MIRA
INFORM REPORT
|
Report Date : |
30.10.2007 |
IDENTIFICATION
DETAILS
|
Name : |
G STEEL PUBLIC COMPANY LIMITED |
|
|
|
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Registered Office : |
18th/Floor, Ssp
Tower 3, 88
Silom Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
1995 |
|
|
|
|
Com. Reg. No.: |
0107538000746 |
|
|
|
|
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 |
|
Status : |
Good |
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|
|
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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, SSP
TOWER 3, 88
SILOM ROAD,
SURIYAWONGSE, BANGRAK, BANGKOK 10500, THAILAND
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 NORMAL BUSINESS
ENGAGEMENT
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. :
United States of
America
Steel Base Trade
AG. :
Germany
Cargill International Trading
Pte. Ltd. : Singapore
Multiserv [Thailand] Co.,
Ltd. : Thailand
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 :
Soonthorn Kosa Rd.,
Klongtoey, Bangkok 10110]
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 [Thailand] Ltd. |
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%)