MIRA
INFORM REPORT
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Report Date : |
11.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
PHOENIX PULP
& PAPER PUBLIC
COMPANY LIMITED |
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Formerly Known As : |
PHOENIX
PULP & PAPER CO., LTD.” |
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Registered Office : |
1 Siam Cement
Road, Bangsue, Bangsue, Bangkok 10800 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
24.03.1975 |
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Com. Reg. No.: |
0107537002354 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturer of Pulps and Papers
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RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 |
name & address
PHOENIX PULP
& PAPER PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 1 SIAM
CEMENT ROAD, BANGSUE,
BANGSUE,
BANGKOK 10800,
THAILAND
TELEPHONE : [66] 2586-6260
FAX :
[66] 2586-6771
REGISTRATION ADDRESS
: SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1975
REGISTRATION NO. : 0107537002354 [Former:
BOR MOR JOR. 482]
CAPITAL REGISTERED : BHT. 1,200,000,000
CAPITAL PAID-UP : BHT. 1,200,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. CHAOVALIT
EKBUTR, THAI
PRESIDENT
NO. OF
STAFF : 1,100
LINES OF
BUSINESS : PULPS AND
PAPERS
MANUFACTURER
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
initially established on
March 24, 1975 as
a private limited
company under the registered
name “Phoenix Pulp
& Paper Co., Ltd.” by Thai groups. It
was listed on the
Stock Exchange of
Thailand on December
14, 1989, and
converted its status
to become a public limited
company under the
name PHOENIX PULP
& PAPER PUBLIC
COMPANY LIMITED on
June 28, 1994.
It currently employs
1,100 staff.
The subject was
a joint investment
between the Ministry
of Finance, IFCT
and a group of foreign
companies led by
Ballapur Industries Ltd.
of India. The
subject received technical
assistance from Tharpar
Consultants & Service
in India. At
present, the subject
is a subsidiary of SCG
Paper Public Company
Limited., which is
a member of
The Siam Cement
Group of companies.
The subject was
granted promotional privileges
under the Investment
Promotion Act, B.E.
2520 for Project
II, which included
the exemption of
corporate income tax
on net profits for a
period of 8 years
commencing as from
the date of
earning operating income
i.e. October 1,
1994.
In 2004, the
subject was delisted
from the Stock
Exchange of Thailand.
The subject’s registered
and head office
address is 1 Siam
Cement Rd., Bangsue, Bangkok
10800.
THE BOARD OF DIRECTORS
|
Name |
Nationality
|
Age
|
|
|
|
|
Mr. Chaovalit Ekbutr
|
Thai |
50 |
|
Mr. Damri Tancheevawongse |
Thai |
55 |
|
Mr. Somchart Barameechai |
Thai |
57 |
|
Mr. Paiboon Pongchairerk |
Thai |
57 |
|
Mr. Teerasak Jamikorn |
Thai |
58 |
AUTHORIZED PERSON
Two of the above
directors can jointly
sign on behalf
of the subject with the
company’s affixed.
MANAGEMENT
Mr. Chaovalit Ekbutr
is the President.
He is Thai nationality with
the age of
50 years old.
Mr. Teerasak Jamikorn
is the Managing Director.
He is Thai nationality with
the age of
58 years old.
Mr. Akaraphon Usananant is the
Finance Manager.
He is Thai nationality.
Mr. Amnuay Phonphuen
is the Factory Manager.
He is Thai nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer of bleached
short fiber pulp
from kenaf, bamboo
and eucalyptus for
the production of
paper, tissue paper,
and cigarette paper.
Its main production
is eucalyptus pulp
which represents about
80% of the total production,
whereas, the remaining
portion is bamboo
and a small quantity of
kenaf.
At present, the
products can be
divided into 2
main products group
comprising:
Pulp products:
1.
Eucalyptus Bleached Kraft
Pulp
2.
Eucalyptus Bleached Kraft
Pulp ECF
3.
Bamboo Bleached Kraft
Pulp
4.
Bamboo Bleached Kraft
Pulp ECF
5.
Kenaf Bleached Kraft
Pulp
Paper products
1.
White paper
2.
Printing paper
3.
etc.
PRODUCTIONS
Pulps : 230,000-250,000 tons/year
Paper : 100,000
tons/year
PURCHASE [LOCAL]
80% of raw material such
as chemicals is purchased locally,
eucalyptus, bamboo and
kenaf are purchased
mainly from local
planters in North-Eastern region of Thailand.
IMPORT [COUNTRIES]
20% of raw material and
chemical are imported
from Germany, United
States of America,
Japan, Republic of
China and Taiwan.
SALES [LOCAL]
100% of the
products has been
marketed by SCG
Paper Public Company
Limited.
MAJOR CUSTOMER
The Siam Cement
Group of Companies :
Thailand
CREDIT
Purchasing terms are
by cash or
on the credits term of
30-60 days.
Imports are by
L/C at sight or T/T.
PARENT COMPANY
SCG Paper Public
Company Limited
Address : 1 The Siam Cement Rd., Bangsue, Bangkok
10800
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.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
[ Head Office
: 9 Ratchadapisek Road, Jatujak,
Bangkok ]
Kasikornbank Public Co.,
Ltd. :
[ Head Office
: 1 Kasikorn Lane, Rajburana
Road, Rajburana, Bangkok ]
Bangkok Bank Public
Co., Ltd. :
[ Head Office
: 333 Silom Road, Silom,
Bangrak, Bangkok ]
Krung Thai Bank
Public Co., Ltd. :
[ Head Office
: 35 Sukhumvit Road, Klongtoeynua, Wattana, Bangkok ]
EMPLOYMENT
The subject employs
1,100 staff [office
staff, sales and factory
workers].
LOCATION
The premise is
rented for operating
an office at
the heading address.
Premise is located
in commercial/residential area
Factory is located
at 99 Moo 3, T. Kudnamsai,
A. Nampong, Khon
Kaen 40310
Tel : [66] 43 433-104-6,
Fax : [66] 43 433-101
The subject was relocated
its business address
from 75/62-3 Ocean
Tower II, Sukhumvit
19 Rd., Klongtoetnua, Wattana, Bangkok 10110,
to the current address at
the beginning of
2008.
COMMENT
Phoenix is
the only mill
in the world that manufactures and supplies market
pulp from bamboo
and kenaf. The
company’s eucalyptus pulps,
produced from 100%
local sustainable and
farmer-managed plantations, provides
distinctive properties including
good capacity, bulk,
formation and softness
for manufacture tissue
papers, printing and
writing papers.
The subject has
been gaining more
and more recognition
of high quality
pulps around the
world. Its products
have been exported
to over 40
countries and its
shares in overseas
markets has been
growing remarkable.
FINANCIAL INFORMATION
The capital was
originally registered at
Bht. 20,000,000.
The capital was
increased later as
followings:
Bht. 650,000,000 in
July, 1989
Bht. 975,000,000 in May, 1989
Bht. 1,200,000,000 in August, 1993
The latest capital
is at Bht. 1,200,000,000 divided
into 120,000,000 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS
[as at March 27, 2008]
|
NAME |
HOLDING |
% |
|
|
|
|
|
SCG Paper Public
Company Limited Nationality : Thai Address : 1 The Siam Cement Rd.,
Bangsue,
Bangkok 10800 |
108,968,216 |
90.81 |
Mr. Rakesh Sakxena
Nationality : Thai Address : 8
Soi Sukhumvit 49
Rd., Sukhumvit Rd.,
Klongton, Klongtoey, Bangkok
10260 |
482,500 |
0.40 |
Mr. Thewan Tantijattanont
Nationality : Thai Address : 3/10
Moo 3, Boromratchonnee Rd., Chimplee,
Talingchan, Bangkok 10170 |
152,000 |
0.16 |
Others
|
10,397,284 |
8.63 |
Total Shareholders :
1,815 [including the
above shareholders]
NAME OF AUDITOR AND CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Pisit Chevareungroj No. 2803
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 &
2006 were:
ASSETS
[Thousand Baht]
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash & Cash Equivalents |
32,294 |
60,730 |
|
Trade Accts. Receivable - Related Company |
284,937 |
261,980 |
|
- Other Company |
354,199 |
359,155 |
|
Receivable & Loan
Short Term Loan
to Related Company |
1,143 |
1,562,641 |
|
Inventories |
471,780 |
626,540 |
|
Other Current Assets
|
49,487 |
27,088 |
|
Total Current Assets
|
1,193,840 |
2,898,134 |
|
|
|
|
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Fixed Assets |
8,622,695 |
5,002,321 |
|
Intangible Assets |
6,198 |
8,921 |
|
Deferred Interest |
44,781 |
19,615 |
|
Deferred Income Tax |
570 |
- |
|
Other Assets |
28,206 |
2,352 |
|
Total Assets |
9,896,290 |
7,931,343 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Thousand Baht]
|
Current
Liabilities |
2007 |
2006 |
|
|
|
|
|
Trade Accts. Payable |
|
|
|
- Related Company |
27,548 |
8,563 |
|
- Other Company |
316,408 |
145,127 |
|
Short Term Loan
from Related Company |
1,286,591 |
21,602 |
|
Accrued Income Tax |
86,811 |
22,371 |
|
Other Current Liabilities |
81,455 |
161,207 |
|
Total Current Liabilities |
1,798,813 |
358,870 |
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Total Liabilities |
1,798,813 |
358,870 |
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Shareholders' Equity |
|
|
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Share capital : Baht 10 par value authorized, issued
and fully paid share
capital 120,000,000 shares |
1,200,000 |
1,200,000 |
|
Capital Paid |
1,200,000 |
1,200,000 |
|
Premium on Share
Capital |
2,158,818 |
2,158,818 |
|
Statutory Reserve |
120,000 |
120,000 |
|
Retained Earning - Unappropriated |
4,618,659 |
4,093,655 |
|
Total Shareholders' Equity |
8,097,477 |
7,572,473 |
|
Total Liabilities & Shareholders' Equity |
9,896,290 |
7,931,343 |
PROFIT & LOSS ACCOUNT
[Thousand Baht]
|
Revenue |
2007 |
2006 |
|
|
|
|
|
Sales |
4,875,848 |
4,742,859 |
|
Other Income |
44,978 |
42,483 |
|
Total Revenues |
4,920,826 |
4,785,342 |
|
Expenses |
|
|
|
|
|
|
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Cost of Goods
Sold |
3,816,531 |
3,494,324 |
|
Selling Expenses |
254,295 |
241,956 |
|
Administrative Expenses |
98,977 |
98,713 |
|
Loss on Exchange
Rate |
11,807 |
27,111 |
|
Total Expenses |
4,181,610 |
3,862,104 |
|
Profit / [Loss] Before Interest
Expenses & Income Tax |
739,216 |
923,238 |
|
Interest Expenses |
[2,385] |
[2,271] |
|
Income Tax |
[211,827] |
[164,153] |
|
Net Profit / [Loss] |
525,004 |
756,814 |
FINANCIAL ANALYSIS
Annual Growth &
Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
2.80 |
|
|
Operating Profit |
[16.80] |
|
|
Net Profit |
[30.63] |
|
|
Fixed Assets |
72.37 |
|
|
Total Assets |
24.77 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
78.27 |
73.68 |
|
Operating Profit Margin |
22.65 |
27.22 |
|
Interest Paid |
0.05 |
0.05 |
|
Other Revenues |
0.92 |
0.90 |
|
Net Profit Margin |
10.77 |
15.96 |
|
Earning Per Shares |
4.38 |
6.31 |
|
No. of Shares |
120,000,000 |
120,000,000 |
Net Sales was
increased by 2.80%,
Operating Profit was
decreased by 16.80%,
Net Profit was
decreased by 30.63%,
Fixed Assets was
increased by 72.37%,
Total Assets was
increased by 24.77%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 73.68%
to 78.27%, Operating
Profit Margin was
decreased from 27.22%
to 22.65%, Interest Paid was increased from
0.05% to 0.05%,
Other Revenues was
increased from 0.90%
to 0.92%, Net
Profit Margin was
decreased from 15.96%
to 10.77%.
Earning Per Shares
was decreased from
6.31 baht per
share to 4.38
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
0.66 |
8.08 |
|
Quick-Assets Ratio |
0.37 |
6.25 |
Current Ratio was
decreased from 8.08
to 0.66, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company was not
good, Quick-Assets Ratio
was decreased from
6.25 to 0.37,
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 |
0.22 |
0.05 |
|
Times Interest Earned |
463.02 |
568.48 |
D/E Ratio was
increased from 0.05
to 0.22, 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 568.48
to 463.02, capacity
to pay interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
0.57 |
0.95 |
|
Total Assets Turnover |
0.49 |
0.60 |
|
Return on Assets |
5.31 |
9.54 |
|
Return on Equity |
6.48 |
9.99 |
|
Day's Payable |
23.36 |
11.02 |
|
Day’s Inventories |
34.83 |
47.56 |
|
Day’s Receivables |
26.15 |
27.26 |
Fixed Assets Turnover
was decreased from
0.95 times to
0.57 times, Total
Assets Turnover was
decreased from 0.60
times to 0.49
times, show the
company could not
use Assets so
efficiently, Return on
Assets was decreased
from 9.54 to
5.31, Return on
Equity was decreased
from 9.99 to
6.48, capacity to
use Assets to
make profit was
good.
Day's Payable was
increased from 12
days to 24
days, while Day’s
Inventories was decreased
from 48 days
to 35 days, and Day’s
Receivables was decreased
from 28 days
to 27 days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.79 |
|
UK Pound |
1 |
Rs.75.41 |
|
Euro |
1 |
Rs.61.48 |
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%)