hyunjin materials

HYUNJIN MATERIALS
Accumulated Forging Technology
. Prepare for Future Growth . Enhance R&D
. Well-balanced product groups
. Business area recovery
Expansion of New Market via new items in Offshore Industry
Y2014 Business Summary
(Unit : Mil KRW)
Sales 231,584 348,762 +50.6%
SG&A Expense 10,279 12,085
Operation Income -8,866 17,786
(%) -3.8% 5.1% +8.9%p
Other Income 8,815 5,500
Other Expense 12,784 5,500
Finance Income 3,000 1,593
Finance Cost 14,437 6,328
Premium on bonds payables
Profit(Loss) -23,332 10,180
HYUNJIN MATERIALS CO. , LTD. 05
Y2014 1Q Business Summary
Y2014 1Q Forging Div. New Order
Description Jan Feb Mar Y2014 1Q(E) Total
Plan Sales (%) Plan Sales (%) Plan Sales(e) (%) Plan Sales(e) (%)
ITEM
Engine(Ship) 2,498 3,875 155% 3,241 4,134 128% 4,289 4,863 113% 10,028 12,872 128%
Sternpost 935 1,710 183% 1,025 1,525 149% 1,038 2,641 254% 2,998 5,876 196%
2ST CS 235 1,677 714% 2,232 1,079 48% 762 2,203 289% 3,229 4,959 154%
4ST CS 78 880 1128% 537 1,370 255% 1,025 578 56% 1,640 2,828 172%
Windpower 547 1,824 333% 3,315 4,631 140% 3,515 4,003 114% 7,377 10,458 142%
Ge.Power 344 215 63% 96 117 122% 595 269 45% 1,035 601 58%
Plant 559 755 135% 2,096 813 39% 2,614 696 27% 5,269 2,264 43%
Others 467 1,841 394% 1,671 1,473 88% 3,181 2,568 81% 5,319 5,882 111%
Ring Mill 1,873 1,702 91% 1,763 1,357 77% 2,078 2,146 103% 5,714 5,205 91%
7,534 14,478 192% 15,976 16,498 103% 19,096 19,966 105% 42,606 50,942 120%
ITEMS Jan Feb Mar Y2014 1Q(E) Total
Plan Orders % Plan Orders % Plan Orders(e) % Plan Orders(e) %
Engine(Ship) 2,493 3,069 123% 2,569 4,489 175% 2,691 3,026 112% 7,753 10,584 137%
Sternpost 1,352 3,331 246% 1,391 2,729 196% 2,124 3,732 176% 4,867 9,792 201%
2ST CS 836 4,361 522% 671 8,158 1216% 1,712 2,005 117% 3,219 14,524 451%
4ST CS 728 292 40% 869 566 65% 488 580 119% 2,085 1,438 69%
Windpower - 707 - 1,215 1,133 93% 1,277 1,215 95% 2,492 3,055 123%
Ge.Power 296 174 59% 171 506 296% 6,417 428 7% 6,884 1,108 16%
Plant 1,246 552 44% 930 81 9% 1,678 652 39% 3,854 1,285 33%
Others 1,614 1,570 97% 2,086 1,650 79% 2,378 4,624 194% 6,078 7,844 129%
Ring Mill 2,220 2,497 112% 3,018 1,317 44% 3,001 2,665 89% 8,239 6,479 79%
TOTAL 10,785 16,553 153% 12,920 20,629 160% 21,766 18,927 87% 45,471 56,109 123%
(Unit : Mil KRW)
(Unit : Mil KRW)
(Unit : Mil KRW)
207,740
153,021
240,705
341,039
231,584
348,762
18,599 16,661 17,573
17,826 15,052 20,579
17,978 19,589 12,238
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Y2012 4Q Y2013 1Q Y2013 2Q Y2013 3Q Y2013 4Q Y2014(E) Average
Backlog
(Unit : Mil KRW)
185
Forging Div Trade Div Other Sales New Order
588
1,009
Shipbuilding Crankshaft Power Generation Plant etc
(Unit : Bil KRW)
(Unit : Bil KRW)
Company Name Hyunjin Materials Co,. Ltd Total issued Stocks 14,800,000 stocks(7,400 mil KRW)
CEO Yi Chang Kyu Business Area Metal Forging
Date of Establishment April 25, 1978 Employees 292 persons (Based on Jan.2014)
Date of Listing February 8, 2002 Sales 230.0 Bil KRW (Estimated 2013)
Location Head Office & 1st Factory : 1601-1, Songjeong-Dong, Gangseo-Gu, Busan, Korea 2nd Factory & Machining Plant : 1660-12, Songjeong-Dong, Gangseo-Gu, Busan, Korea 3rd Factory : 627, Gyenae-Ri, Chilseo-Myeon, Haman-gun, Kyeongsangnam, Korea
Head Office & #1 Factory #2 Factory
#3 Factory
About HYUNJIN
1978.04 Established Hyunjin Industry Co., Ltd
1978.09 Selected as promising small-medium company by JEIL Bank
1984.02 Head location moved to 501 Shinpyeong dong, Saha Gu, Busan
1994.10 2,500 Ton Press began operation
1995.10 1,500 Ton Press began operation
1998.02 CEO Yi Chang Kyu Inaugurated
1999.03 Acquired Lloyd’s ISO 9002 Certificate
2000.04 Changed business name into Hyunjin Materials Co., Ltd
2000.12 Move to new head office(1601-1, Songjeong-dong, Gangseo-gu, Busan)
2002.02 Listed in KOSDAQ 2002.07 Separate corporation of YonghyunBM Co.,Ltd established
2006.06 Completed this construction of crankshaft specialized production plant(#2 Factory)
2006.10 Completed the development of low-speed crankshaft
2007.04 Acquired KEPIC
2008.01 The 2nd unit of medium-speed crankshaft only 6500 Ton Press began operation
2008.11 Awarded with $100 million export tower citation 2008.12 Acquired ISO 14001, OHSAS 18001
2009.06 Completed the construction of crankshaft assembly plant(#3 Factory)
2009.10 Certified as contractor company for the production of gas turbine for Doosan Heavy industries & Construction Co,. Ltd
2009.11 Completed the development of large unified crankshaft (medium-speed crankshaft)
2010.08 Completed the construction of power generation part specialized heat treatment plant
2010.09 Obtained green growth certification(2.5MW or less windpower generation main shaft manufacturing technique)
2010.10 Acquired ASME certification
2011.12 Acquired ISO/IEC 17025:2006
About HYUNJIN
Product Main shaft for Windpower, Shipbuilding Medium size sternpost, Small & Medium size Forging Items
Major Facilities
3500T PRESS, 2500T PRESS, Manipulator Heating Furnace, Heating Treatment Furnace etc.
#1 Factory
Location 1660-12, Songjeong-Dong, Gangseo-gu, Busan
Product Low Speed Crankshaft, Medium Speed Crankshaft, Large size Main shaft for Windpower, Rotor shaft for Power generation, Large size Stern Post, etc
Major Facilities #1, #2 6500T PRESS, 160/100T Manipulator Heating Furnace, Heating Treatment Furnace, High Frequency Induced Heating Furnace etc.
#2 Factory
Product Machining Crank Throw
Product Assembling Low Medium Speed Crankshaft & Heat Treatment for Special Forgings (Rotor shaft, Disk, shaft for defense industry)
Major Facilities CSL, HBM, Vertical Electric Furnace, Heat Stability Test Equipment, Quenching Tank etc
#3 Factory
About HYUNJIN
About HYUNJIN
Location 334-14, Yusan-Dong, Yangsan, KyungNam, Korea / 237, Bukjung-Dong, Yangsan, KyungNam
Production Items Seamless Pipe(API 5L, API 5CT, ASTM), Square Bar, Spindle, Round bar, Axle shaft
Main Facilities Radial Forging Machine, Piercing machines etc.
Company Name Samhyun ENG
Production Items PITCH BEARING, YAW BEARING etc
Main Facilities Horizontal Boring Machine, Vertical Turning Lathe, Vertical Turning Center, Induction Hardening M/C, Car type, Furnace Tempering, Gear Hobbing Machine, Vertical Drilling etc.
Company Name Sunwoo CS
Production Items Medium Speed Crankshaft
Main Facilities CNC Turn Mill Multi Center, CNC Crankshaft Rough Milling Machine, CNC Gantry Piano Miller, CNC Crankshaft Drilling & Milling Machine, CNC Crankshaft Grinding Machine
Quality Vision
Quality operation and management are standardized according to the quality system, and all of Employees Abide by it to satisfy customers through continuous quality improvement.
Classification & Certification
We hold various quality certificates and classification certificates, from many countries, including ISO 14001:2004 and OHSAS 18001:2007, ASME, KEPIC MN/SN, ISO 17025. We have stayed in the top position in the field by providing with only reliable product to many Domestic and foreign clients and have established a bridgehead to stand out in the global market.
ASME ISO 9001 ISO 14001 OHSAS 18001 RINA PED NK KEPIC
ABSBVCCSDNVGLKRLIoydGreen Technology
ISO 17025
Material (INGOT,BLOOM,SALB)
Heating Forging
Heat Treatment
Forging?
Forging : Forging is the shaping of metal using localized compressive forces Open Die Forging : In open-die forging, a hammer strikes and deforms the workpiece, which is placed on a stationary anvil. Open-die forging gets its name from the fact that the dies (the surfaces that are in contact with the workpiece) do not enclose the workpiece, allowing it to flow except where contacted by the dies. Therefore the operator needs to orient and position the workpiece to get the desired shape
FORGING FACILITIES
6500T PRESS
2500T PRESS
3500T PRESS
160MT MANIPULATOR
100MT MANIPULATOR
42MT MANIPULATOR
LOCAL HEATING FURNACE
20T WATER QUENCHING TANK
35T WATER QUENCHING TANK
35T OIL QUENCHING TANK
20T ROUND OIL QUENCHING TANK
About HYUNJIN
328
282
405
341
232
349
0
50
100
150
200
250
300
350
400
450
Sales Power Generation
Power Generation
• Growing Demand of Power Generation (Nuclear, Thermal etc) • Enter into Power Generation Parts industry through completion of Disk for Thermal power generation • Secure a supply of special material through making into agreement with JCFC for 10 years • Expanding market share for receiving approval to major customers such as GE Energy, SIEMENS etc
Main shaft for wind turbine : Main shaft is the part of wind turbine that transmits the kinetic energy of rotor to the turbine directly through connection between wind turbine and blade
328
282
405
341
232
349
Sales Windpower
Windpower Generation
• With the growth of renewable energy market, the wind turbine market is rapidly growing industry • Supply various type of wind turbine shaft meeting to major customers • Expanding business area through business joint Samhyun Engineering
[ Sales in Windpower Part ] (Unit : Bil KRW)
• Hyunjin specialized in supplying crankshaft through crankshaft development between 2002~2006 • Growth of crankshaft market for recovering shipbuilding industry and growing power generation market • Hyunjin is doing strenuous efforts for customer satisfaction in response to ever diversifying demands on engine model development such as MAN DIESEL, WARTSILA, CATERPILLAR, ROLLS ROYCE etc • The medium crankshaft produced by Hyunjin is supplied to customers after final processing by SunwooCS • Hyunjin manufactures all parts of the crankshaft and supplies them to the major engine builder through shrink fit and final machining
CrankShaft?
328
282
405
341
232
349
0
50
100
150
200
250
300
350
400
450
2009 2010 2011 2012 2013 2014(P)
Sales 2ST CS 4ST CSFinal machining at 3rd FactoryShrink fit Process
Industrial Business Overview
Crankshaft
A core part of ship engine and power turbines, is a part which is installed within crank case and transmits engine power outside by converting the piston force occurring in each cylinder and explosion stroke to stroke motion
[ Sales in Crankshaft Part ] (Unit : Bil KRW)
Producing crank throw, shaft piece without flange, shaft piece, w. thrust cam and shaft with flange as individual product, and is supplying them as completed product for customers through assembling of them as integrated type in shrink fit and final processing.
Division RPM Detail
Under 500 rpm
Large ship (more than 10,000T) -. Container ship, Bulk ship, VLCC & ULCC etc
Crankshaft – 2 Stroke
2st Crank Shaft
Hyunjin is producing high quality ship engine and medium speed crankshaft by developing integrated type CGF forging technique which is differentiated from existing forging technique
Medium Engine
Container ship etc Emergency generation for power generation
facilities
328
282
405
341
232
349
124
0
50
100
150
200
250
300
350
400
450
Sales Engine Part Sternpost
- Major Items(Engine part)
(Unit : Bil KRW)
• Manufacturing forged product / used in vessel engine and supplying them to domestic & foreign shipbuilding companies • Solid order backlog and commitment for production • Growth of marine plant expected demand
Shipbuilding Engine & Sternpost
[ Sales in Shipbuilding Part ]
328
282
405
341
231
349
0
50
100
150
200
250
300
350
400
450
Sales Plant Other
Plant & Other Forging Items
• Hyunjin is supplying world market with major core parts for petrochemical, industrial plants and general industrial machineries, and is being recognized on its excellent quality. • Hyunjin invested in new equipment “Profile Ring Mill Machine) in 2013 3Q for expanding item portfolio specially offshore & Plant industry
(Unit : Bil KRW)
Drilling Riser
BOP TREE
Tree Manifold
PLET Boosting
Separation Riser
Flowline Umbilical
[ Long term target sales in subsea parts ] (Unit : Bil KRW)
New Market - Offshore
- Expectation of development of Shale gas and LNG, continuation of development of deepwater and polar oil, steadily growth expectation based on the stabilization of oil prices
- entering market and diversifying customers based on delivery performance for NOV riser pipe plange - expansion of new market through GE Gas & Oil BOP and Bonnet items approval and supply in the second half of 2013 - plan for expansion of various items such as Forging cylinder etc based on profiling Ring Mill equipment investments - growth expectation for HJM major products by expanding special materials market like drilling and subsea - expanding market share by propelling sales strategy with affiliate YH BM's seamless pipes.
HYUNJIN MATERIALS CO. , LTD.
(Unit : Mil KRW)
Current Assets 231,403 223,017 202,531 233,606
Non-Current Assets 182,492 194,900 192,690 208,177
Total Assets 413,895 417,917 395,221 441,783
Current Liabilities 165,764 186,091 154,445 167,427
Non-Current Liabilities 60,959 54,329 41,171 76,436
Total Liabilities 226,723 240,420 195,616 243,863
Capital Stock 7,400 7,400 7,400 7,400
Retained earnings 101,045 91,280 103,562 102,003
Element of other equity
78,817 78,817 88,643 88,517
Total Liabilities & Equity
Cost of sales 318,892 230,172 320,292 378,187
Gross Profit 29,871 1,412 20,747 27,003
Selling general administrative expenses
12,085 10,278 12,317 10,995
(%) 5.1% -3.8% 2.5% 4.0%
Financial Income 1,592 3,000 1,855 2,104
Financial Cost 6,327 14,437 9,077 8,970
Share of profit(loss) of associates accounted for using equity method
- - -1,546 -8,911
(%) 3.7% -10.9% 0.9% 1.4%
(%) 2.9% -10.1% 0.5% 0.9%
Sales Yearly Trend
Shipbuilding Crankshaft Windpower
Scrap
328
285
405
341
231
349
(Unit : %)
53%
Shipbuilding Crankshaft Power Generation Plant
409
Appendix
72,781 96,332
123,920 152,472
231,584
348,762
407,979
453,612
Total Div Sales 231,584 348,762 407,979 453,612
Forging Div.
Power Generation 44,211 68,229 84,240 91,850
Plant etc. 36,029 76,145 82,946 84,930
Trade Div. Materials etc 66,263 90,567 95,096 99,850
Other Scrap 12,301 17,489 21,777 24,510
Cost of sales 230,172 318,809 355,973 385,130
Gross Profit 1,412 29,953 52,006 68,482
(%) 0.6 8.6 12.7 15.1
Selling general administrative expenses
10,278 12,196 16,319 18,598
(%) -3.8 5.1 8.7 11.0

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