MIRA INFORM REPORT

 

 

Report No. :

347673

Report Date :

30.10.2015

 

IDENTIFICATION DETAILS

 

Name :

SUHEUNG CO., LTD

 

 

Registered Office :

61, Osongsaengmyeong-ro, Osong-eup, Cheongwon-gun, Chungcheongbuk-do

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

30.01.1973

 

 

Com. Reg. No.:

130-81-00576

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Medicinal Medicaments.

 

 

No. of Employee :

702

 

 

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

 

Basic

 

Company Name

SUHEUNG CO., LTD.

(Ex. Company Name : SUHEUNG CAPSULE CO., LTD.,“

Registered Address

61, Osongsaengmyeong-ro, Osong-eup, Cheongwon-gun, Chungcheongbuk-do, Korea

(Old Address System : 683, Yeonje-ri, Osong-eup, Cheongwon-gun, Chungcheongbuk-do, Korea)

Building

 

Zip Code

28161

Tel

+82-43-249-4100

Fax

+82-43-249-4199

E-mail

hsmoon@suheung.co.kr;inquiries@suheung.com

Website

www.suheung.co.kr

Trading Address

6th Fl., Jung-An Bldg., 40, Janghan-ro, Dongdaemun-gu, Seoul, Korea

(Old Address System : 6th Fl., Jung-An Bldg., 435-5, Jangan 3-dong, Dongdaemun-gu, Seoul, Korea)

Tel

+82-2-2210-8175

Fax

+82-2-2217-2356

Other Address- 2nd Factory

1731-4, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-831-8803

Fax

+82-51-831-8806

Type

Export

Industry

Manufacture of Medicinal Medicaments

  Main Business

Empty Hard Capsules, Soft Capsule, Health Food, Encapsulation Machine, Cosmetics

  Sub Business

 

Established (mm/dd/yyyy)

01/301/1973

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Capsule tubes or caps(24141709)

Sell

Cosmetics(53131619)

Sell

Health & Nutrition Food

Sell

Hard Capsule

Sell

Soft Capsule

Sell

Automatic Capsule Filling Machine

Sell

Paint Ball

 

 

CEO’s

 

Name

Yang Joo-Hwan

Address

 

Date of Birth

03/13/1952

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,084,556,500

Employees

702

Formation

Listed Company (Korea Stock Exchange: 008490) as of 03/27/1990

A Company of SUHEUNG CAPSULE CO., LTD.

Bank Details

Citi Bank, Korea-HQ Branch

Kookmin Bank

Korea Development Bank

KEB Hana Bank

Woori Bank

Corporate Registered No.

124311-0004252

Business Registered No.

130-81-00576

Permit & Licenses

01/03/1998 ISO 9001

Patent(26161) : EMBO CAPS

 

Int’l Trade No.: 814492

Shareholder Position

Name

Shares

%

YANG JOO-HWAN

3,793,020

31.17

YANG JOO-CHUL

895,830

7.36

NATIONAL PENSION SERVICE(110171-0007134)

1,555,850

12.79

YUDANG JANGHAKHOI(114122-0004164)

577,580

4.75

BARING ASSET MANAGEMENT KOREA LIMITED(110111-0563208)

579,278

4.76

ALLIANZ GLOBAL INVESTORS KOREA LIMITED(110111-2124347)

745,835

6.13

SHINYOUNG SECURITIES CO., LTD.(110111-0006612)

829,468

6.82

YUDANG JANGHAKHOI(114122-0004164)

577,580

4.75

OTHERS

2,614,672

21.49

TOTAL

12,169,113

100.00

Company History

01/301/1973 Incorporated as SUHEUNG CHEMICAL INDUSTRIAL CO., LTD.

01/30/1980 Changed company name to SUHEUNG CAPSULE CO., LTD.

06/01/1982 Acquired Jinhung Pharm. Co., Ltd.

03/27/1990 Listed at KSE Market

11/30/1992 Awarded US$5 Million Export Top Prize

11/30/1994 Awarded US$10 Million Export Top Prize

11/30/2003 Awarded US$20 Million Export Top Prize

11/30/2008 Awarded US$30 Million Export Top Prize

11/30/2012 Moved to the present HQ address from 317, Songnae 1-dong, Sosa-gu, Bucheon-si, Gyeonggi-do, Korea

06/19/2013 Decided to acquire SH PHARM. CO., LTD.(121111-0112531) as of 08/21/2013

03/26/2014 Changed company name to the present name

12/05/2014 Awarded US$ 50 Million Export Top Prize

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Yang Joo-Hwan

Korean

1952.03.13

Yonsei University, Korea

Vice President

Mr.

Yoon Sung-Gerl

Korean

1952.02.10

Kyungbuk National University

Director & CFO

Mr.

Kim Sang-Sun

Korean

1962.12.

Yonsei University, Korea

Outside Director

Mr.

Lee Byung-Kil

Korean

1937.06.15

Myungji University, Korea

Auditor

Mr.

You Young-Keun

Korean

1954.02.11

Hankuk University of Foreign Studies, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

126,725,333,227

374,874,744,874

13,055,880,111

(*)2014

239,166,085,917

364,360,205,363

19,147,425,849

(*)2013

220,654,663,404

374,450,727,887

6,668,177,906

(*)2012

153,891,469,724

375,282,780,073

-11,432,173,261

(*)2011

142,896,131,721

359,613,541,572

15,837,267,309

(*)2010

124,860,736,612

257,332,849,483

13,934,050,775

2009

107,816,084,492

174,448,247,930

12,341,777,483

2008

101,606,218,474

171,911,838,049

10,640,188,356

2007

82,180,764,151

165,845,450,904

11,452,762,741

2006

76,710,971,354

138,611,568,949

2,953,156,089

2005

79,038,672,652

134,356,104,317

10,190,368,933

2004

67,146,608,615

97,988,295,464

4,225,936,857

2003

61,617,857,772

88,006,173,647

5,053,581,380

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

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

6,084,556,500

Total Issues Shares

12,169,113

 

 

BALANCE SHEET

 

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

374,874,744,874

364,360,205,363

374,450,727,887

Current Assets

135,611,971,990

125,378,047,633

123,338,049,462

Cash & Cash Equivalents

1,068,147,783

4,984,260,255

8,504,499,826

Current Financial Instruments

800,000,000

2,000,000,000

2,000,000,000

Trade Receivables

67,994,916,541

54,564,384,911

45,493,679,225

Inventories

56,707,524,902

58,486,353,298

64,805,261,223

Other Receivables

6,811,667,994

4,611,184,550

1,241,759,660

Other Current Assets

2,229,714,770

731,864,619

1,292,849,528

Non-Current Assets

239,262,772,884

238,982,157,730

251,112,678,425

Marketable Financial Instruments

17,100,000

17,100,000

17,100,000

Held-to-Maturity Financial Assets

0

0

400,000,000

Non-Current Financial Instruments

166,830,000

154,770,000

130,650,000

Investment_Related Companies

26,006,611,284

26,050,665,738

26,050,665,738

Tangibles

205,534,513,970

205,433,612,305

217,783,531,527

Intangibles

4,436,363,108

4,486,053,109

3,972,233,109

Other Receivables

1,647,006,950

1,076,108,950

1,180,494,950

Other Non-Current Assets

1,454,347,572

1,763,847,628

1,578,003,101

Total Liabilities

173,836,763,231

172,873,325,990

198,903,999,894

Current Liabilities

110,425,483,112

83,292,595,563

78,091,029,624

Trade Payables

8,490,565,790

8,699,866,563

10,196,814,519

Debentures

92,839,783,537

65,220,284,159

61,429,150,000

Other Payables

6,639,567,918

6,659,319,967

4,933,549,534

Deferred Income Tax Assets

569,462,373

576,131,262

1,049,617,071

Other Current Liabilities

1,886,103,494

2,136,993,612

481,898,500

Non-Current Liabilities

63,411,280,119

89,580,730,427

120,812,970,270

Long-Term Borrowings

52,499,550,000

79,856,650,000

111,570,850,000

Long-Term Finance Guarantee Debts

1,454,347,572

1,763,847,628

1,578,003,101

Confirmed Salaries

5,063,626,174

3,088,559,990

1,241,601,128

Deferred Income Tax Credit

4,361,423,043

4,839,339,479

6,390,182,711

Other Long-Term Payables

32,333,330

32,333,330

32,333,330

Capital Stock

6,084,556,500

6,084,556,500

6,084,556,500

Capital Surplus

38,543,614,684

38,543,614,684

38,543,614,684

Others

10,433,033,050

10,433,033,050

10,433,033,050

Profit Surplus

145,976,777,409

136,425,675,139

120,485,523,759

Total Equity

201,037,981,643

191,486,879,373

175,546,727,993

Liab. & Shareholder’s Equity

374,874,744,874

364,360,205,363

374,450,727,887

 

 

INCOME STATEMENT

 

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

126,725,333,227

239,166,085,917

220,654,663,404

Cost of Sold Goods

102,570,273,131

199,581,749,161

188,155,773,891

Gross Profit

24,155,060,096

39,584,336,756

32,498,889,513

Selling & Admin. Expenses

7,810,580,501

14,678,840,519

14,104,022,110

R&D

1,513,285,659

3,207,838,233

2,671,693,172

Operating Income

14,831,193,936

21,697,658,004

15,723,174,231

Investment Profits on Related Companies

20,205,546

321,300,000

214,200,000

Finance Income

952,221,144

2,086,072,992

917,170,819

Finance Expenses

3,066,965,890

7,375,809,366

8,536,929,519

Other Income

670,434,611

4,847,918,602

1,316,174,589

Other Expenses

81,050,854

334,371,099

2,042,882,301

Income Before Taxes

13,326,038,493

21,242,769,133

7,590,907,819

Income Taxes Expenses

270,158,382

2,095,343,284

922,729,913

Net Income

13,055,880,111

19,147,425,849

6,668,177,906

 

 

CASH FLOWS

 

Unit : Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

2,895,752,928

23,591,068,047

-13,050,899,614

Net Income

13,055,880,111

19,147,425,849

6,668,177,906

Adjustment

9,889,573,126

21,171,807,445

23,734,949,260

Changes in Asset/ & Liability

-17,150,559,926

-6,665,733,320

-35,139,842,454

Interests Received

38,267,802

80,847,957

196,879,860

Dividends Received

0

0

0

Interests Paid

-2,355,420,773

-6,275,606,804

-7,256,680,727

Income Taxes

-581,987,412

-3,867,673,080

-1,254,383,459

Cash Flows from Investing

-4,201,593,487

3,120,980,354

27,453,974,289

Cash Flows from Financing

-2,629,878,872

-30,236,888,441

-6,674,310,048

Increase/Decrease in Cash

-3,916,112,472

-3,520,239,571

7,716,340,996

Cash at the Beginning of Year

4,984,260,255

8,504,499,826

788,158,830

Cash at the End of Year

1,068,147,783

4,984,260,255

8,504,499,826

 

 

Products, Technologies, Services Description

 

Main Products & Services

Empty Hard Capsules, Soft Capsule, Health Food, Encapsulation Machine, Paintball for Leisure

 

Brand Name: EMBO CAPS

Detailed Products Spec.

--

Technologies Acquired

--

 

 

Trade Partners & Competitors

 

Suppliers

GELITA SWEDEN AB

PB LEINER USA

GELTECH CO., LTD(180111-0262476)

 

BMW FINANCIAL SERVICES KOREA CO., LTD.(110111-2278756) provides vehicle leasing services to the Subject company.

Customers

Major Pharmaceutical companies and manufacturers

Competitors

HAN KOOK CAPSULE INDUSTRY CO., LTD.

13-164, SEONGSU 1-GA 2-DONG, SEONGDONG-GU, SEOUL, KOREA

TEL:+82-2-464-0621  FAX:+82-2-464-9503

 

(*) The Subject is ranked as the 1st player in domestic market shares(85%).

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

 

Affiliates

GELTECH CO., LTD(180111-0262476)

(42.84% held by the subject company)

 

SUHUNG PLAZMA CO., LTD.(110111-2003567)

(36.19% held by the subject company)

 

NUTROJIN CO., LTD.(110111-3388215)

(30.00% held by the subject company)

 

UNI-CAPS CO., LLC.

(50.00% held by SUHEUNG AMERICA)

 

J&S CAPSULE LLC.

(50.00% held by SUHEUNG AMERICA)

 

CS PROPERTY MANAGEMENT LLC.

(50.00% held by SUHEUNG AMERICA)

 

SH ASSET MANAGEMENT LLC.

(99.00% held by SUHEUNG AMERICA)

MARQUARDT.AVE.CERRITOS, CA, USA

 

SH PHARM. CO., LTD.(121111-0112531)

(100.00% held by the subject company)

Overseas Office

SUHEUNG-VIETNAM CO., LTD

3RD FLOOR, ROOM 6, 268 TO HIEN THANH ST., WARD 15, DIST 10, HCMC. VIETNAM

TEL:+84-83-868-1363 FAX:+84-83-868-1366

 

SUHEUNG-EUROPE REPRESENTATIVE OFFICE

A. SENOE 3 VARAZDIN 42000 CROATIA

TEL:+38-599-509-8469 FAX:+38-542-71-2212

 

SUHEUNG-AMERICA CORPORATION

350 RANGER AVE. UNIT A BREA, CA, 92821

TEL:+1-714.996.7700 FAX:+1-714.996.7100

 

SUHEUNG-JAPAN CO., LTD.

POST CODE 101-0035 SUZUNO BLDG. 3F 11 BANCHI, KANDA-KONYACHO, CHIYODA-KU, TOKYO, JAPAN

TEL:+81-3-5256-7501  FAX:+81-3-5256-8008

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

GELTECH CO., LTD(180111-0262476)

(42.84% held by the subject company)

 

SUHEUNG-AMERICA CORPORATION

(100.0% held by the subject company)

LAMBER RD. BREA, CA, USA

 

SUHEUNG-VIETNAM CO., LTD

(100.00% held by the subject company)

LONGTHAN INDUSTRIAL ZONE, LONGTHAN DISTRICT, VIETNAM

 

SUHEUNG-JAPAN CO., LTD.

(100.00% held by the subject company)

11KANDA KONYA-CHO CHIYODA-KU, TOKYO, JAPAN

 

SUHEUNG NEW ZEALAND CO., LTD.

(100.00% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

06/2015

2014

2013

Export

33,382,628

61,430,466

59,220,387

Domestic

93,342,705

177,735,620

161,434,276

Total

126,725,333

239,166,086

220,654,663

The Subject exports to France, Germany, Japan, Turkey and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.15

UK Pound

1

Rs.99.36

Euro

1

Rs.71.25

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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.