MIRA
INFORM REPORT
|
Report Date : |
03.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SIAM CITY
CEMENT PUBLIC COMPANY
LIMITED [SCCC] |
|
|
|
|
Registered Office : |
7-12th Floor, Column Tower, 199 Ratchadapisek Road, Klongtoey, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
1969 |
|
|
|
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Com. Reg. No.: |
0107536001346 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, exporter
and distributor of mixed
cement [clinker & powder],
ordinary portland cement
and high early
strength portland cement |
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 |
|
|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name
SIAM CITY
CEMENT PUBLIC COMPANY
LIMITED [SCCC]
SUMMARY
BUSINESS ADDRESS : 7-12th FLOOR, COLUMN TOWER,
199 RATCHADAPISEK ROAD, KLONGTOEY, BANGKOK 10110, THAILAND
TELEPHONE : [66] 2797-7000
FAX : [66] 2797-7001-2
E-MAIL ADDRESS : pr@sccc.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS
ESTABLISHED : 1969
REGISTRATION NO. : 0107536001346 [Former: BOR.MOR.JOR.208]
CAPITAL REGISTERED : BHT. 2,875,000,000
CAPITAL PAID-UP : BHT. 2,375,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR. LEO MITTELHOLZER, SWISS
CHAIRMAN OF EXECUTIVE COMMITTEE
& MANAGING DIRECTOR
NO. OF STAFF : 2,950
LINES OF BUSINESS : MIXED CEMENT, ORDINARY
PORTLAND CEMENT AND HIGH EARLY
STRENGTH PORTLAND CEMENT
MANUFACTURER, EXPORTER AND 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
May 16, 1969 as
a private limited company under registered name
“SIAM CITY CEMENT
CO., LTD.”
The subject is
Thailand's second largest
cement producer which
has a market share of 28%
by capacity. The
other major producers
are Siam Cement
[63%] and Jalaprathan
Cement [10%]. SCCC has
9 subsidiaries which
all are involved
in construction related
businesses except one,
Lanna Lignite, a
mine lignite coal
in North Thailand. The
subject began cement
production in 1972
at a factory with one
production line in
Kaeng Khoi, Saraburi
with an annual
capacity of 600,000
tons per annum.
Subsequently, it has
built two additional
factories with a
total of six
production lines at
the same location, bringing the total production
capacity to 12.3
million tons of
clinker per annum.
The subject
was listed on
the Stock Exchange
of Thailand on
April 15, 1977, and
registered as a public limited
company on November
5, 1993. It
currently employs 2,950
staff.
The subject
was awarded for
ISO 9002, ISO
14001 and TIS
18001 Certification in
1997, 1998 and
2001 respectively.
The subject’s
registered address was
898 Ploenchit Rd.,
Lumpinee, Pathumwan, Bangkok
10330.
In 2006,
the subject’s registered address
was moved to 7-12th Floor, Column
Tower, 199 Ratchadapisek Rd., Klongtoey, Bangkok
10110, and this
is the company’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chachchon Ratanarak |
[x] |
Thai |
35 |
|
Mr. Paul Heinz
Hugentobler |
[+] : Vice Chairman |
Swiss |
58 |
|
Mr. Veraphan Teepsuwan |
[x] : Chairman |
Thai |
66 |
|
Mr. Urs Wolfgang
Bieri |
[+] |
Swiss |
52 |
|
Mr. Marselsinus S.H.M.
Smith |
[+] |
Dutch |
51 |
|
Mr. Harald Link |
|
German |
52 |
|
Mr. Wanchai Thosomboon |
[-] |
Thai |
58 |
|
Mr. Taweephol Kongseree |
[x] |
Thai |
66 |
|
Mr. Prapol Buranasiri |
|
Thai |
67 |
|
Mr. Prakob Visitkijkarn |
|
Thai |
67 |
|
Mr. Chet Raktakanishta |
: Audit Committee |
Thai |
66 |
|
Ms. Chantana Sukumanont |
[-] |
Thai |
57 |
AUTHORIZED PERSON
One of
the directors [x]
can jointly sign
with one of
the directors [+]
or one of the directors
[x] or [+] can jointly
sign with one
of the directors [-] on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Leo
Mittelholzer is the
Chairman of the
Executive Committee & Managing Director.
He is
Swiss nationality with
the age of
56 years old.
Ms. Chantana
Sukumanont is the
Executive Vice President [Marketing & Sales].
She is
Thai nationality with
the age of
57 years old.
Mr. Wanchai
Thosomboon is the
Executive Vice President
[Saraburi Operations].
He is
Thai nationality with
the age of
58 years old.
Mr. Nopporn
Thepsittha is the
Senior Vice President
[Logistics & Exports].
He is
Thai nationality.
Mr. Andreas Leutenegger is the
Senior Vice President
[Finance & Controlling].
He is
Swiss nationality.
Mr. Rungroj
Soonthornsatienkul is the
Senior Vice President.
[Human Resource & Administrative]. He
is Thai nationality.
BUSINESS OPERATIONS
The subject’s
activities are the
manufacturer, exporter and
distributor of mixed cement [clinker & powder], ordinary
portland cement and
high early strength
portland cement, under
its owned names
“INSEE TONG”, “INSEE
DANG”, “INSEE PETCH”,
“INSEE DUM”, “INSEE
KEAW”, “INSEE SAMUTR”
and “INSEE FAH”
brand, as well
as wide range
of mortar max,
including, fine plastering
mortar, general plastering
mortar, light weight
block plastering mortar,
normal bricklaying mortar,
and light weight
block bricklaying mortar,
under the name
“INSEE” brand.
PRODUCTION [2006]
Cement
[Clinker] : 12.3 million tons
per year
Cement [Powder] : 14.5 million
tons per year
PURCHASE
90% of its
raw material is
purchased from local
suppliers.
IMPORT [COUNTRIES]
10% of
raw materials and
spare parts are
imported from Switzerland, Germany and United States
of America.
EXPORT [COUNTRIES]
70% of
its products is
exported to Europe, United States of
America, Australia, Middle
East, Africa and
South East Asia.
SALES [LOCAL]
30% of
its products is
sold locally to
wholesalers, Thai Government
and end-users.
SUBSIDIARIES
|
Name |
Business Type |
Investment |
|
Siam City
Concrete Co., Ltd. |
Ready-mixed concrete |
99.99 |
|
Eagle Cement
Holdings Co., Ltd. |
Holding company |
99.99 |
|
Khmer Cement
Industry Co., Ltd. |
Cement trading
company |
75.00 |
|
Conwood Co.,
Ltd. |
Construction material |
99.99 |
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
Purchasing terms
are on the credits of
30-60 days.
Imports are
by L/C at sight or
D/A on the credits of 90-180 days
& T/T.
Selling terms
are on the credits of
30-60 days.
Exports are
against L/C at
sight & T/T.
BANKING
Bank of
Ayudhya Public Co.,
Ltd.
[Head Office :
1222 Rama 3
Rd., Bangpongpang, Yannawa,
Bangkok 10120]
Bangkok Bank
Public Co., Ltd.
[Bangkapi Branch : Sukhumvit Rd., Klongtoeynua, Wattana,
Bangkok 10110]
Krung Thai
Bank Public Co.,
Ltd.
The Siam
Commercial Bank Public
Co., Ltd.
EMPLOYMENT
The subject
employs 2,950 staff
[office staff, sales
staff and factory
workers].
LOCATION DETAILS
The premise
is rented for administration office and Customer
Services Center at
the heading address.
Premise is located
in a prime commercial area.
Factory and
Services Center are
located at 99
Moo 9 & 219 Moo
5 Mitrapap Rd., Km. 129-131 Tabkwang
Sub-district, Kaengkhoi, Saraburi
Province 18110, Tel : [66]
36 251-824-43. Fax :
[66] 36 251-820-1.
Sales Offices
are located in Chiangmai, Suratthani and Khon
Kaen province.
COMMENT
In 2006
it was a very challenging
year of the company
in both domestic
and international markets.
A number of
economic factors in
overseas market especially the US market, applied
downward pressure on
its export. Furthermore, high energy prices
could not be
entirely offset by
the implementation of
its Alternative Fuels
and Raw Materials
policy.
However, in
2007 the company
could maintain confidence
and stability in
its business whilst
seeking to improve
its competitive position.
It is well placed to
meet the country’s
need when new
national infrastructure projects
are given the
green light and
it will continue
to conduct its
operation in the
best interests, and able
to further improve
its position as
the nation’s ‘Cement
Solution Provider’.
FINANCIAL INFORMATION
The capital
was initially registered
at Bht. 100,000
with fully paid.
The capital
was increased later
as followings:
Bht. 140,000,000 in August,
1970
Bht. 475,000,000 in September,
1978
Bht. 731,500,000 in August,
1985
Bht. 975,333,300 in February,
1989
Bht. 1,500,000,000 in November, 1993
Bht. 3,000,000,000 in 2005
On June
26, 2007, the
capital was decreased
to Bht. 2,875,000,000 divided
into 287,500,000 shares
of Bht. 10 each
with Bht. 2,375,000,000 paid up.
MAIN SHAREHOLDERS :
[as
at August 24,
2007] at Bht.
2,375,000,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Sunrise Equity
Co., Ltd. |
80,065,840 |
33.71 |
|
Thai Rock-Cem
Co., Ltd. |
77,628,433 |
32.69 |
|
Clearstream Nominees
Ltd. |
8,350,200 |
3.52 |
|
Siam City
Cement Public Company
Limited |
7,500,000 |
3.16 |
|
Parkmix Limited-JPMSAPL Client A/C |
7,051,100 |
2.97 |
|
Nortrust Nominees
Ltd. |
5,230,200 |
2.20 |
|
Sri Ayudhya
Insurance Plc. |
4,047,800 |
1.70 |
|
HSBC [Singapore] Nominee Pte. Ltd. |
4,015,577 |
1.69 |
|
Vayupak 1
Mutual Fund by
MFC |
2,254,000 |
0.95 |
|
Vayupak 1
Mutual Fund by
Krungthai Securities Plc |
2,254,000 |
0.95 |
|
Mrs. Sasithorn Ratanarak |
2,085,040 |
0.88 |
|
Ms. Pilanuch Ratanarak |
1,439,742 |
0.61 |
|
Amercan International Assurance Co., Ltd. |
1,303,600 |
0.55 |
|
Others |
34,274,468 |
14.42 |
Total Shareholders : 3,082
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.:
Mr. Narong Puntawong No. 3315
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 &
Cash Equivalents
|
545,610,844 |
2,084,844,775 |
|
Trade Accounts
Receivable Subsidiaries & Related Companies |
691,440,736 |
505,945,696 |
|
Other
Companies |
1,483,869,156 |
1,138,781,032 |
|
Inventories |
1,563,958,077 |
1,659,395,598 |
|
Account Receivable - Subsidiaries &
Related Companies |
160,806,779 |
117,278,614 |
|
Advance Payments
to Suppliers Other
Companies |
144,429,478 |
44,161,238 |
|
Other Current
Assets |
96,108,587 |
123,532,503 |
|
|
|
|
|
Total Current
Assets |
4,686,223,657 |
5,673,939,456 |
|
Investment accounted
for under Equity
Method |
1,730,457,484 |
1,630,142,249 |
|
Long-term to
Subsidiaries |
1,283,125,433 |
991,165,288 |
|
Fixed Assets |
10,145,600,593 |
9,576,847,656 |
|
Assets not
used in Operations |
1,103,678,608 |
1,486,430,442 |
|
Intangible Assets |
378,210,919 |
388,266,730 |
|
Other Assets Deferred
Income Tax |
371,648,014 |
342,607,710 |
|
Others |
146,316,630 |
118,606,872 |
|
Total Assets |
19,845,261,338 |
20,208,006,403 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2006 |
2005 |
|
|
|
|
|
Short-term Loans
from Financial Institutions |
400,000,000 |
- |
|
Trade Accounts
Payable Associated & Related Companies |
237,567,750 |
113,069,013 |
|
Other
Companies |
885,439,787 |
973,058,901 |
|
Current portion
of Long-term Liabilities for Concession |
30,870,372 |
- |
|
Other Current
Liabilities Accrued
Rebate |
205,874,950 |
118,458,736 |
|
Accrued
Electricity |
230,606,900 |
220,952,403 |
|
Corporate
Income Tax Payable |
735,458,475 |
663,541,941 |
|
Other
Accrued Expenses |
549,897,900 |
500,775,293 |
|
Advance
from Customers |
26,061,700 |
25,909,430 |
|
Others |
54,254,062 |
18,705,444 |
|
|
|
|
|
Total Current
Liabilities |
3,356,031,896 |
2,634,471,161 |
|
Other Liabilities Long-term
Liabilities for Concession |
280,210,086 |
311,080,458 |
|
Provident
Fund |
437,582,371 |
396,649,387 |
|
Reserve for Employee Retirement Benefit Plan |
117,421,752 |
61,878,736 |
|
Total Liabilities |
4,191,246,105 |
3,404,079,742 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
|
2006 |
2005 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
Share capital |
|
|
|
Registered |
|
|
|
300,000,000 ordinary shares of Baht 10
each |
3,000,000,000 |
3,000,000,000 |
|
Issued and fully paid up |
|
|
|
250,000,000 ordinary shares of Baht 10
each |
2,500,000,000 |
2,500,000,000 |
|
Share Premium |
10,106,266,730 |
10,106,266,730 |
|
Translation Adjustments |
25,580 |
[149,697] |
|
Retained Earning Appropriated for Statutory Reserve |
300,000,000 |
300,000,000 |
|
Treasury Stock Reserve |
4,696,067,693 |
2,985,423,947 |
|
Unappropriated |
2,747,722,923 |
3,897,809,628 |
|
|
|
|
|
Total Equity
Attributable to the
Company’s Shareholders |
20,350,082,926 |
19,789,350,608 |
|
Less: Treasury
Stock |
[4,696,067,693] |
[2,985,423,947] |
|
Equity Attributable to the Company’s
Shareholders - Net |
15,654,015,233 |
16,803,926,661 |
|
Total
Shareholders' Equity |
15,654,015,233 |
16,803,926,661 |
|
Total Liabilities
& Shareholders' Equity |
19,845,261,338 |
20,208,006,403 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
20,975,928,019 |
19,852,067,549 |
|
Other Income |
230,296,849 |
210,983,482 |
|
Share of
Profit from Investment accounted for under
Equity Method |
159,284,571 |
342,059,345 |
|
Gain on Sale of
Investment in Share
of Subsidiary |
- |
11,594,475 |
|
Total Revenues |
21,365,509,439 |
20,416,704,851 |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Sales |
14,056,075,005 |
12,785,107,160 |
|
Selling &
Administrative Expenses |
1,789,605,701 |
1,822,444,362 |
|
Other Expenses |
17,703,109 |
25,905,668 |
|
Total
Expenses |
15,863,383,815 |
14,633,457,190 |
|
|
|
|
|
Profit /
[Loss] before Interest
Expenses & Income
Tax |
5,502,125,624 |
5,783,247,661 |
|
Interest Expenses |
[44,756,820] |
[37,682,405] |
|
Income Tax |
[1,601,872,963] |
[1,673,025,132] |
|
|
|
|
|
Net Profit / [Loss] |
3,855,495,841 |
4,072,540,124 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
5.66 |
|
|
Operating Profit |
[10.07] |
|
|
Net Profit |
[5.33] |
|
|
Fixed Assets |
5.94 |
|
|
Total Assets |
[1.80] |
|
|
Profitability |
|
|
|
Cost of
Good Sold |
67.01 |
64.40 |
|
Operating Profit
Margin |
26.32 |
29.26 |
|
S &
A Expenses |
8.53 |
9.18 |
|
Interest Paid |
0.21 |
0.19 |
|
Other Revenues |
1.86 |
2.84 |
|
Net Profit
Margin |
18.38 |
20.51 |
|
Earning Per
Shares |
15.42 |
16.29 |
|
No. of Shares |
250,000,000 |
250,000,000 |
Net Sales
was increased by
5.66%, Operating Profit
was decreased by
10.07%, Net Profit
was decreased by
5.33%, Fixed Assets
was increased by
5.94%, Total Assets
was decreased by
1.80%.
Compare each
cost with sales, Cost
of Good Sold
was increased from
64.40% to 67.01%,
Operating Profit Margin
was decreased from
29.26% to 26.32%,
S & A
Expenses was decreased
from 9.18% to
8.53%, Interest Paid was
increased from 0.19%
to 0.21%, Other
Revenues was decreased
from 2.84% to
1.86%, Net Profit
Margin was decreased
from 20.51% to
18.38%.
Earning Per
Shares was decreased
from 16.29 baht
per share to
15.42 baht per
share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
1.40 |
2.15 |
|
Quick-Assets Ratio |
0.81 |
1.42 |
Current Ratio
was decreased from
2.15 to 1.40,
show Current Assets
can cover Current
Liabilities, Liquidity Ratio
of the company was good,
Quick-Assets Ratio was
decreased from 1.42
to 0.81, 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 |
0.27 |
0.20 |
|
Times Interest
Earned |
123.33 |
154.16 |
D/E Ratio
was increased from
0.20 to 0.27,
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 154.16 to
123.33, capacity to
pay interest paid
was good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets
Turnover |
2.07 |
2.07 |
|
Total Assets
Turnover |
1.06 |
0.98 |
|
Return on
Assets |
19.43 |
20.15 |
|
Return on
Equity |
24.63 |
24.24 |
|
Day's Payable |
15.20 |
17.65 |
|
Day’s Inventories |
26.84 |
30.09 |
|
Day’s Receivables |
25.47 |
20.65 |
Fixed Assets
Turnover was decreased
from 2.07 times
to 2.07 times,
Total Assets Turnover
was increased from
0.98 times to
1.06 times, show
the company could
use Assets so
efficiently, Return on
Assets was decreased
from 20.15 to
19.43, Return on
Equity was increased
from 24.24 to
24.63, capacity to
use Assets to
make profit was
good.
Day's Payable
was decreased from
18 days to
16 days, and
Day’s Inventories was
decreased from 31
days to 27
days, while Day’s
Receivables was increased
from 21 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. |
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%)