MIRA
INFORM REPORT
|
Report Date : |
31.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SIAM CITY CEMENT
PUBLIC COMPANY LIMITED [SCCC] |
|
|
|
|
Formerly Known As : |
SIAM CITY CEMENT
CO., LTD |
|
|
|
|
Registered Office : |
7-12th Floor, Column
Tower, 199 Ratchadapisek Road,
Klongtoey, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2007 |
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|
|
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Date of Incorporation : |
16.05.1969 |
|
|
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Com. Reg. No.: |
0107536001346 |
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|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter And Distributor of Mixed Cement,
Ordinary Portland Cement
and High Early Strength Portland Cement |
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 |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
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|
Litigation : |
Clear |
name of the company
SIAM CITY CEMENT
PUBLIC COMPANY LIMITED [SCCC]
SUMMARY
BUSINESS ADDRESS : 7-12th FLOOR, COLUMN
TOWER,
199
RATCHADAPISEK ROAD, KLONGTOEY,
BANGKOK 10110, THAILAND
TELEPHONE : [66]
2797-7000
FAX : [66] 2797-7001-2
E-MAIL ADDRESS : pr@sccc.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1969
REGISTRATION NO.
: 0107536001346 [Former : BOR.MOR.JOR.208]
CAPITAL REGISTERED
: BHT. 2,875,000,000
CAPITAL PAID-UP
: BHT. 2,375,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC
LIMITED COMPANY
EXECUTIVE : MR.
MARCEL SMIT, DUTCH
CHAIRMAN OF
EXECUTIVE COMMITTEE
NO. OF
STAFF : 2,200
LINES OF
BUSINESS : MIXED CEMENT, ORDINARY
PORTLAND CEMENT
AND HIGH EARLY
STRENGTH PORTLAND
CEMENT
MANUFACTURER, EXPORTER
AND
DISTRIBUTOR
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
May 16, 1969 as
a private limited company under registered name
“SIAM CITY CEMENT
CO., LTD.”
The subject is Thailand's
second largest cement
producer which has
a market share of
28% by capacity. The other
major producers are
Siam Cement [63%]
and Jalaprathan Cement
[10%]. SCCC has 9
subsidiaries which all
are involved in
construction related businesses
except one, Lanna
Lignite, a mine
lignite coal in
North Thailand. The
subject began cement
production in 1972
at a factory with one
production line in
Kaeng Khoi, Saraburi
with an annual
capacity of 600,000
tons per annum.
Subsequently, it has
built two additional
factories with a total of
six production lines
at the same location,
bringing the total production capacity
to 12.3 million
tons of clinker
per annum.
The subject was
listed on the
Stock Exchange of
Thailand on April
15, 1977, and registered as a
public limited company
under the name
SIAM CITY CEMENT
PUBLIC COMPANY LIMITED
on November 5,
1993. It currently
employs 2,200 staff.
The subject was
awarded for ISO 9002,
ISO 14001 and TIS 18001
Certification in 1997,
1998 and 2001
respectively.
The subject’s registered
address was 898
Ploenchit Rd., Lumpinee,
Pathumwan, Bangkok 10330.
In 2006, the subject’s registered address was
relocated to 7-12th
Floor, Column Tower, 199 Ratchadapisek Rd., Klongtoey, Bangkok
10110, and this
is the company’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Paul Heinz
Hugentobler |
[+] : Vice Chairman |
Swiss |
59 |
|
Mr. Veraphan Teepsuwan |
[x] : Chairman |
Thai |
67 |
|
Mr. Harald Link |
|
German |
53 |
|
Mr. Prakob Visitkijkarn |
|
Thai |
68 |
|
Mr. Chet Raktakanishta |
: Audit Committee |
Thai |
67 |
|
Mr. Vanchai Tosomboon |
[-] |
Thai |
59 |
|
Ms. Chantana Sukumanont |
[-] |
Thai |
58 |
|
Mr. Chachchon Ratanarak |
[x] |
Thai |
36 |
|
Mr. Marcel Smit
|
[+] |
Dutch |
52 |
|
Mr. Thaveepol Kongseri |
[x] |
Thai |
67 |
|
Mr. Prabhol Buranasiri |
|
Thai |
68 |
AUTHORIZED PERSON
One of the directors [x]
can jointly sign
with one of
the directors [+]
or one of the directors
[x] or [+] can jointly
sign with one
of the directors [-] on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Marcel Smit
is the Chairman of the
Executive Committee.
He is Dutch nationality with
the age of
52 years old.
Mr. Vanchai Tosomboon
is the Executive Vice President
[Saraburi Operations].
He is Thai nationality with
the age of
59 years old.
Ms. Chantana Sukumanont
is the Executive Vice President [Marketing & Sales].
She is Thai nationality with
the age of
58 years old.
Mr. Nopporn Thepsittha
is the Senior Vice President
[Logistics & Exports].
He is Thai nationality.
Mr. Andreas Leutenegger is
the Senior Vice
President [Finance &
Controlling].
He is Swiss nationality.
Mr. Rungroj Soonthornsatienkul is
the Senior Vice
President. [Human Resource
& Administrative]. He is
Thai nationality.
BUSINESS OPERATIONS
The subject’s activities
are the manufacturer, exporter and distributor of mixed cement [clinker &
powder], ordinary portland
cement and high
early strength portland
cement, under its
owned brand names
“INSEE TONG”, “INSEE
DANG”, “INSEE PETCH”,
“INSEE DUM”, “INSEE
KEAW”, “INSEE SAMUTR”
and “INSEE FAH”,
as well as
wide range of
mortar max, including,
fine plastering mortar,
general plastering mortar,
light weight block
plastering mortar, normal
bricklaying mortar, and
light weight block
bricklaying mortar, under
the brand name
“INSEE”.
PRODUCTION
Cement [Clinker] : 12.3
million tons per
year
Cement [Powder] : 14.5
million tons per
year
PURCHASE
90% of its raw
material is purchased
from local suppliers.
IMPORT [COUNTRIES]
10% of raw materials and
spare parts are
imported from Switzerland, Germany, United States
of America, Japan
and Taiwan.
SALES [LOCAL]
70% of its products is
sold locally to
wholesalers, dealers, Thai
Government and end-users.
EXPORT [COUNTRIES]
30% of its products is
also exported to
European countries, Australia,
Middle East, Africa,
Vietnam, Cambodia and
Bangladesh.
SUBSIDIARIES
|
Name |
Business Type |
Investment |
|
Siam City Concrete
Co., Ltd. |
Ready-mixed concrete |
99.99 |
|
Eagle Cement Holdings
Co., Ltd. |
Holding company |
99.99 |
|
Khmer Cement Industry
Co., Ltd. |
Cement trading company |
75.00 |
|
Conwood Co., Ltd. |
Construction material |
99.99 |
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
Purchasing terms are
on the credits of 30-60
days.
Imports are by
L/C at sight or D/A
on the credits of 90-180
days & T/T.
Selling terms are
on the credits of 30-60
days.
Exports are against
L/C at sight & T/T.
BANKING
Bank of Ayudhya
Public Co., Ltd.
[Head Office : 1222
Rama 3 Rd., Bangpongpang, Yannawa,
Bangkok 10120]
Bangkok Bank Public
Co., Ltd.
[Bangkapi Branch :
Sukhumvit Rd., Klongtoeynua, Wattana, Bangkok 10110]
Krung Thai Bank
Public Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject employs 2,200 staff
[office, sales and
factory workers].
LOCATION DETAILS
The premise is
rented for administration office
and Customer Services
Center at the heading address.
Premise is located
in a prime commercial area.
Factory and Services
Center are located
at 99 Moo 9 &
219 Moo 5
Mitrapap Rd., Km. 129-131 Tabkwang
Sub-district, Kaengkhoi, Saraburi
Province 18110, Tel : [66]
36 251-824-43. Fax :
[66] 36 251-820-1.
Sales Offices are
located in Chiangmai, Suratthani
and Khon Kaen
province.
COMMENT
The year 2007
was difficult times
for the Thai cement
industry as the
country experienced an economic slowdown. Postponements of many
mega-projects, lower investor/consumer confidence due to
political uncertainties, and
continuously rising energy
prices affecting production
costs had a
substantial impact on
the cement industry
performance in Thailand.
Higher production costs,
together with a stronger
Thai Baht have
influenced Siam City
Cement Public Company
Limited to temporarily
close two kilns
and therefore lower its
production capacity, starting
early 2008. Because
of this, the
2008 year-end volume
will decline by
several million tons.
As well domestic
cement demand in
2008 remains slow,
furthermore, world economic meltdown would increasingly affect
to cement market
to have negative impact for another year.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 100,000 with
fully paid.
The capital was
increased later as
followings:
Bht. 140,000,000 in August, 1970
Bht. 475,000,000 in September, 1978
Bht. 731,500,000 in August, 1985
Bht. 975,333,300 in February, 1989
Bht. 1,500,000,000 in November, 1993
Bht. 3,000,000,000 in 2005
On June 26,
2007, the capital
was decreased to
Bht. 2,875,000,000 divided into
287,500,000 shares of
Bht. 10 each with
Bht. 2,375,000,000 paid
up.
MAIN SHAREHOLDERS
[as at
August 22, 2008]
at Bht. 2,375,000,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Sunrise Equity Co.,
Ltd. |
80,065,840 |
33.71 |
|
Thai Rock-Cem Co.,
Ltd. |
77,628,433 |
32.69 |
|
Clearstream Nominees Ltd. |
8,350,200 |
3.52 |
|
Thailand Securities Depository Co., Ltd. for Depositors |
7,507,566 |
3.16 |
|
JMPSSPL |
7,051,100 |
2.97 |
|
Nortrust Nominees Ltd. |
5,627,800 |
2.37 |
|
Thai NVDR Co.,
Ltd. |
2,654,052 |
1.12 |
|
HSBC [Singapore] Nominee
Pte. Ltd. |
2,411,693 |
1.02 |
|
Vayupak 1 Mutual
Fund by MFC
Securities Plc. |
2,254,000 |
0.95 |
|
Vayupak 1 Mutual
Fund by Krungthai
Securities Plc. |
2,254,000 |
0.95 |
|
Mrs. Sasithorn Ratanarak |
2,085,040 |
0.88 |
|
Sri Ayudhya Insurance
Plc. |
1,725,000 |
0.73 |
|
Others |
37,885,276 |
15.93 |
Total Shareholders : 4,278
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mrs. Saifon Inkaew
No. 4434
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 & Cash
Equivalents |
352,466,266 |
545,610,844 |
|
Trade Accounts Receivable Subsidiaries &
Related Companies |
881,740,237 |
691,440,736 |
|
Other Companies |
1,432,658,077 |
1,483,869,156 |
|
Inventories |
1,385,470,191 |
1,563,958,077 |
|
Account Receivable -
Subsidiaries & Related
Companies |
211,251,571 |
160,728,029 |
|
Advance Payments to
Suppliers - Other Companies |
30,997,926 |
144,429,478 |
|
Other Current Assets
|
88,939,831 |
96,108,587 |
|
|
|
|
|
Total Current Assets
|
4,383,524,099 |
4,686,144,907 |
|
Investment in Subsidiaries |
700,149,097 |
700,148,497 |
|
Investment in Associated Companies |
483,426,543 |
483,426,543 |
|
Long-term to Subsidiaries |
1,832,033,107 |
1,283,125,433 |
|
Fixed Assets |
10,522,371,689 |
10,145,600,593 |
|
Assets not used
in Operations |
800,144,466 |
1,103,678,608 |
|
Intangible Assets |
731,080,195 |
378,210,919 |
|
Other Assets Deferred Income
Tax |
558,754,539 |
535,712,717 |
|
Others |
154,691,428 |
146,316,630 |
|
Total Assets |
20,166,175,163 |
16,462,364,847 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2007 |
2006 |
|
|
|
|
|
Short-term Loans from
Financial Institutions |
1,000,000,000 |
400,000,000 |
|
Trade Accounts Payable Associated &
Related Companies |
329,336,577 |
237,567,750 |
|
Other Companies |
934,086,505 |
885,439,787 |
|
Current portion of
Long-term Liabilities for Concession |
32,876,946 |
30,870,372 |
|
Other Current Liabilities Accrued Rebate |
223,332,734 |
205,874,950 |
|
Accrued Electricity |
226,851,784 |
230,606,900 |
|
Corporate Income
Tax Payable |
550,428,948 |
735,458,475 |
|
Other Accrued
Expenses |
733,594,823 |
549,897,900 |
|
Advance from
Customers |
14,263,389 |
26,061,700 |
|
Others |
24,667,514 |
54,254,062 |
|
|
|
|
|
Total Current Liabilities |
4,069,439,220 |
3,356,031,896 |
|
Other Liabilities Long-term Liabilities for Concession |
247,333,140 |
280,210,086 |
|
Provident Fund |
452,615,128 |
417,584,602 |
|
Reserve for Employee Retirement Benefit Plan |
117,119,030 |
137,419,521 |
|
Total Liabilities |
4,886,506,518 |
4,191,246,105 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
|
2007 |
2006 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share capital |
|
|
|
Registered |
|
|
|
300,000,000 ordinary
shares of Baht 10 each
in 2006 287,500,000 ordinary
shares of Baht 10 each in 2007 |
2,875,000,000 |
3,000,000,000 |
|
Issued and fully
paid up |
|
|
|
250,000,000 ordinary
shares of Baht 10 each |
2,375,000,000 |
2,500,000,000 |
|
Share Premium |
10,106,266,730 |
10,106,266,730 |
|
Retained Earning Appropriated for
Statutory Reserve |
300,000,000 |
300,000,000 |
|
Treasury Stock
Reserve |
1,710,643,745 |
4,696,067,693 |
|
Unappropriated |
2,498,401,915 |
2,364,852,012 |
|
|
|
|
|
Total Equity Attributable to the Company’s
Shareholders |
16,990,312,390 |
19,967,186,435 |
|
Less: Treasury Stock |
[1,710,643,745] |
[4,696,067,693] |
|
Total Shareholders' Equity |
15,279,668,645 |
15,271,118,742 |
|
Total Liabilities &
Shareholders' Equity |
20,166,175,163 |
19,462,364,847 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
|
Sales |
20,045,278,327 |
20,975,928,019 |
|
Dividend Income |
81,873,646 |
54,792,364 |
|
Other Income |
242,499,849 |
230,296,849 |
|
Total Revenues |
20,369,651,822 |
21,261,017,232 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Sales
|
14,007,049,969 |
14,056,075,005 |
|
Selling & Administrative Expenses |
1,696,351,645 |
1,789,605,701 |
|
Other Expenses |
- |
17,703,109 |
|
Total Expenses |
15,703,401,614 |
15,863,383,815 |
|
|
|
|
|
Profit / [Loss] before Interest
Expenses & Income Tax |
4,666,250,208 |
5,397,633,417 |
|
Interest Expenses |
[72,075,035] |
[44,756,820] |
|
Income Tax |
[1,365,685,044] |
[1,571,823,345] |
|
|
|
|
|
Net Profit / [Loss] |
3,228,490,129 |
3,781,053,252 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
[4.44] |
|
|
Operating Profit |
[9.83] |
|
|
Net Profit |
[14.61] |
|
|
Fixed Assets |
3.71 |
|
|
Total Assets |
22.50 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
69.88 |
67.01 |
|
Operating Profit Margin |
23.28 |
25.82 |
|
S & A
Expenses |
8.46 |
8.53 |
|
Interest Paid |
0.36 |
0.21 |
|
Other Revenues |
1.62 |
1.36 |
|
Net Profit Margin |
16.11 |
18.03 |
|
Earning Per Shares |
13.59 |
15.12 |
|
No. of Shares |
237,500,000 |
250,000,000 |
Net Sales was
decreased by 4.44%,
Operating Profit was
decreased by 9.83%,
Net Profit was
decreased by 14.61%,
Fixed Assets was
increased by 3.71%,
Total Assets was
increased by 22.50%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 67.01%
to 69.88%, Operating
Profit Margin was
decreased from 25.82%
to 23.28%, S
& A Expenses
was decreased from
8.53% to 8.46%,
Interest Paid was increased
from 0.21% to
0.36%, Other Revenues
was increased from
1.36% to 1.62%,
Net Profit Margin
was decreased from
18.03% to 16.11%.
Earning Per Shares
was decreased from
15.12 baht per
share to 13.59
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
1.08 |
1.40 |
|
Quick-Assets Ratio |
0.66 |
0.81 |
Current Ratio was
decreased from 1.40
to 1.08, show
Current Assets can cover Current
Liabilities, Liquidity Ratio
of the company was so
good, Quick-Assets Ratio
was decreased from
0.81 to 0.66,
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 |
0.32 |
0.34 |
|
Times Interest Earned |
64.74 |
120.99 |
D/E Ratio was
decreased from 0.34
to 0.32, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low,
Times Interest Earned
was decreased from
120.99 to 64.74,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
1.91 |
2.07 |
|
Total Assets Turnover |
0.99 |
1.27 |
|
Return on Assets |
16.01 |
22.97 |
|
Return on Equity |
21.13 |
30.81 |
|
Day's Payable |
16.78 |
15.20 |
|
Day’s Inventories |
24.88 |
26.84 |
|
Day’s Receivables |
25.73 |
25.47 |
Fixed Assets Turnover
was decreased from
2.07 times to
1.91 times, Total
Assets Turnover was
decreased from 1.27
times to 0.99
times, show the
company could not
use Assets so efficiently, Return
on Assets was
decreased from 22.97
to 16.01, Return
on Equity was
decreased from 30.81
to 21.13, capacity
to use Assets to make
profit was so
good.
Day's Payable was
increased from 16
days to 17 days, while
Day’s Inventories was
decreased from 27
days to 25
days, but
Day’s Receivables was
stable at 26
days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
|
UK Pound |
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.62.84 |
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%)