MIRA
INFORM REPORT
|
Report Date : |
26.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
G STEEL PUBLIC COMPANY LIMITED |
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Registered Office : |
18th/Floor, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1995 |
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Com. Reg. No.: |
0107538000746 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Producer and distributor
of a wide
range of high
quality hot-rolled steel
coil aiming at
substituting imports and
meeting domestic customers’ demands. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
G STEEL PUBLIC COMPANY LIMITED
FORMER
SIAM STRIP MILL PUBLIC CO., LTD.
SUMMARY
BUSINESS ADDRESS : 18th/FLOOR,
SURIYAWONGSE, BANGRAK,
TELEPHONE : [66] 2634-2222
FAX : [66] 2634-3908
E-MAIL ADDRESS : recruit@g-steel.com, info@g-steel.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1995
REGISTRATION NO. : 0107538000746 [Former : BOR MOR
JOR. 597]
CAPITAL REGISTERED : BHT.
12,000,000,000
CAPITAL PAID-UP : BHT.
11,100,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : DR.
SOMSAK LEESAWADTRAKUL, THAI
CHIEF
EXECUTIVE OFFICER
NO. OF
STAFF : 700
LINES OF
BUSINESS : HOT-ROLLED
STEEL COILS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
formed on October
31, 1995 as
a private limited
company. It is
an affiliated company
of SSP Group
of Companies.
SSP Group of
Companies [SSP], holding
majority shares in
the subject and
the main sponsor
of the project.
SSP, one of
Thailand’s largest conglomerates, is
the Southeast Asia’s
most dominant producer
of steel pipes
with a combined
annual capacity of
approximately 850,000 tons.
It also owns
one steel coil
center with an
annual capacity of
approximately 150,000 tons.
Dr. Somsak Leeswadtrakul, a
pioneer in Thai
and Southeast Asia
steel industry, leads
the SSP Group.
The subject will
complement SSP Group’s
established core business.
The subject also
has equity participation
from a number
of prominent Japanese
companies including ITOCHU
etc. The project
is strongly supported
by The Japanese
Government in the
form of loan
guarantees issued by
The Ministry of
International Trade and
Industries [MITI]. The
subject registered for a conversion
of its status
to become a
public limited company
on December 12,
1995.
The subject received
promotional privilege from
the Board of
Investment on January
29, 1996 for
the manufacturing of
hot rolled coils.
The main privilege
includes the exemption
from import duty
on approved machinery,
the reduction of
import duty on
approved raw materials,
and the exemption
from corporate income
tax for the
promoted activities for a period
of eight years
from the date
when income is
first derived together
with reduction of
50% corporate income
tax for the promoted
activities for a
period of five
years after the
exemption period.
On March 26,
2004, the subject
has changed its
name to “G
STEEL PUBLIC COMPANY
LIMITED.” It currently
employs 700 staff.
It has been
achievement the ISO
14001, TIS 18001 and
OSHAS 18001 by
BVQI, UKAS, TUV
NORD, TUV Cert
and NAC.
The subject’s registered
address is 88
Silom Rd., Suriyawongse,
Bangrak, Bangkok 10500,
and this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Dr. Somsak Leesawadtrakul |
[x] |
Thai |
54 |
|
Mr. Chainarong Monthienvichienchai |
|
Thai |
62 |
|
Ms. Kornpranom Wongmongkol |
|
Thai |
40 |
|
Mr. Preecha Prakobkij |
|
Thai |
59 |
|
Lady Patama Leesawadtrakul |
[x] |
Thai |
42 |
|
Mr. Paichit Rojanavanich |
|
Thai |
79 |
|
Mr. Chaipat Srivisarnvaja |
|
Thai |
48 |
|
Mr. Yanyong Kurovart |
[x] |
Thai |
69 |
|
Mr. Prapunpong Vejjachewa |
|
Thai |
72 |
|
Mr. Vichit Supinij |
[-] |
Thai |
66 |
|
Gen. Singha Saowaphap |
|
Thai |
77 |
|
Mr. Ryuzo Ogino |
[-] |
Japanese |
64 |
|
ML. Sasivimol Kasemsri |
[-] |
Thai |
43 |
|
Gen. Chuchat Khambhu
Na Ayudhya |
|
Thai |
64 |
|
Pol. Lt. Gen. Prakas Sataman |
[x] |
Thai |
65 |
AUTHORIZED PERSON
One of the
above directors [x]
can jointly sign
with one of
the directors [-]
on behalf of the
subject with the company’s affixed.
MANAGEMENT
Dr. Somsak
Leesawadtrakul is the
Chief Executive Officer.
He is Thai
nationality with the
age of 54
years old.
Mr. Ryuzo
Ogino is the
President.
He is Japanese
nationality with the
age of 64
years old.
Lady Patama
Leesawadtrakul is the Assistant
Chief Executive Officer.
She is Thai
nationality with the
age of 42
years old.
Mr. Nopakao
Srisuvanon is the
Senior Vice President [Operation].
He is Thai
nationality.
Mr. Joachin
Burgers is the Executive Vice President
Expansion & Engineering.
He is American
nationality.
Ms. Kannikar
Soykeeree is the
Senior Vice President
[Purchasing & Marketing].
She is Thai
nationality.
Mr. David Jame Scott is
the Vice President
[Operation].
He is American
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a producer
and distributor of
a wide range
of high quality
hot-rolled steel coil
aiming at substituting
imports and meeting
domestic customers’ demands. Its
product serve as raw
materials for such
downstream industries as
cold-rolled coils, galvanized
steel, steel pipe,
structural products for
construction, automobile parts
as well as
furniture, LPG container,
electrical appliances
industries. The production
has annual full
capacity of 3,400,000
metric tons per
year and 1,800,000
metric tons per
year for current
production capacity. In
the future, the
subject will be
increased its production
capacity to 3,400,000
metric tons per
year
IMPORT [COUNTRIES]
80% of its
raw material; steel
scrap, pig iron, machinery and
spare parts are
imported from Japan,
Germany and United
States of America,
the remaining 20%
is purchased locally.
MAJOR SUPPLIERS
Stena Metal Inc. :
Steel Base Trade
AG. :
Cargill International Trading
Pte. Ltd. :
Multiserv [
SALES [LOCAL]
80% of its products
is sold locally
to manufacturers,
wholesalers and trading
companies.
EXPORT
20% of its
products is exported
to Asia, Europe,
Middle East &
North America.
SUBSIDIARIES &
AFFILIATED COMPANY
The subject is
a member of
SSP Group of
Companies which has
several core business
including steel and
stainless steel products,
construction, property development,
hotel, international trade,
hospital, transport and
general industries.
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 of
30-90 days.
Local bills are
paid by cash
or on the
credits of 30-90
days.
Imports are by
L/C at sight
and T/T.
Exports are against
L/C and T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Soonthorn Kosa Branch :
TMB Bank
Public Co., Ltd.
The Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The subject employs
approximately 700 staff
[office staff and
factory workers].
LOCATION DETAILS
The premise is
rented for administrative an office
at the heading
address on the 18th floor
of a multi-storey
building in a prime commercial area.
Factory is located
at 55 Moo
5, SSP Industrial
Park, T. Nonglalong,
A. Bankhai, Rayong
21120, Tel.: [66]
38 869-323 Fax:
[66] 38 869-333.
COMMENT
As for
2006, the company
maintained its performance
results at high
levels. Its sales
volumes registered as
high as baht 19,119
million with an
operating profit of
baht 1,678 million
or 6.97% return
on equities per
annum which as
at a satisfactory
level. It is
one of a few factories
in the Southeast
Asia Region maintaining
their performance results
at almost the
same level as
those of the
previous year.
For 2007, the
company has become an
alliance with a
major hot rolled coil
producer and an
acceleration in mega
projects by the
ruling government are
likely to enable
the hot rolled
coil business trend
in 2007 more
satisfactory.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 50,000,000 divided
into 500,000 shares
of Bht. 100
each.
On December 12,
1995, the capital
was increased to
Bht. 5,000,000,000, divided
into 500,000,000 shares
of Bht. 10
each.
The latest capital
was increased to
Bht. 12,000,000,000, divided
into 12,000,000,000 shares
of Bht. 1
each with the
current capital paid-up
of Bht. 11,100,000,000.
MAIN SHAREHOLDERS
: [as at
April 30,
2007] at
Bht. 11,100,000,000 of
capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Superior Overseas [ |
2,522,588,903 |
22.73 |
|
Ample Vision Group
Limited |
1,300,000,000 |
11.71 |
|
Lady Patama Leesawadtrakul |
1,061,060,793 |
9.56 |
|
Rochelle Finance Limited |
505,582,531 |
4.55 |
|
UOB Kay Hian
Private Limited |
431,105,795 |
3.88 |
|
Morgan Stanley & Co International Limited |
426,726,800 |
3.84 |
|
Mr. Niran Ngam Chamnanrith |
295,200,000 |
2.66 |
|
Great Western Limited
|
271,241,066 |
2.44 |
|
Bethleham International Limited |
223,733,651 |
2.02 |
|
Other Shareholders : |
4,062,760,461 |
36.61 |
Total Shareholders
7,012
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Ms. Rungnapa Lertsuwankul
No. 3516
Ernst & Young
Office Limited
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2006 & 2005
were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash in hand
& at bank
|
1,598,585,692 |
1,621,834,060 |
|
Trade Accts. receivable [note 1] |
2,122,768,748 |
2,225,655,011 |
|
Amount due from
related parties |
514,749,613 |
- |
|
Current portion of
loans to and
interest Receivable |
12,748,056 |
- |
|
Inventories [note 2] |
7,118,502,998 |
3,602,905,841 |
|
Other current assets [note 3] |
1,201,669,257 |
414,014,471 |
|
|
|
|
|
Total Current
Assets |
12,569,024,364 |
7,864,409,383 |
|
|
|
|
|
Restricted deposits at
financial institutions |
757,755,673 |
433,772,798 |
|
Investments |
1,428,999,300 |
- |
|
Loans to related
parties |
10,786,650 |
- |
|
Property, plant and
equipment [note 4] |
19,898,769,070 |
17,323,570,435 |
|
Intangible assets-computer software |
45,788,483 |
46,888,924 |
|
Other non-current assets |
2,260,481,655 |
2,594,951,851 |
|
Total Assets
|
36,971,605,195 |
28,263,593,391 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Trade accounts payable |
2,277,484,657 |
1,111,668,960 |
|
Trade accounts payable -
related companies |
205,133,059 |
- |
|
Other payable |
527,489,715 |
273,292,560 |
|
Advance received from
customers |
267,818,967 |
241,775,836 |
|
Current portion of
liabilities which were included under
the former rehabilitation plan |
11,826,077 |
76,191,866 |
|
Accrued expenses |
99,874,358 |
151,270,169 |
|
Accrued interest |
176,793,869 |
157,398,562 |
|
|
|
|
|
Total Current
Liabilities |
3,566,420,702 |
2,011,597,953 |
|
Liabilities which were
included under the Former rehabilitation plan |
740,358,732 |
752,225,756 |
|
Bonds |
6,024,315,243 |
3,952,104,687 |
|
Total Liabilities |
10,331,094,677 |
6,715,928,396 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
Share capital |
|
|
|
Registered share
capital |
|
|
|
12,000,000,000 ordinary shares of Baht 1 each |
12,000,000,000 |
12,000,000,000 |
|
Issued and
paid up share capital |
|
|
|
11,100,000,000 ordinary shares of Baht 1 each |
|
|
|
[2005 : 8,200,000,000
ordinary shares of Baht 1 each] |
11,100,000,000 |
8,200,000,000 |
|
Other surplus |
|
|
|
Share premium |
2,561,677,530 |
1,719,140,000 |
|
Premium on
capital reduction |
206,307,094 |
206,307,094 |
|
Retained Earnings |
|
|
|
Appropriated - statutory
reserve |
681,974,286 |
595,058,886 |
|
Unappropriated |
12,090,551,608 |
10,827,159,015 |
|
Total
Shareholders' Equity |
26,640,510,518 |
21,547,664,995 |
|
Total
Liabilities & Shareholders' Equity |
36,971,605,195 |
28,263,593,391 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
18,003,046,540 |
22,201,844.756 |
|
Service income |
106,789,579 |
- |
|
Gain o n exchange rate |
464,528,960 |
31,083,813 |
|
Interest income |
102,350,184 |
21,377,732 |
|
Other incomes |
63,241,458 |
42,772,256 |
|
Total Revenues
|
18,739,956,721 |
22,297,078,557 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
15,984,535,025 |
18,945,164,232 |
|
Selling and administrative expenses |
557,679,934 |
466,940,749 |
|
Total Expenses |
16,542,214,959 |
19,412,104,981 |
|
|
|
|
|
Profit/[Loss] from Interest
Expenses |
2,197,741,762 |
2,884,973,576 |
|
Interest Expenses |
[482,220,559] |
[353,736,948] |
|
|
|
|
|
Income before minority
interest |
1,715,521,203 |
2,531,236,628 |
|
Extraordinary items Gain from
rehabilitation |
22,786,790 |
209,396,414 |
|
Net Profit / [Loss] |
1,738,307,993 |
2,740,633,042 |
FINANCIAL NOTE
NOTE 1
Trade Accounts Receivable
|
|
2006 |
2005 |
|
|
|
|
|
Age of receivable |
|
|
|
Not yet
due |
939,201,404 |
641,575,199 |
|
Past due |
|
|
|
Less than 3
months |
1,159,548,071 |
1,582,256,771 |
|
3-6 months |
24,019,273 |
1,823,041 |
|
Total
|
2,122,768,748 |
2,225,655,011 |
NOTE 2
Inventories
|
|
2006 |
2005 |
|
|
|
|
|
Raw material |
5,572,394,768 |
1,833,835,240 |
|
Finished goods |
805,710,582 |
705,659,699 |
|
Spare parts |
395,023,703 |
564,547,300 |
|
Consumable |
263,775,407 |
291,560,650 |
|
Others |
91,196,969 |
216,774,215 |
|
Total inventories |
7,128,101,429 |
3,612,377,104 |
|
Less: Allowance for slow-moving inventories |
[9,598,431] |
[9,471,263] |
|
Total
|
7,118,502,998 |
3,602,905,841 |
NOTE 3
Other Current Assets
|
|
2006 |
2005 |
|
|
|
|
|
Other receivables |
219,469,298 |
49,164,440 |
|
Deposit for purchase
of investment |
326,077,200 |
- |
|
Refundable value added
tax |
172,454,686 |
31,903,364 |
|
Suspense value added
tax |
53,775,222 |
118,114,176 |
|
Advance for purchases
of goods and
service |
397,462,134 |
196,243,634 |
|
Interest receivable |
20,975,056 |
- |
|
Others |
11,455,661 |
18,588,857 |
|
Total
|
1,201,669,257 |
414,014,471 |
NOTE 4
Fixed Assets
|
|
2006 |
2005 |
|
|
|
|
|
Land |
734,848,633 |
734,848,633 |
|
Building and improvement |
2,023,734,127 |
2,014,700,151 |
|
Machine and equipment |
18,239,914,416 |
17,841,991,965 |
|
Office equipment, furniture and fixture |
138,175,275 |
134,000,772 |
|
Vehicle |
9,855,814 |
6,315,814 |
|
Assets under construction |
4,514,444,387 |
1,759,686,234 |
|
Total |
25,660,972,652 |
22,491,543,569 |
|
Less: Depreciation for
year |
[3,401,019,910] |
[2,806,789,462] |
|
Allowance for
impairment for the
year |
[2,361,183,672] |
[2,361,183,672] |
|
Total
|
19,898,769,070 |
17,323,570,435 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
[18.91] |
|
|
Operating Profit |
[6.05] |
|
|
Net Profit |
[36.57] |
|
|
Fixed Assets |
14.87 |
|
|
Total Assets |
30.81 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
88.79 |
85.33 |
|
Operating Profit Margin |
12.21 |
12.99 |
|
S & A
Expenses |
3.10 |
2.10 |
|
Interest Paid |
2.68 |
1.59 |
|
Other Revenues |
4.09 |
0.43 |
|
Net Profit Margin |
9.66 |
12.34 |
|
Earning Per Shares |
0.16 |
0.33 |
|
No. of Shares |
11,100,000,000 |
8,200,000,000 |
Net Sales was
decreased by 18.91%,
Operating Profit was
decreased by 6.05%,
Net Profit was
decreased by 36.57%,
Fixed Assets was
increased by 14.87%,
Total Assets was
increased by 30.81%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 85.33%
to 88.79%, Operating
Profit Margin was
decreased from 12.99%
to 12.21%, S
& A Expenses
was increased from
2.10% to 3.10%,
Interest Paid was increased
from 1.59% to
2.68%, Other Revenues
was increased from
0.43% to 4.09%,
Net Profit Margin
was decreased from
12.34% to 9.66%.
Earning Per Shares
was decreased from
0.33 baht per
share to 0.16
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
3.52 |
3.91 |
|
Quick-Assets Ratio |
1.19 |
1.91 |
Current Ratio was
decreased from 3.91
to 3.52, show
Current Assets can
cover Current Liabilities,
Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
1.91 to 1.19,
capacity to pay
Short Term Loan
was good too,
because Current Assets
without Inventory can
cover Current Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
0.39 |
0.31 |
|
Times Interest Earned |
4.56 |
8.16 |
D/E Ratio was
increased from 0.31 to
0.39, show the
company had fund
from Equity more
than fund from
Loan, investment risked
of the company
is low, Times
Interest Earned was
decreased from 8.16
to 4.56, capacity
to pay interest
paid was good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
0.90 |
1.28 |
|
Total Assets Turnover |
0.49 |
0.79 |
|
Return on Assets |
4.70 |
9.70 |
|
Return on Equity |
6.53 |
12.72 |
|
Day's Payable |
45.54 |
18.03 |
|
Day’s Inventories |
142.35 |
58.42 |
|
Day’s Receivables |
42.45 |
36.09 |
Fixed Assets Turnover
was decreased from
1.28 times to
0.90 times, Total
Assets Turnover was
decreased from 0.79
times to 0.49
times, show the
company could not
use Assets so
efficiently, Return on
Assets was decreased
from 9.70 to
4.70, Return on
Equity was decreased
from 12.72 to
6.53, capacity to
use Assets to
make profit was
good.
Day's Payable was increased
from 19 days
to 46 days,
Day’s Inventories was
increased from 59
days to 143
days, and Day’s
Receivables was increased
from 37 days
to 43 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%)