MIRA
INFORM REPORT
|
Report Date : |
27.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
JOTUN THAILAND LIMITED |
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Registered Office : |
700/353
Moo 6, Amata City Industrial
Estate, [Bip Ii] T.
Donhuaroh, A. Muang, Cholburi 20000 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1967
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Com. Reg. No.: |
0105510003790 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer and distributor of industrial paints
and related products. |
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 : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
JOTUN THAILAND LIMITED
SUMMARY
BUSINESS ADDRESS : 700/353
MOO 6, AMATA CITY INDUSTRIAL
ESTATE,
[BIP II]
T. DONHUAROH, A.
MUANG,
CHOLBURI 20000,
THAILAND
TELEPHONE : [66] 38 214-824-6
FAX : [66] 38
214-373-4, 38 214-514,
38 214-266-7
E-MAIL ADDRESS : chengchao.rangsipol@jotun.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1967
REGISTRATION NO.
: 0105510003790 [Former : 440/2510]
CAPITAL
REGISTERED : BHT.
84,000,000
CAPITAL
PAID-UP : BHT.
84,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE : MR.
ERIC MALLACE, BRITISH
MANAGING DIRECTOR
NO. OF
STAFF : 400
LINES OF
BUSINESS : INDUSTRIAL
PAINTS
MANUFACTURER &
EXPORTER
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 August
21, 1967 as
a private limited company under the name
style JOTUN THAILAND
LIMITED, by Norwegian
groups, to manufacture and distributor wide range
of industrial paints
to both domestic and
overseas markets. It was
granted a promotional
privilege from the Board
of Investment [BOI] for
the production. The
subject is a
member of Jotun
A/S, Norway. It
currently employs approximately 400 staff.
The subject received
its ISO 9002
certificate from BVQI
in 1996 and
is the first paint and
powder coatings company
in Thailand to receive
the ISO14001 certification from the Thailand
Environmental Institute [TEI].
The
subject’s registered address
is 700/353 Moo 6,
Amata City Industrial Estate,
[BIP
II] T. Donhuaroh, A. Muang, Cholburi
20000, and this
is the subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
Nationality |
Age |
|
|
|
|
|
Mr. Bjorn Granerod |
Norwegian |
67 |
|
Mr. Teerajitt Stirotamawongse |
Thai |
66 |
|
Mr. Erik Reinholt
Aaberg |
Norwegian |
55 |
|
Mr. Eric Mallace [x] |
British |
51 |
|
Mr. Pornchai Puangsuwan |
Thai |
45 |
|
Mr. Peder Bohlin |
Norwegian |
55 |
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign on behalf
of the subject with company’s
affixed.
MANAGEMENT
Mr. Eric
Mallace is the Managing Director.
He is British nationality with
the age of
51 years old.
Mr. Cheongchao
Rangsipol is the Sales & Marketing
Manager.
He is Thai nationality.
Mr. Somchai Kaewson
is the Financial Manager.
He is Thai nationality.
Ms. Bottawadi
Na Chiengmai is
the Human Resource
Manager.
She is Thai nationality.
Mr. Kiat Visalrakkij is
the Factory Manager.
He is Thai nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer and
distributor of industrial
paints and related
products, which can
be divided into
4 main categories as the
followings:
·
DECORATIVE PAINTS
STRAX, plastic emulsion
paint
JOTAPLAST, interior plastic
emulsion paint
PIONEER,
Chlorinatie rubber-based fungicidal
paint for use
on plaster and
concrete
GARDE ENAMEL, enamel
based on an
alkyd resin
CIRO, Pliotite-based clear
primer / sealer
JOTUN VARNISH, Clear
varnish based on
a polyurethane vehicle
·
MARINE AND
INDUSTRIAL COATINGS
PILOT, conventional paints,
including primers, intermediate coats and topcoats.
PIONER, coatings
TANKGUARD, an intermediate coat and finish
coat
SECURIT/BARRIER, Two-pack zine-rich
primers based on
epoxy / polyamide binder
POLYGUARD, Albino coat-tar
epoxy coating supplied in
various colours
ANTIFOULINGS, marine product
STRONGCOAT/RESIST HB, Inorganic
zinc silicate coatings
CTE 82/JOTAGUARD, Two-pack
high-build coal-tar epoxy
coatings
·
PROTECTIVE COATINGS
·
POWDER COATINGS
PRODUCTION
30 million litres
per annum
PURCHASE
50% of raw materials, machinery
and spare parts
are imported from Republic
of China, Taiwan,
Japan, Germany, Netherlands, Norway & United Kingdom, and the remaining
50% is purchased locally.
MAJOR SUPPLIER
Jotun A/S : Norway
SALES [LOCAL]
80% of its products is
sold locally to
contractors and dealers
with over 400
dealers in Bangkok
and provincial.
EXPORT [COUNTRY]
20% of its products is
exported to Singapore,
Myanmar, Laos, Taiwan,
Vietnam, Middle East
and Australia.
SUBSIDIARIES &
AFFILIATED COMPANY
Jotun Powder
Coating [Thailand] Co., Ltd.
Business Type: Manufacturer
of powder coating
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
30-60-90 days.
Local bills are
paid by cash
or on the credits of
30-60-90 days.
Imports are by
L/C at sight or on
the credits term
of 90-120 days
or T/T.
Exports are against
L/C at sight or T/T.
BANKING
The Siam
Commercial Bank Public Co., Ltd.
[Head Office : 9 Ratchadapisek Rd., Ladyao, Jatujak,
Bangkok 10900]
Hongkong &
Shanghai Banking Corporation
[Bangkok Office : 968 Rama 4 Rd., Bangrak,
Bangkok 10500]
Kasikornbank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 400 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
owned for administrative office &
factory at the
heading address. Premise is
located in an
industrial area.
BRANCH OFFICE
·
45 Moo 4, Soi Wat
Mahawong, Poochaosamingprai Road,
Samrongtai, Phrapradaeng, Samutprakarn 10310, Thailand.
·
49/26-40 Moo 12, Kingkaew Road, T.
Rajatheva, A. Bangplee,
Samutprakarn 10540,
Thailand.
Sales office is
located at 49/26
Moo 12, Kingkaew
Rd., T. Bangpleeyai, A. Bangplee, Samutprakarn 10540, Tel: [66]
2750-3355, 2750-2933, Fax:
[66] 2750-3344.
COMMENT
Jotun Thailand Limited
was established 40
years ago as
the first international paint company to
invest in Thailand
as a BIO promoted project.
Jotun in Thailand
has been very
successful and well
positioned in both
paint and powder
industries in Thailand
due to the fact that
it has invested comprehensive
in improving local
competence.
The new state-of-the-art manufacturing unit is
the largest single
investment of Jotun
worldwide, and the
factory is one
of the most modern
and sophisticated paint
and powder factories
in the world.
For its investments, Jotun in 1998
was awarded as
the first paint factory
in Thailand-the ISO
9002 certificate for
quality and the
ISO 14001 certificate for
environment performance. However,
Jotun paint is holding around 40% in economic segment, while in the
high-end paint market worth 1.4 billion baht, where the UK-based ICI Paints
(Thailand) holds a 50% share.
Paints products
are expected to grow consistently over the next few years from both
construction sector and other
industries like automobile and electric appliances.
FINANCIAL INFORMATION
The registered capitalization was at Bht.
4,500,000 divided into
4,500 shares of
Bht. 1,000 each.
The capital was
increased later as
followings :
Bht. 9,000,000
in January, 1980
Bht. 13,500,000
in October, 1980
Bht. 14,000,000
on November 28,
1984
Bht. 84,000,000
on January 16,
1998
The latest registered
capital was increased
to Bht. 84,000,000 divided into 84,000 shares
of Bht. 1,000
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
: [as at
April 7, 2005]
|
NAME |
|
HOLDING |
% |
|
Jotun A/S Co., Ltd. |
[Norwegian] |
80,186 |
95.46 |
|
Mr. Bjorn Granerod |
[Norwegian] |
3,000 |
3.57 |
|
Mr. Tor Traham |
[Norwegian] |
810 |
0.96 |
|
Mr. Helke Larsen |
[Norwegian] |
1 |
|
|
Mr. Knut Almestrand |
[Norwegian] |
1 |
=0.01 |
|
Mr. Bjorn Naglastad |
[Norwegian] |
1 |
|
|
Mr. Peder Bohlin |
[Norwegian] |
1 |
|
Total Shareholders
7
NAME OF AUDITOR &
CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Santi Pongcharoenphit No.
4623
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash in hand
& at Bank |
118,875,926 |
97,055,533 |
|
Trade Account Receivable |
566,694,561 |
492,160,919 |
|
Inventories |
166,261,849 |
151,728,423 |
|
Other Current Assets
|
12,647,682 |
16,414,615 |
|
|
|
|
|
Total Current
Assets |
864,480,018 |
757,359,490 |
|
Fixed Assets |
632,213,036 |
682,172,588 |
|
Intangible Assets |
3,868,887 |
3,587,547 |
|
Other Assets |
4,529,856 |
4,161,409 |
|
Total Assets |
1,505,091,797 |
1,447,281,034 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Trade Account Payable |
259,029,712 |
232,342,594 |
|
Other Payable from
Related Company |
36,348,803 |
35,117,380 |
|
Other Current Liabilities |
130,202,653 |
101,392,071 |
|
|
|
|
|
Total Current
Liabilities |
425,581,168 |
368,852,045 |
|
Long-term Loan from
Related Company |
250,000,000 |
350,000,000 |
|
Total Liabilities |
675,581,168 |
718,852,045 |
|
|
|
|
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Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000 par value
authorized, issued
and fully paid share
capital 84,000 shares |
84,000,000 |
84,000,000 |
|
|
|
|
|
Capital Paid |
84,000,000 |
84,000,000 |
|
Premium on Share Capital |
1,250,000 |
1,250,000 |
|
Retained Earning Appropriated for
Statutory Reserve |
7,150,000 |
7,150,000 |
|
Unappropriated |
737,110,629 |
636,028,989 |
|
Total
Shareholders' Equity |
829,510,629 |
728,428,989 |
|
Total
Liabilities & Shareholders' Equity |
1,505,091,797 |
1,447,281,034 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
1,890,127,934 |
1,698,120,070 |
|
Other Income |
32,222,181 |
23,901,220 |
|
Total Revenues
|
1,922,350,115 |
1,722,021,290 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,333,555,200 |
1,200,509,850 |
|
Selling & Administrative Expenses |
451,207,594 |
429,796,690 |
|
Total Expenses |
1,784,762,794 |
1,630,306,540 |
|
|
|
|
|
Profit / [Loss] before Interest
Expenses & Income Tax |
137,587,321 |
91,714,750 |
|
Interest Expenses |
[17,613,474] |
[16,450,361] |
|
Income Tax |
[18,892,207] |
[1,596,558] |
|
|
|
|
|
Net Profit / [Loss] |
101,081,640 |
73,667,831 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
11.31 |
|
|
Operating Profit |
34.78 |
|
|
Net Profit |
37.21 |
|
|
Fixed Assets |
[7.32] |
|
|
Total Assets |
3.99 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
70.55 |
70.70 |
|
Operating Profit Margin |
7.28 |
5.40 |
|
S & A
Expenses |
23.87 |
25.31 |
|
Interest Paid |
0.93 |
0.97 |
|
Other Revenues |
1.70 |
1.41 |
|
Net Profit Margin |
5.35 |
4.34 |
|
Earning Per Shares |
1,203.35 |
877.00 |
|
No. of Shares |
84,000 |
84,000 |
Net Sales was
increased by 11.31%,
Operating Profit was
increased by 34.78%,
Net Profit was
increased by 37.21%,
Fixed Assets was
decreased by 7.32%,
Total Assets was
increased by 3.99%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 70.70%
to 70.55%, Operating
Profit Margin was
increased from 5.40%
to 7.28%, S
& A Expenses
was decreased from
25.31% to 23.87%,
Interest Paid was decreased
from 0.97% to
0.93%, Other Revenues
was increased from
1.41% to 1.70%,
Net Profit Margin
was increased from
4.34% to 5.35%.
Earning Per Shares
was increased from
877.00 baht per
share to 1,203.35
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
2.03 |
2.05 |
|
Quick-Assets Ratio |
1.61 |
1.60 |
Current Ratio was
decreased from 2.05
to 2.03, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was increased from
1.60 to 1.61,
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 |
0.81 |
0.99 |
|
Times Interest Earned |
7.81 |
5.58 |
D/E Ratio was
decreased from 0.99
to 0.81, 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
5.58 to 7.81,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
2.99 |
2.49 |
|
Total Assets Turnover |
1.26 |
1.17 |
|
Return on Assets |
6.72 |
5.09 |
|
Return on Equity |
12.19 |
10.11 |
|
Day's Payable |
49.34 |
49.26 |
|
Day’s Inventories |
31.67 |
32.17 |
|
Day’s Receivables |
107.93 |
104.34 |
Fixed Assets Turnover
was increased from
2.49 times to
2.99 times, Total
Assets Turnover was increased from
1.17 times to
1.26 times, show
the company could
use Assets so
efficiently, Return on
Assets was increased
from 5.09 to
6.72, Return on
Equity was increased
from 10.11 to
12.19, capacity to
use Assets to make profit was
good.
Day's Payable was
stable at 50
days, while Day’s
Inventories was decreased
from 33 days
to 32 days, but Day’s
Receivables was increased
from 105 days
to 108 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%)