MIRA
INFORM REPORT
|
Report Date : |
2nd
November 2006 |
IDENTIFICATION
DETAILS
|
Name : |
SIAM
CITY CEMENT PUBLIC
COMPANY LIMITED |
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|
|
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Registered Office : |
7-12th Floor, Column
Tower, 199 Ratchadapisek Road, Klongtoey, Bangkok
10110, Thailand |
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Country : |
Thailand |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
1969 |
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Com. Reg. No.: |
0107536001346 |
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Legal Form : |
Public Limited
Company |
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Line of Business : |
Manufacturers, exporters
and distributors of mixed cement,
ordinary portland cement
and high early
strength portland cement |
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
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Name
SIAM CITY CEMENT PUBLIC COMPANY LIMITED [SCCC]
SUMMARY
BUSINESS ADDRESS : 7-12th FLOOR, COLUMN
TOWER,
199 RATCHADAPISEK ROAD,
KLONGTOEY, BANGKOK 10110,
THAILAND
TELEPHONE : [66]
2797-7000
FAX :
[66] 2797-7001-2
E-MAIL ADDRESS : pr@sccc.co.th
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1969
REGISTRATION NO.
: 0107536001346 [Former : BOR.MOR.JOR.208]
CAPITAL REGISTERED : BHT. 3,000,000,000
CAPITAL PAID-UP
: BHT. 2,500,000,000
FISCAL YEAR CLOSING
DATE : DECEMBER
31
LEGAL STATUS : PUBLIC
LIMITED COMPANY
EXECUTIVE : MR. LEO
MITTELHOLZER, SWISS
PRESIDENT
NO. OF
STAFF : 2,890
LINES OF
BUSINESS : MIXED CEMENT,
ORDINARY
PORTLAND
CEMENT AND HIGH
EARLY
STRENGTH
PORTLAND CEMENT
MANUFACTURER, EXPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD WITH
NORMAL BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject
was established on May
16, 1969 as a private
limited company under registered
name “SIAM CITY
CEMENT CO., LTD.”
The
subject is Thailand's second largest
cement producer which
has a market share of 28%
by capacity. The
other major producers
are Siam Cement
[63%] and Jalaprathan
Cement [10%]. SCCC has
9 subsidiaries which
all are involved
in construction related
businesses except one,
Lanna Lignite, a
mine lignite coal
in North Thailand. The
subject began cement
production in 1972
at a factory with one
production line in
Kaeng Khoi, Saraburi
with an annual
capacity of 600,000
tons per annum.
Subsequently, it has
built two additional
factories with a total of
six production lines
at the same location,
bringing the total production capacity
to 12.3 million
tons of clinker
per annum.
The subject
was listed on
the Stock Exchange
of Thailand on
April 15, 1977, and registered as
a public limited
company on November
5, 1993. It
currently employs 2,890
staff.
The subject
was awarded for
ISO 9002, ISO
14001 and TIS
18001 Certification in
1997, 1998 and
2001 respectively.
The subject’s
registered address is
898 Ploenchit Rd.,
Lumpinee, Pathumwan, Bangkok
10330, and this
is the subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Krit
Ratanarak |
[x] :
Chairman |
Thai |
60 |
|
Mr. Paul
Heinz Hugentobler |
[+] :
Vice Chairman |
Swiss |
57 |
|
Mr. Veraphan
Teepsuwan |
[x] |
Thai |
65 |
|
Mr. Urs
Wolfgang Bieri |
[+] |
Swiss |
51 |
|
Mr. Leo
Mittelholzer |
[+] |
Swiss |
55 |
|
Mr. Harald
Link |
|
German |
51 |
|
Mr. Wanchai
Thosomboon |
[-] |
Thai |
57 |
|
Dr. Sura
Sanittanont |
|
Thai |
60 |
|
Mr.
Ekasak Puriphol |
|
Thai |
62 |
|
Mr. Prakob
Visitkijkarn |
|
Thai |
66 |
|
Mr. Chet
Raktakanishta |
:
Audit Committee |
Thai |
65 |
|
Ms. Chantana
Sukumanont |
[-] |
Thai |
56 |
AUTHORIZED PERSON
One of
the directors [x]
can jointly sign
with one of
the directors [+]
or one of the directors
[x] or [+] can jointly
sign with one
of the directors [-] on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr.
Leo Mittelholzer
is the President.
He is
Swiss nationality with
the age of
55 years old.
Ms.
Chantana Sukumanont
is the Executive Vice President [Marketing & Sales].
She is
Thai nationality with
the age of
56 years old.
Mr.
Wanchai Thosomboon
is the Executive Vice President
[Saraburi Operations].
He is
Thai nationality with
the age of
57 years old.
Mr.
Nopporn Thepsittha
is the Senior Vice President
[Logistics & Exports].
He is
Thai nationality.
Mr.
Andreas Leutenegger
is the Senior Vice President
[Finance & Controlling].
He is
Swiss nationality.
Mr.
Rungroj Soonthornsatienkul
is the Senior Vice President.
[Human Resource & Administrative]. He
is Thai nationality.
Mr. Kitti
Boonprakorng is the Products Development
Manager.
He is
Thai nationality.
BUSINESS OPERATIONS
The subject’s
activities are the
manufacturer, exporter and
distributor of: mixed
cement, ordinary portland
cement and high
early strength portland
cement. The subject employs
the most advanced
cement production technology
which contributes to the
lowest unit cost.
In addition to
cement, the subject
is the distributor of
building products manufactured by
its subsidiaries. The
main products are
“KARAT” sanitaryware, bathroom
fittings and roofing
tiles.
MAJOR BRANDS
Portland Cement : “DIAMOND”
Mixed Cement : “EAGLE”,
“INSEE MORTAR MAX”
High Early
Strength Portland Cement :
“THREE DIAMOND”
Asbestos &
Cement Tiles : “DIAMOND”
& “ROOF”
Sanitaryware,
Bathroom Fittings, Ceramic Wall and
Floor Tiles &
PVC Pipes :
“KARAT”
PRODUCTION
12.3 million
tons per year
IMPORT [COUNTRIES]
20% of
raw materials and spare parts are
imported from Switzerland, Germany and United
States of America, and the
majority of 80%
is purchased from
local suppliers.
EXPORT [COUNTRIES]
70% of
its products is
exported to Europe, United States of
America, Australia, Middle
East, Africa and
South East Asia.
SALES [LOCAL]
30% of
its products is
sold locally to
wholesalers, Thai Government
and end-users.
SUBSIDIARIES
|
Name |
Business Type |
Investment |
|
Siam City
Concrete Co., Ltd. |
Ready-mixed concrete |
99.99 |
|
Siam City
Tiles and Pipes
Co., Ltd. |
Tiles and
Pipes |
99.99 |
|
Eagle Cement
Holdings Co., Ltd. |
Holding company |
99.99 |
|
Khmer Cement
Industry Co., Ltd. |
Cement trading
company |
75.00 |
|
Conwood Co.,
Ltd. |
Construction material |
99.99 |
|
Karat Faucet
Co., Ltd. |
Brassware |
99.99 |
CREDIT
Purchasing terms
are on the credits of
30-60 days.
Imports are
by L/C at sight and
D/A on the credits of
90-180 days & T/T.
Selling terms
are on the credits of
30-60 days.
Exports are
against L/C at
sight.
BANKING
Bank
of Ayudhya Public
Co., Ltd.
[Head Office :
1222 Rama 3
Rd., Bangpongpang, Yannawa,
Bangkok 10120]
Bangkok
Bank Public Co.,
Ltd.
[Bangkapi Branch : Sukhumvit Rd., Klongtoeynua, Wattana,
Bangkok 10110]
Citibank
NA.
[Bangkok Branch :
82 North Sathorn
Rd., Silom, Bangrak,
Bangkok 10500]
EMPLOYMENT
The
subject employs 2,890 staff
[office staff, sales
staff and factory
workers].
LOCATION DETAILS
The premise
is rented for administration office and Customer
Services Center at
the heading address.
Premise is located
in a prime commercial area.
Factory and
Services Center are
located at 99
Moo 9 & 219 Moo
5 Mitrapap Rd., Km. 129-131 Tabkwang Sub-district, Kaengkhoi,
Saraburi Province 18110,
Tel : [66] 36 251-824-43. Fax
: [66] 36 251-820-1.
Sales Offices
are located in Chiangmai, Suratthani and Khon
Kaen province.
COMMENT
Despite the
slow-down in the
general economy, domestic
cement consumption is continued
to grow at
seven percent per
annum in 2006.
The steep rise
in the price implement more
efficient production techniques,
to lay the foundations for the
conversion to alternative
fuels and raw
materials, and to
seek constant improvements at all levels
of operations. The
subject is confidence
to have successfully adapted to the
current more challenging
market environment.
It is
expected that the
new Government commitment
to national infrastructure projects will make
a significant contribution to stimulating sustainable
economic growth in the
years to come.
FINANCIAL INFORMATION
The capital
was initially registered
at Bht. 100,000
with fully paid.
The capital
was increased later
as followings:
Bht. 140,000,000 in August, 1970
Bht. 475,000,000 in September, 1978
Bht. 731,500,000 in August, 1985
Bht. 975,333,300 in February, 1989
Bht.
1,500,000,000 in November,
1993
The latest
capital was increased
to Bht. 3,000,000,000, divided into 300,000,000
shares of Bht.
10 each with
the current capital
paid-up of Bht.
2,500,000,000.
MAIN SHAREHOLDERS
[as at
August 25, 2006]
at Bht. 2,500,000,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Sunrise Equity
Co., Ltd. |
80,065,840 |
32.03 |
|
Thai Rock-Cem
Co., Ltd. |
77,628,433 |
31.05 |
|
Siam City
Cement Public Company
Limited |
17,119,200 |
6.85 |
|
DBS Vickers
Securities [Singapore] Pte.
Ltd. |
8,340,600 |
3.34 |
|
Parkmix Limited-JPMSAPL Client A/C |
7,051,100 |
2.82 |
|
Sri Ayudhya
Insurance Plc. |
4,068,800 |
1.63 |
|
Little Down
Nominee Limited |
3,348,724 |
1.34 |
|
HSBC [Singapore] Nominee Pte. Ltd. |
3,335,748 |
1.33 |
|
Goldman Sachs
& Co. |
2,376,600 |
0.95 |
|
Vayupak 1
Mutual Fund by
MFC |
2,254,000 |
0.90 |
|
Vayupak 1
Mutual Fund by
Krungthai Securities Plc |
2,254,000 |
0.90 |
|
Mrs. Sasithorn Ratanarak |
2,085,040 |
0.83 |
|
Chase Nominees
Limited |
1,958,328 |
0.78 |
|
Others |
38,113,587 |
15.25 |
Total
Shareholders : 3,721
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Ruth
Chaowanagawi No. 3247
Ernst &
Young Office Limited
BALANCE SHEET [BAHT]
The latest
financial figures published as
at December 31,
2005 & 2004
were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash &
Cash Equivalents
|
2,084,844,775 |
1,694,639,616 |
|
Trade Accounts
Receivable Subsidiaries & Related Companies |
505,945,696 |
302,771,611 |
|
Other
Companies |
1,138,781,032 |
1,320,149,453 |
|
Inventories |
1,659,395,598 |
1,311,809,324 |
|
Account Receivable - Subsidiaries &
Related Companies |
117,278,614 |
117,006,679 |
|
Advance Payments
to Suppliers Other
Companies |
44,161,238 |
263,263,188 |
|
Other Current
Assets |
123,532,503 |
176,671,885 |
|
|
|
|
|
Total
Current Assets |
5,673,939,456 |
5,186,311,756 |
|
Investment accounted
for under Equity
Method |
1,630,142,249 |
1,620,921,310 |
|
Other Investments to Other Companies |
- |
9,409,946 |
|
Long-term to
Subsidiaries |
991,165,288 |
538,660,470 |
|
Fixed
Assets |
9,576,847,656 |
9,571,004,031 |
|
Assets not
used in Operations |
1,486,430,442 |
1,850,309,795 |
|
Intangible Assets |
388,266,730 |
96,291,678 |
|
Other
Assets Deferred
Income Tax |
342,607,710 |
345,841,981 |
|
Others |
118,606,872 |
114,364,651 |
|
Total
Assets |
20,208,006,403 |
19,333,115,618 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Trade Accounts
Payable Associated & Related Companies |
113,069,013 |
389,347,496 |
|
Other
Companies |
973,058,901 |
729,948,435 |
|
Other Current
Liabilities Accrued
Rebate |
118,458,736 |
208,922,429 |
|
Accrued
Electricity |
220,952,403 |
222,838,872 |
|
Corporate
Income Tax Payable |
663,541,941 |
947,874,859 |
|
Other
Accrued Expenses |
500,775,293 |
397,148,866 |
|
Advance
from Customers |
25,909,430 |
36,608,801 |
|
Others |
18,705,444 |
57,782,313 |
|
|
|
|
|
Total Current Liabilities |
2,634,471,161 |
2,990,472,071 |
|
Other Liabilities Long-term
Liabilities for Concession |
311,080,458 |
- |
|
Provident
Fund |
396,649,387 |
343,013,677 |
|
Reserve for Employee Retirement Benefit Plan |
61,878,736 |
61,878,736 |
|
Total
Liabilities |
3,404,079,742 |
3,395,364,484 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
|
2005 |
2004 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10 par value
Authorized & issued
share capital 300,000,000 shares |
3,000,000,000 |
3,000,000,000 |
|
|
|
|
|
Capital Paid |
2,500,000,000 |
2,500,000,000 |
|
Share Premium |
10,106,266,730 |
10,106,266,730 |
|
Translation Adjustments |
[149,697] |
- |
|
Retained Earning Appropriated for Statutory Reserve |
300,000,000 |
300,000,000 |
|
Treasury Stock Reserve |
2,985,423,947 |
- |
|
Unappropriated |
3,897,809,628 |
6,016,908,351 |
|
|
|
|
|
Total Equity
Attributable to the
Company’s Shareholders |
19,789,350,608 |
18,923,175,081 |
|
Less: Treasury
Stock |
[2,985,423,947] |
[2,985,423,947] |
|
Equity Attributable to the Company’s
Shareholders - Net |
16,803,926,661 |
15,937,751,134 |
|
Total Shareholders' Equity |
16,803,926,661 |
15,937,751,134 |
|
Total Liabilities & Shareholders' Equity |
20,208,006,403 |
19,333,115,618 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales |
19,852,067,549 |
16,983,766,658 |
|
Other Income |
210,983,482 |
230,113,896 |
|
Share of
Profit from Investment accounted for under
Equity Method |
342,059,345 |
357,877,998 |
|
Gain
on Sale of Investment in Share
of Subsidiary |
11,594,475 |
179,592,073 |
|
Total
Revenues |
20,416,704,851 |
17,751,350,625 |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Sales |
12,785,107,160 |
10,086,291,670 |
|
Selling &
Administrative Expenses |
1,807,914,362 |
1,431,847,776 |
|
Directors’ Remuneration |
14,530,000 |
18,176,000 |
|
Mutual Separation Expenses |
- |
32,669,018 |
|
Other Expenses |
25,905,668 |
219,688,709 |
|
Total Expenses
|
14,633,457,190 |
11,788,673,173 |
|
|
|
|
|
Profit
/ [Loss] before Interest
Expenses & Income
Tax |
5,783,247,661 |
5,962,677,452 |
|
Interest Expenses |
[37,682,405] |
[24,308,544] |
|
Income Tax |
[1,673,025,132] |
[1,796,952,387] |
|
|
|
|
|
Net
Profit / [Loss] |
4,072,540,124 |
4,141,416,521 |
FINANCIAL ANALYSIS
Annual
Growth & Profitability
|
Annual
Growth |
2005 |
2004 |
|
Sales |
16.89 |
|
|
Operating |
[7.37] |
|
|
Net Profit |
[1.66] |
|
|
Fixed Assets |
0.06 |
|
|
Total Assets |
4.53 |
|
|
Profitability |
|
|
|
Cost of
Goods Sold |
64.40 |
59.39 |
|
Operating Profit
Margin |
35.60 |
40.61 |
|
S&A expenses |
9.11 |
8.43 |
|
Interest |
0.19 |
0.14 |
|
Other Revenues |
2.84 |
4.52 |
|
Net Profit
Margin |
20.51 |
24.38 |
|
Earning Per
Shares |
16.29 |
16.57 |
|
No. of
Shares |
250,000,000 |
250,000,000 |
Net Sales was
increased by 16.89%,
Operating Profit was
decreased by 7.37%,
Net Profit was decreased by 1.66%, Fixed
Assets was increased
by 0.06%, Total
Assets was increased
by 4.53%.
Compare each cost
with sales, Cost
of Goods Sold
was increased from
59.39% to 64.40%,
Operating Profit Margin
was decreased from
40.61% to 35.60%,
S & A
Expenses were increased
from 8.43% to
9.11%, Interest Paid
was increased from
0.14% to 0.19%,
Other Revenues was
decreased from 4.52%
to 2.84%, Net
Profit Margin was
decreased from 24.38%
to 20.51%.
Earning Per
Shares was decreased
from 16.57 baht
per share to
16.29 baht per
share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
2.15 |
1.73 |
|
Quick
- assets ratio |
1.48 |
1.24 |
Current Ratio
was increased from
1.73 to 2.15,
show Current Assets
can cover Current
Liabilities, Liquidity Ratio
of the company was good,
and Quick-assets Ratio
was increased from
1.24 to 1.48,
capacity to pay
Short Term Loan
was good too,
because Current Assets
without Inventory can
cover Current Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
0.20 |
0.21 |
|
Times Interest
Earned |
139.56 |
224.84 |
D/E Ratio was
decreased from 0.21
to 0.20, show the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low
and Times Interest
Earned was decreased
from 224.84 to
139.56, capacity to
pay interest paid
was good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets
Turnover |
2.07 |
1.77 |
|
Total Assets
Turnover |
0.98 |
0.88 |
|
Return on
Assets |
22.15 |
21.42 |
|
Return on
Equity |
24.24 |
25.98 |
|
Day’s Payable |
27.78 |
26.42 |
|
Day’s Inventories |
47.37 |
47.47 |
|
Days’ Receivables |
20.94 |
28.37 |
Fixed Assets Turnover
was increased from
1.77 times to
2.07 times, Total
Assets Turnover was
increased from 0.88
times to 0.98
times, show the
company could use
Assets so efficiently, and Return on
Assets was increased
from 21.42 to
22.15, Return on
Equity was decreased
from 25.98 to
24.24, capacity to
use Assets to
make profit was
good.
Day’s Payable
was increased from
27 days to
28 days, while
Day’s Inventories was
stable at 48
days, but Day’s
Receivables was decreased
from 29 days
to 21 days.
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|