MIRA
INFORM REPORT
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Report Date : |
26.06.2007 |
IDENTIFICATION DETAILS
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Name : |
THAINOX STAINLESS PUBLIC COMPANY LIMITED |
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Registered Office : |
31st Floor,
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1990 |
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Com. Reg. No.: |
0107547000419 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturer of premium
cold-rolled stainless steel
sheets and coils |
RATING & COMMENTS
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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 : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
THAINOX STAINLESS PUBLIC COMPANY LIMITED
FORMER
THAINOX STEEL LTD.
SUMMARY
BUSINESS ADDRESS : 31st FLOOR,
TELEPHONE : [66] 2250-7061,
2250-7621-32
FAX : [66] 2250-7633
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1990
REGISTRATION NO. : 0107547000419 [Former :
0107574700411]
CAPITAL
REGISTERED : BHT.
8,000,000,000
CAPITAL
PAID-UP : BHT.
8,000,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
PRAYUDH MAHAGITSIRI, THAI
CHIEF EXECUTIVE
OFFICER
NO. OF
STAFF : 620
LINES OF BUSINESS : COLD-ROLLED STAINLESS
STEEL SHEETS
AND COILS MANUFACTURER &
EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
established on July
30, 1990 as
a private limited
company under registered the
name THAINOX STEEL
LTD., by a
joint venture between
Thai and foreign
groups, in order
to manufacture and
distribute premium cold
rolled stainless steel
sheets and coils
for domestic and
international markets. It
was initially a
joint venture among
Arcelor group of
France, Japanese Consortium
and the Thai
PM group with
Board of Investment
[BOI] promoted. It
currently employs 620
staff.
In 2004, the
Thai PM group
became the major
shareholder of the
subject, and has
changed the status
to public company
under the current
name “THAINOX STAINLESS
PUBLIC COMPANY LIMITED.” on
April 26, 2004.
On December 14,
2004, the subject
was listed on
the Stock Exchange
of Thailand under
its symbol “TNOX”
name.
AWARDED
ISO 9002 : 1994 awarded by
BVQI in 1999
ISO 9001 : 2000 awarded by
BVQI in 2003
ISO/IEC 17025 : 1999 awarded
by TISI in 2004
ISO 14001 : 2004 awarded by
TUSI in 2004
OHSAS 18001 : 1999 awarded
The subject’s registered
address was initially
located at 23rd Floor,
CTI Tower, 191
Ratchadapisek Rd., Klongtoey,
Bangkok 10110.
In 2004 the
subject’s registered address
was relocated to 31st Floor,
CRC Tower, All Season
Place, 87/2 Wireless Rd.,
Lumpini, Pathumwan, Bangkok
10330, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prayudh Mahagitsiri |
[x] : Chairman |
Thai |
62 |
|
Mrs. Suvimol Mahagitsiri |
[x] |
Thai |
60 |
|
Mr. Jean Pual
Thevenin |
[-] |
French |
66 |
|
Mr. Wallop Kunanukornkul |
[-] |
Thai |
54 |
|
Mr. Lee Young
Suk |
|
Korean |
56 |
|
Mr. Takashi Mizuno |
|
Japanese |
61 |
|
Mr. Chun Jaruchaikul |
|
Thai |
58 |
|
Mr. Prakit Thienboon |
|
Thai |
54 |
|
M.R. Priyangsri Watanakun |
|
Thai |
69 |
|
Mr. Sornthep Komutbutr |
|
Thai |
63 |
|
Mr. Jitender P.
Verma |
[-] |
Indian |
43 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign or
two of the directors [-]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Prayudh
Mahagitsiri is the
Chief Executive Officer.
He is Thai
nationality with the
age of 62
years old.
Mr. Jean
Paul Thevenin is
the Managing Director.
He is French
nationality with the
age of 66
years old.
Mrs. La-eiad
Wongvongpob is the
Deputy Managing Director.
She is Thai
nationality with the
age of 63
years old.
Ms. Wannee
Chantamongkol is the
Financial & Account Manager.
She is Thai
nationality with the age
of 44 years
old.
Mr. Somkiat
Songsamphan is the
Personnel Manager.
He is Thai
nationality with the
age of 56
years old.
Mr. Preecha
Santiwong is the
Purchasing Manager.
He is Thai
nationality with the
age of 56
years old.
Mr. Nantachit
Thavornbutr is the
Sales Manager.
He is Thai
nationality with the
age of 52
years old.
Dr. Chatchai
Somsiri is the
Metal Works Manager.
He is Thai
nationality with the
age of 53
years old.
Mr. Somchai
Charoensawan is the
Factory Manager.
He is Thai
nationality with the
age of 58
years old.
Mr. Boonmee Vorapatpong
is the IT
Manager.
He is Thai
nationality with the
age of 46
years old.
Mrs. Somsri
Cherdampai is the
Financial Controller.
She is Thai
nationality with the
age of 54
years old.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of premium cold-rolled
stainless steel sheets
and coils, which
was divided into
2 products types,
cold rolled austenitic
stainless steel and
cold rolled ferritic
stainless steel.
1. Austenitic
stainless steel
This type of
stainless steel in
non-magnetic. In addition
to chromium, typically
at a level
of 18%, austenitic
stainless steel contains
nickel, which increases
corrosion resistance and
makes it easy to fabricate.
This is the
most widely used
type of stainless
steel. Over 80%
of stainless steel
consumed in
2. Ferritic
stainless steel
This is a
magnetic type of stainless
steel. It has
a low carbon
content and contains
chromium as a
main element, typically
at a level
of 13% and 17%. Ferritic
steel has slightly
higher yield strength
than austenitic steel;
therefore, ferritic steel
finds greater use
where there is
a risk of
stress-corrosion cracking. TNOX
main products in
this category include
grade 430 2B
and grade 430 BA.
Its products are used for
various industries especially
automotive assembly, construction,
foods, household equipments
and electronic products.
PRODUCTION CAPACITY
200,000 tons/year
MAJOR BRAND
“TNX”
IMPORT [COUNTRIES]
Some of hot-rolled
steel and steel
sheet as well
as machinery and
spare parts are
imported from Japan,
Taiwan and Korea.
MAJOR SUPPLIERS
Nippon Steel &
Sumikin Stainless Corporation :
Arcelor :
SALES [LOCAL]
37% of its
products is sold
directly to local
customers, and 15%
is sold to
dealers.
EXPORT [COUNTRY]
48% of its
products is exported
by Arcelor Stainless
International Group to over
30 worldwide countries such as, Republic of China, Singapore, Malaysia, United
States of America, Australia, Middle East,
India, Korea, Bangladesh,
Denmark, Germany, France,
Egypt, Indonesia, Vietnam,
Philippines and etc.
ASSOCIATED COMPANY
NS-Thainox Auto
Co., Ltd.
Investment : 49% of total shares
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 30-90 days.
Local bills are
paid by cash
or on the
credits term of
30-90 days.
Imports are by
L/C at sight
or on the
credit term of
120 days or
D/P & T/T.
Exports are against
L/C at sight
or on the
credit term of
120 days, or
T/T on the
credit term of
30 days.
BANKING
The Siam
Commercial Bank Public
Co., Ltd.
[Head Office :
Credit Agricole
Indosuez Bank
[
Deutsche Bank
AG.
[
Bangkok Bank
Public Co., Ltd.
[Head Office :
EMPLOYMENT
The subject employs
approximately 620 staff
[office staff and
factory workers].
LOCATION DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory is located
on the 205,000
square meters of
area at 324
Moo 8, Rayong
Industrial Park, Highway no 3191,
T. Mabkha, Sub-district,
Nikompattana,
COMMENT
In 2006
the company accomplished
a number of
fundamental goals according
to the strategic
plan. The company
decided to invest
over 1,200 millions
baht for new
sendzimir cold rolled
mill to facilitate
production capacity that
will be increased
to 300,000 tons
per year. The
process is currently
ongoing and expected to
be completed by
the end of
the year 2007.
Price of nickel
in world market
continued to increase
throughout the year and
consequently effected in
priced of raw
material to reach
the ceiling. Nevertheless, with
such proficient and
competent sales teams,
it was able to
achieve higher sales
target and pleasant profit
turnover.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,300,000,000 divided into
23,000,000 shares of
Bht. 100 each.
The capital was
increased later as
followings :
Bht. 5,925,900,000
on December 4,
1998
Bht. 6,968,400,000
on May 25,
1999
Bht. 7,804,104,000
on September 29,
1999
Decreased were : Bht.
4,768,913,280 on May 2, 2000
Bht. 4,321,827,660
on November 6,
2003
Increased were : Bht.
7,670,411,666 on November
12, 2003
Bht. 8,000,000,000
on May 8,
2004
The latest registered capital was
increased to Bht. 8,000,000,000
divided into 8,000,000,000
shares of Bht.
1 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 5,
2007]
|
NAME [Shareholder Group] |
HOLDING |
% |
|
|
|
|
|
Lakewood Real Estate
Co., Ltd. |
2,349,783,852 |
29.37 |
|
Mr. Prayudh Mahagitsiri |
1,536,197,707 |
19.20 |
|
POSCO Ltd. |
1,200,000,000 |
15.00 |
|
Goldman Sachs International |
650,931,065 |
8.14 |
|
N.C.B. Limited-UBS AG
London BR-IPB client
A/C |
408,504,435 |
5.11 |
|
Lakewood Country Club
Co., Ltd. |
116,581,354 |
1.46 |
|
Bank of Ayudhya
Public Co., Ltd. |
100,000,000 |
1.25 |
|
Marizon Capital Limited |
95,000,000 |
1.19 |
|
Nippon Steel & Sumikin Stainless
Steel Corporation |
89,834,402 |
1.12 |
|
Other |
1,453,167,185 |
18.16 |
Total shareholders
4,490
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Somchai Kurijitkosol No.
3277
KPM G Phoomchai Audit
Ltd.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash in hand
& at Bank
|
4,798,396,605.23 |
2,959,398,483.46 |
|
Trade Accts. Receivable |
1,055,350,926.11 |
290,333.46 |
|
Inventories |
3,622,001,695.34 |
2,208,974,391.07 |
|
Other Current Assets
|
|
|
|
Revenue Department
Receivable |
101,289,492.52 |
77,347,930.27 |
|
Other |
44,195,468.54 |
34,604,261.47 |
|
Total Current
Assets |
9,621,234,187.74 |
6,533,615,399.73 |
|
Investment Affiliated Company |
5,320,693.89 |
- |
|
General |
810,000.00 |
810,000.00 |
|
Fixed Assets |
106,945,311.50 |
9,200,793,776.21 |
|
Other Assets |
1,348,581.50 |
10,680,109.50 |
|
Total Assets
|
18,771,438,622.48 |
15,745,899,285.44 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Trade Accts. & Notes Payable |
5,980,581,726.58 |
3,293,208,397.91 |
|
Payable Related Company |
22,219,596.03 |
76,851,979.15 |
|
Other Current Liabilities |
|
|
|
Accrued
Expenses |
193,464,403.15 |
345,530,051.10 |
|
Accrued Expenses-Related Company |
25,120,777.49 |
25,120,777.49 |
|
Pre-receipt Goods |
57,490,595.89 |
21,004,982.03 |
|
Deferred Withholding
Income Tax |
83,802,364.85 |
993,972.20 |
|
Other |
7,419,350.55 |
2,273,713.42 |
|
Total Current
Liabilities |
6,370,098,814.54 |
3,764,983,873.30 |
|
Provident Fund |
45,092,287.00 |
39,446,971.00 |
|
Total Liabilities |
6,415,191,101.54 |
3,804,430,844.30 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
Share capital : Baht 1
value authorized, issued
and fully paid share
capital 8,000,000,000 shares |
8,000,000,000.00 |
8,000,000,000.00 |
|
Capital Paid |
8,000,000,000.00 |
8,000,000,000.00 |
|
Premium on Share-Capital |
332,131,263.64 |
332,131,263.64 |
|
Revaluation Surplus |
2,648,913,019.63 |
2,932,857,236.06 |
|
Refundable Common Share |
[249,557,679.37] |
[249,557,679.37] |
|
Statutory Reserve |
523,000,000.00 |
418,000,000.00 |
|
Reserve for Refundable
Common Share |
249,557,679.37 |
249,557,679.37 |
|
Retained Earning -
Unappropriated |
852,203,237.67 |
258,479,941.47 |
|
Total
Shareholders' Equity |
12,356,247,520.94 |
11,941,468,441.14 |
|
Total
Liabilities & Shareholders' Equity |
18,771,438,622.48 |
15,745,899,285.44 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
14,936,818,511.30 |
13,421,533,772.90 |
|
Other Income |
|
|
|
Interest Income |
133,637,799.59 |
41,471,469.31 |
|
Gain on
Exchange Rate |
26,472,499.02 |
- |
|
Other |
11,976,932.50 |
6,221,292.85 |
|
Share of Profit
in Subsidiaries Company |
420,693.89 |
- |
|
Total Revenues
|
15,109,326,436.30 |
13,469,226,535.06 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
12,417,076,129.23 |
12,335,225,290.40 |
|
Selling & Administrative Expenses |
622,200,541.90 |
650,872,662.47 |
|
Doubtful Account |
[470,000.00] |
[43,374,060.98] |
|
Loss from Discount
|
[7,801,469.87] |
42,416,950.89 |
|
Loss from Investment |
- |
3,400,000.00 |
|
Loss on Exchange
Rate |
- |
121,584,690.55 |
|
Remuneration Director’s |
10,457,272.88 |
9,607,238.11 |
|
Total Expenses |
13,041,462,474.14 |
13,119,732,771.44 |
|
Profit / [Loss] from Operation |
2,067,863,962.16 |
349,493,763.62 |
|
Interest Expenses |
[4,891,573.46] |
[2,344,823.72] |
|
Net Profit / [Loss] |
2,062,972,388.70 |
347,148,939.90 |
|
Retained Earning,
Beginning of Year |
11,941,468,441.14 |
12,929,246,270.31 |
|
Dividend |
[1,364,249,092.50] |
[800,000,000.00] |
|
Refundable Share |
- |
[249,557,679.37] |
|
Depreciation |
[283,944,216.40] |
[285,369,089.70] |
|
Retained Earning,
End of Year |
12,356,247,520.94 |
11,941,468,441.14 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
11.29 |
|
|
Operating Profit |
285.00 |
|
|
Net Profit |
494.26 |
|
|
Fixed Assets |
[98.84] |
|
|
Total Assets |
19.21 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
83.13 |
91.91 |
|
Operating Profit Margin |
13.86 |
3.60 |
|
S & A
Expenses |
4.17 |
4.85 |
|
Interest Paid |
0.03 |
0.02 |
|
Other Revenues |
1.15 |
0.36 |
|
Net Profit Margin |
13.81 |
2.59 |
|
Earning Per Shares |
0.26 |
0.04 |
|
No. of Shares |
8,000,000,000 |
8,000,000,000 |
Net Sales was
increased by 11.29%,
Operating Profit was
increased by 285.00%,
Net Profit was
increased by 494.26%,
Fixed Assets was
decreased by 98.84%,
Total Assets was
increased by 19.21%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 91.91%
to 83.13%, Operating
Profit Margin was
increased from 3.60%
to 13.86%, S
& A Expenses
was decreased from
4.85% to 4.17%,
Interest Paid was increased
from 0.02% to
0.03%, Other Revenues
was increased from
0.36% to 1.15%,
Net Profit Margin
was increased from
2.59% to 13.81%.
Earning Per Shares
was increased from
0.04 baht per
share to 0.26
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
1.51 |
1.74 |
|
Quick-Assets Ratio |
0.92 |
1.12 |
Current Ratio was
decreased from 1.74
to 1.51, show
Current Assets can
cover Current Liabilities,
Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
1.12 to 0.92,
capacity to pay
Short Term Loan
was not good,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
0.52 |
0.32 |
|
Times Interest Earned |
423.19 |
206.04 |
D/E Ratio was
increased from 0.32
to 0.52, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low,
Times Interest Earned
was increased from
206.04 to 423.19,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
139.67 |
1.46 |
|
Total Assets Turnover |
0.80 |
0.85 |
|
Return on Assets |
10.99 |
2.20 |
|
Return on Equity |
16.70 |
2.91 |
|
Day's Payable |
144.14 |
88.33 |
|
Day’s Inventories |
87.30 |
59.25 |
|
Day’s Receivables |
25.44 |
0.01 |
Fixed Assets Turnover
was increased from
1.46 times to
139.67 times, Total
Assets Turnover was
decreased from 0.85
times to 0.80
times, show the
company could use
Fixed Assets so
efficiently, Return on
Assets was increased
from 2.20 to
10.99, Return on
Equity was increased
from 2.91 to
16.70, capacity to
use Assets to
make profit was
good.
Day's Payable was
increased from 89
days to 145
days, Day’s Inventories
was increased from
60 days to 88 days,
and Day’s Receivables
was increased from
1 days to
26 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%)