Friday, 10 June 2011
PPG VIETNAM COMPANY LIMITED
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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Basic
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Company name
PPG VIETNAM COMPANY LIMITED
Identification number
mFCR0004136
Country
Vietnam
ZIP code and city
- Ho Chi Minh City
Address
Flr 17, Fedeco Tower, Unit 1701, 81 - 85 Ham Nghi Str, Nguyen Thai Binh Ward - District 1 - Ho Chi Minh City - Vietnam (84 - 8) 38233014 / 38233013 / 38274182 / 38272332 http://www.ppg.com ppgvn@hcm.vnn.vn
Legal form
Foreign invested company
Account
Unconsolidated
Incorporation date
2000
NACE 2 Sector
2030 - Manufacture of paints, varnishes and similar coatings, printing ink and mastics
Listed Status
Active
MORE Credit limit
120,000 e
plans 2 types of reports:
Turnover (th e)
Plus TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk. TM
Rating
31/12/2009
31/12/2008
31/12/2007
4,663
3,672
-
CCC
CC
C
15.00%
41.00%
65.00%
100%
100%
50%
-3.17
-3.45
-3.23
0.68
0.71
0.69
Current Ratio
0.54
0.54
0.54
Quick Ratio
0.24
0.23
0.21
Probability of default Confidence Level Solvency ratios Leverage ratio Total asset/Total liabilties Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
-6.00
-13.94
-
-13.59
-37.25
-
Asset turnover
1.48
1.10
-
Interest paid weight
0.00
-0.09
-
Gross Profit/Operating revenue
0.25
0.19
-
+Inf
-1.19
-
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
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MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Leverage ratio
-3.17
Total asset/Total liabilties
0.68
0.46
1.10
3.22
9.84
3.18
1.90
1.29
1.06
Current Ratio Quick Ratio
0.54
2.64
1.56
1.13
0.80
0.24
2.08
1.14
0.82
0.54
Solvency ratios
Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
-6.00
9.97
3.83
-0.56
-9.10
Return on equity ROE (%)
-13.59
10.52
3.07
-6.63
-83.33
Asset turnover
1.48
1.11
1.05
1.10
1.10
Interest paid weight
0.00
0.01
0.24
-0.09
-0.10
Gross Profit/Operating revenue
0.25
0.29
0.23
0.15
0.16
+Inf
87.73
3.23
-4.04
-11.29
Days Sales Of Inventory (DIO)
107
34
47
43
51
Days Sales Outstanding (DSO)
55
72
77
62
75
Days Payable Outstanding (DPO)
44
38
43
54
100
Cash Conversion Cycle (DIO + DSO - DPO)
118
63
79
50
32
-
575
1,196
524
89
CCC
A
BBB
B
CC
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days)
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 2030 with financial data of year 2009.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/12/2009
31/12/2008
31/12/2007
Accounting practice
Local GAAP
Local GAAP
Local GAAP
Exchange rate VND - EUR
3.869E-05
4.232E-05
4.216E-05
Total assets Fixed assets Intangible fixed assets Tangible fixed assets
3,148
3,351
1,912
673
779
409
4
8
12
623
294
333
47
478
64
2,475
2,572
1,503
1,372
1,509
927
Debtors
705
648
432
Other current assets
398
232
17
Cash & cash equivalent
314
183
126
-1,450
-1,369
-858
415
454
453
-1,865
-1,823
-1,310
Other fixed assets Current assets Stocks
Shareholders funds Capital Other shareholders funds Total liabilities
4,598
4,720
2,770
Non current liabilities
0
0
0
Long term debt
0
0
0
Other non-current liabilities
0
0
0
Current liabilities
4,598
4,720
2,770
Loans
2,363
3,366
3,849
Creditors
559
238
94
Other current liabilities
673
633
313
3,148
3,351
1,912
Total shareh. funds & liab. NET DEBT (th e)
31/12/2009
Short term debts Long term debt Cash & cash equivalent Net debt
31/12/2007
3,849
0
0
0
314
183
126
3,052
3,666
2,237
31/12/2009 Working capital
31/12/2008
3,366
31/12/2008
2,363
31/12/2007
1,518
1,919
1,266
-2,123
-2,149
-1,267
31/12/2009
31/12/2008
31/12/2007
Net Current Assets
Days Sales Of Inventory (DIO)
107
150
-
Days Sales Outstanding (DSO)
55
64
-
Days Payable Outstanding (DPO)
44
24
-
118
190
-
Cash Conversion Cycle (DIO + DSO - DPO)
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/12/2009
31/12/2008
31/12/2007
Accounting practice
Local GAAP
Local GAAP
Local GAAP
Exchange rate VND - EUR
3.869E-05
4.232E-05
4.216E-05
4,705
3,672
-
28.1
-
-
-42
0
-
Operating revenue / turnover
4,663
3,672
-
Total operating costs
4,452
3,723
-
Costs growth (%)
-
-
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
EBITDA
-
-
-
Depreciation
-
-
-
Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
EBIT Financial P/L Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L Extr. and other revenue Extr. and other expenses P/L before tax + Extr. and other P/L Taxation P/L for period
210
-50
-
-400
-458
-
9
2
-
408
460
-
0
42
-
-189
-509
-
-8
-1
-
0
0
-
8
1
-
-197
-510
-
0
0
-
-197
-510
-
31/12/2009
31/12/2008
31/12/2007
Costs of Good Sold
3,505
2,982
-
Gross Profit
1,158
691
-
948
741
-
Other Operating Expenses
31/12/2009
31/12/2008
31/12/2007
Cash flow
-
-
-
Added value
-
-
-
31/12/2009 Number of employees
-
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/12/2008
31/12/2007
-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
-
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
PPG VIETNAM COMPANY LIMITED (Vietnamese Name: CONG TY TNHH PPG VIETNAM)is a wholly owned foreign company invested by PPG INDUSTRIAL SECURITIES INC based in USA (PPG Industries Inc. is a global manufacturer and supplier of coatings, chemicals and glass that operates 120 manufacturing locations in 23 countries worldwide). It is specialized in manufacturing and distributing paints for automobiles, architecture and industrial products. Its investment ceritificate no is 472043000648 (granted on 29 Aug 2008 by Dong Nai Industrial Zones Authority). Tax code is 3600478837. The number of total employees is 40.
History
PPG was established on October, 2000. On August 29th, 2008 the subject changed investment license number from No. 57/GP - KCN - DN to No. 472043000648. On 11 Feb 2009, the subject changed its address from “Floor 10th, Room 5, Sai Gon Centre, No. 65 Le Loi Str, Dist 1, Hochiminh City� to No. 81 - 85, Ham Nghi Str, Nguyen Thai Binh Ward, Dist. 1, Hochiminh City. The total investment capital and the chartered capital were raised to USD 22,333,000 and USD 3,700,000 respectively on March 2010.
Primary business line
The subject is specialized in manufacturing and trading paint and materials for paint production industry.
Secondary business line
Not available.
Main activity
Manufacture and coating.
Secondary activity
Distribution.
Main products and services
Paints and coatings for automobiles, architecture and industrial products.
Size estimate
The total number of the employees is 40.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
Not available.
Main foreign countries or regions
PPG imports materials from Australia, USA, Japan, Malaysia, Thailand, and China (Payment method is T/T). The subject at the moment does not export.
Main production sites
The company has a factory in the following address: No. 103/5 AMATA Industrial Zone - Bien Hoa City - Dong Nai Province - Vietnam (Tel: (84 - 61) 3936761). The premises and facilities of the subject are normal. Its main factory is located at Amata Industrial Zone with 800m2 and production capacity about 100,000 tons/ a year. It also has a small workshop at Bien Hoa 1 Industrial Zone, Dong Nai Province. The subject co - operates in production with Dong Nai Paint corporation. It has a factory in Yen Phong Industrial Zone, Bac Ninh Province - Northern Province. Besides, the subject also gets much support from the parent company. The subject has refused the local provider to give them more detailed information about factories.
Main distribution sites
Not available.
Main sales representation sites
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Main customers
The subject provided products for many manufacturers such as Blue Corp Steel, Hoa Sen Steel, Pos Vina, BP, LG gas, and Shell gas. The products of its parent company are supplied for automobile assemblers in Vietnam such as Mercedes, Ford, Truong Hai Auto, VMC, ISUZU, SAMCO, and Daewoo., etc.
Auditor/Advisor/Bank name
type
address
CITI BANK
Bank
JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH
Bank
No. 115 Nguyen Hue Str, Ben Nghe Ward, District 1 - Ho Chi Minh City Vietnam (Tel:(84 - 8) 8242118 ) No. 29 Ben Chuong Duong - District 1 - Ho Chi Minh City - Vietnam (Tel:(84 - 8) 3829 7245 - 3823 0310 - 3823 0311 )
BRANCH
Board name
date of birth
nationality
function
Mr. SEKMAKAS VIKTORAS RIMAS Mr. NGUYEN DINH LONG Mr. PHAN THU DINH Ms. VO THI THUY HANG
-
Malaysian Vietnamese Vietnamese
General Director Managing Director Purchasing Manager Chief Accountant
Sharehoders (the first twenty shareholders ordered by Direct %)) PPG INDUSTRIES SECURITIES, INC.
Rating:
Country ISO code US NACE Rev. 2, Core code Direct % 100.00 Total % Address: 1, PPG Place, 15272 PITTSBURGH, United States of America, Tel: (412) 434 - 3131
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
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-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
05/2011
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Not available.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
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The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PPG VIETNAM COMPANY LIMITED
Friday, 10 June 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
The present analysis was based on the company available financial statements as provided by Bureau Van Dijk Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts Company
modeFinance
Products Where
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Info web Phone
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741