MIRA
INFORM REPORT
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Report Date : |
24.07.2007 |
IDENTIFICATION DETAILS
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Name : |
SIAM STEEL SERVICE CENTER PUBLIC COMPANY LIMITED |
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Registered Office : |
51/3
Moo 2, Samutprakarn 10130 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1985 |
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Com. Reg. No.: |
0107537002052 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturing, servicing and
distributing wide range
of steel parts
for general purpose and
building & construction purpose. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
SIAM STEEL SERVICE CENTER PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 51/3
MOO 2,
BANGYAPRAEK, PHRAPRADAENG,
TELEPHONE : [66] 2385-9251-2
FAX :
[66] 2385-9241,
2385-9253
E-MAIL ADDRESS : webmaster@ssscth.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1985
REGISTRATION NO. : 0107537002052 [Former: BOR MOR JOR. 452]
CAPITAL
REGISTERED : BHT.
480,000,000
CAPITAL
PAID-UP : BHT.
479,999,910
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. SURASAK KUNANANTAKUL,
THAI
PRESIDENT
NO. OF STAFF : 780
LINES OF
BUSINESS : STEEL
PARTS AND RELATED
PRODUCTS
MANUFACTURE
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on September 30,
1985, originally as
a private limited
company under the registered
name “Siam Steel Service
Center Company Limited”,
by a joint
venture among Siam
Steel International Public
Company Limited, Thailand,
Okaya & Co.,
Ltd., and Toyota
Tsusho Corporation, Japan, in
order to manufacture
wide range of
steel parts and
related products for
domestic market.
On
June 8, 1994,
the subject was
converted its status
to be public
company under the
name SIAM STEEL
SERVICE CENTER PUBLIC
COMPANY LIMITED, and
was listed into
the Stock Exchange
of Thailand on
January 15, 1996,
under the symbolic
“SSSC”. It
currently employs approximately
780 staff.
It
achieved the ISO
9001 : 2000 and ISO
14001 certificate by
RWTUV [Thailand] Limited,
on November 25,
2002, and July
9, 2004, respectively.
The
subject’s registered address
is 51/3 Moo
2, Poochaosamingprai Rd.,
Bangyapraek, Phrapradaeng, Samutprakarn
10130, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Wanchai Kunanantakul :
Chairman |
[x] |
Thai |
69 |
|
Mrs. Napaporn Huntanasevee |
[x] |
Thai |
41 |
|
Mr. Surasak Kunanantakul |
[x] |
Thai |
43 |
|
Mr. Pisal Khongsamran |
|
Thai |
73 |
|
Mr. Wicharn Kwanchandr |
|
Thai |
75 |
|
Mr. Thiraphol Phantpongsiri |
|
Thai |
56 |
|
Mr. Akihiko Tsubouchi |
[-] |
Japanese |
56 |
|
Mr. Nobuo Koshiba |
|
Japanese |
58 |
|
Mr. Masafumi Okubo |
[-] |
Japanese |
52 |
|
Mr. Pongsak Angsupun |
|
Thai |
61 |
|
Mr. Surapol Kunanantakul |
|
Thai |
40 |
|
Mr. Sittichai Kunannantakul |
|
Thai |
37 |
|
Mr. Massaki Takizawa |
[-] |
Japanese |
59 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can jointly sign
with one of the directors
[-] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Surasak Kunannantakul is
the President.
He is Thai
nationality with the
age of 43
years old.
Mr. Akihiko Tsubouchi
is the Vice
President.
He is Japanese
nationality with the
age of 56
years old.
Mr. Masaaki Kawamatsu
is the Assistant
President.
He is Japanese
nationality with the
age of 58
years old.
Mr. Thiraphol Phantpongsiri is
the Assistant President.
He is Thai
nationality with the
age of 56
years old.
Mr. Boonchai Chiercharoenthanakij is
the General Manager [Account &
Finance].
He is Thai
nationality.
Mr. Nobuo Kochiba
is the General
Manager [Marketing].
He is Japanese
nationality.
Mr. Naowarat Chanamool
is the General
Manager [Plant].
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, servicing
and distributing wide
range of steel
parts for general
purpose [steels of
various types with
thickness, sizes and
shapes according sheets,
bended sheet and
etc.], and building
& construction purpose
[various types and
shapes of steel
as well as
installation work; roofing,
siding, flooring, flashing,
space frame, steel
panel, structural steel and
etc.], which provided
to the construction
industry, as well
as range of
process service providing,
such as slitting, shearing,
forming, blanking, piercing,
bending, pressing, welding
and etc.
Its products are
divided into 3
categories as follows:
1. Industrial steel parts;
cutting sheet, slitting
coil and etc.
2. Steel parts for
construction; aluminized coating,
galvanized colored, aluzinc colored,
aluzinc
and galvanized
3.
Steel
forming parts and
other products such
as for electrical
and electronics, furniture,
automobiles, steel sheet
shuttle, etc., as
well as steel
pipe modified.
PRODUCTION
600,000 tons per annum
The subject’s production
currently is around
7% of market
shares.
PURCHASE
Its raw materials:
aluminium coated sheet,
terne sheets, silicon
sheets, hot & cold rolled
steel sheet, hot
dip galvanized steel,
colored sheet, stainless
steel and accessories
are purchased from
suppliers and agents
both domestic and
overseas, mainly in
Japan, Germany and
United States of
America.
MAJOR SUPPLIERS
- Okaya & Co.,
Ltd. : Japan [40-50%]
- C. Siam Suriya Co.,
Ltd. :
-
SALES
100% of
the products is
sold and serviced
locally by wholesale
to manufacturers and
end-users as follows:
- Automotive Industry [37%]
- Construction Industry [21%]
- General Industry [20%]
- Electrical and
Electronic Industry [19%]
- Furniture Industry [3%]
MAJOR CUSTOMERS
Siam Steel International
Public Co., Ltd.
Siam Nippon Steel
Pipes Co., Ltd.
Siam Matsushita Steel
Co., Ltd.
REVENUE STRUCTURE
[2006]
Product Amount [million
Bht.] %
Steel parts
for industries
- Steel cutting products 3,939.85 69.74
- Steel cutting services 224.23 3.97
Steel construction parts 1,450.79 25.68
Steel forming and others 23.38 0.42
Rental services 10.86 0.19
Total revenue 5,649.11 100.00
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor affiliated company
here in 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.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Poochaosamingprai Branch :
EMPLOYMENT
The
subject employs approximately
780 office staff
and factory workers.
LOCATION DETAILS
The
premise is rented
for administrative office
and factory I
at the heading
address. Premise is
located in industrial
area.
Factory
II [Metal Construction
Products] is located
at 51/11 Poochaosamingprai Rd.,
Bangyapraek, Phrapradaeng, Samutprakarn
10130.
Tel.
: [66] 2385-9268-73, 2755-8684-6,
2758781-4, 2755-8816-8
Fax
: [66] 2385-9274, 2385-9243.
Factory
III is located
at 60/6 Moo
3, Mapyangporn, Pluakdaeng, Rayong
21140.
Tel.
: [66] 38 891-176-8, 38 891-750-4
Fax
: [66] 38 891-1179.
COMMENT
The subject has good reputation in its business for over 20 years. Economic
slowdown and slow
growth in industrial
and construction sectors
has resulted with
declining of steel
products. Many government’s mega projects
have been delayed
and postponed since
the revolution in
July 2006.
However, it is
expected the economic
slowdown situation would
be prolonged until the
end of
this year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000,000 divided into
10,000,000 shares of
Bht. 10 each.
The
capital was increased
later as following:
Bht. 224,000,000 on
May 18, 1994
Bht. 320,000,000 on
June 8, 1994
The
latest registered capital
was increased to
Bht. 480,000,000 divided into
48,000,000 shares of
Bht. 10 each.
THE SHAREHOLDERS
LISTED WERE : [as at
April 10,
2006] at Bht. 479,999,910 of
capitalization.
|
NAME |
HOLDING
|
% |
|
|
|
|
|
Okaya & Co.,
Ltd. |
13,440,000 |
28.00 |
|
Siam Steel International Public
Company Limited |
10,084,200 |
21.01 |
|
Metal One Corporation |
3,360,000 |
7.00 |
|
Nortrust Nominees Ltd. |
2,546,550 |
5.31 |
|
Thai NVDR Co.,
Ltd. |
1,841,000 |
3.84 |
|
Toyota Tsusho Corporation |
1,680,000 |
3.50 |
|
Mr. Suraphol Kunanantakul |
917,280 |
1.91 |
|
Mr. Wanchai Kunanantakul |
648,480 |
1.35 |
|
HSBC Bank Public |
643,500 |
1.34 |
|
CMIC Finance and
Securities Public Co.,
Ltd. |
627,300 |
1.31 |
|
Others |
12,211,681 |
25.43 |
Total Shareholders
1,187
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Vinij Silamongkol No.
3378
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash and cash
equivalents |
129,818,824 |
161,828,703 |
|
Trade accounts receivable -General customers |
1,295,418,568 |
1,371,280,899 |
|
- Related companies |
118,975,521 |
152,254,777 |
|
Unbilled revenues |
181,040,169 |
126,041,541 |
|
Inventories |
1,472,646,773 |
1,760,632,652 |
|
Advance for purchases
of inventories for customers |
17,219,824 |
19,308,045 |
|
Other current assets
|
17,986,718 |
14,914,166 |
|
Total Current
Assets |
3,233,106,397 |
3,606,260,783 |
|
Long-term investments - Investments in related
companies |
24,970,641 |
942,000 |
|
- General investments |
1,415,842 |
1,415,842 |
|
Property-plant and equipment |
1,487,748,521 |
1,499,569,031 |
|
Assets not used
in operations |
17,493,148 |
15,950,098 |
|
Income tax withheld
at sources |
90,461,572 |
76,909,987 |
|
Other non-current assets |
4,350,859 |
4,277,518 |
|
Total Assets
|
4,859,546,980 |
5,205,325,259 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Bank overdraft and
short-term loans from Financial institutions |
2,737,986,525 |
2,934,320,543 |
|
Notes payable |
- |
400,000,000 |
|
Trade account payable - General suppliers |
165,762,221 |
311,310,659 |
|
- Related companies |
325,220,694 |
255,773,720 |
|
Current portion of long
term loans from related company |
68,068,186 |
78,151,521 |
|
Advances from customers |
41,621,254 |
29,198,275 |
|
Accrued interest payable |
28,027,031 |
31,500,288 |
|
Accrued bonuses |
34,140,056 |
29,604,648 |
|
Accrued duty fees
and penalties |
32,975,603 |
32,975,603 |
|
Other current liabilities |
26,699,612 |
17,333,230 |
|
Total Current
Liabilities |
3,460,501,182 |
4,120,168,487 |
|
Long Term Loans
from Related Company |
17,017,047 |
97,689,401 |
|
Total Liabilities |
3,477,518,229 |
4,217,857,888 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
Share capital,
common shares At Baht
10 par value -
Registered 48,000,000 shares
[2005 : 32,000,000 shares] |
480,000,000 |
320,000,000 |
|
- Issued and
paid-up 47,999,991 shares [2005 : 32,000,000 shares] |
479,999,910 |
320,000,000 |
|
Revaluation increment
in the value
of land and buildings |
337,149,875 |
338,905,051 |
|
Retained Earning |
|
|
|
- Appropriated for
statutory reserve |
48,000,000 |
32,000,000 |
|
- Unappropriated |
516,878,966 |
296,562,320 |
|
Total
Shareholders' Equity |
1,382,028,751 |
987,467,371 |
|
Total
Liabilities & Shareholders' Equity |
4,859,546,980 |
5,205,325,259 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales and installation Income |
5,415,210,607 |
5,625,619,854 |
|
Services income |
224,228,941 |
284,053,301 |
|
Transportation income |
40,427,245 |
48,694,735 |
|
Rental income |
10,859,509 |
12,595,852 |
|
Gain on exchange
rate |
108,244,113 |
62,125,722 |
|
Other Income |
25,522,826 |
56,939,653 |
|
Total Revenues
|
5,824,493,241 |
6,090,029,117 |
|
Expenses |
|
|
|
|
|
|
|
Cost of sales
and services |
4,941,017,317 |
5,207,895,745 |
|
Selling and administrative expenses |
280,255,327 |
257,695,114 |
|
Duty fees and
penalties expenses |
- |
32,975,603 |
|
Loss on impairment
of assets |
- |
25,557,985 |
|
Director’s remuneration |
350,000 |
350,000 |
|
Total Expenses |
5,221,622,644 |
5,524,474,447 |
|
Profit / [Loss] Before Interest
Expenses |
602,870,597 |
565,554,670 |
|
Interest Expenses |
[185,909,127] |
[172,578,585] |
|
Net Profit / [Loss] |
416,961,470 |
392,976,085 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
[4.69] |
|
|
Operating Profit |
1.36 |
|
|
Net Profit |
6.10 |
|
|
Fixed Assets |
[0.79] |
|
|
Total Assets |
[6.64] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
86.83 |
87.22 |
|
Operating Profit Margin |
10.60 |
10.46 |
|
S & A
Expenses |
4.92 |
4.32 |
|
Interest Paid |
3.27 |
2.89 |
|
Other Revenues |
2.35 |
1.99 |
|
Net Profit Margin |
7.33 |
6.58 |
|
Earning Per Shares |
8.69 |
12.28 |
|
No. of Shares |
47,999,991 |
32,000,000 |
Net Sales was decreased by 4.69%, Operating Profit was increased by 1.36%, Net Profit was increased by 6.10%, Fixed Assets was decreased by 0.79%, Total Assets was decreased by 6.64%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 87.22%
to 86.83%, Operating
Profit Margin was
increased from 10.46%
to 10.60%, S
& A Expenses
was increased from
4.32% to 4.92%,
Interest Paid was increased
from 2.89% to
3.27%, Other Revenues
was increased from
1.99% to 2.35%,
Net Profit Margin
was increased from
6.58% to 7.33%.
Earning Per Shares
was decreased from
12.28 baht per
share to 8.69
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
0.93 |
0.88 |
|
Quick-Assets Ratio |
0.50 |
0.44 |
Current Ratio was
increased from 0.88
to 0.93, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company
was not good,
Quick-Assets Ratio was
increased from 0.44
to 0.50, capacity
to pay Short
Term Loan was
not good too,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
2.52 |
4.27 |
|
Times Interest Earned |
3.24 |
3.62 |
D/E Ratio was
decreased from 4.27
to 2.52, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is medium,
Times Interest Earned
was decreased from
3.62 to 3.24,
capacity to pay
interest paid was good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
3.83 |
3.98 |
|
Total Assets Turnover |
1.17 |
1.15 |
|
Return on Assets |
8.58 |
7.55 |
|
Return on Equity |
30.17 |
39.80 |
|
Day's Payable |
10.49 |
18.77 |
|
Day’s Inventories |
93.16 |
106.15 |
|
Day’s Receivables |
81.95 |
82.68 |
Fixed Assets Turnover
was decreased from
3.98 times to
3.83 times, Total
Assets Turnover was
increased from 1.15
times to 1.17
times, show the
company could use
Assets so efficiently,
Return on Assets
was increased from
7.55 to 8.58,
Return on Equity
was decreased from
39.80 to 30.17,
capacity to use
Assets to make
profit was good.
Day's Payable was
decreased from 19
days to 11
days, Day’s Inventories
was decreased from
107 days to
94 days, and
Day’s Receivables was
decreased from 83
days to 82
days.
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
[4.69] |
|
|
Operating Profit |
1.36 |
|
|
Net Profit |
6.10 |
|
|
Fixed Assets |
[0.79] |
|
|
Total Assets |
[6.64] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
86.83 |
87.22 |
|
Operating Profit Margin |
10.60 |
10.46 |
|
S & A
Expenses |
4.92 |
4.32 |
|
Interest Paid |
3.27 |
2.89 |
|
Other Revenues |
2.35 |
1.99 |
|
Net Profit Margin |
7.33 |
6.58 |
|
Earning Per Shares |
8.69 |
12.28 |
|
No. of Shares |
47,999,991 |
32,000,000 |
Net Sales was
decreased by 4.69%,
Operating Profit was
increased by 1.36%,
Net Profit was
increased by 6.10%,
Fixed Assets was
decreased by 0.79%,
Total Assets was
decreased by 6.64%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 87.22%
to 86.83%, Operating
Profit Margin was
increased from 10.46%
to 10.60%, S
& A Expenses
was increased from
4.32% to 4.92%,
Interest Paid was increased
from 2.89% to
3.27%, Other Revenues
was increased from
1.99% to 2.35%,
Net Profit Margin
was increased from
6.58% to 7.33%.
Earning Per Shares
was decreased from
12.28 baht per
share to 8.69
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
0.93 |
0.88 |
|
Quick-Assets Ratio |
0.50 |
0.44 |
Current Ratio was
increased from 0.88
to 0.93, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company
was not good,
Quick-Assets Ratio was
increased from 0.44
to 0.50, capacity
to pay Short
Term Loan was
not good too,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
2.52 |
4.27 |
|
Times Interest Earned |
3.24 |
3.62 |
D/E Ratio was
decreased from 4.27
to 2.52, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is medium,
Times Interest Earned
was decreased from
3.62 to 3.24,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
3.83 |
3.98 |
|
Total Assets Turnover |
1.17 |
1.15 |
|
Return on Assets |
8.58 |
7.55 |
|
Return on Equity |
30.17 |
39.80 |
|
Day's Payable |
10.49 |
18.77 |
|
Day’s Inventories |
93.16 |
106.15 |
|
Day’s Receivables |
81.95 |
82.68 |
Fixed Assets Turnover
was decreased from
3.98 times to
3.83 times, Total
Assets Turnover was
increased from 1.15
times to 1.17
times, show the
company could use
Assets so efficiently,
Return on Assets
was increased from
7.55 to 8.58,
Return on Equity
was decreased from
39.80 to 30.17,
capacity to use
Assets to make
profit was good.
Day's Payable was
decreased from 19
days to 11
days, Day’s Inventories
was decreased from
107 days to
94 days, and
Day’s Receivables was
decreased from 83
days to 82
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%)