MIRA
INFORM REPORT
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Report Date : |
30.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
LOKAHIT METAL PUBLIC COMPANY LIMITED |
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Formerly Known As : |
LOKAHIT STEEL SERVICE CENTER COMPANY LIMITED |
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Registered Office : |
66/1, Moo 6, Suksawad 76 Road, Bangchak, Phrapradaeng, Samutprakarn
10130 |
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Country : |
Thailand |
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Financials (as on) : |
2007 |
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Date of Incorporation : |
12.04.1989 |
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Com. Reg. No.: |
0107548000315[ Former: 0105532033802] |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturer, Distributor and Service Center of steels and metal
products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
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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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME
LOHAKIT METAL
PUBLIC COMPANY LIMITED
[FORMER :
LOHAKIT STEEL SERVICE
CENTER CO., LTD.]
SUMMARY
BUSINESS ADDRESS : 66/1 MOO 6, SUKSAWAD
76 ROAD, BANGCHAK,
PHRAPRADAENG,
SAMUTPRAKARN 10130
TELEPHONE : [66] 2463-0158
FAX : [66] 2463-7299
E-MAIL ADDRESS : sales@lohakit.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS
ESTABLISHED : 1989
REGISTRATION NO. : 0107548000315 [Former : 0105532033802]
CAPITAL REGISTERED : BHT. 320,000,000
CAPITAL PAID-UP : BHT. 320,000,000
FISCAL YEAR
CLOSING DATE : MARCH 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR. PRASARN AKARAPONGPISAK, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 350
LINES OF
BUSINESS : STEELS
AND METAL PRODUCTS
MANUFACTURER, DISTRIBUTOR AND SERVICE
CENTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD
: MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was established on April 12, 1989, originally as a private limited company, under the registered name “Lohakit Steel Service Center Co., Ltd..” with the business objective to provide product and service for steel production in Thailand. On April 29, 2005, the subject became to public company under the name LOHAKIT METAL PUBLIC COMPANY LIMITED, and was listed on the Stock Exchange of Thailand [SET], It currently employs approximately 350 staff.
The subject’s registered address is 66/1 Moo 6, Suksawad 76 Rd., Bangchak, Phrapradaeng, Samutprakarn 10130, and this is the subject’s current operation address.
THE BOARD OF DIRECTOR
Name Nationality Age
Mr. Prasarn Akarapongpisak [x] Thai 50
Mr. Anand Manuschin-apisith [-] Thai 46
Mr. Kasachai Chaemkajornkiat [-] Thai 50
Mr. Wanchai Ampuengart Thai 61
Mr. Teera Na Wangkanai Thai 52
Mr. Anurut Wongvanich Thai 47
Mr. Lert Nitteeranont Thai 47
AUTHORIZED PERSON
The mentioned director [x] can jointly sign with one of the mentioned directors [-] on behalf of the subject with the company’s affixed.
MANAGEMENT
Mr. Prasarn Akarapongpisak is the Managing Director.
He is Thai nationality with the age of 50 years old.
Mr. Anand Manuschin-apisith is the General Manager.
He is Thai nationality with the age of 46 years old.
BUSINESS OPERATIONS
The subject’s activity is a manufacturer and distributor of steel and metal products, including stainless steel coil, stainless steel tube and pipes, hot dip galvanized steel, zinc coated steel and others, under its owned brand name “LHM”, as well as providing of cutting and rolling services for stainless steel under customer’s requirement.
PRODUCTION
10,000-12,000 tons per annum
IMPORT [COUNTRIES]
Some of raw material as well as machinery are imported from Japan, Germany and United States of America.
MAJOR SUPPLIER
Nippon Metal Industry Co., Ltd. : Japan
SALES [LOCAL]
100% of the products is
sold and serviced
locally by wholesale
to dealers, manufacturers and end-users, such
as in electrical,
automotive, construction, petrochemical and other industries.
SUBSIDIARIES &
AFFILIATED COMPANIES
D. Stainless Company Limited
Business Type: Manufacturer of stainless products
Auto Metal Company Limited
Business Type: Manufacturer of stainless products
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 credit of 30-60 days.
Local bills are paid by cash or on the credit of 30-60 days.
Imports are by L/C at sight or T/T.
BUSINESS TRANSACTION
The subject currently has approximately 3,000-4,000 customers both domestic and overseas. The subject is found to have delayed payment around 30% of the customers and 2% of defaulted payment.
BUSINESS TRANSACTION
In term of sales, the products are sold by wholesales through 3-4 local agents with the maximum credit given at 60 days. The subject has no problem on its account receivable regarding to its customers are the subject’s associated companies whose term of payment can be negotiated. For the purchasing, the products are purchased mainly from local suppliers with the maximum credit receipt at 60 days and the remaining are imported by T/T, D/A and occasionally by L/C at sight. The subject is not found to have payment problem due to the suppliers are the subject’s associated companies.
BANKING
v Bangkok Bank Public Co., Ltd.
v The Siam Commercial Bank Public Co., Ltd.
EMPLOYMENT
The subject employs approximately 350 staff.
LOCATION DETAILS
The premise is owned for administrative office, factory and warehouse at the heading address. The premise is located in industrial area.
Sale office is located at Rm. 167-169, 16th Flr., Thai CC Tower, 889 South Sathorn Rd., Yannawa, Sathorn, Bangkok 10120. Tel. : [66] 2673-9559, Fax. : [66] 2673-9557-8.
COMMENT
The subject still maintains its strong business activities despite overall economic slowdown. Its products remain in high demand from various industries. The subject has potential to continue growing.
FINANCIAL INFORMATION
The capital was registered at Bht. 20,000,000, divided into 200,000 shares of Bht. 100 each.
The capital was increased later as follows:
Bht. 39,215,600 on July 28, 1989
Bht. 117,219,300 on August 30, 2002
Bht. 320,000,000 in 2008
The latest registered
capital was increased
to Bht. 320 million
divided into 320,000,000
shares of Bht.
1 each with fully paid.
THE SHAREHOLDERS LISTED WERE
[as
at June 29,
2007 at Bht.
240 million of
capitalization]
|
NAME |
HOLDING |
% |
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Mr. Kasem Akarapongpisak Nationality: Thai Address : 602-604 Siphya Rd., Mahaprutharam, Bangrak, Bangkok |
120,000,200 |
50.00 |
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Mr. Prasarn Akarapongpisak Nationality: Thai Address : 947-949 Charoenkrung Rd., Taladnoi, Samphantawong, Bangrak, Bangkok |
35,999,800 |
15.00 |
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Mr. Prasert Akarapongpisak Nationality: Thai Address : 947-949 Charoenkrung Rd., Taladnoi, Samphantawong, Bangrak, Bangkok |
35,999,800 |
15.00 |
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Mr. Nucha Wathanopas Nationality: Thai Address : 160/204 Silom Rd., Suriyawongse, Bangrak, Bangkok |
23,999,900 |
10.00 |
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Mr. Nithis Akarapongpisak Nationality: Thai Address : 209/228 Moo 7, Lakhok, Muang, Pathumthani |
23,999,900 |
10.00 |
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Mr. Vithawas Akarapongpisak Nationality: Thai Address : 947-949 Charoenkrung Rd., Taladnoi, Samphantawong, Bangrak, Bangkok |
200 |
- |
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Mrs. Pranee Saekoo Nationality: Thai Address : 947-949 Charoenkrung Rd., Taladnoi, Samphantawong, Bangrak, Bangkok |
200 |
- |
Total Shareholders : 7
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mrs. Sumalee Reevarabandit No. 3970
LOHAKIT METAL
PUBLIC COMPANY LIMITED
BALANCE SHEET [BAHT]
The latest financial figures published for March 31, 2007 & 2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
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Cash in hand & at Bank |
22,478,947 |
22,241,224 |
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Trade Accts. Receivable-Other company |
289,455,779 |
400,499,888 |
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Trade Accts. Receivable-Related company |
171,461,102 |
143,545,782 |
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Inventories |
713,055,832 |
480,525,663 |
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Short Term Loan to Subsidiaries Company |
- |
26,000,000 |
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Other Current Assets |
12,091,754 |
9,824,306 |
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Total Current Assets |
1,208,543,414 |
1,082,636,863 |
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Investment in Subsidiaries Company |
70,998,600 |
40,998,600 |
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Fixed Assets |
220,879,100 |
246,155,105 |
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Cash at Bank under Commitment |
5,000,000 |
5,000,000 |
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Deferred Income Tax |
19,079,384 |
19,079,384 |
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Other Assets |
1,564,240 |
1,212,440 |
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Total Assets |
1,526,064,738 |
1,395,082,392 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2007 |
2006 |
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Bank Overdraft & Short Term Loan from Financial Institute |
567,140,007 |
544,008,140 |
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Trade Accts. Payable-Other company |
277,184,383 |
326,691,586 |
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Trade Accts. Payable-Related company |
257,741 |
- |
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Current Portion of Long Term Loan |
24,000,000 |
- |
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Current Portion of Liabilities under Finance Lease Contract |
3,505,260 |
4,540,084 |
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Accrued Income Tax |
12,174,881 |
- |
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Other Current Liabilities |
10,614,304 |
27,486,007 |
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Total Current Liabilities |
894,876,576 |
902,725,817 |
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Long Term Loan Net of Current Portion |
29,000,000 |
- |
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Liabilities under Finance Lease Contract Net of Current Portion |
2,751,425 |
6,231,577 |
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Total Liabilities |
926,628,001 |
908,957,394 |
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Shareholders' Equity |
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Share capital : Baht 1 par value authorized, issued and fully paid share capital 300,000 shares |
300,000,000 |
300,000,000 |
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Capital Paid |
240,000,000 |
240,000,000 |
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Premium on Shares Capital |
196,496,600 |
196,496,600 |
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Statutory Reserve |
5,665,587 |
- |
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Retained Earning - Unappropriated |
157,274,550 |
49,628,398 |
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Total Shareholders' Equity |
599,436,737 |
486,124,998 |
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Total Liabilities & Shareholders' Equity |
1,526,064,738 |
1,395,082,392 |
PROFIT &
LOSS ACCOUNT
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Revenue |
2007 |
2006 |
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Sales Income |
2,091,933,819 |
1,987,282,148 |
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Services Income |
13,521,807 |
5,274,398 |
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Other Income |
20,778,183 |
14,701,373 |
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Total Revenues |
2,126,233,809 |
2,007,257,919 |
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Expenses |
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Cost of Goods Sold |
1,875,105,076 |
1,963,087,665 |
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Cost of Services |
6,769,243 |
3,633,302 |
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Selling & Administrative Expenses |
71,984,685 |
70,100,498 |
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Total Expenses |
1,953,859,004 |
2,036,821,465 |
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Profit / [Loss] Before Interest Expenses & Income Tax |
172,374,805 |
[29,563,546] |
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Interest Expenses |
[38,295,296] |
[25,784,369] |
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Income Tax |
[20,767,770] |
- |
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Net Profit / [Loss] |
113,311,739 |
[55,347,915] |
LOHAKIT METAL PUBLIC
COMPANY LIMITED
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2007 |
2006 |
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Net Sales |
5.67 |
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Operating Profit |
[651.80] |
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Net Profit |
304.73 |
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Fixed Assets |
[10.27] |
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Total Assets |
9.39 |
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Profitability |
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Cost of Good Sold |
89.38 |
98.70 |
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Operating Profit Margin |
8.19 |
[1.48] |
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S & A Expenses |
3.42 |
3.52 |
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Interest Paid |
1.82 |
1.29 |
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Other Revenues |
0.99 |
0.74 |
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Net Profit Margin |
5.38 |
[2.78] |
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Earning Per Shares |
472.13 |
[230.62] |
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No. of Shares |
240,000 |
240,000 |
Net Sales was increased by 5.67%, Operating Profit was decreased by 651.80%, Net Profit was increased by 304.73%, Fixed Assets was decreased by 10.27%, Total Assets was increased by 9.39%.
Compare each cost with sales, Cost of Good Sold was decreased from 98.70% to 89.38%, Operating Profit Margin was increased from -1.48% to 8.19%, S & A Expenses was decreased from 3.52% to 3.42%, Interest Paid was increased from 1.29% to 1.82%, Other Revenues was increased from 0.74% to 0.99%, Net Profit Margin was increased from -2.78% to 5.38%.
Earning Per Shares was increased from -230.62 baht per share to 472.13 baht per share.
Liquidity
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Liquidity |
2007 |
2006 |
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Current Ratio |
1.35 |
1.20 |
|
Quick-Assets Ratio |
0.54 |
0.63 |
Current Ratio was increased from 1.20 to 1.35, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, Quick-Assets Ratio was decreased from 0.63 to 0.54, capacity to pay Short Term Loan was not good, because Current Assets without Inventory can not cover Current Liabilities.
Leverage
|
Leverage |
2007 |
2006 |
|
D/E Ratio |
1.55 |
1.87 |
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Times Interest Earned |
4.50 |
[1.15] |
D/E Ratio was decreased from 1.87 to 1.55, 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 -1.15 to 4.50, capacity to pay interest paid was good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
9.53 |
8.09 |
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Total Assets Turnover |
1.38 |
1.43 |
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Return on Assets |
7.43 |
[3.97] |
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Return on Equity |
18.90 |
[11.39] |
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Day's Payable |
47.39 |
59.02 |
|
Day’s Inventories |
121.92 |
86.82 |
|
Day’s Receivables |
49.49 |
72.36 |
Fixed Assets Turnover was increased from 8.09 times to 9.53 times, Total Assets Turnover was decreased from 1.43 times to 1.38 times, show the company could use Fixed Assets so efficiently, Return on Assets was increased from -3.97 to 7.43, Return on Equity was increased from -11.39 to 18.90, capacity to use Assets to make profit was good.
Day's Payable was decreased from 60 days to 48 days, while Day’s Inventories was increased from 87 days to 122 days, but Day’s Receivables was decreased from 73 days to 50 days.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)