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MIRA INFORM REPORT
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Report No. : |
488372 |
|
Report Date : |
25.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
KUMKANG KIND
CO., LTD. |
|
|
|
|
Formerly Known As : |
KUMKANG STEEL PIPE CO., LTD |
|
|
|
|
Registered Office : |
110, Dasan-Ro, Saha-Gu, Busan, Korea 49489 |
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|
|
|
Country : |
South Korea |
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|
|
|
Financials (as on) : |
30.09.2017 |
|
|
|
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Date of Incorporation : |
08.08.1979 |
|
|
|
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Com. Reg. No.: |
603-81-15882 |
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|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
·
Manufacture of Pipes and Tubes, of Non-cast Iron
or Steel, Steel Pipe, Cramp, Panel Form, Aluminum Foam, Gang Forms,
Construction Ashes, Clamp, Scaffolding
Pipe, Supporting Frame ·
Manufacture of Structural Metal Sheet Products
and Ornamental Metal Works Used on Building |
|
|
|
|
No. of Employees : |
399 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Satisfactory |
|
|
|
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
South Korea |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 2016, the economy experienced slow growth – 2%-3% per year - due to sluggish domestic consumption, a drop in foreign demand for South Korean exports, increased competition from regional rivals such as China and Japan, and declining investment. The administration in 2016 faced the challenge of balancing heavy reliance on exports with domestic restructuring efforts in the country’s shipbuilding and shipping industries.
The South Korean economy's short-term challenges include a
potential loss of consumer confidence due to issues with its mobile phone
industry, as well as uncertainty stemming from a tumultuous domestic political
situation. In the long-term, South Korea must deal with a rapidly aging
population, inflexible labor market, dominance of large
conglomerates (chaebols), and the heavy reliance on exports, which comprise
more than 40% of GDP. South Korea’s low overall unemployment rate masks
problems with high youth unemployment, low worker productivity, high labor
underutilization, and low female participation in the workforce. The government
has tried to implement structural reforms, but continues to face significant
headwind from vested interests. Finally, the country could eventually face an
unprecedented financial burden in the event the unification of the Korean
Peninsula were to occur.
|
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 |
359, Bangudae-ro, Samnam-myeon, Ulju-gun, Ulsan, Korea (Old Address System : 140-25, Gacheon-ri, Samnam-myeon, Ulju-gun, Ulsan,
Korea) |
|
Tel |
+82-52-255-5300 |
|
Fax |
+82-52-255-5319 |
|
Other Address-Eumseong Factory |
505, Yonggwang-ro, Eumseong-eup,
Eumseong-gun, Chungcheongbuk-do, Korea (Old Address System : 1661, Yongsan-ri, Eumseong-eup,
Eumseong-gun, Chungcheongbuk-do, Korea) |
|
Tel |
|
|
Fax |
|
|
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 |
|
Date of Birth |
08/18/1952 |
|
Title |
Chairman & CEO |
|
Nationality |
Korean |
Profiles
|
Capital (KRW) |
24,869,695,000 |
||||||||||||||||||||||||
|
Employees |
399 |
||||||||||||||||||||||||
|
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 Shinhan Bank |
||||||||||||||||||||||||
|
Corporate Registered No. |
180111-0034320 |
||||||||||||||||||||||||
|
Business Registered No. |
603-81-15882 |
||||||||||||||||||||||||
|
Permit & Licenses |
Int’l Trade No.: 900643 |
||||||||||||||||||||||||
|
Shareholder Position |
|
||||||||||||||||||||||||
|
Company History |
08/08/1979 Incorporated as KUMKANG STEEL
PIPE CO., LTD. 12/31/1980 Changed company name to the
present name 12/13/2001 Increased capital to
24,869,695,000 KRW from 14,800,000,000 KRW 01/03/2013 Acquired KUMKANG POSTEM CO.,
LTD. |
Management
|
Job Description |
Name |
Nationality |
Date of Birth |
Inauguration Date |
|
Chairman & CEO |
Jeon Jang-Yeol |
Korean |
08/18/1952 |
03/16/2007 |
|
President & CEO |
Lee Bum-Ho |
Korean |
10/20/1960 |
03/27/2015 |
|
Auditor |
Lee Won-Mo |
Korean |
07/02/1951 |
03/16/2007 |
|
Outside Director |
Lee Sung-Oh |
Korean |
06/05/1953 |
03/14/2008 |
|
President |
Jeon Jae-Bum |
Korean |
12/07/1979 |
03/18/2011 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
332,673,517,377 |
580,220,996,739 |
19,855,014,884 |
|
|
2016 |
414,980,534,410 |
551,875,790,052 |
28,164,622,523 |
|
2015 |
353,371,950,046 |
525,737,329,148 |
11,286,978,228 |
|
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 |
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 |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Total
Assets |
580,220,996,739 |
551,875,790,052 |
525,737,329,148 |
|
Current
Assets |
202,563,098,623 |
177,636,403,017 |
186,275,204,703 |
|
Cash
& Cash Equivalents |
44,079,449,990 |
32,268,704,061 |
30,465,636,661 |
|
Trade
Receivables & Other Receivables |
102,413,611,202 |
104,034,455,800 |
98,307,317,892 |
|
Current
Financial Instruments |
199,580,025 |
476,931,245 |
28,535,000 |
|
Inventories |
53,007,403,038 |
38,969,265,011 |
50,848,573,461 |
|
Other
Current Assets |
2,863,054,368 |
1,887,046,900 |
2,198,541,149 |
|
Assets
to be Sold |
|
|
4,426,600,540 |
|
Non-Current
Assets |
377,657,898,116 |
374,239,387,035 |
339,462,124,445 |
|
Tangibles |
301,620,369,302 |
296,478,056,799 |
263,824,897,443 |
|
Intangibles |
7,113,117,900 |
7,418,942,420 |
8,502,252,632 |
|
Investment_Real
Estates |
36,946,515,147 |
37,041,149,001 |
36,548,589,426 |
|
Investment_Subsidiaries |
22,614,155,646 |
22,143,722,663 |
22,143,722,663 |
|
Non-Current
Financial Instruments |
8,720,446,725 |
9,248,282,925 |
6,997,638,725 |
|
Long-Term
Trade Receivables & Other Receivables |
643,293,396 |
908,201,096 |
1,445,023,556 |
|
Confirmed
Salaries |
|
1,001,032,131 |
|
|
Total
Liabilities |
325,430,334,507 |
313,697,228,666 |
315,346,519,556 |
|
Current
Liabilities |
275,821,759,681 |
255,912,595,614 |
281,886,639,811 |
|
Trade
Payables & Other Payables |
46,276,093,988 |
48,244,737,611 |
43,692,970,279 |
|
Other
Current Finance Debts |
|
|
4,095,629 |
|
Short-Term
Borrowings |
180,172,444,304 |
172,199,339,074 |
147,337,780,281 |
|
Current
Portion of Long-Term Debts |
25,783,280,000 |
13,883,420,000 |
76,241,640,000 |
|
Other
Current Liabilities |
19,732,251,820 |
13,733,029,715 |
12,176,664,746 |
|
Accrued
Income Tax |
3,857,689,569 |
7,852,069,214 |
2,433,488,876 |
|
Non-Current
Liabilities |
49,608,574,826 |
57,784,633,052 |
33,459,879,745 |
|
Other
Non-Current Borrowings |
37,816,600,000 |
47,841,560,000 |
22,224,980,000 |
|
Other
Non-Current Debts |
2,962,404,582 |
2,942,532,082 |
3,268,256,182 |
|
Provision
for Severance & Retirement |
1,312,846,644 |
|
1,899,685,292 |
|
Deferred
Income Tax Credit |
6,891,539,312 |
6,393,189,963 |
5,528,013,928 |
|
Non-Current
Provisions |
625,184,288 |
607,351,007 |
538,944,343 |
|
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 |
1,658,014,185 |
2,100,240,021 |
881,612,715 |
|
Profit
Surplus |
199,599,245,517 |
182,544,918,835 |
155,975,794,347 |
|
Total
Equity |
254,790,662,232 |
238,178,561,386 |
210,390,809,592 |
|
Liab.
& Shareholder’s Equity |
580,220,996,739 |
551,875,790,052 |
525,737,329,148 |
|
Income Statement |
|||
|
Unit : Korean Won |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Sales |
332,673,517,377 |
414,980,534,410 |
353,371,950,046 |
|
Cost of Sold Goods |
263,744,033,842 |
324,552,978,584 |
291,361,839,108 |
|
Gross Profit |
68,929,483,535 |
90,427,555,826 |
62,010,110,938 |
|
Selling & Admin. Expenses |
29,420,537,315 |
36,829,445,304 |
31,818,177,113 |
|
Logistics |
6,678,014,701 |
9,114,075,486 |
8,329,238,869 |
|
Operating Income |
32,830,931,519 |
44,484,035,036 |
21,862,694,956 |
|
Finance Income |
107,119,403 |
286,214,923 |
327,932,720 |
|
Finance Expenses |
5,484,551,472 |
7,241,214,472 |
8,226,666,667 |
|
Profits from Investment on
Related Companies |
|
|
1,023,930,955 |
|
Other Income |
2,712,751,030 |
5,144,714,916 |
4,671,456,393 |
|
Other Expenses |
3,671,122,111 |
4,447,218,539 |
3,822,431,081 |
|
Income Before Taxes |
26,495,128,369 |
38,226,531,864 |
15,836,917,276 |
|
Income Taxes Expenses |
6,640,113,485 |
10,061,909,341 |
4,549,939,048 |
|
Net Income |
19,855,014,884 |
28,164,622,523 |
11,286,978,228 |
|
Cash Flows |
|||
|
Unit : Korean Won |
01/01/2017~09/30/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Operating
Activities Cash Flows |
11,456,593,608 |
22,940,517,667 |
4,935,595,796 |
|
Net
Income |
19,855,014,884 |
28,164,622,523 |
11,286,978,228 |
|
Adjustment |
63,406,330,289 |
74,556,116,979 |
68,417,043,273 |
|
Changes
in Asset/ & Liability |
-57,195,297,658 |
-68,994,235,350 |
-63,367,171,623 |
|
Dividends
Received |
495,841,720 |
493,253,650 |
694,299,950 |
|
Interests
Received |
218,143,452 |
172,921,008 |
306,268,861 |
|
Interests
Paid |
-5,469,488,955 |
-7,273,993,170 |
-8,052,349,450 |
|
Income
Taxes |
-9,853,950,124 |
-4,178,167,973 |
-4,349,473,443 |
|
Cash
Flows from Investing |
-7,232,072,858 |
-7,462,291,641 |
-12,877,147,449 |
|
Cash
Flows from Financing |
7,605,625,930 |
-13,675,162,807 |
6,343,982,649 |
|
Increase/Decrease
in Cash |
11,830,146,680 |
1,803,063,219 |
-1,597,569,004 |
|
Cash
at the Beginning of Year |
11,810,745,929 |
1,803,067,400 |
-1,596,781,042 |
|
Cash
at the End of Year |
44,079,449,990 |
32,268,704,061 |
30,465,636,661 |
Products, Technologies, Services
Description
|
Main Products & Services |
Steel Pipe, Cramp, Panel Form, Aluminum Foam, Gang Forms, Construction
Ashes, Clamp, Scaffolding Pipe, Supporting
Frame |
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) D&A CO., LTD.(170111-0187121) BUSAN FRUIT CO., LTD.(180111-0148080) |
|
Affiliates-overseas |
DONGSUH INDONESIA.PT(INDONESAI) HAPPY FARM DALAT CO.,LTD.(VIETNAM) |
|
Subsidiary |
KUMKANG ENGINEERING CO., LTD.(110111-2793291) (66.67% held by
the subject company) 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) KUMKANG KIND EAST AFRICA LIMITED (100.0% held by the subject company) PT. KUMKANG KIND ENGINEERING INDONESIA (90.0% held by the subject company) |
|
Cooperative Enterprise |
-Insured Company SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078) |
Sales
by Region (Activity & Markets)
|
Sales/ Unit :Thousand KRW |
09/2017 |
2016 |
2015 |
|
Export |
77,205,230 |
117,888,306 |
102,081,055 |
|
Domestic |
255,468,287 |
297,092,228 |
251,290,895 |
|
Total |
332,673,517 |
414,980,534 |
353,371,950 |
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 |
INR 63.64 |
|
|
1 |
INR 89.32 |
|
Euro |
1 |
INR 78.45 |
|
KRW |
1 |
INR 0.060 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
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.