MIRA
INFORM REPORT
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Report Date : |
26.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THE
ORIENTAL HOTEL [THAILAND] PUBLIC COMPANY LIMITED |
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Formerly Known As : |
THAI HOTEL COMPANY
LIMITED |
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Registered Office : |
48 Oriental Avenue,
New Road, Bangrak,
Bangkok 10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.05. 1948 |
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Com. Reg. No.: |
0105491000409 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Hotel Management and
Service |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
No Complaints |
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Litigation : |
Clear |
name of the company
THE
ORIENTAL HOTEL [THAILAND]
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 48
ORIENTAL AVENUE, NEW
ROAD,
BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2659-9000
FAX : [66] 2659-0000
E-MAIL
ADDRESS : orbkk-enquiry@mohg.com
Orbkk-sales@mohg.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1948
REGISTRATION NO. : 0105491000409
CAPITAL REGISTERED : BHT. 160,000,000
CAPITAL PAID-UP : BHT. 160,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR. KURT JOSEPH WACHTVEITL, DUTCH
MANAGING DIRECTOR
NO.
OF STAFF : 777
LINES
OF BUSINESS : HOTEL
MANAGEMENT AND
SERVICE
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH FAIR PERFORMANCE
HISTORY
The
subject was established
on May 18,
1948, originally as a private
limited company by a
joint venture between
The Italthai group, Thailand and Mandarin Oriental
Holdings BV., Netherlands, under the registered name
“Thai Hotel Company Limited”. In 1988, subject
was changed its
name to be “Oriental
Hotel [Thailand] Company
Limited”.
On
September 15, 1993,
the subject became
to a public limited company
named THE ORIENTAL
HOTEL [THAILAND] PUBLIC
COMPANY LIMITED, and
later was listed
on the Stock Exchange of
Thailand [SET]. It
currently employs 777 staff.
The
subject’s registered address
is 48 Oriental Avenue, New
Rd., Bangrak, Bangkok
10500, and this
is the subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kurt Joseph Wachtveitl |
[-] |
Dutch |
71 |
|
Mr. John Raymond Witt |
|
Canadian |
45 |
|
Mr. Elias Edouard Ettedqui |
[-] |
French |
57 |
|
Mr. William Zentgrai |
|
American |
68 |
|
Mr. Asawin Kongsiri |
|
Thai |
63 |
|
Mrs. Nijaporn
Charanachitta : Chairman |
[x] |
Thai |
57 |
|
Mr. Yuthachai Charanachitta |
[x] |
Thai |
30 |
|
Mr. Benjamin William Keswick |
|
British |
36 |
|
Mr. Surachai Siriwallop |
|
Thai |
67 |
|
Dr. Pisit Leeahtam |
|
Thai |
57 |
AUTHORIZED PERSON
One of the mentioned directors
[x] can jointly
sign with one
of the directors [-] on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Kurt Joseph
Wachtveitl is the Managing Director.
He is Dutch nationality with
the age of 71 years
old.
Ms. Laddawan Sakornvasri is
the Finance &
Accounting Manager.
She is Thai nationality.
Ms. Markata Marcos
is the Sales & Marketing
Director.
She is Filipino nationality.
Mrs. Somsri Harnsirisawad is
the Public Relation
Director.
She is Thai nationality.
Mr. Paul Jones
is the Hotel Director.
He is British nationality.
BUSINESS OPERATIONS
The subject is
a first class
hotel business, the
16 storey building,
consists of 393
luxuries service rooms,
8 restaurants & banquet rooms,
as well as
their facilities, located
on 6,080 square
meters of area,
near the Chao
Phraya River, on
New Road, Bangkok, with
currently has 7
branches, which the
business comprising instant
foods, bakery, wine
shop, and restaurant,
as well as
laundry service, located
in the Thailand’s leading Department
Store, Shopping Center,
such as follows:
·
1 shop at Central Chidlom
Department Store
·
1 shop, 1
restaurant and 1
laundry shop at
The Emporium Shopping
Center
·
1 shop, 1
restaurant and 1
laundry shop at
Siam Paragon Shopping
Center
PURCHASE
Most of hotel
supplies are purchased
from local supplier
and agents.
DISTRIBUTION
There are
approximately 10 sales
and representative offices
for room reservation
services worldwide.
SUBSIDIARY AND
AFFILIATED COMPANIES
Ban Rim
Naam Chaophraya Co.,
Ltd.
Business Type :
Operating of restaurant
and health center,
Thai foods cooking
school,
hotel and spa
management school business.
Investment : 100%
held by the
subject.
Siam Side-seeing
Co., Ltd.
Business Type :
Marine travel service.
Investment : 1005
held by the
subject
Bakan Hotel
Holding [Thailand] Co.,
Ltd.
Business Type : No
activity.
Investment : 100%
held by the
subject
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 30-60 days.
Local bills are
paid by cash
or on the credits term
of 30-60 days.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
Krung Thai Bank
Public Co., Ltd.
Bank of Ayudhya
Public Co., Ltd.
EMPLOYMENT
The
subject employs 777
staff.
LOCATION DETAILS
The
premise is owned
for administrative office
and hotel at
the heading address.
Premise is located
in a prime commercial area.
COMMENT
The
subject is the
first quality hotel
in Bangkok with over
132 years in
operations. Readers of
the American business
magazine “Institutional Investor”
vote The Oriental
“Best Hotel in
the World”, the accolade
is honoured with
more international awards
than any other
hotels in the
history of the
hospitality industry.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 160,000,000 divided
into 16,000,000 shares of
Bht. 10 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as
at April 8,
2008]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mandarin Oriental Holdings
BV. |
6,399,500 |
40.00 |
|
Mrs. Nijaporn Charanachitta |
3,505,498 |
21.91 |
|
Chao Phraya Development Corporation |
1,600,000 |
10.00 |
|
State Street Bank
and Trust Company |
847,000 |
5.29 |
|
Thai NVDR Co.,
Ltd. |
356,800 |
2.23 |
|
American International Assurance
Co., Ltd. |
349,073 |
2.18 |
|
Mrs. Pilaichit Rerngpithaya |
285,019 |
1.78 |
|
Mr. Premchai Karnasuta |
271,520 |
1.70 |
|
Mrs. Aim-orn Therdprawat |
147,089 |
0.92 |
|
Others |
2,238,501 |
13.99 |
Total Shareholders : 903
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mrs. Nathaporn Phan-udom No.
3430
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 &
2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in Hand
& at Bank |
71,798,606 |
97,612,431 |
|
Short-term Investment |
749,840 |
728,597 |
|
Trade Accts. Receivable |
149,406,813 |
131,075,523 |
|
Amount due from
Related Companies |
29,280,384 |
301,390 |
|
Short-term Loans to
Related Company |
450,587,861 |
- |
|
Inventories |
16,222,723 |
18,103,341 |
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Other Current Assets
|
24,979,462 |
34,653,923 |
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|
|
|
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Total Current
Assets |
743,025,689 |
282,475,205 |
|
Long-term Loans to
Other Company |
- |
410,000,000 |
|
Investment in Subsidiaries |
13,621,697 |
- |
|
Investment in Associates |
9,500,000 |
95,997,575 |
|
Fixed Assets |
1,590,875,374 |
1,808,493,472 |
|
Intangible Assets |
22,212,179 |
10,366,814 |
|
Deferred Tax Assets |
31,222,687 |
29,729,528 |
|
Land Upfront Fee |
- |
57,500,000 |
|
Other Assets |
11,649,298 |
16,327,709 |
|
Total Assets |
2,422,126,924 |
2,710,890,303 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2007 |
2006 |
|
|
|
|
|
Short-term Loans from
Banks |
460,000,000 |
180,000,000 |
|
Trade Accts. Payable |
105,026,965 |
102,106,986 |
|
Amount due to
Related Companies |
49,939,808 |
43,779,549 |
|
Accrued Expenses |
91,366,609 |
92,924,778 |
|
Income Tax Payable |
81,171,599 |
76,839,498 |
|
Dividends Payable |
109,789 |
81,898 |
|
Other Current Liabilities |
95,119,121 |
74,216,816 |
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|
|
|
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Total Current
Liabilities |
882,733,891 |
569,949,525 |
|
Long-term Loans from
Bank |
300,000,000 |
620,000,000 |
|
Provision for Retirement Benefit Plan |
93,246,849 |
69,008,034 |
|
Accrued Land Rental |
- |
19,847,542 |
|
Other Liabilities |
17,277,071 |
16,672,573 |
|
Total Liabilities |
1,293,257,811 |
1,295,477,674 |
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Shareholders'
Equity |
|
|
|
|
|
|
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Share capital : Baht 10 par value
authorized, issued
and fully paid share
capital 16,000,000 shares |
160,000,000 |
160,000,000 |
|
|
|
|
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Capital Paid |
160,000,000 |
160,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve
|
16,000,000 |
16,000,000 |
|
Unappropriated |
952,869,113 |
1,239,412,629 |
|
Total
Shareholders' Equity |
1,128,869,113 |
1,415,412,629 |
|
Total
Liabilities & Shareholders' Equity |
2,422,126,924 |
2,710,890,303 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
|
Hotel Income |
2,098,243,864 |
2,274,499,783 |
|
Share of Profit
[Net] of Investments accounted
for under Equity Method |
- |
19,905,193 |
|
Dividend Income |
10,400,000 |
- |
|
Interest Income |
35,786,487 |
39,430,797 |
|
Other Income |
4,284,127 |
5,109,882 |
|
Total Revenues
|
2,148,714,478 |
2,338,945,655 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Sales
& Services |
835,754,880 |
870,158,344 |
|
Selling & Administrative Expenses |
548,902,589 |
621,037,384 |
|
Depreciation Charges on
Property, Plant &
Equipment |
205,551,020 |
206,686,664 |
|
Transfers to Cost
of Hotel Operation |
12,129,989 |
26,391,769 |
|
Amortization Charge of
Intangible Assets |
1,944,674 |
1,969,178 |
|
Losses on Disposals
& Write-offs of
Property, Plant &
Equipment |
248,330 |
279,844 |
|
Directors’ Remuneration |
1,950,000 |
1,800,000 |
|
Total Expenses |
1,606,481,482 |
1,728,323,183 |
|
|
|
|
|
Profit / [Loss] before Interest
Expenses & Income Tax |
542,232,996 |
610,622,472 |
|
Interest Expenses |
[41,366,585] |
[48,133,905] |
|
Income Tax |
[146,828,821] |
[149,774,779] |
|
|
|
|
|
Net Profit / [Loss] |
354,037,590 |
412,713,788 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
[7.75] |
|
|
Operating Profit |
[2.30] |
|
|
Net Profit |
[14.22] |
|
|
Fixed Assets |
[12.03] |
|
|
Total Assets |
[10.65] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
39.83 |
38.26 |
|
Operating Profit Margin |
36.41 |
37.27 |
|
S & A
Expenses |
26.16 |
27.30 |
|
Interest Paid |
1.97 |
2.12 |
|
Other Revenues |
2.41 |
2.83 |
|
Net Profit Margin |
16.87 |
18.15 |
|
Earning Per Shares |
22.13 |
25.79 |
|
No. of Shares |
16,000,000 |
16,000,000 |
Net Sales was
decreased by 7.75%,
Operating Profit was
decreased by 2.30%,
Net Profit was
decreased by 14.22%,
Fixed Assets was
decreased by 12.03%,
Total Assets was
decreased by 10.65%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 38.26%
to 39.83%, Operating
Profit Margin was
decreased from 37.27%
to 36.41%, S
& A Expenses
was decreased from
27.30% to 26.16%,
Interest Paid was decreased
from 2.12% to
1.97%, Other Revenues
was decreased from
2.83% to 2.41%,
Net Profit Margin
was decreased from
18.15% to 16.87%.
Earning Per Shares
was decreased from
25.79 baht per
share to 22.13
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
0.84 |
0.50 |
|
Quick-Assets Ratio |
0.80 |
0.40 |
Current Ratio was
increased from 0.50
to 0.84, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company was not
good, Quick-Assets Ratio
was increased from
0.40 to 0.80,
capacity to pay
Short Term Loan
was not good
too, because Current
Assets without Inventory
can not cover
Current Liabilities.
Leverage
|
Leverage |
2007 |
2006 |
|
D/E Ratio |
1.15 |
0.92 |
|
Times Interest Earned |
18.47 |
17.61 |
D/E Ratio was
increased from 0.92
to 1.15, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is medium,
Times Interest Earned
was increased from
17.61 to 18.47,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
1.32 |
1.26 |
|
Total Assets Turnover |
0.87 |
0.84 |
|
Return on Assets |
14.62 |
15.22 |
|
Return on Equity |
31.36 |
29.16 |
|
Day's Payable |
18.02 |
16.16 |
|
Day’s Inventories |
2.78 |
2.87 |
|
Day’s Receivables |
25.63 |
20.75 |
Fixed Assets Turnover
was increased from
1.26 times to
1.32 times, Total
Assets Turnover was
increased from 0.84
times to 0.87
times, show the
company could use
Assets so efficiently, Return on Assets
was decreased from
15.22 to 14.62,
Return on Equity
was increased from
29.16 to 31.36,
capacity to use
Assets to make
profit was good.
Day's Payable was
increased from 17
days to 19
days, while Day’s
Inventories was stable
at 3 days, but 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%)