic growth in his first few months in
office and in November 2014 reduced fuel subsidies, a move which could help the
government increase spending on its development priorities. Indonesia, with the
nine other ASEAN members, will form the ASEAN Economic Community in 2015.
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Source
: CIA |
BASIC SEARCH
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Name of Company :
P.T.
LINCOLN ELECTRIC INDONESIA
A d d r e s s :
Head Office &
Factory
Bekasi International Industrial Estate
(BIIE - Hyundai Industrial Estate)
Jl. Inti Raya Blok C-10 No. 12-A
Lippo Cikarang, Bekasi 17550
West Java - Indonesia
Phone -
(62-21) 8990 7629 (hunting)
Fax - (62-21) 8990 7630
Email - marketing@lincolnelectric.com
Website - http://www.lincolnelectric.com
Land Area - 6,500 sq.
meters
Building Space - 3,200 sq. meters
Region - Industrial
Estate
Status - Rent
Date of
Incorporation :
30 August 1996 as P.T. LINCOLN AUSTENITE INDONESIA changed to P.T. LINCOLN
ELECTRIC
INDONESIA, on October 03, 2006.
Legal Form :
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No. :
The Ministry of
Law and Human Rights
a. No. W7-03052.HT.01.04.TH.2007
Dated 23 March 2007
b. No. AHU-AH.01.10-12803
Dated 09 April 2013
c. No. AHU-AH.01.10-03642
Dated 07 February 2014
Company Status :
Foreign Investment (PMA) Company
Permit by the
Government Department :
a. The Department
of Finance
NPWP No. 01.071.728.8-055.000
b. The Capital Investment
Coordinating Board
No. 547/I/PMA/1996
Dated 29 July 1996
Holding Companies :
a. The LINCOLN ELECTRIC Co. (ASIA PACIFIC) Pte Ltd., of Singapore
b. SSH CORPORATION Ltd., of Singapore
c. INDO SYNERGY Pte. Ltd., of Singapore
CAPITAL AND OWNERSHIP
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Capital Structure
:
Authorized Capital - US$
5,500,000.- (Rp 48,863,015,000.-)
Issued Capital - US$
5,500,000.- (Rp 48,863,015,000.-)
Paid up Capital - US$
5,500,000.- (Rp 48,863,015,000.-)
Shareholders/Owners
:
a. The
LINCOLN ELECTRIC COMPANY
(ASIA PACIFIC) Pte., Ltd., of Singapore -
US$ 5,050,000.- ( 91.82%)
b. SSH CORPORATION Ltd., of Singapore - US$ 250,000.- ( 4.54%)
c. INDO SYNERGY Pte. Ltd., of Singapore - US$ 100,000.- ( 1.82%)
d. Mr. Suryadi Abidin of Indonesia - US$ 100,000.- ( 1.82%)
BUSINESS ACTIVITIES
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Lines of Business
:
Welding Electrode Manufacturing
Production
Capacity :
Welding Electrodes - 8,400
tons p.a.
Total Investment :
a. Equity Capital -
US$ 5.5 million
b. Loan Capital -
US$ 8.0 million
c. Total Investment - US$ 13.5 million
Started Operation
:
November 1997
Brand Name :
LINCOLN
Technical
Assistance :
The Lincoln Electric Company (Asia Pacific) Pte., Ltd., of Singapore
Number of Employee
:
120 persons
Marketing Area :
Domestic - 100%
Main Customers :
a. Construction Industries
b. Steel Fabricating Industries
c. Workshop Industries
d. Etc.
Market Situation :
Very Competitive
Main Competitors :
a. P.T. INDO BEST WELDER AND HEATER
b. P.T. BHINNEKA BAJAMAS
c. P.T. MELINDO SARI INTAN
d. P.T. MULTI WELINDO ABADI
e. Etc.
Business Trend :
Fluctuating
BANKER, AUDITOR & LITIGATION
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B a n k e r s :
a. P.T. Bank CENTRAL ASIA
Tbk
Menara Bidarakara
Jalan
Gatot Subroto Kav. 71-73
Jakarta Selatan
Indonesia
b. The Hongkong and Shanghai Bank Corp.
World Trade Centera
Jalan Jend. Sudirman Kav. 29-31
Jakarta Selatan
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
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Annual Sales
(estimated) :
2011 – Rp. 112.0 billion
2012 – Rp. 128.0 billion
2013 – Rp. 146.0 billion
2014 – Rp. 132.0 billion
Net Profit (Loss)
:
2011 – Rp. 10.1 billion
2012 – Rp. 11.5 billion
2013 – Rp. 15.0 billion
2014 – Rp. 11.9 billion
Payment Manner :
Average
Financial Comments
:
Fairly
KEY EXECUTIVES
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Board of Management :
President Director - Mr. Daniel Earl Mc Millin
Jr.
Directors - a. Mr. Leo Augustine Landers Jr
b. Mr. Kevin Michael Korabik
Board of Commissioners :
Commissioner -
Mr. Eric Phillip Rierson
Signatories :
President Director (Mr. Daniel Earld Mc. Millin Jr) or
one of the directors (Mr. Leo Augustine Landes Jr., or Mr. Kevin Michael
Korabik) which must be approved by Board of Commissioner (Mr. Eric Philip
Rierson)
CAPABILITIES
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Management Capability :
Good
Business Morality :
Good
OVERALL PERFORMANCE
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Initially named P.T. LINCOLN AUSTENITE INDONESIA,
the company was established in August 1996 with the authorized capital of US$
1,745,000 of which US$ 436,250 was issued and fully paid up. The founding
shareholders of the company are The LINCOLN ELECTRIC COMPANY (ASIA PACIFIC)
Pte.Ltd, of Singapore, P.T. SURYA SARANA HIDUP and P.T. ALPHA AUSTENITE, both
are private companies. The articles of association of the company have
frequently been revised. In October 2006, the company renamed to P.T. LINCOLN
ELECTRIC INDONESIA and concurrently the authorized capital was converted to US$
5,500,000.- (Rp. 48,863,015,000) entirely issued and paid up. At the same time,
whole shares of the company were controlled by The LINCOLN ELECTRIC COMPANY
(ASIA PACIFIC) Pte. Ltd. (91.82%) SSH CORPORATION Ltd., of Singapore (4.54%),
INDO ENERGY Pte. Ltd. of Singapore (1.82%) and Mr. Suryadi Abidin, an
Indonesian businessman (1.82%). The amendment to Deed has been approved by the
Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-12803
dated April 9, 2013.
The most recently by notarial Deed of Jose
Dima Satria, SH., dated 2 January 2014, the company board of directors was
changed. The amendment
to Deed has been approved by the Minister of Law and Human Rights of the
Republic of Indonesia through Decree No. AHU-AH.01.10-03642 dated 7 February
2014. Since then, no changes have been
effected in term of its shareholding composition and capital structure to date.
The Lincoln Electric Company (Asia Pacific) Pte. Ltd. was founded in 2002 and is based in Singapore. The company manufactures welding equipment. The Lincoln Electric Company (Asia Pacific) Pte. Ltd. operates as a subsidiary of Lincoln Singapore Holdings LLC., is subsidiary of Lincoln electric Holdings, Inc., of the USA.
P.T. LEI obtained a Foreign Capital
Investment (PMA) facility issued by the Capital Investment Coordinating Board
(BKPM) to deal with welding electrode industry.
Its plant is located at Bekasi
International Industrial Estate (BIIE - Hyundai Industrial Estate), Jalan Inti
Raya Block C-10 No. 12 A, Bekasi, West Java on a land of 6,500 square meters
having been in operation since November 1997 with capacity of 8,400 tons of
welding electrodes. Mr. Erwinsyah, an administrative staff of the company, said
that the plant produces various type welding electrodes such as Low Hydrogen
(E7016-1, E7018, E7018-1), General Purpose (E6011, E6013, E4013, E6019), Jet
Weld (LH70, LH75MR, 8018-C1), Stainless Steel (308L, 309L, 316:. 308Mo) and
Hard Facing (Gridur 150AC). Whole
products are locally marketed among construction industries, steel fabricating
industries, workshop industries, and others in major cities in the country. We
observe that P.T. LEI is classified as a medium sized company of its kind in
the country of which the operation has been fluctuating in the last five years.
Generally, demand for welding electrodes and
machine has kept on increasing in the last five years in line with the growing
construction industries, steel fabricating industries, workshop industries,
mining and others. But, as from October 2008, the demand growth for welding
electrodes has kept on dwindling as an impact of global economic crisis as told
above. The demand was increasing in the
early 2009 due to economic condition was gradually recovery in the country. Market competition is very tight due to a
large number of similar companies operating in the country such as PT. Indo
Best Welder and Heater, PT. Bhinneka Bajamas, PT. Melindo Sari Intan, PT. Multi
Welindo Abadi and others. Business position of P.T. LEI is favorable for it has
controlled a wide marketing network at home and their product has been widely
known among consumers in the country.
Until this time P.T. LEI has not been
registered with Indonesian Stock Exchange, so that they shall not obliged to announce
their financial statement. Therefore, the company has no obligation to publish
financial statement publicly. We have checked to Department of Trade and
Industry and found that no financial statement has been reported. The
management of P.T. LEI is very reclusive towards outsiders and rejected to
disclose its financial condition but we estimated that sales turnover of the
company in 2012 amounted to Rp. 128.0 billion increased to Rp. 146.0 billion in
2013 and declined to Rp. 132.0 billion in 2014.
Its estimated will increase again at least 4% in 2015. It is estimated that P.T. LEI’s operation
has in 2014 yielded a total net profit of Rp 11.9 billion with a total net
worth of Rp. 98.0 billion. So far we
did not hear that P.T. LEI has been black listed by Bank Indonesia (Central
Bank) or having detrimental cases being settled in local district court.
Initially, the management of P.T. LEI is
headed by Mr. David Michael LeBlanc (51) as President Director. But since January 2014, he is replaced by Mr.
Daniel Earl Mc. Millin Jr. (47) as President Director. In daily activities, he is assisted by Mr.
Leo Augustine landers Jr. (53) and Mr. Kevin Michael Korabik (36), two as
director respectively. So far, we did
not hear that the management of the company being filed to the district court
for detrimental cases or involved in any business malpractices. The company’s
litigation record is clean and it has not registered with the black list of
Bank of Indonesia.
P.T. LEI is appraised to be good for business
transaction. However, in view of the
economic condition in the country is still unstable, we recommend to treat
prudently in extending any new loan to the company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.05 |
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1 |
Rs.99.04 |
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Euro |
1 |
Rs.71.76 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.