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MIRA INFORM REPORT
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Report No. : |
484375 |
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Report Date : |
12.01.2018 |
IDENTIFICATION DETAILS
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Name : |
P.T. HANIL JAYA STEEL |
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Formerly Known As : |
P.T. HANIL JAYA METAL WORKS |
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Registered Office : |
Jalan Brigjend. Katamso, Desa Janti,
Kecamatan Waru, Sidoarjo 61256, East Java |
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Country : |
Indonesia |
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Date of Incorporation : |
29.11.1973 |
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Com. Reg. No.: |
AHU-0006255.AH.01.02.TH.2017 |
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Legal Form : |
P.T. (Perseroan Terbatas) or Limited
Liability Company |
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Line of Business : |
Steel Making and Rolling Mills Industry |
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No. of Employees : |
659 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
INDONESIA - ECONOMIC OVERVIEW
Indonesia, the largest economy in Southeast Asia, 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. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to less than 27 percent today. While Fitch and Moody's Investors upgraded Indonesia's credit rating to investment grade in December 2011, Standard & Poor’s has yet to raise Indonesia’s rating to this status amid several constraints to foreign direct investment in the country, such as a high level of protectionism.
Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to 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 has not yet materialized.
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Source : CIA |
Name
of Company
P.T. HANIL JAYA STEEL
Address
Head Office
Jalan Brigjend. Katamso
Desa Janti, Kecamatan Waru
Sidoarjo 61256
East Java
Indonesia
Phones -
(62-31) 8533500, 8533600 (Hunting)
Fax - (62-31) 8533501, 8533601
E-mail - general@haniljayasteel.com
Website - http://www.haniljayasteel.com
Land Area - 17,500 sq.
meters
Office Space - 12,500 sq. meters
Region - Industrial
Zone
Status - Owned
Company
summary
Date of Incorporation
:
a. 29 November 1973 as P.T. HANIL JAYA METAL
WORKS
b. 10 August 2007 as P.T. HANIL JAYA STEEL
Legal Form :
P.T. (Perseroan Terbatas) or Limited
Liability Company
Company Reg. No. :
The Ministry of Law and
Human Rights
- No.
Y.A.5/285/17
Dated
3 September 1975
- No.
AHU-06713.AH.01.02.TH.2008
Dated
12 February 2008
- No.
AHU-43069.AH.01.02.TH.2013
Dated
16 August 2013
- No.
AHU-AH.01.10-38830
Dated
16 September 2013
- No. AHU-0006255.AH.01.02.TH.2017
Dated
10 November 2017
Company Status :
National Private and Domestic (PMDN) Company
Permit by the Government Department :
The Department of
Finance
NPWP No. 01.000.583.3-641.000
The Department of
Industry
- No. 478/M/SK/II/73
Dated 20 November 1973
- No. 252/T/Industri/1998
Dated 16 June 1998
The Capital
Investment Coordinating Board
- No. 510/56/BH.13.17/IV/2004
Dated 29 April 2004
- No. 1234/III/PMDN/2004
Dated 8 December 2004
Related Companies :
None
CAPITAL
AND OWNERSHIP
Capital Structure :
Authorized Capital : Rp. 760,776,500,000.-
Issued Capital : Rp. 724,187,500,000.-
Paid up Capital : Rp. 724,187,500,000.-
Shareholders/Owners :
a. Mr. Boty Gozaly
Gho -
Rp. 256,262,500,000.-
Address : Jl. K.H.
Mansyur No. 30
Kelurahan Kebon Kacang,
Kecamatan Tanah
Abang, Jakarta Pusat,
10240, Indonesia
b. Mr. Budy Haryanto
Gho -
Rp. 165,530,625,000.-
Address : Jl. Taman Aries B5/11, RT. 001
RW. 009
Kelurahan Meruya Utara,
Kecamatan Kembangan
Jakarta Barat, 11620,
Indonesia
c. Mr. Iwan Setiawan Lie -
Rp. 89,898,725,000.-
Address : Jl. Darmo
Baru Barat 7/51
Kelurahan Sonokwijenan,
Kecamatan Suko
Manunggal, Surabaya, 60189, East Java
Indonesia
d. Mr. Gandhi Suganda -
Rp. 75,163,535,000.-
Address : Jl. Salak Masir No. 7
Kelurahan Tanjung Duren
Utara, Kecamatan
Grogol Petamburan, Jakarta
Barat, 11470
Indonesia
e. Mr. Haji
Syaifullah -
Rp. 75,108,190,000.-
Address : Galaxy
Bumi Permai E-4/10
Kelurahan Semolowaru,
Kecamatan Sukolilo
Surabaya,
60119, East Java, Indonesia
f. Mr. Agus Hidayat -
Rp. 62,223,925,000.-
Address : Jl. Raya Tengah 31, RT. 009 RW.
008
Kelurahan Kampung Tengah,
Kecamatan
Kramatjati, Jakarta Timur,
13520, Indonesia
BUSINESS
ACTIVITIES
Lines of Business :
Steel Making and Rolling Mills Industry
Production Capacity :
a. Steel Bars - 130,000 tons p.a.
b. Steel Billets - 216,000 tons p.a.
c. Wire Rods & Bars in Coils - 100,000 tons p.a.
Total Investment :
a. Equity
Capital - Rp. 724.2
billion
b. Loan
Capital -
Rp. 36.6 billion
c. Total
Investment - Rp.
760.8 billion
Started Operation :
1976
Brand Name :
Hanil Jaya Steel
Technical Assistance
:
HANIL Steel of South
Korea
Number of Employee :
659 persons
Marketing Area :
Local - 100%
Main Customer :
a. P.T. ADHI KARYA
b. P.T. MIRANTI ADHI
PERSADA
c. P.T. SAMUDRA BAJA
INTI
d. C.V. SINAR KENCANA
JAYA
Market Situation :
Very Competitive
Main Competitors :
a. P.T. ALIM SURYA
STEEL
b. P.T. ALIM
AMPUHJAYA STEEL
c. P.T. CIGADING
HABEAM CENTRE
d. P.T. SUPER TATA
RAYA STEEL
Business Trend :
Growing
BANKER,
AUDITOR & LITIGATION
Bankers :
a. P.T.
Bank MANDIRI Tbk
Jalan
Genteng Kali No.93 - 95
Surabaya,
East Java
Indonesia
b. P.T. Bank DANAMON INDONESIA Tbk.
Jalan Raya Darmo No. 59
Surabaya, East Java
Indonesia
c. The STANDARD CHARTERED Bank
Jalan
Panglima Sudirman No.57
Surabaya,
East Java
Indonesia
d. P.T.
Bank WOORI SAUDARA INDONESIA 1906 Tbk
Jakarta
Stock Exchange Building 16th Floor
Jalan Jend. Sudirman Kav. 52
Jakarta 12190 – Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL
FIGURE
Annual Sales (estimated) :
2015 – Rp. 1,175.0 billion
2016 – Rp. 1,251.4 billion
2017 – Rp. 1,338.9 billion
Net Profit (estimated) :
2015 – Rp.
94.0 billion
2016 – Rp. 100.8 billion
2017 – Rp. 109.8 billion
Payment Manner :
No complaints
Financial Comments :
Fairly strong
KEY
EXECUTIVES
Board of
Management :
President
Director -
Mr. Haji Syaifullah
Board of
Commissioners :
President
Commissioner - Mr. Boty
Gozaly Gho
Signatories
:
President
Director (Mr. Haji Syaifullah) which must be approved by Board of Commissioner.
CAPABILITIES
Management
Capability :
Good
Business Morality
:
Good
OVERALL
PERFORMANCE
Initially the company named P.T. HANIL JAYA METAL WORKS
with trading style of P.T. HANIL JAYA which was established in November 1973
with an authorized capital of US$ 1,525,000 entirely issued and paid-up. Founders
and original shareholders of the company are FAR EAST ENGINEERING CO., LTD.,
HANIL CEMENT MANUFACTURING CO. LTD., (both of South Korea as foreign partners)
and P.T. PEMBANGUNAN INTI of Indonesia as the local counterpart. It’s articles
of association has frequently changed for a couple of times. In 1975 P.T.
PEMBANGUNAN INTI quitted and it was replaced by P.T. PUSAKA BUANA RAYA also of
Indonesia. In June 1999 FAR EAST ENGINEERING Co. Ltd., of South Korea and P.T.
PUSAKA BUANA RAYA pulled out and they were replaced by a number of new
shareholders namely HANIL CONSTRUCTION Co. Ltd., HANIL INDUSTRIAL Co. Ltd., Mr.
Dong Sup Huh and Mr. Jung Sup Huh, all of South Korea as foreign partners and
Mr. Drs. Suryadi Sudiono and the late Mr. Teddy Sopian of Indonesia as local
partners. In April 2000 the authorized capital was raised again to US$
40,000,000 issued and paid up capital to US$ 22,500,000. Concurrently Mr. David
Sopian joined in as a local shareholder to replace his father the late Mr.
Teddy Sopian. In January 2002 the authorized capital was increased to US$
50,000,000 issued capital and paid up to US$ 46,500,000.
In June 2002, Mr. Drs. Suryadi Soediono pulled-out and
the whole share sold to HANIL CEMENT MFG. CO. LTD., of South Korea. In January
2005 HANIL CEMENT MFG Co. Ltd., of South Korea pulled out and the whole shares
sold to Mr. Boty Gozali Gho, Mr. Juna Suganda Gho, Mr. Budy Haryanto Gho, Mr.
Agus Hidayat, Mr. Willy Sutanto Lie, Mr. Iwan Setiawan Lie and Mr. Syaifullah,
the whole of Indonesia businessmen of Chinese extraction. The latest in August
2007 the company renamed to P.T. HANIL JAYA STEEL (P.T. HJS).
Later according to the latest revision of notary deed of
Mrs. Siti Nurul Yuliami, SH., No. 88 dated 25 July 2013 GLOBAL ADVANTAGE
LIMITED and GREAT YIELD LIMITED both are of Seychelles entered into the company
as new shareholders. On the same occasion the company authorized capital was
converted into Rupiah and increased to Rp. 561,276,500,000 issued capital to
Rp. 524,687,500,000 entirely paid up. With this development the composition of
its shareholders has been changed to become GLOBAL ADVANTAGE LIMITED (24.60%),
GREAT YILED LIMITED (24.60%), Mr. Boty Gozaly Gho (11.38%), Mr. Gandhi Suganda
(8.28%), Mr. Budy Haryanto Gho (8.28%), Mr. Willy Sutanto Lie (7.68%), Mr. Haji
Syaifullah (5.14%), Mr. Agus Hidayat (5.02%), and Mr. Iwan Setiawan Lie
(5.02%). The latest according to revision notary deed Mrs. Siti Nurul Yuliami,
SH., no. 5 dated 7 November 2017 GLOBAL ADVANTAGE LIMITED and GREAT YIELD LIMITED
of Seychelles and Mr. Willy Sutanto Lie pulled out and the whole shares took
over by the locals partners. Concurrently the company authorized capital was
increased to Rp. 760,776,500,000 issued capital to Rp. 724,187,500,000 entirely
paid up. With this development the composition of its shareholders has been
changed to become Mr. Boty Gozaly Gho (35.39%), Mr. Budy Haryanto Gho (22.86%),
Mr. Iwan Setiawan Lie (12.41%), Mr. Gandhi Suganda (10.38%), Mr. Haji Syafullah
(10.37%) and Mr. Agus Hidayat (8.59%). The latest revision notary deed was
approved by the Ministry of Law and Human Rights in its decision letter No.
AHU-0006255.AH.01.02.TH.2017 dated November 10, 2017.
P.T. HJS has been operating since 1976 in steel making
and rolling industry whose plant is located in Desa Janti, Waru, Sidoarjo (East
Java). The plant was underwent several expansion with technical assistance from
HANIL Group of South Korea. The plant is having 3 units of steel milling
machinery with a capacity to respectively produce 130,000 tons of steel bars,
216,000 tons of steel billets and 100,000 tons of wire rods & bars in coil
per annum. But, as from 1998, P.T. HJS operates only 1 to 2 of its milling
machinery with production realization of 600 tons per day for its major machinery
and 200 tons per day for its other machinery. Most of raw materials like scraps
imported from Taiwan, China, South Korea, Ukraine, Russia, and other countries.
Around 90-95% P.T. HJS steel bars and wire rod products
is distributed locally while the rest around 5% to 10% is exported to Myanmar,
the Middle East and South Asia countries. Meanwhile, its whole steel billet
production is consumed by the company itself. P.T. HJS is one of steel bars
suppliers to Eastern Indonesian region. Some of its major customers are state
owned companies among others are P.T. WIJAYA KARYA, P.T. WASKITA KARYA, P.T.
HUTAMA KARYA, P.T. PAL INDONESIA, all of them are state-owned companies BUMN.
P.T. HJS has also appointed C.V. TUNGGAL JAYA, U.D. SERI JAYA, C.V. SINAR
KENCANA, U.D. SUMBER BAJA JAYA I and U.D. SUMBER BAJA JAYA II wholly in
Surabaya as the distributors. Meanwhile, most of the scrap and pig iron are
imported from Russia and the People's Republic of China while the rest is
purchased from the local suppliers like C.V. LANGGENG (Sidoarjo) with an
average consumption of about 600 tons to 700 tons per day. We observe the
operation of P.T. HJS has been running smoothly and developing well in the last
there years.
Generally the steel industry still has potential to grow
in 2017. Industrial development in Indonesia will be continue to increase in
line with the increase of purchasing power and the improvement of Indonesia’s
competitiveness, both in the regional and global markets. In line with economic
and industrial growth, demand for steel products will continue to increase too.
The global economy in 2017 is projected to improve relative to 2016. According
to the IMF’s October 2016 report, the world economic growth in 2017 is
estimated at 3.4%, which is higher than the previous year’s growth of 3.1%.
The expansion of the global economy in 2017 is expected
to be driven by increasing global demand as shown by the increase in the volume
of world trade and rising commodity prices. From the viewpoint of the steel
industry, the World Steel Association (Short Range Outlook, October 2016)
estimates that global steel demand will recover by 0.2% to 1,501 million tons
in 2016 and by 0.5% to 1.510 million tons in 2017. The increase in global steel
demand is influenced by the growth in steel demand in the developing countries
so as to balance the decline and recovery of China and other developed
countries.
Meanwhile, the Indonesian economy in 2017 entered the
recovery phase that is characterized by the improving conditions of the
corporate sector. With these developments, economic growth is expected to be in
the range of 5.0% - 5.4%, supported by domestic demand, which remains strong
and exports that are also recovering in line with improvement in the prices of
Indonesia’s export commodities. Indonesia’s economic growth in 2016 is
projected to reach 5.2-5.6% or increased from 4.7% in 2015 (BI: Monetary Policy
Review, December 2015).
The Government has launched a number of stimulus packages
aimed at accelerating Indonesia’s economic growth including the construction
sector, transportation and electricity, which will affect the improvement of
domestic steel industry. Demand over domestic steel in 2016 is projected to
reach 13-14 million tons. The improvement of domestic steel industry is also supported
by Government’s policies such as trade and industrial protection policy. The
Government has issued a regulation related to the higher tariff for Hot Rolled
Coil (HRC) and safeguard Wire Rod (WR) product. The Government has also
regulated the use of domestic products in the procurement of Government’s
projects. From price perspective, global steel price has been significantly
declined and reached its lowest point within the last 12 years at the end of
2015.
In the era of globalization, steel acts as “The Mother of
Industries”. Steel processing technique is an inseparable part of a nation’s
development history. Steel supports the development of applied industries such
as infrastructure, construction, transportation, and port & shipyard. The
steel industry is also a very strategic one, as it has a significant role in
national security. The Government’s policy to divert the fuel subsidy for
accelerating infrastructure development and boosting the maritime industry had
increased opportunities for the growth of the domestic steel industry. The
Company welcomes the Government’s agenda to accelerate national economic
growth. The strategic steps exercised by the Government to protect the domestic
steel industry should be deeply appreciated. In Indonesia, the steel industry
employs more than 300,000 laborers and is among one of the potential sources
for revenue. The implementation of import duties for imported steel products,
which has been implemented since 2015 is deemed appropriate, in particular to
suppress the influx of imported steel products. In addition, the P3DN program
could also optimize the use of domestic steel products.
However, the WSD predicted that steel price in 2016 will
be higher than the price at the end of 2015 and will continue to increase in
2017, thus affecting the increase of domestic steel price. In line with the
improvement of steel industry’s condition and domestic steel prices, the
Company’s business prospect is projected to expand. In addition to the
improvement of steel prices, it is also supported by lower energy cost.
Production Steel
Billets, 2011 – 2015
|
Year |
Production (Ton) |
Growth (%) |
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2011 |
2,346,305 |
-- |
|
2012 |
2,369,768 |
1.00 |
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2013 |
2,388,726 |
0.80 |
|
2014 |
2,411,419 |
0.95 |
|
2015 |
2,435,292 |
0.99 |
|
Average Growth (%/year) |
0.93 |
|
Until this time P.T. HJS has not been registered with
Indonesian Stock Exchange, so that they had not obliged to announce their
financial statement. The management of P.T. HJS is very reclusive towards outsiders
and rejected to disclose its financial condition. We observed that total sales
turnover of the company in 2015 amounted to Rp. 1,175.0 billion increased to
Rp. 1,251.4 billion in 2016 rose to Rp. 1,338.9 billion in 2017 and projected
to go on rising by at least 5% in 2018. We observe that P.T. HJS is supported
by foreign partner with has financially strong and sound behind it. So far, we
did not heard that the company having been black listed by the Central Bank
(Bank Indonesia). The company usually pays its debts punctually to suppliers.
P.T. HJS's management headed by Mr. Haji Syaifullah (78),
a businessman and professional manager of Indonesia with more than 15 years
experience in steel making and rolling mill industry. The management, which is
evaluated quite creative and dynamic, also has succeeded in expanding their
overseas marketing network. We consider the management is quite capable of
further developing business in the future. They have close relations with many
high-ranking government officials as well as with private businessmen within
and outside the country. 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. HANIL JAYA STEEL
is sufficiently fairly good for business cooperation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.74 |
|
|
1 |
INR 86.01 |
|
Euro |
1 |
INR 76.14 |
|
IDR |
1 |
INR 0.0048 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIY |
|
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.