MIRA
INFORM REPORT
|
Report Date : |
21.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
G
STEEL PUBLIC COMPANY
LIMITED |
|
|
|
|
Formerly Known As : |
SIAM STRIP MILL
PUBLIC COMPANY LIMITED |
|
|
|
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Registered Office : |
18th/Floor,
Ssp Tower 3,
88 Silom Road, Suriyawongse, 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 : |
31.10.1995 |
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|
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Com. Reg. No.: |
0107538000746 |
|
|
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|
Legal Form : |
Public Limited Company |
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|
|
|
Line of Business : |
Manufacturer, Distributor
and Exporter of
Hot-Rolled Steel Coils
|
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
US$ 500,000 |
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|
|
|
Status : |
Good |
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|
Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name of the company
G
STEEL PUBLIC COMPANY
LIMITED
[FORMER : SIAM STRIP MILL PUBLIC
COMPANY LIMITED]
SUMMARY
BUSINESS
ADDRESS : 18th/FLOOR, SSP
TOWER 3, 88
SILOM ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66]
2634-2222
FAX : [66] 2634-3908
E-MAIL
ADDRESS : recruit@g-steel.com, info@g-steel.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1995
REGISTRATION NO. : 0107538000746 [Former : BOR MOR
JOR. 597]
CAPITAL
REGISTERED : BHT.
13,860,000,000
CAPITAL
PAID-UP : BHT.
13,760,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : DR.
SOMSAK LEESAWADTRAKUL, THAI
CHIEF
EXECUTIVE OFFICER
NO.
OF STAFF : 738
LINES
OF BUSINESS : HOT-ROLLED STEEL COILS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
established on October
31, 1995 as
a private limited
company. It
is an affiliated company of
SSP Group of
Companies.
SSP Group of
Companies [SSP], holding
majority shares in
the subject and
the main sponsor
of the project. SSP, one
of Thailand’s largest
conglomerates, is the
Southeast Asia’s most
dominant producer of
steel pipes with
a combined annual
capacity of approximately 850,000 tons. It
also owns one
steel coil center
with an annual
capacity of approximately 150,000 tons. Dr.
Somsak Leeswadtrakul, a
pioneer in Thai
and Southeast Asia
steel industry, leads
the SSP Group.
The subject will
complement SSP Group’s
established core business.
The subject also
has equity participation from a number
of prominent Japanese
companies including ITOCHU
etc. The project
is strongly supported
by The Japanese Government in
the form of
loan guarantees issued
by The Ministry of International Trade and Industries
[MITI]. The subject
registered for a
conversion of its
status to become
a public limited
company on December
12, 1995.
The subject received
promotional privilege from
the Board of
Investment on January
29, 1996 for
the manufacturing of
hot rolled coils.
The main privilege
includes the exemption
from import duty
on approved machinery,
the reduction of
import duty on
approved raw materials,
and the exemption
from corporate income
tax for the
promoted activities for a period
of eight years
from the date
when income is
first derived together
with reduction of
50% corporate income
tax for the promoted activities for a
period of five
years after the
exemption period.
On March 26,
2004, the subject
was changed its
name to “G
STEEL PUBLIC COMPANY
LIMITED”, then has
listed on the
Stock Exchange of
Thailand [SET] under
the symbol name
“GSTEEL”, on January
25, 2006. It
currently employs 738
staff.
It achieved the
ISO 14001, TIS 18001
and OSHAS 18001
by BVQI, UKAS,
TUV NORD, TUV
Cert and NAC.
The subject’s registered
address is 88
Silom Rd., Suriyawongse, Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Dr. Somsak Leesawadtrakul |
[x] |
Thai |
55 |
|
Mr. Chainarong Monthienvichienchai |
|
Thai |
63 |
|
Ms. Kornpranom Wongmongkol |
|
Thai |
41 |
|
Mr. Preecha Prakobkij |
|
Thai |
60 |
|
Lady Patama Leesawadtrakul |
[x] |
Thai |
43 |
|
Mr. Paichit Rojanavanich |
|
Thai |
80 |
|
Mr. Chaipat Srivisarnvaja |
|
Thai |
49 |
|
Mr. Yanyong Kurovart |
[x] |
Thai |
70 |
|
Mr. Prapunpong Vejjachewa |
|
Thai |
73 |
|
Mr. Vichit Supinij |
[-] |
Thai |
67 |
|
Gen. Singha Saowaphap |
|
Thai |
78 |
|
Mr. Ryuzo Ogino |
[-] |
Japanese |
65 |
|
ML. Sasivimol Kasemsri |
[-] |
Thai |
44 |
|
Gen. Chuchat Khambhu
Na Ayudhya |
|
Thai |
65 |
|
Pol. Lt. Gen. Prakas Sataman |
[x] |
Thai |
66 |
AUTHORIZED PERSON
One of the above directors
[x] can jointly
sign with one
of the directors [-] on
behalf of the subject
with the company’s
affixed.
MANAGEMENT
Dr. Somsak
Leesawadtrakul is the
Chief Executive Officer.
He is Thai nationality with
the age of
55 years old.
Mr. Ryuzo
Ogino is the President.
He is Japanese nationality with
the age of
65 years old.
Lady Patama
Leesawadtrakul is
the Assistant Chief
Executive Officer.
She is Thai nationality with
the age of
43 years old.
Mr. Nopakao
Srisuvanon is the
Senior Vice President [Operation].
He is Thai nationality.
Mr. Joachin
Burgers is the Executive Vice President Expansion &
Engineering.
He is American nationality.
Ms. Kannikar
Soykeeree is the
Senior Vice President
[Accounting].
She is Thai nationality.
Mr. Oscar Muguel
Ojeda Luna is
the Chief Operation
Office.
He is American nationality.
BUSINESS OPERATIONS
The subject’s activity
is a producer and distributor
of a wide range of
high quality hot-rolled
steel coil aiming
at substituting imports
and meeting domestic
customers’ demands. Its product serve as raw materials
for such downstream
industries as cold-rolled
coils, galvanized steel,
steel pipe, structural
products for construction, automobile as well
as steel furniture,
LPG container, electrical appliances industries.
The production has
annual full capacity
of 3,400,000 metric
tons per year
and 1,800,000 metric
tons per year
for current production
capacity. In the
future, the subject
will be increased
its production capacity
to 3,400,000 metric
tons per year.
The subject’s plant has
currently used new
modern technology for
the production and
completed base facilities
systems, called “Compact
Mini Mill”, consists
of Electric Arc
Furnace, Medium Stab
Casting Machinery and
Hot Strip Mill,
located in the
same plant.
IMPORT [COUNTRIES]
80% of its raw material;
steel scrap, pig
iron, machinery and spare
parts are imported
from Japan, Germany
and United States
of America, the
remaining 20% is
purchased locally.
MAJOR SUPPLIERS
Stena Metal Inc.
:
United States of
America
Steel Base Trade
AG. : Germany
Cargill International Trading
Pte. Ltd. :
Singapore
Multiserv [Thailand] Co.,
Ltd. :
Thailand
Mannesmann Demag
Huttentechnik GmbH. :
Germany
Sumitomo Heavy Industries
Ltd. :
Japan
SALES [LOCAL]
80% of its products is sold locally
to manufacturers, wholesalers and
trading companies.
EXPORT
20% of its products is
exported to Asia,
Europe, Middle East
and North America.
MAJOR CUSTOMERS
Intergrade AG. :
Germany
Mitsui Company : Japan
Nippon Steel Trading
Ltd. : Japan
Cargill International Trading
Pte. Ltd. :
Singapore
SUBSIDIARIES &
AFFILIATED COMPANY
The subject is
a member of
SSP Group of
Companies which has
several core business
including steel and
stainless steel products,
construction, property development, hotel, international trade,
hospital, transport and
general industries.
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
30-90 days.
Local bills are
paid by cash
or on the credits of
30-90 days.
Imports are by
L/C at sight and T/T.
Exports are against
L/C and T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Soonthorn Kosa Branch :
Soonthorn Kosa Rd.,
Klongtoey, Bangkok 10110]
TMB Bank
Public Co., Ltd.
The Siam
Commercial Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
738 staff [office
staff and factory
workers].
LOCATION DETAILS
The premise is
rented for administrative an office at the
heading address on
the 18th floor
of a multi-storey building in a
prime commercial area.
Factory is located
at 55 Moo 5, SSP
Industrial Park, T.
Nonglalong, A. Bankhai, Rayong 21120, Tel.:
[66] 38 869-323
Fax: [66] 38
869-333.
REMARK
CREDIT OF US$
500,000 ON D/A
TERMS SHOULD BE
IN ORDER.
COMMENT
The overall global
steel industry sees
more merger and
acquisition, driven by
the needs to
have stronger bargaining
power for raw
material sourcing and
to maintain market
price stability. Through
merger and acquisition, companies will have
greater ability to
control market price
and trend, which
is more important
in operating business
in a highly competitive environment
at present.
The company satisfactorily maintained its operational
performance in 2007 due
to careful operation
driven by clear
corporate vision. Last
year the company
and its subsidiaries reported
Baht 23,506 million
consolidated revenue, Baht
1,554 million net
profit, and 5.71
percent return on
equities per annum.
The company’s facility
is one of a few
in Southeast Asia
that were able
to maintain their
performance within the
same level as
the previous year.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 50,000,000 divided
into 500,000 shares
of Bht. 100
each.
On December 12,
1995, the capital
was increased to
Bht. 5,000,000,000, divided
into 500,000,000 shares
of Bht. 10
each.
The latest capital
was increased to
Bht. 13,860,000,000 divided
into 13,860,000,000 shares
of Bht. 1
each with the
current capital paid-up
of Bht. 13,760,000,000.
MAIN SHAREHOLDERS
[as at April 4, 2008]
at Bht. 13,760,000,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Whiterock Global Fund
SPC. |
2,660,000,000 |
19.33 |
|
Superior Overseas [Thailand] Co., Ltd. |
2,522,588,903 |
18.33 |
|
Nomura Singapore Limited |
1,421,862,405 |
10.33 |
|
Mrs. Pattama Leesawadtrakul |
1,166,802,793 |
8.48 |
|
Ample Vision Group
Limited |
1,000,000,000 |
7.27 |
|
UOB Kay Hian
Private Limited |
500,000,000 |
3.63 |
|
Mr. Niran Ngam Chamnanrith |
264,960,800 |
1.93 |
|
Quam Securities Nominee
[Singapore] Pte. Ltd. |
204,960,679 |
1.49 |
|
Thai NVDR Co.,
Ltd. |
183,287,700 |
1.33 |
|
Goldman Sachs International Co., Ltd. |
172,008,300 |
1.25 |
|
Other Shareholders : |
3,663,528,420 |
26.63 |
Total Shareholders : 7,079
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Rungnapa Lertsuwankul
No. 3516
Ernst & Young
Office Limited
BALANCE SHEET [BAHT]
The latest financial figures published as at
December 31, 2007 &
2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in hand
& at bank
|
223,062,843 |
1,618,698,038 |
|
Short-term investment |
4,562,274 |
1,495,570 |
|
Trade Accts. receivable |
1,623,642,491 |
2,122,768,748 |
|
Amount due from
related parties |
479,107,549 |
514,749,613 |
|
Current portion of
loans to and
interest Receivable |
- |
12,748,056 |
|
Inventories |
8,053,662,810 |
7,118,502,998 |
|
Other current assets |
1,509,555,736 |
1,201,669,257 |
| |
|
|
|
Total Current
Assets |
11,893,593,703 |
12,590,632,280 |
|
|
|
|
|
Restricted deposits at
financial institutions |
694,612,369 |
736,147,757 |
|
Investments in subsidiaries |
340,999,300 |
999,300 |
|
Investments |
1,428,000,000 |
1,428,000,000 |
|
Loans to related
parties |
923,178,924 |
10,786,650 |
|
Property, plant and
equipment |
22,111,422,706 |
20,097,821,722 |
|
Intangible
assets-computer software |
41,010,557 |
45,788,483 |
|
Other non-current assets |
1,740,817,274 |
2,061,429,003 |
|
Total Assets |
39,173,634,833 |
36,971,605,195 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2007 |
2006 |
|
|
|
|
|
Trade accounts payable |
2,546,324,404 |
2,277,484,657 |
|
Trade accounts payable -
related companies |
3,872,909 |
206,419,399 |
|
Other payable |
468,337,593 |
527,489,715 |
|
Advanced received from
related party |
44,233,392 |
- |
|
Advance received from
customers |
1,255,538,457 |
267,818,967 |
|
Current portion of
liabilities which were included under
the former rehabilitation plan |
13,054,867 |
11,826,077 |
|
Accrued expenses |
248,021,979 |
98,588,018 |
|
Accrued interest |
204,680,318 |
176,793,869 |
|
|
|
|
|
Total Current
Liabilities |
4,784,063,919 |
3,566,420,702 |
|
Liabilities which were
included under the Former rehabilitation plan |
727,238,452 |
740,358,732 |
|
Bonds |
5,659,269,946 |
6,024,315,243 |
|
Total Liabilities |
11,170,572,317 |
10,331,094,677 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
Share capital |
|
|
|
Registered share
capital |
|
|
|
12,000,000,000 ordinary shares of Baht 1 each |
12,000,000,000 |
12,000,000,000 |
|
Issued and
paid up share capital |
|
|
|
11,100,000,000 ordinary shares of Baht 1 each |
11,100,000,000 |
11,100,000,000 |
|
Other surplus |
|
|
|
Share premium |
2,561,677,530 |
2,561,677,530 |
|
Premium on
capital reduction |
206,307,094 |
206,307,094 |
|
Retained Earnings |
|
|
|
Appropriated - statutory
reserve |
763,976,886 |
681,974,286 |
|
Unappropriated |
13,371,101,006 |
12,090,551,608 |
|
Total
Shareholders' Equity |
28,003,062,516 |
26,640,510,518 |
|
Total
Liabilities & Shareholders' Equity |
39,173,634,833 |
36,971,605,195 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
|
Sales |
22,042,450,100 |
18,003,046,540 |
|
Service income |
405,637,701 |
106,789,579 |
|
Gain o n exchange rate |
394,264,947 |
464,528,960 |
|
Interest income |
63,562,833 |
102,350,184 |
|
Other incomes |
88,579,882 |
63,241,458 |
|
Total Revenues
|
22,994,495,463 |
18,739,956,721 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
20,358,415,729 |
15,984,535,025 |
|
Selling and administrative expenses |
648,793,788 |
557,679,934 |
|
Total Expenses |
21,007,209,517 |
16,542,214,959 |
|
|
|
|
|
Profit/[Loss] from Interest
Expenses |
1,987,285,946 |
2,197,741,762 |
|
Interest Expenses |
[347,313,556] |
[482,220,559] |
|
|
|
|
|
Income before minority
interest |
1,639,972,390 |
1,715,521,203 |
|
Extraordinary items Gain from
rehabilitation |
79,608 |
22,786,790 |
|
Net Profit / [Loss] |
1,640,051,998 |
1,738,307,993 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
22.44 |
|
|
Operating Profit |
[26.15] |
|
|
Net Profit |
[5.65] |
|
|
Fixed Assets |
10.02 |
|
|
Total Assets |
5.96 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
92.36 |
88.79 |
|
Operating Profit Margin |
9.02 |
12.21 |
|
S & A
Expenses |
2.94 |
3.10 |
|
Interest Paid |
1.58 |
2.68 |
|
Other Revenues |
4.32 |
4.09 |
|
Net Profit Margin |
7.44 |
9.66 |
|
Earning Per Shares |
0.15 |
0.16 |
|
No. of Shares |
11,100,000,000 |
11,100,000,000 |
Net Sales was
increased by 22.44%,
Operating Profit was
decreased by 26.15%,
Net Profit was
decreased by 5.65%,
Fixed Assets was
increased by 10.02%,
Total Assets was
increased by 5.96%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 88.79%
to 92.36%, Operating
Profit Margin was
decreased from 12.21%
to 9.02%, S
& A Expenses
was decreased from
3.10% to 2.94%,
Interest Paid was decreased
from 2.68% to
1.58%, Other Revenues
was increased from
4.09% to 4.32%,
Net Profit Margin
was decreased from
9.66% to 7.44%.
Earning Per Shares
was decreased from
0.16 baht per
share to 0.15
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
2.49 |
3.53 |
|
Quick-Assets Ratio |
0.49 |
1.20 |
Current Ratio was
decreased from 3.53
to 2.49, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
1.20 to 0.49,
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 |
0.40 |
0.39 |
|
Times Interest Earned |
5.72 |
4.56 |
D/E Ratio was
increased from 0.39
to 0.40, 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
4.56 to 5.72,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
1.00 |
0.90 |
|
Total Assets Turnover |
0.56 |
0.49 |
|
Return on Assets |
4.19 |
4.70 |
|
Return on Equity |
5.86 |
6.53 |
|
Day's Payable |
41.59 |
45.54 |
|
Day’s Inventories |
131.53 |
142.35 |
|
Day’s Receivables |
26.52 |
42.45 |
Fixed Assets
Turnover was increased
from 0.90 times
to 1.00 times,
Total Assets Turnover
was increased from
0.49 times to
0.56 times, show
the company could
use Assets so
efficiently, Return on
Assets was decreased
from 4.70 to
4.19, Return on
Equity was decreased
from 6.53 to
5.86, capacity to
use Assets to make profit
was good.
Day's Payable
was decreased from
46 days to
42 days, Day’s
Inventories was decreased
from 143 days
to 132 days, and Day’s
Receivables was decreased
from 43 days
to 27 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%)