MIRA
INFORM REPORT
|
Report Date : |
6th
February, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
THAI
STEEL SERVICE CENTER LIMITED |
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Registered Office : |
47 Moo 7, Soi Watmahawongse,
Poochaosamingprai Road, Phrapradaeng,
Samutprakarn 10130, Thailand |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
16.09.1980 |
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Com. Reg. No.: |
0105523016402 [Former : 1643/2523] |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Importer and
Distributor of steel
products for automobile & home appliance
industries. |
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 |
Company Name
THAI STEEL
SERVICE CENTER LIMITED
SUMMARY
BUSINESS ADDRESS : 47 MOO 7, SOI
WATMAHAWONGSE,
POOCHAOSAMINGPRAI ROAD, PHRAPRADAENG,
SAMUTPRAKARN 10130, THAILAND
TELEPHONE : [66] 2398-0153-4
FAX : [66] 2398-5339, 2748-3842
E-MAIL ADDRESS : thaipiya@tsscthai.com
REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS
ESTABLISHED : 1980
REGISTRATION NO.
: 0105523016402 [Former : 1643/2523]
CAPITAL REGISTERED : BHT. 216,000,000
CAPITAL PAID-UP
: BHT. 216,000,000
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SADAHIKO YAMADA, JAPANESE
PRESIDENT
NO. OF
STAFF : 353
LINES OF
BUSINESS : STEEL PRODUCTS
IMPORTER
& 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
September 16, 1980
as a private limited company
under the name
style THAI STEEL
SERVICE CENTER LIMITED,
by Thai &
Japanese groups, to
import and distribute
of steel products.
It currently employs
353 staff. Subject
is a subsidiary of Sumitomo
Corporation of Japan.
The
subject received ISO
9002 certification for
coil processing center
from LRQA on
May 27, 2000.
The
subject’s registered address
is 47 Moo 7, Soi Watmahawongse, Poochasamingprai
Rd., Phrapradaeng, Samutprakarn 10130, and this
is the subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
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Mr. Ippei
Osaka |
|
Japanese |
52 |
|
Mr. Ikuhito
Kijima |
|
Japanese |
41 |
|
Mr. Sadahiko
Yamada |
|
Japanese |
47 |
|
Mr. Yoshimitsu Jingu |
|
Japanese |
50 |
AUTHORIZED PERSON
One of
the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr.
Sadahiko Yamada is the President.
He is
Japanese nationality with
the age of
47 years old.
Mr. Ikuhito Kijima
is the Managing Director.
He is
Japanese nationality.
Mr.
Wuthinan Aroonroj
is the General Manager.
He is
Thai nationality.
Mr.
Charnchai Luekhajornsak is the Marketing
Manager.
He is
Thai nationality.
Mr.
Arak Jirawutpob
is the Sales Manager.
He is
Thai nationality.
Mr.
Voraseth Visavacholkarn
is the Sales Manager.
He is
Thai nationality.
Mr.
Pipat Rungpiriyadej is the Factory
Manager.
He is
Thai nationality.
BUSINESS OPERATIONS
The subject’s
activities are importer
and distributor of
steel products for
automobile & home
appliance industries such
as hot rolled steel sheet,
cold rolled steel
sheet, electro galvanized,
hot dip galvanized,
aluminum sheet, color
coated and steel
strapping.
The subject
also provides steel
cutting services.
PURCHASE
70% of
its products is
imported through Sumitomo
Corporation Ltd. from
Japan and the
rest 30% is
purchased locally.
SALES [LOCAL]
100% of
its products is
sold locally to
automobile and home
appliance industries, wholesalers and end-users.
MAJOR CUSTOMERS
|
-
Honda Group |
: Thailand |
|
-
Nissan Group |
: Thailand |
|
-
Pinthong Steels Co.,
Ltd. |
: Thailand |
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.
SUBSIDIARIES &
AFFILIATED COMPANY
-
Pinthong Steels Co.,
Ltd.
Business Type: Distributor of steel products.
-
Juthawan Co., Ltd.
Business Type: Distributor of stainless steels.
-
Juthawan Metal Lab
Co., Ltd.
Business Type: Steel
plating services.
-
Thai Steel Coil Center Co.,
Ltd.
Business Type: Manufacturer & distributor of
steel coil products.
-
Thai Industrial Part
Co., Ltd.
Business Type: Manufacturer & distributor of
steel parts products.
-
Thai Ikeda MFG Co., Ltd.
Business Type: Manufacturer of automobile parts.
-
Thai Sumilox Co., Ltd.
Business Type: Manufacturer of master coil
products.
-
Thai Parts Feeder Co., Ltd.
Business Type: Manufacturer & distributor of
steel machinery &
spare parts
-
Excel Metal Forging Co., Ltd.
Business Type: Manufacturer of forging parts.
-
Architect Metal Works
Co., Ltd.
Business Type: Distributor of stainless steel
products, fabricating contractors.
CREDIT
Sales are
by cash or
on the credits term of
30-60 days.
Local bills
are paid by
cash or on
the credit term
of 30-60 days.
Imports are
by L/C at sight or
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
[Head
Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Kasikornbank Public Co., Ltd.
[Head
Office : 1
Kasikorn Lane, Rajburana
Rd., Rajburana , Bangkok
10140]
Siam
City Bank Public
Co., Ltd.
[Head
Office : 1101 New
Petchburi Rd., Makkasem,
Rajthevee, Bangkok 10400]
EMPLOYMENT
The subject
employs 353 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise
is owned for
operating office, factory
I & warehouse
in a 2 storey building
at the heading address on
32,000 square meters plot of
land in an industrial area.
Factory II
is located at
789/2 Moo 1, T.
Nongkham, A. Sriracha,
Cholburi 20110 on
36,800 square meters plot of land.
COMMENT
Various
industries claimed that domestic steel supply was insufficient to meet demand,
therefore imported steel could help ease supply shortage and high prices in the
local market. Steel importer would stay
in positive position as demand in domestic market remains surge.
FINANCIAL INFORMATION
The capital
was initially registered
at Bht. 28 million, divided into
28,000 shares of Bht. 1,000
each.
The capital
was increased later
as followings :
Bht. 32 million in
June, 1987
Bht. 47 million in
September, 1990
Bht. 94 million in
January, 1992
Bht. 194 million on
August 25, 1992
Bht. 216 million on
February 19, 1999
The latest
registered capital was
increased to Bht.
216 million, divided into 216,000 shares of
Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as of September 28,
2006]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Sumitomo
Corporation Ltd. Nationality: Japanese Address :
1-8-11, Harumi, Suo-ku,
Tokyo, 104-8610 Japanese |
182,275 |
84.39 |
|
Sumitomo
Corporation Thailand Ltd. Nationality: Thai Address :
87 Wireless Rd.,
Lumpini, Pathumwan, Bangkok |
33,720 |
15.61 |
|
Mr. Sadahiko Yamada Nationality: Japanese
Address :
35 Sukhumvit 24
Rd., Klongton, Klongtoey, Bangkok |
1 |
- |
|
Ikuhito
Kijima Nationality: Japanese
Address :
2101 Moo 1, Tangrotfaisaikao
Rd., Samrongnua, Muang,
Samutprakarn
|
1 |
- |
|
Mr.
Ippei Osaka Nationality: Japanese Address : 39/315 Samaggi Rd.,
Thasai, Muang, Nonthaburi |
1 |
- |
|
Mr.
Kimio Fukushima Nationality: Japanese Address : 43
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok |
1 |
- |
|
Mr. Junji
Iwashita Nationality: Japanese Address :
51/2 Sukhumvit 49
Rd., Klongtonnua, Wattana, Bangkok |
1 |
- |
Total
shareholders : 7
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr.
Pisith Tangthanakul No.
4095
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 |
17,372,478 |
4,881,876 |
|
Trade Accts.
Receivable |
1,026,656,110 |
1,078,327,210 |
|
Related Companies
Receivable |
8,695,915 |
6,764,335 |
|
Inventories [note 1] |
1,163,622,105 |
1,502,447,232 |
|
Loan to
Related Companies |
703,228 |
861,000 |
|
Other Current
Assets |
21,400,740 |
38,882,982 |
|
|
|
|
|
Total
Current Assets |
2,238,450,576 |
2,632,164,635 |
|
Long-term Loan
to Related Companies |
- |
1,651,184 |
|
Investment in
Associated Companies |
191,171,330 |
163,849,736 |
|
Fixed
Assets [note 2] |
392,109,007 |
348,849,754 |
|
Other
Assets |
908,430 |
908,430 |
|
Total
Assets |
2,822,639,343 |
3,147,423,739 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Short-term Loan |
1,039,000,000 |
1,086,557,655 |
|
Trust Receipt
Payable |
- |
25,944,846 |
|
Trade Accts.
& Notes Payable |
519,296,147 |
673,452,840 |
|
Related Companies
Payable |
563,455,375 |
649,827,137 |
|
Accrued Income
Tax |
16,722,846 |
43,064,355 |
|
Current Portion
of Long-term Loan |
33,366,667 |
33,366,667 |
|
Other Current
Liabilities |
32,130,652 |
35,024,224 |
|
|
|
|
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Total Current Liabilities |
2,203,971,687 |
2,547,237,724 |
|
Long-term Loan |
24,916,666 |
58,283,333 |
|
Total
Liabilities |
2,228,888,353 |
2,605,521,057 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000 par value
authorized, issued and fully
paid
share capital 216,000
shares |
216,000,000 |
216,000,000 |
|
|
|
|
|
Capital Paid |
216,000,000 |
216,000,000 |
|
Retained Earning Appropriated for Statutory Reserve |
23,020,387 |
23,020,387 |
|
Unappropriated |
354,730,603 |
302,882,295 |
|
Total Shareholders' Equity |
593,750,990 |
541,902,682 |
|
Total Liabilities & Shareholders' Equity |
2,822,639,343 |
3,147,423,739 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales &
Service Income |
4,880,827,574 |
3,687,147,036 |
|
Other Income |
25,117,684 |
10,976,006 |
|
Gain on
Profit in Associated Companies |
27,321,594 |
36,946,220 |
|
Gain /
[Loss] on Exchange Rate |
1,803,021 |
[1,648,814] |
|
Total
Revenues |
4,935,069,873 |
3,733,420,448 |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Goods Sold &
Service |
4,590,564,950 |
3,331,559,981 |
|
Selling &
Administrative Expenses |
122,672,384 |
106,937,618 |
|
Total Expenses
|
4,713,237,334 |
3,438,497,599 |
|
|
|
|
|
Profit
/ [Loss] before Interest Expenses
& Income
Tax |
221,832,539 |
294,922,849 |
|
Interest Expenses |
[38,560,126] |
[15,478,988] |
|
Income Tax |
[48,912,105] |
[77,351,149] |
|
|
|
|
|
Net
Profit / [Loss] |
134,360,308 |
202,092,712 |
FINANCIAL NOTE
2005 & 2004
NOTE
1 Inventories
|
|
2005 |
2004 |
|
|
|
|
|
Raw Material |
962,675,706 |
1,297,722,127 |
|
Packaging Materials |
2,815,010 |
1,966,377 |
|
Finished Goods |
182,600,883 |
174,930,298 |
|
Total |
1,148,091,599 |
1,474,618,802 |
|
Less : Provision for
Stock Obsolescence |
[23,000,000] |
[44,428,430] |
|
Raw Material
in Transit |
38,530,506 |
44,428,430 |
|
Total |
1,163,622,105 |
1,502,447,232 |
NOTE
2 Fixed Assets
|
|
2005 |
2004 |
|
|
|
|
|
Land |
56,791,000 |
56,791,000 |
|
Land Improvement |
11,710,189 |
13,993,705 |
|
Building |
213,106,805 |
194,844,531 |
|
Machinery &
Equipment |
353,016,390 |
325,764,431 |
|
Office Equipment & Furniture |
22,940,404 |
19,032,962 |
|
Motor Vehicle |
9,760,435 |
9,743,508 |
|
Works under
Construction |
9,436,484 |
- |
|
Total |
676,761,707 |
620,170,137 |
|
Less:
Depreciation |
[284,652,700] |
[271,320,383] |
|
Total |
392,109,007 |
348,849,754 |
FINANCIAL ANALYSIS
Annual Growth & Profitability
|
Annual
Growth |
2005 |
2004 |
|
Sales |
32.37 |
|
|
Operating |
[43.18] |
|
|
Net Profit |
[33.52] |
|
|
Fixed Assets |
12.40 |
|
|
Total Assets |
[10.32] |
|
|
Profitability |
|
|
|
Cost of
Goods Sold |
94.05 |
90.36 |
|
Operating Profit
Margin |
4.54 |
8.00 |
|
S&A expenses |
2.51 |
2.90 |
|
Interest |
0.79 |
0.42 |
|
Other Revenues |
1.11 |
1.25 |
|
Net Profit
Margin |
2.75 |
5.48 |
|
Earning Per
Shares |
622.04 |
935.61 |
|
No. of
Shares |
216,000 |
216,000 |
Net Sales was
increased by 32.37%,
Operating Profit was
decreased by 43.18%,
Net Profit was
decreased by 33.52%,
Fixed Assets was
increased by 12.40%,
Total Assets was
decreased by 10.32%.
Compare each cost
with sales, Cost
of Goods Sold
was increased from
90.36% to 94.05%,
Operating Profit Margin
was decreased from
8.00% to 4.54%,
S & A
Expenses were decreased
from 2.90% to
2.51%, Interest Paid
was increased from
0.42% to 0.79%,
Other Revenues was
decreased from 1.25%
to 1.11%, Net
Profit Margin was
decreased from 5.48%
to 2.75%.
Earning Per
Shares was decreased
from 935.61 baht
per share to
622.04 baht per
share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
1.02 |
1.03 |
|
Quick
- assets ratio |
0.48 |
0.43 |
Current Ratio
was decreased from
1.03 to 1.02,
show Current Assets
can cover Current
Liabilities, Liquidity Ratio
of the company was good,
and Quick-assets Ratio
was increased from
0.43 to 0.48,
capacity to pay
Short Term Loan
was not good,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
3.75 |
4.81 |
|
Times Interest
Earned |
5.75 |
19.05 |
D/E Ratio was
decreased from 4.81
to 3.75, 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 19.05 to
5.75, capacity to
pay interest paid
was good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets
Turnover |
12.45 |
10.57 |
|
Total Assets
Turnover |
1.73 |
1.17 |
|
Return on
Assets |
4.76 |
6.42 |
|
Return on
Equity |
22.63 |
37.29 |
|
Day’s Payable |
38.30 |
65.75 |
|
Day’s Inventories |
85.83 |
146.69 |
|
Days’ Receivables |
75.72 |
105.28 |
Fixed Assets Turnover
was increased from
10.57 times to
12.45 times, Total
Assets Turnover was
increased from 1.17
times to 1.73
times, show the
company could use
Assets so efficiently, and Return on
Assets was decreased from 6.42 to
4.76, Return on
Equity was decreased
from 37.29 to
22.63, capacity to
use Assets to
make profit was
not good.
Day’s Payable
was decreased from
66 days to
39 days, Day’s
Inventories was decreased
from 147 days
to 86 days, and Day’s
Receivables was decreased
from 106 days
to 76 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 |
|