MIRA
INFORM REPORT
|
Report Date : |
01.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
THAI HANSA WELDING ELECTRODES CO., LTD. |
|
|
|
|
Registered Office : |
386/2 Moo 1,
Soi Bee-Thai, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
1972 |
|
|
|
|
Com. Reg. No.: |
0105515000641 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of welding
electrodes |
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 |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name
THAI HANSA WELDING ELECTRODES CO., LTD.
SUMMARY
BUSINESS ADDRESS
: 386/2 MOO
1, SOI BEE-THAI,
BANGPOOMAI, MUANG,
SAMUTPRAKARN 10280,
TELEPHONE : [66]
2323-0022, 2323-0605-8
FAX : [66] 2323-9832
E-MAIL ADDRESS : t-hansa@thaiexponet.com, gmini@ksc.th.com
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1972
REGISTRATION NO. : 0105515000641 [Former: 65/2515]
CAPITAL
REGISTERED : BHT. 50,000,000
CAPITAL
PAID-UP : BHT. 50,000,000
FISCALYEAR
CLOSING DAT : DECEMBER 31
LEGAL STATUS
: PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
OUAYCHAI APINORASETH, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 150
LINES OF
BUSINESS : WELDING
ELECTRODES
MANUFACTURER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD WITH
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on January
26, 1972 as
a private limited
company under the
name style THAI
HANSA WELDING ELECTRODES
CO., LTD., by Apinoraseth family.
The subject received
promotional privileges from
the Board of
Investment of Thailand
to produce welding
electrode products. It
currently employs 150
staff.
The subject’s registered
address is 386/2
Moo 1, Sukhumvit
Rd., Bangpoomai, Muang,
Samutprakarn 10280, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
Name Nationality Age
Mr. Ouaychai Apinoraseth Thai 59
Mr. Apichart Apinoraseth Thai 49
Mr. Chao Apinoraseth Thai 72
Mr. Pairoj Apinoraseth Thai 68
Mr.
Mr. Prapin Apinoraseth Thai 46
Mr. Thawatchai Apinoraseth Thai -
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Ouaychai
Apinoraseth is the
Managing Director.
He is Thai
nationality with the
age of 59
years old.
Mr. Apichart Apinoraseth is
the General Manager
& Plant Manager.
He is Thai
nationality with the
age of 49
years old.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of welding electrodes
as the followings :
Mild Steel
High Tensite Steel
Hard Facing Steel
Stainless Steel
Cast Iron, copper
alloy and nickel
alloy
Low Temperature Service
Steel
Heat Resistant Steel
Corrosion Resistant Steel
Welding Cable
etc.
MAJOR BRANDS
“GEMINI”, “NAKATA”
PRODUCTION
1,500 tons/month
IMPORT [COUNTRIES]
60% of raw
materials & steel
are imported from
Japan, France, United
Kingdom, Singapore, Taiwan,
Malaysia, Germany, Australia
and Brazil.
MAJOR SUPPLIERS
|
Name |
Country |
|
|
|
|
|
|
B.H.P. Steel Co.,
Ltd. |
|
[5-10%] |
|
Maison Matthew |
|
[5-10%] |
|
Hansa Metallwerke AG.
|
|
[5-10%] |
EXPORTS [COUNTRIES]
60% of its
products is exported
to United States of America, Germany,
Singapore, United Kingdom, Canada,
Australia, Vietnam, Mynmar,
Laos and France.
SALES [LOCAL]
40% of its
products is sold
locally to manufacturers, wholesalers
and retailers.
MAJOR CUSTOMERS
Lertvilai & Sons
Co., Ltd. :
M. C. P. Brothers Co.,
Ltd. :
RELATED &
AFFILIATED COMPANIES
Lertvilai &
Sons Co., Ltd.
Business Type: Trading Company
Gemini [
Business Type: Manufacturer of welding electrodes.
M. C. P. Brothers
Co., Ltd.
Business Type :
Trading company.
Thanyanoraseth Co.,
Ltd.
Business Type :
Manufacturer of welding
electrodes.
Triangle Cables
[
Business Type :
Manufacturer of flexible
power.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no legal
suits filed against
the subject for
the past two
years.
CREDIT
Sales are by
cash or on
the credits term
of 30-45 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by L/C at
sight or on
the credits term
of 30-60 days
& T/T.
Exports are against
L/C at sight
or D/P at
sight.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head Office
:
The Siam
Commercial Bank Public
Co., Ltd.
[Taladnoi Branch,
Taladnoi, Samphantawong,
EMPLOYMENT
The subject employs
150 office staff
and factory workers.
LOCATION DETAILS
The premise is
owned for operating
office, factory and
warehouse at the
heading address. Premise
is located in
an industrial area
on 12,800 square
meters of area.
COMMENT
Despite slowdown in
domestic market caused by
economic turmoil, industrial
sector has also
risen about 10%
from previous years.
However, the subject
is doing healthy
business and trend
is in progress.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,500,000 divided into
15,000 shares of
Bht. 100 each.
Capital was increased
later as followings
:
Bht. 9,000,000
in December 1981
Bht. 26,000,000
on February 28,
1989
Bht. 50,000,000
on February 15,
1993
The latest registered
capital was increased
to Bht. 50,000,000
divided into 500,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30,
2005]
|
NAME |
HOLDING |
% |
|
Mr. Kasem
Apinoraseth Nationality: Thai Address : |
99,983 |
19.99 |
|
Mr. Chao
Apinoraseth Nationality: Thai Address :
Samphantawong, |
75,000 |
15.00 |
|
Mr. Pairoj
Apinoraseth Nationality: Thai Address : 244
Moo 5, Taiban,
Muang, Samutsakorn |
75,000 |
15.00 |
|
Mr. Umphan
Apinoraseth Nationality: Thai Address : |
33,309 |
6.66 |
|
Mr. Ouaychai
Apinoraseth Nationality: Thai Address : |
33,309 |
6.66 |
|
Mr.
Apichart Apinoraseth Nationality: Thai Address : Samphantawong, |
33,309 |
6.66 |
|
Mr. Visit
Apinoraseth Nationality: Thai Address : |
33,309 |
6.66 |
|
Mr. Nationality: Thai Address : |
33,309 |
6.66 |
|
Mr. Prapin
Apinoraseth Nationality: Thai Address :
Samphantawong, |
33,309 |
6.66 |
|
Mr. Tavatchai
Apinoraseth Nationality: Thai Address :
Samphantawong, |
33,309 |
6.66 |
|
Mr. Lertvilai
Apinoraseth Nationality: Thai Address : Samphantawong, |
16,854 |
3.39 |
Total Shareholders
11
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Yongyuth Tangsirisa-nguan No.
2400
BALANCE SHEET [BAHT]
The 2006, financial
statement has not
yet available during
this current investigation.
The
latest financial figures
published for December
31, 2005 &
2004 were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash in hand
& at Bank
[note 1] |
6,561,706.17 |
4,873,259.48 |
|
Short Term Investment |
17,500.70 |
17,392.67 |
|
Trade Accts. & Notes
Receivable |
100,618,070.99 |
107,361,824.98 |
|
Inventories &
Packaging [note 2] |
54,249,251.70 |
57,735,657.83 |
|
Other Current Assets
[note 3] |
1,655,507.88 |
8,079,353.46 |
|
Total Current
Assets |
163,102,037.44 |
178,067,488.42 |
|
|
|
|
|
Fixed Assets [note 4] |
17,368,356.36 |
18,115,685.90 |
|
Other Assets |
765,982.46 |
580,720.70 |
|
Total Assets
|
181,236,376.26 |
196,763,895.02 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Bank Overdraft &
Short Term Loan
from Financial Institute |
45,503,234.29 |
59,213,858.52 |
|
Trade Accts. Payable |
31,781,003.61 |
44,508,496.18 |
|
Current Portion of Contract
Liabilities |
2,001,756.00 |
1,106,520.00 |
|
Accrued Income Tax |
2,008,169.56 |
1,226,299.72 |
|
Other Current Liabilities |
7,870,997.81 |
6,209,881.38 |
|
Total Current
Liabilities |
89,165,161.27 |
112,265,055.80 |
|
Contract Liabilities Net of
Current Portion |
2,827,189.00 |
1,343,844.00 |
|
Total Liabilities |
91,992,350.27 |
113,608,899.80 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
|
Statutory Reserve |
5,000,000.00 |
- |
|
Retained Earning -
Unappropriated |
34,244,025.99 |
33,154,995.22 |
|
Total
Shareholders' Equity |
89,244,025.99 |
83,154,995.22 |
|
Total
Liabilities & Shareholders' Equity |
181,236,376.26 |
196,763,895.02 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales |
364,159,070.08 |
305,817,239.74 |
|
Services Income |
1,773,257.94 |
- |
|
Gain on Exchange
Rate |
2,936,443.83 |
- |
|
Other Income |
2,416,367.20 |
2,510,487.38 |
|
Total Revenues
|
371,285,139.05 |
308,327,727.12 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
323,956,715.12 |
265,862,421.97 |
|
Selling & Administrative Expenses |
34,280,981.06 |
31,657,911.02 |
|
Total Expenses |
358,237,696.18 |
297,520,332.99 |
|
Profit / [Loss] Before Interest
Expenses & Income Tax |
13,047,442.87 |
10,807,394.13 |
|
Interest Expenses |
[2,255,740.77] |
[1,412,820.49] |
|
Income Tax |
[3,702,671.33] |
[3,123,385.90] |
|
Net Profit / [Loss] |
7,089,036.77 |
6,271,187.74 |
FINANCIAL NOTE
NOTE 1
Cash in Hand & at
Bank
|
|
2005 |
2004 |
|
|
|
|
|
Cash in hand |
161,865.87 |
142,685.94 |
|
Cash at bank-Saving
account |
3,283,592.22 |
1,202,602.75 |
|
-Current account |
3,116,248.08 |
3,527,970.79 |
|
Total
|
6,561,706.17 |
4,873,259.48 |
NOTE 2
Inventories
|
|
2005 |
2004 |
|
|
|
|
|
Raw Material |
20,040,349.85 |
22,348,515.25 |
|
Packaging |
1,744,879.75 |
2,031,770.64 |
|
Goods in Process |
6,486,223.92 |
7,747,240.33 |
|
Finished Goods |
25,977,798.18 |
25,608,131.61 |
|
Total
|
54,249,251.70 |
57,735,657.83 |
NOTE 3 Other Current
Assets
|
|
2005 |
2004 |
|
|
|
|
|
Prepaid Expenses |
184,450.09 |
150,130.88 |
|
Receivable-Revenue Department |
878,457.97 |
7,484,874.45 |
|
Undue Business Tax |
32,839.66 |
58,877.53 |
|
Deferred Interest |
492,310.55 |
273,724.33 |
|
Other |
67,449.61 |
111,746.27 |
|
Total
|
1,655,507.88 |
8,079,353.46 |
NOTE 4
Fixed Assets
|
|
2005 |
2004 |
|
|
|
|
|
Land |
3,368,000.00 |
3,368,000.00 |
|
|
5,589,503.38 |
5,589,503.38 |
|
Machine |
29,675,660.56 |
29,675,660.56 |
|
Hand Tool |
21,962,563.23 |
21,794,863.23 |
|
Electrical Equipment |
768,540.00 |
768,540.00 |
|
Forklift |
2,293,921.67 |
2,293,921.67 |
|
Vehicle |
14,761,825.77 |
10,789,863.15 |
|
Operating Assets |
4,849,347.58 |
4,654,042.05 |
|
Furniture |
242,247.52 |
242,247.52 |
|
Machine under Installation |
102,357.69 |
102,357.69 |
|
Total |
83,613,967.40 |
79,278,999.25 |
|
Less: Depreciation |
[66,245,611.04] |
[61,163,313.35] |
|
Total
|
17,368,356.36 |
18,115,685.90 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2005 |
2004 |
|
Sales |
19.08 |
|
|
Operating |
0.05 |
|
|
Net Profit |
13.04 |
|
|
Fixed Assets |
[4.13] |
|
|
Total Assets |
[7.89] |
|
|
Profitability |
|
|
|
Cost of Goods
Sold |
88.96 |
86.94 |
|
Operating Profit Margin |
11.04 |
13.06 |
|
S&A expenses |
9.41 |
10.35 |
|
Interest |
0.62 |
0.46 |
|
Other Revenues |
1.96 |
0.82 |
|
Net Profit Margin |
1.95 |
2.05 |
|
Earning Per Shares |
14.18 |
12.54 |
|
No. of Shares |
500,000 |
500,000 |
Net Sales was increased by 19.08%, Operating Profit was increased by 0.05%, Net Profit was increased by 13.04%, Fixed Assets was decreased by 4.13%, Total Assets was decreased by 7.89%.
Compare each cost with sales, Cost of Goods Sold was increased from 86.94% to 88.96%, Operating Profit Margin was decreased from 13.06% to 11.04%, S & A Expenses were decreased from 10.35% to 9.41%, Interest Paid was increased from 0.46% to 0.62%, Other Revenues was increased from 0.82% to 1.96%, Net Profit Margin was decreased from 2.05% to 1.95%.
Earning Per Shares was increased from 12.54 baht per share to 14.18 baht per share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
1.83 |
1.59 |
|
Quick - assets ratio |
1.20 |
1.00 |
Current Ratio was increased from 1.59 to 1.83, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, and Quick-assets Ratio was increased from 1.00 to 1.20, 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 |
1.03 |
1.37 |
|
Times Interest Earned |
2.63 |
5.87 |
D/E Ratio was decreased from 1.37 to 1.03, show the company had fund from Loan more than fund from Equity, investment risked of the company is medium and Times Interest Earned was decreased from 5.87 to 2.63, capacity to pay interest paid was good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets Turnover |
20.97 |
16.88 |
|
Total Assets Turnover |
2.01 |
1.55 |
|
Return on Assets |
3.91 |
3.19 |
|
Return on Equity |
7.94 |
7.54 |
|
Day’s Payable |
35.81 |
61.11 |
|
Day’s Inventories |
61.12 |
79.26 |
|
Days’ Receivables |
100.85 |
128.14 |
Fixed Assets Turnover was increased from 16.88 times to 20.97 times, Total Assets Turnover was increased from 1.55 times to 2.01 times, show the company could use Assets so efficiently, and Return on Assets was increased from 3.19 to 3.91, Return on Equity was increased from 7.54 to 7.94, capacity to use Assets to make profit was good.
Day’s Payable was
decreased from 62
days to 36
days, Day’s Inventories
was decreased from
80 days to
62 days, and
Day’s Receivables was
decreased from 129
days to 101
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 |
|
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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)