MIRA
INFORM REPORT
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Report Date : |
30.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
WEI CHEN INDUSTRIAL CO.,
LTD |
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Registered Office : |
140/18 MOO 12, Kingkaew Road, Rajathewa, Bangplee, Samutprakarn 10540, |
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Country : |
Thailand |
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Financials (as on) : |
2006 |
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Date of Incorporation : |
27.09.1994 |
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Com. Reg. No.: |
0115537006757 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Distributor Industrial Machinery and Spare Parts |
RATING &
COMMENTS
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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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME & ADDRESS
WEI CHEN INDUSTRIAL CO., LTD.
SUMMARY
BUSINESS ADDRESS : 140/18 MOO 12, KINGKAEW ROAD, RAJATHEWA,
BANGPLEE, SAMUTPRAKARN 10540, THAILAND
TELEPHONE : [66] 2750-0366, 2750-0556
FAX : [66] 2750-0997
E-MAIL ADDRESS : chang@kumchen.com.tw
REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS
ESTABLISHED : 1994
REGISTRATION NO. : 0115537006757
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT. 10,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. TSENG KUO CHANG, TAIWANESE
MANAGING DIRECTOR
NO. OF STAFF : 13
LINES OF BUSINESS : INDUSTRIAL MACHINERY AND SPARE PARTS
IMPORTER AND DISTRIBUTOR
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 September 27, 1994 as a private limited company under the name style WEI CHEN INDUSTRIAL CO., LTD., by Thai groups, with the business objective to import and distribute wide range of industrial machinery and spare parts to domestic market. It currently employs 13 staff.
The subject’s registered address is 140/18 Moo 12, Kingkaew Rd., T. Rajathewa, A. Bangplee, Samutprakarn 10540, and this is the subject’s current operation address.
THE BOARD OF DIRECTOR
Mr. Tseng Kuo Chang
AUTHORIZED PERSON
The above director can sign on behalf of the subject with company’s affixed.
MANAGEMENT
Mr. Tseng Kuo Chang is the Managing Director.
He is Taiwanese nationality with the age of 39 years old.
BUSINESS OPERATIONS
The subject is engaged in importing and distributing wide range of industrial machinery and spare parts for paper, foods, beverage, textile industries and etc., as well as providing after sales services.
IMPORT
90% of the products is imported from Taiwan.
SALES
The products is sold and supplied locally to manufacturers and end-users.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is not found to have any subsidiary nor affiliated company here in Thailand.
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.
Imports are by L/C at sight or T/T.
BANKING
The Siam Commercial Bank Public Co., Ltd.
EMPLOYMENT
The subject employs 13 staff.
LOCATION DETAILS
The premise is rented for administrative office and warehouse at the heading address. Premise is located in industrial area.
COMMENT
Economic uncertainty has resulted to decline consumption of machinery and spare parts from some industries. The subject’s sales were declined from slow growth of the industries.
The subject maintains fair business and growth is expected at slow pace.
FINANCIAL INFORMATION
The capital was registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100 each.
The capital was increased later as following:
Bht. 3,000,000 on November 9, 1994
Bht. 4,000,000 on December 9, 1998
Bht. 6,000,000 on July 13, 2005
Bht. 10,000,000 on June 8, 2007
The latest registered capital was increased to Bht. 10,000,000 divided into 100,000 shares of Bht. 100 each with fully paid.
THE SHAREHOLDERS LISTED WERE : [as at May 29, 2007]
|
NAME |
HOLDING |
% |
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Mrs. Laddawal Chen Nationality: Thai Address : 104/29 Moo 2, Bangpai, Bangkae, Bangkok |
35,400 |
35.40 |
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Mr. Tseng Kuo Chang Nationality: Taiwanese Address : 157/8 Ming-yi Rd., Taipei, Taiwan |
22,818 |
22.82 |
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Mr. Hung Pao Shi Nationality: Taiwanese Address : 2 Ren-ai Rd., Shi-ji City, Taipei, Taiwan |
16,432 |
16.43 |
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Mr. Chucheep Yongwongpaibul Nationality: Thai Address : 108/3 Moo 1, Bangnamjued, Muang, Samutsakorn |
15,000 |
15.00 |
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Mr. Chen Chin An Nationality: Taiwanese Address : 1 Talong Rd., Shanshongsue, Taipei, Taiwan |
9,750 |
9.75 |
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Ms. Nanpipat Pitalko Nationality: Thai Address : 102/33 Moo 8, Klongkum, Buengkum, Bangkok |
300 |
0.30 |
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Ms. Sulek Ying-udomsak Nationality: Thai Address : 400 Klongchan, Bangkapi, Bangkok |
300 |
0.30 |
Total Shareholders : 7
NAME OF AUDITOR &
CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Amnuay Boonyathee No. 1243
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2006 & 2005 were:
ASSETS
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Current Assets |
2006 |
2005 |
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Cash in hand & at Bank |
2,979,578.52 |
2,114,831.76 |
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Trade Accts. Receivable |
4,330,782.20 |
2,139,251.00 |
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Inventories |
1,635,782.07 |
1,486,233.36 |
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Other Current Assets |
1,163.36 |
557,166.14 |
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Total Current Assets |
8,947,306.15 |
6,297,482.26 |
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Fixed Assets |
11,375,994.05 |
12,513,004.18 |
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Total Assets |
20,323,300.20 |
18,810,486.44 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
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Current Liabilities |
2006 |
2005 |
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Trade Accts. Payable |
6,682,759.81 |
6,590,604.12 |
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Current Portion of Long Term Loans |
1,008,000.00 |
1,008,000.00 |
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Other Current Liabilities |
149,633.54 |
175,147.67 |
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Total Current Liabilities |
7,840,393.35 |
7,773,751.79 |
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Long Term Loan from Person or Related Company |
2,073,000.00 |
- |
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Other Long Term Loan |
2,429,999.31 |
3,152,571.36 |
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Other Liabilities |
- |
79,582.10 |
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Total Liabilities |
12,343,392.66 |
11,005,905.25 |
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Shareholders' Equity |
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Share capital : Baht 100 par value authorized, issued and fully paid share capital 60,000 shares |
6,000,000.00 |
6,000,000.00 |
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Capital Paid |
6,000,000.00 |
6,000,000.00 |
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Retained Earning - Unappropriated |
1,979,907.54 |
1,804,581.19 |
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Total Shareholders' Equity |
7,979,907.54 |
7,804,581.19 |
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Total Liabilities & Shareholders' Equity |
20,323,300.20 |
18,810,486.44 |
PROFIT & LOSS ACCOUNT
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Revenue |
2006 |
2005 |
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Sales Income |
15,639,845.78 |
18,205,692.29 |
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Services Income |
1,461,637.00 |
949,430.00 |
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Other Income |
715,933.46 |
409,091.66 |
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Total Revenues |
17,817,416.24 |
19,564,213.95 |
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Expenses |
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Cost of Goods Sold |
11,729,613.08 |
13,608,073.39 |
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Cost of Services |
1,143,729.45 |
736,581.77 |
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Selling & Administrative Expenses |
4,407,533.41 |
4,844,019.45 |
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Total Expenses |
17,280,875.94 |
19,188,674.61 |
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Profit / [Loss] Before Interest Expenses & Income Tax |
536,540.30 |
375,539.34 |
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Interest Expenses |
[285,427.95] |
[235,646.42] |
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Income Tax |
[75,786.00] |
[85,483.94] |
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Net Profit / [Loss] |
175,326.35 |
54,408.98 |
FINANCIAL ANALYSIS
Annual Growth & Profitability
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Annual Growth |
2006 |
2005 |
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Net Sales |
[10.72] |
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Operating Profit |
60.03 |
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Net Profit |
222.24 |
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Fixed Assets |
[9.09] |
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Total Assets |
8.04 |
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Profitability |
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Cost of Good Sold |
75.28 |
74.89 |
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Operating Profit Margin |
3.14 |
1.96 |
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S & A Expenses |
25.77 |
25.29 |
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Interest Paid |
1.67 |
1.23 |
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Other Revenues |
4.19 |
2.14 |
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Net Profit Margin |
1.03 |
0.28 |
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Earning Per Shares |
2.92 |
0.91 |
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No. of Shares |
60,000 |
60,000 |
Net Sales was decreased by 10.72%, Operating Profit was increased by 60.03%, Net Profit was increased by 222.24%, Fixed Assets was decreased by 9.09%, Total Assets was increased by 8.04%.
Compare each cost with sales, Cost of Good Sold was increased from 74.89% to 75.28%, Operating Profit Margin was increased from 1.96% to 3.14%, S & A Expenses was increased from 25.29% to 25.77%, Interest Paid was increased from 1.23% to 1.67%, Other Revenues was increased from 2.14% to 4.19%, Net Profit Margin was increased from 0.28% to 1.03%.
Earning Per Shares was increased from 0.91 baht per share to 2.92 baht per share.
Liquidity
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Liquidity |
2006 |
2005 |
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Current Ratio |
1.14 |
0.81 |
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Quick-Assets Ratio |
0.93 |
0.55 |
Current Ratio was increased from 0.81 to 1.14, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, Quick-Assets Ratio was increased from 0.55 to 0.93, capacity to pay Short Term Loan was not good, because Current Assets without Inventory can not cover Current Liabilities.
Leverage
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Leverage |
2006 |
2005 |
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D/E Ratio |
1.55 |
1.41 |
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Times Interest Earned |
1.88 |
1.59 |
D/E Ratio was increased from 1.41 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 1.59 to 1.88, capacity to pay interest paid was good.
Efficiency
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Efficiency |
2006 |
2005 |
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Fixed Assets Turnover |
1.50 |
1.53 |
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Total Assets Turnover |
0.84 |
1.02 |
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Return on Assets |
0.86 |
0.29 |
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Return on Equity |
2.20 |
0.70 |
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Day's Payable |
140.68 |
123.86 |
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Day’s Inventories |
34.43 |
27.93 |
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Day’s Receivables |
91.17 |
40.20 |
Fixed Assets Turnover was decreased from 1.53 times to 1.50 times, Total Assets Turnover was decreased from 1.02 times to 0.84 times, show the company could not use Assets so efficiently, Return on Assets was increased from 0.29 to 0.86, Return on Equity was increased from 0.70 to 2.20, capacity to use Assets to make profit was good.
Day's Payable was increased from 124 days to 141 days, Day’s Inventories was increased from 28 days to 35 days, and Day’s Receivables was increased from 41 days to 92 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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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%)