MIRA INFORM REPORT

 

 

Report No. :

344825

Report Date :

13.10.2015

 

IDENTIFICATION DETAILS

 

Name :

KUMKANG KIND CO., LTD.

 

 

Registered Office :

110, Dasan-Ro, Saha-Gu, Busan, Korea 49489

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

08.08.1979

 

 

Com. Reg. No.:

603-81-15882

 

 

Legal Form :

Listed Company

 

 

Line of Business :

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

·         Manufacture of Structural Metal Sheet Products and Ornamental Metal Works Used on Building

 

 

No. of Employees :

374

 

 

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

KUMKANG KIND CO., LTD.

Registered Address

110, Dasan-ro, Saha-gu, Busan, Korea

(Old Address System : 1512-3, Dadae 1-dong, Saha-gu, Busan, Korea)

Building

 

Zip Code

49489

Tel

+82-51-264-8881

Fax

+82-51-264-2964

E-mail

webmaster@kumkang.com

Website

www.kumkangkind.com;www.kum-kang.com

 

 

Trading Address

Kumkang Kind Bldg., 16, Hyoryeong-ro 60-gil, Seocho-gu, Seoul, Korea

(Old Address System : Kumkang Kind Bldg., 1445-2, Seocho-dong, Seocho-gu, Seoul, Korea)

Tel

+82-2-3415-4104

Fax

+82-2-3415-4165

 

 

Other Address-Eonyang Factory

140-25, Gacheon-ri, Samnam-myeon, Ulju-gun, Ulsan, Korea

Tel

+82-52-255-5300

Fax

+82-52-255-5319

 

 

Type

Export/Import

Industry

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

  Main Business

Steel Pipe, Cramp, Panel Form, Aluminum Foam, Gang Forms, Construction Ashes, Clamp, Scaffolding  Pipe, Supporting Frame

  Sub Business

Manufacture of Structural Metal Sheet Products and Ornamental Metal Works Used on Building

 

 

Established (mm/dd/yyyy)

08/08/1979

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Ladders and scaffolding accessories(30191600)

Sell

Foams(13111300)

Sell

Fencing(30152000)

Sell

Step stool(30191505)

Sell

Clamps(31162900)

Sell

Beams(30101700)

Sell

Pipe(40142100)

Sell

Scaffolding(30191502)

Sell

Connecting or coupling pins(31162416)

Sell

Kick plates(30171513)

Sell

Steel plate(30102204)

Sell

Foundry molds(23161606)

 

CEO’s

 

Name

Jeon Jang-Yeol

Address

 

Date of Birth

08/18/1952

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

24,869,695,000

Employees

374

Formation

Listed Company (Korea Stock Exchange : 014280) as of 09/10/1988

A Company of KUMKANG INDUSTRIAL GROUP

Bank Details

SC First Bank of Korea

Korea Development Bank

Busan Bank

Corporate Registered No.

180111-0034320

Business Registered No.

603-81-15882

Permit & Licenses

Int’l Trade No.: 900643

Shareholder Position

Name

Shares

%

AHN YOUNG-SOON

635,534

12.78

JEON JAE-BUM

341,698

6.87

JUNGWON ENGINEERING CO., LTD.(154511-0026066)

706,840

14.21

KB ASSET MANAGEMENT CO., LTD.(110111-0572556)

996,365

20.03

TREASURY STOCK

500,904

10.07

OTHERS

1,792,598

36.04

TOTAL

4,973,939

100.00

Company History

08/08/1979 Incorporated as KUMKANG STEEL PIPE CO., LTD.

12/31/1980 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Jeon Jang-Yeol

Korean

1952.08.18

U.S.C, USA

President & CEO

Mr.

Lee Bum-Ho

Korean

1960.10.20

Gangnam University, Korea

Auditor

Mr.

Lee Won-Mo

Korean

1951.07.02

Kwangwun University, Korea

Outside Director

Mr.

Lee Sung-Oh

Korean

1953.06.05

Seoul National University, Korea

Vice President

Mr.

Jeon Jae-Bum

Korean

1979.12.07

Suffolk University

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

88,957,561,234

515,065,524,401

3,866,391,578

(*)2014

452,489,663,521

521,016,169,481

13,123,788,986

(*)2013

424,978,192,982

489,779,880,244

12,835,143,035

(*)2012

376,902,951,799

462,007,030,135

9,763,683,531

2011

289,006,169,082

390,653,177,821

2,001,120,856

2010

271,484,803,289

350,458,001,895

3,385,777,922

2009

237,751,394,481

295,387,320,762

7,396,386,179

2008

279,441,526,700

294,710,895,095

5,094,596,297

2007

230,959,498,239

267,304,989,572

1,566,912,661

2006

221,817,562,720

223,935,489,588

5,762,207,731

2005

214,392,622,843

197,540,640,293

6,472,807,609

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

 

 

Financial Description

 

Authorized Capital(KRW)

70,000,000,000

Paid-Up Capital(KRW)

24,869,695,000

Total Issues Shares

4,973,939(Common : 4,855,964 / Preferable :117,975)

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

515,065,524,401

521,016,169,481

489,779,880,244

Current Assets

160,326,329,358

169,877,189,932

171,132,901,149

Cash & Cash Equivalents

28,848,587,208

32,062,417,703

34,036,399,414

Trade Receivables & Other Receivables

84,362,082,069

93,555,817,573

91,654,315,739

Current Financial Instruments

337,335,977

341,121,939

638,245,909

Inventories

45,909,602,721

42,938,650,052

43,812,571,442

Other Current Assets

868,721,383

979,182,665

991,368,645

Non-Current Assets

354,739,195,043

351,138,979,549

318,646,979,095

Tangibles

300,391,510,480

298,555,818,523

268,164,960,134

Intangibles

9,012,115,148

7,491,230,654

6,357,323,949

Investment_Real Estates

8,176,619,830

8,289,909,912

7,951,801,626

Investment_Subsidiaries

28,659,808,479

28,659,808,479

28,434,301,829

Non-Current Financial Instruments

7,342,302,550

7,173,825,705

6,346,962,555

Long-Term Trade Receivables & Other Receivables

1,156,838,556

968,386,276

1,391,629,002

Total Liabilities

311,615,851,405

319,325,164,745

298,048,836,838

Current Liabilities

220,700,368,237

226,014,281,740

262,719,890,022

Trade Payables & Other Payables

53,149,340,308

56,391,471,646

72,474,797,408

Other Current Borrowings

158,734,820,369

156,050,516,032

175,192,462,210

Other Current Liabilities

6,855,573,424

11,469,354,476

10,950,488,476

Accrued Income Tax

1,960,634,136

2,102,939,586

4,102,141,928

Non-Current Liabilities

90,915,483,168

93,310,883,005

35,328,946,816

Other Non-Current Borrowings

77,212,060,000

81,614,820,000

22,485,860,000

Other Non-Current Debts

4,298,256,182

3,852,036,182

4,004,264,432

Provision for Severance & Retirement

2,747,041,673

1,298,640,103

837,382,222

Deferred Income Tax Credit

6,100,319,758

5,881,501,301

7,199,109,782

Non-Current Provisions

557,805,555

663,885,419

802,330,380

Capital Stock

24,869,695,000

24,869,695,000

24,869,695,000

Capital Surplus

13,062,249,320

13,062,249,320

13,062,249,320

Other Capital

15,601,458,210

15,601,458,210

15,601,458,210

Others

684,257,025

480,324,613

429,204,954

Profit Surplus

149,232,013,441

147,677,277,593

137,768,435,922

Total Equity

203,449,672,996

201,691,004,736

191,731,043,406

Liab. & Shareholder’s Equity

515,065,524,401

521,016,169,481

489,779,880,244

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

88,957,561,234

452,489,663,521

424,978,192,982

Cost of Sold Goods

73,658,341,984

385,592,958,970

363,381,754,528

Gross Profit

15,299,219,250

66,896,704,551

61,596,438,454

Selling & Admin. Expenses

6,907,612,837

30,959,628,593

28,375,270,656

Logistics

2,111,841,603

9,973,689,899

11,045,196,251

Operating Income

6,279,764,810

25,963,386,059

22,175,971,547

Operating Income

1,296,630,764

3,527,611,604

5,971,677,893

Operating Expenses

549,524,083

3,295,392,903

2,700,467,980

Finance Income

66,588,900

380,532,175

610,291,160

Finance Expenses

2,171,601,618

9,322,138,298

9,161,716,011

Income Before Taxes

4,921,858,773

17,253,998,637

16,895,756,609

Income Taxes Expenses

1,055,467,195

4,130,209,651

4,060,613,574

Net Income

3,866,391,578

13,123,788,986

12,835,143,035

 

Cash Flows

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

21,683,846,719

82,568,038,824

63,403,658,471

Net Income

3,866,391,578

13,123,788,986

12,835,143,035

Adjustment

16,422,522,391

80,119,996,074

49,749,518,454

Changes in Asset/ & Liability

4,283,276,491

4,662,852,185

15,950,327,682

Dividends Received

58,314,000

462,564,350

627,591,130

Interests Received

74,321,143

440,411,344

684,938,230

Interests Paid

-2,130,198,881

-9,251,254,087

-9,332,281,646

Income Taxes

-890,780,003

-6,990,320,028

-7,111,578,414

Cash Flows from Investing

-23,179,233,275

-122,957,518,965

-86,319,421,465

Cash Flows from Financing

-1,718,455,663

38,415,581,072

23,908,719,664

Increase/Decrease in Cash

-3,213,842,219

-1,973,899,069

992,956,670

Cash at the Beginning of Year

32,062,417,703

34,036,399,414

33,043,580,994

Cash at the End of Year

28,848,587,208

32,062,417,703

34,036,399,414

 

 

Products, Technologies, Services Description

 

Main Products & Services

Steel Pipe, Cramp, Panel Form, Aluminum Foam, Gang Forms, Construction Ashes, Clamp, Scaffolding  Pipe, Supporting Frame

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

KOREA ZINC INC(110111-0168404)

GOGANG ALUMINIUM CO., LTD.(230111-0113719)

Customers

 

Competitors

SAMMOK PRECSION & IND CO., LTD.(110111-0400377)

HYUNDAI ALUMINUM CORPORATION(110111-2426264)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

KUMKANG FOSTEM CO., LTD.(110111-1243700)

BUSAN FRUTT & VEG CO., LTD.(180111-0148080)

D&A CO., LTD.(KOREA)

INSAN DIGICHEM CO., LTD.(110111-1700213)

EVERCOS CO., LTD.(184511-0013736)

KORYO CO., LTD.(KOREA)

HANKOOK KOTECH CO., LTD.(204611-0020651)

KOSLINE CO., LTD.(KOREA)

JUNGWON ENGINEERING CO., LTD.(154511-0026066)

DONGSEO ECO SOIL CO., LTD.(180111-0621143)

CASTEC CO., LTD.(160111-0075005)

GIMHAE LOGISTICS TERMINAL CO., LTD.(195511-0131395)

Affiliates-overseas

DONGSUH INDONESIA.PT(INDONESAI)

HAPPY FARM DALAT CO.,LTD.(VIETNAM)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

KOREA INDUSTRIAL CO., LTD.(180111-0001494)

(48.38% held by the subject company)

 

DONG-SUH CHEMICAL IND CO., LTD.(174611-0000949)

(49.73% held by the subject company)

 

KUMKANG INFORMATION SYSTEM CO., LTD.(110111-2793291)

(66.67% held by the subject company)

 

KUMKANG KIND(M) SDN,BHD(MALAYSIA)

(100.0% held by the subject company)

 

KUMKANG KIND U.S.A., INC (USA)

(100.0% held by the subject company)

 

KUMKANG KIND VIETNAM CO.,LTD.(VIETNAM)

(100.0% held by the subject company)

 

KUMKANG KIND INDIA PRIVATE LIMITED.(INDIA)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2010

2010

2009

Export

13,899

62,711

33,336

Domestic

61,130

208,774

204,415

Total

75,029

271,485

237,751

The Subject deals with the companies in Japan, Malaysia, Singapore and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

--------

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.73

UK Pound

1

Rs.99.30

Euro

1

Rs.73.60

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.