MIRA
INFORM REPORT
|
Report Date : |
1st
February, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
NAMHENG
STEEL COMPANY LIMITED |
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Registered Office : |
569 Rama 3 Road, Bangpongpang, Yannawa,
Bangkok 10120, Thailand |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
22.04.1993 |
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Com. Reg. No.: |
0105536046968
[Former : 3780/2536] |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Manufacturer the various steel products such
as steel round bars,
steel deformed bars,
steel wire rods
and billet steel. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name
NAMHENG STEEL
COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 569 RAMA 3 ROAD,
BANGPONGPANG,
YANNAWA, BANGKOK 10120,
THAILAND
TELEPHONE : [66] 2295-0901-10
FAX : [66] 2295-3122
E-MAIL ADDRESS : info-steel@namhenggroup.com
REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS
ESTABLISHED : 1993
REGISTRATION NO.
: 0105536046968 [Former :
3780/2536]
CAPITAL REGISTERED : BHT. 900,000,000
CAPITAL PAID-UP
: BHT. 900,000,000
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VASAN PITIPEERAKUL, THAI
MANAGING
DIRECTOR
NO. OF
STAFF : 400
LINES OF
BUSINESS : STEELS
MANUFACTURER, DISTRIBUTOR &
EXPORTER
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
April 22, 1993
as a private limited company under the name style NAMHENG STEEL COMPANY LIMITED by Thai groups,
in order to produce
a wide range of steel
products. It was granted
the promotional privileges
from Board of
Investment [BOI ], Thailand.
The subject
has received many certifications
such as ISO 9002 and ISO 900/200 from SGS Yarsley
International Certification Service in
2000 & 2003 and TIS 20-2527, TIS 24-5636
and TIS 348-2540 by
Thai Industrial Standards Department for Thailand’s best products.
The subject
is the company in Namheng
Group, a Thailand’s
leading company in
the steel industry, construction material
and related businesses.
The subject’s
registered address is
569 Rama 3 Rd.,
Bangpongpang, Yannawa, Bangkok
10120, and this
is the subject’s current operation
address.
THE BOARD OF DIRECTORS
Name Nationality Age
Mr. Vasan
Pitipeerakul [x] Thai 55
Mr. Suriyan
Pitipeerakul : Chairman [x] Thai 63
Mr. Damrong
Taweesaengsakulthai Thai 56
AUTHORIZED PERSON
One of
the mentioned directors
[x] can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr.
Vasan Pitipeerakul
is the Managing Director.
He is
Thai nationality with
the age of
55 years old.
He has been the Managing Director since 1993.
Mr.
Yannasit Kespinyo
is the Assistant Managing Director
and Manager of
Legal Department.
He is
Thai nationality.
Mr.
Somchart Chartmanakiatsakul
is the Account & Finance
Director.
He is
Thai nationality
Mr.
Thanasit Claysri is
the Steel Making
Department Manager.
He is
Thai nationality.
Mr.
Nanthapol Thuaktao is the Quality
Assurance Manager.
He is
Thai nationality.
Mr.
Natthapol Shaimool
is the Rolling Mill Manager.
He is
Thai nationality.
Mr. Thanadej Ampanthong is the Information Technology
Manager.
He is
Thai nationality.
Mr. Prateep
Koonsadiang is
the Utility Department
Manager.
He is
Thai nationality.
BUSINESS OPERATIONS
The subject’s
activity is manufacturer the various steel products
such as steel round
bars, steel deformed
bars, steel wire
rods and billet
steel.
The products
are as follows:
- Steel
Round Bars
: SR 24 with
range from 6-25
mm. in diameter
- Steel
Deformed Bars : SR 30, SD 40 & SD 50 with range from
12-40 mm. in
diameter
- Steel
Wire Rods : SWRM 15,
SWRM 17, SWRM 20, SWRM 22 with
range from
5.5-12 mm. in
diameter.
- Billet Steel : with range
from 100x100 mm. + 2.5 mm. to 150x150 mm.+ 5 mm.
in
diameter.
PURCHASE
The subject
purchases raw materials
for the production process mainly
steel scrap, chemical
and machinery from
over 50 suppliers
both local and
overseas countries such
as Switzerland, Italy,
Brazil, Republic of
China, Germany and
South Africa.
MAJOR SUPPLIERS
A B
B Industrie AG :
Switzerland
Concast Standard :
Switzerland
Semac : Italy
Azominas Brazil :
Brazil
Nordic :
South Africa
Purmetall
GmbH : Germany
SALES [LOCAL]
80% of
its products is
sold locally to
manufacturers, wholesalers and
end-users, the remaining
20% is exported to Taiwan,
Malaysia, Vietnam, Singapore,
Indonesia and Republic
of China.
RELATED AND AFFILIATED COMPANY
Namheng Group consists of the following
companies:
- Namheng
Concrete [1992] Co., Ltd.
Business Type: Manufacturer & distributor
of concrete
-
Namheng Stone Co., Ltd.
Business Type: Manufacturer & distributor
of crushed stone
-
Namheng International, Trading
Ltd.
Business Type: Import & distributor
of hardware and tools
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
on the credits term of
30-60-90 days.
Local bills
are paid by
cash or on
the credit term
of 30 days.
Imports are
by L/C at sight or
on negotiated term
& T/T.
Exports are
against L/C at
sight & T/T.
BUSINESS TRANSACTION
In term
of sales, the
products are sold
by credit, with
the maximum credit given
at 30-90 days.
The subject is found to have around
20-30% for late payment from the customers.
BANKING
TMB
Bank Public Co.,
Ltd.
[Head
Office : 3000 Phaholyothin Rd., Jompol,
Jatujak, Bangkok]
The
Siam Commercial Bank
Public Co., Ltd.
[Sathupradit Branch:
600/137 Sathupradit Rd.,
Yannawa, Bangkok 10120]
Krung
Thai Bank Public
Co., Ltd.
[Head
Office : 35 Sukhumvit Rd.,
Klongtoeynua, Wattana, Bangkok]
EMPLOYMENT
The subject
employs approximately 400
staff. [office staff
and factory workers]
LOCATION DETAILS
The premise
is owned for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
Factory is
located at 99/9
T. Deelang, A.
Pattananikom, Lopburi 15220,
Tel:
[66] 36 436-291-3, Fax: [66] 36
436-306-7.
COMMENT
The
subject is one of the leading
manufacturer of construction steel. Its products
are widely used among the
construction contractors
throughout the nation,
as well as in overseas markets. With
the quality and high technology
in production processing has made the
company became the leading
in construction steel, iron and
wire industry. Today, the company is
well respected by
customers in both
domestic and overseas
markets.
The subject
is the first steel manufacturing in Thailand by using the high technology of D.C Electric Are Furnace from Germany,
Billet Caster Machine from Switzerland
and Rolling Machine from Italy.
FINANCIAL INFORMATION
The capital
was initially registered
at Bht. 1,000,000
divided into 100,000
shares of Bht.
10 each.
The capital
was increased later
as followings:
Bht. 400,000,000 on March
16, 1994
Bht. 500,000,000 on September
19, 1994
Bht. 700,000,000 on June
17, 1996
Bht. 900,000,000 on January
7, 1997
The latest
registered capital was
increased to Bht.
900,000,000 divided into
90,000,000 shares of
Bht. 10 each
with fully paid.
MAIN SHAREHOLDERS
[as at
April 28, 2006]
|
NAME |
HOLDING |
% |
|
|
|
|
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Mr.
Damrong Taweesaengsakulthai Nationality:
Thai Address :
2/1 Moo 2, Bangyai,
Nonthaburi |
60,000,000 |
66.67 |
|
Thai
Assets Management Co.,
Ltd. Nationality:
Thai Address : 1193 Phaholyothin Rd., Samsennai, Phyathai, Bangkok |
6,774,105 |
7.53 |
|
Krung
Thai Bank Public
Co., Ltd. Nationality:
Thai Address : 35 Sukhumvit Rd., Klongtoeynua, Wattana, Bangkok |
4,500,000 |
5.00 |
|
Mr.
Suchart Pruengmethakul Nationality:
Thai Address :
250/514 Moo 17,
Salathamsop, Taveewatana, Bangkok |
3,760,005 |
4.18 |
|
C. T. I.
Holding Co., Ltd. Nationality:
Thai Address : 191/1
Ratchadapisek Rd., Klongtoey, Bangkok |
2,800,000 |
3.11 |
|
Mr.
Viroj Kijkrailas Nationality: Thai Address :
144/26 Thanurat Rd.,
Tungwatdorn, Sathorn, Bangkok |
1,600,000 |
1.78 |
|
Others |
10,565,890 |
11.73 |
Total
Shareholders : 114
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Sathien
Wong-anan No. 3495
BALANCE SHEET [BAHT]
The latest financial
figures published as
at December 31,
2005 & 2004
were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash in
hand & at
Bank |
10,512,915.29 |
20,453,425.87 |
|
Trade Accts.
& Notes Receivable |
101,323,802.19 |
112,449,320.22 |
|
Inventories [note
1] |
359,265,058.77 |
413,141,091.23 |
|
Other Current
Assets Prepaid
Other Expenses |
4,909,397.65 |
11,735,651.83 |
|
Advance
for Goods |
- |
4,343,134.05 |
|
Revenue
Department Receivable |
8,087,334.42 |
6,061,390.04 |
|
Others |
3,726,423.69 |
3,367,647.45 |
|
|
|
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Total
Current Assets |
487,824,932.01 |
571,551,660.69 |
|
Cash at
Bank under Commitment |
375,624.15 |
655,090.12 |
|
Account Receivable & Loan to
Related Companies |
432,552.15 |
431,278.15 |
|
Fixed
Assets [note 2] |
813,585,472.63 |
927,566,836.17 |
|
Other
Assets |
1,687,095.79 |
1,039,784.21 |
|
Total
Assets |
1,303,905,676.73 |
1,051,244,649.34 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Bank Overdraft
& Loan from Bank |
59,537,753.73 |
64,988,221.38 |
|
Trade Accts.
& Notes Payable |
170,855,097.34 |
159,835,328.53 |
|
Account Payable
- Construction &
Machinery |
36,750,421.24 |
46,029,709.68 |
|
Current Portion
of Liabilities under
Hire- purchase
Contract |
1,649,928.01 |
1,470,800.79 |
|
Current Portion
of Contract Debt
Restructuring Liabilities |
7,078,565,270.35 |
316,057,940.28 |
|
Accrued Expenses |
1,036,323,617.86 |
67,958,628.19 |
|
Other Current
Liabilities |
5,974,728.14 |
7,257,343.29 |
|
|
|
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Total Current Liabilities |
8,389,656,816.67 |
663,597,972.14 |
|
Account Payable
& Loan from
Related Companies |
99,907,730.24 |
68,544,614.39 |
|
Hire-purchase Contract
Payable |
2,065,134.72 |
3,693,454.44 |
|
Liabilities under
Debt Restructuring Agreement |
- |
6,852,303,700.88 |
|
Total
Liabilities |
8,491,629,681.63 |
7,588,139,741.85 |
|
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Shareholders' Equity |
|
|
|
|
|
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Share capital : Baht 10 par value
authorized, issued and fully
paid
share capital 90,000,000 shares |
900,000,000.00 |
900,000,000.00 |
|
|
|
|
|
Capital
Paid |
900,000,000.00 |
900,000,000.00 |
|
Unappropriated [Deficit] |
[8,087,724,004.90] |
[6,986,895,092.51] |
|
Total Shareholders' Equity [Deficit] |
[7,187,724,004.90] |
[6,086,895,092.51] |
|
Total Liabilities & Shareholders' Equity |
1,303,905,676.73 |
1,501,244,649.34 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales |
1,046,159,491.44 |
1,508,471,679.88 |
|
Other Income |
7,923,236.51 |
27,507,520.06 |
|
Total
Revenues |
1,054,082,727.95 |
1,535,980,199.94 |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Goods Sold |
1,224,648,856.34 |
1,442,504,749.03 |
|
Selling &
Administrative Expenses |
34,188,265.21 |
31,106,537.93 |
|
Total Expenses
|
1,258,837,121.55 |
1,473,611,286.96 |
|
|
|
|
|
Profit
/ [Loss] before Interest
Expenses |
[204,754,393.60] |
62,368,912.98 |
|
Interest Expenses |
[982,781,627.72] |
[168,449,125.81] |
|
|
|
|
|
Profit
/ [Loss] before Extraordinary Item |
[1,187,536,021.32 |
[106,080,212.83] |
|
Gain from
Debt Restructuring |
86,707,108.93 |
- |
|
Net
Profit / [Loss] |
[1,100,828,912.39] |
[106,080,212.83] |
FINANCIAL NOTE
NOTE
1 Inventories
|
|
2005 |
2004 |
|
|
|
|
|
Raw Material |
85,501,743.59 |
59,877,913.64 |
|
Material Supplies |
89,655,260.64 |
101,003,904.96 |
|
Works in
Progress |
78,609,340.69 |
173,812,885.78 |
|
Finished Goods |
105,498,713.85 |
78,340,698.93 |
|
Goods in
Transit |
- |
105,687.92 |
|
Total |
359,265,058.77 |
413,141,091.23 |
NOTE
2 Fixed Assets
|
|
2005 |
2004 |
|
|
|
|
|
Land |
75,746,862.00 |
75,746,862.00 |
|
Land Improvement |
900,262.10 |
900,262.10 |
|
Building
|
1,022,383,275.09 |
1,022,383,275.09 |
|
Machinery
|
2,409,175,118.24 |
2,409,175,118.24 |
|
Vehicle |
76,210,514.85 |
80,209,742.23 |
|
Office Automation |
39,338,598.43 |
38,973,343.77 |
|
Materials |
14,230,388.55 |
12,424,424.54 |
|
Office Furniture |
118,349.69 |
115,807.85 |
|
Works under
Construction |
3,011,774.50 |
5,085,724.50 |
|
Total |
3,641,115,143.45 |
3,645,014,560.32 |
|
Less: Deprecation |
[1,327,245,860.57] |
[1,217,163,913.90] |
|
:Provision for
Decline Value of
Assets |
[1,500,283,810.25] |
[1,500,283,810.25] |
|
Total |
813,585,472.63 |
927,566,836.17 |
FINANCIAL ANALYSIS
Annual Growth & Profitability
|
Annual
Growth |
2005 |
2004 |
|
Sales |
[30.65] |
|
|
Operating |
[573.37] |
|
|
Net Profit |
[937.73] |
|
|
Fixed Assets |
[12.29] |
|
|
Total Assets |
[13.15] |
|
|
Profitability |
|
|
|
Cost of
Goods Sold |
117.06 |
95.63 |
|
Operating Profit
Margin |
[19.57] |
4.13 |
|
S&A expenses |
3.27 |
2.06 |
|
Interest |
93.94 |
11.17 |
|
Other Revenues |
0.76 |
1.82 |
|
Net Profit
Margin |
[102.23] |
[7.03] |
|
Earning Per
Shares |
[12.23] |
[1.18] |
|
No. of
Shares |
90,000,000 |
90,000,000 |
Net Sales was
decreased by 30.65%,
Operating Profit was
decreased by 573.37%,
Net Profit was
decreased by 937.73%,
Fixed Assets was
decreased by 12.29%,
Total Assets was
decreased by 13.15%.
Compare each cost
with sales, Cost
of Goods Sold
was increased from
95.63% to 117.06%,
Operating Profit Margin
was decreased from
4.13% to -19.57%,
S & A
Expenses were increased
from 2.06% to
3.27%, Interest Paid
was increased from
11.17% to 93.94%,
Other Revenues was
decreased from 1.82%
to 0.76%, Net
Profit Margin was
decreased from -7.03%
to -102.23%.
Earning Per
Shares was decreased
from -1.18 baht
per share to -12.23
baht per share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
0.06 |
0.86 |
|
Quick
- assets ratio |
0.01 |
0.20 |
Current Ratio
was decreased from
0.86 to 0.06,
show Current Assets
can not cover
Current Liabilities, Liquidity
Ratio of the
company was not
good, and Quick-assets Ratio was decreased
from 0.20 to
0.01, capacity to
pay Short Term
Loan was not
good too, because
Current Assets without
Inventory can not
cover Current Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
[1.18] |
[1.25] |
|
Times Interest
Earned |
[0.21] |
0.37 |
D/E Ratio was
increased from -1.25
to -1.18, 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 0.37 to
-0.21, capacity to
pay interest paid was not good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets
Turnover |
1.29 |
1.63 |
|
Total Assets
Turnover |
0.80 |
1.00 |
|
Return on
Assets |
[84.43] |
[7.07] |
|
Return on
Equity |
[15.32] |
[1.74] |
|
Day’s Payable |
58.79 |
38.15 |
|
Day’s Inventories |
123.63 |
98.60 |
|
Days’ Receivables |
34.87 |
26.84 |
Fixed Assets Turnover
was decreased from
1.63 times to
1.29 times, Total
Assets Turnover was
decreased from 1.00
times to 0.80
times, show the company could
not use Assets
so efficiently, and
Return on Assets
was decreased from
-7.07 to -84.43,
Return on Equity
was decreased from
-1.74 to -15.32,
capacity to use
Assets to make
profit was not
good.
Day’s Payable
was increased from
39 days to
59 days, Day’s
Inventories was increased
from 99 days
to 124 days, and Day’s
Receivables was increased
from 27 days
to 35 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 |
|