MIRA
INFORM REPORT
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Report Date : |
25.11.2008 |
IDENTIFICATION DETAILS
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Name : |
L.V. TECHNOLOGY PUBLIC COMPANY LIMITED |
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Formerly Known As : |
L. V.
TECHNOLOGY CO., LTD |
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Registered Office : |
9th, 17th Floor,
Zone C-D, K.P.N.
Tower, 719 Rama 9 Road,
Bangkapi, Huaykwang, |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
13.08.1996 |
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Com. Reg. No.: |
0107546000211 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Engineering Service Provider |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name of the company
L.V. TECHNOLOGY PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 9th, , 17th FLOOR,
ZONE C-D, K.P.N.
TOWER,
719
RAMA 9 ROAD,
BANGKAPI, HUAYKWANG,
TELEPHONE : [66] 2717-0835
FAX :
[66] 2717-0841,
2717-0577
E-MAIL ADDRESS : mkt@lv-techology.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1996
REGISTRATION NO.
: 0107546000211 [Former : 0105539088891]
CAPITAL REGISTERED
: BHT. 325,500,000
CAPITAL PAID-UP
: BHT.
224,266,315
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. PETER KIRKETERP,
DANISH
MANAGING DIRECTOR
NO. OF
STAFF : 90
LINES OF
BUSINESS : ENGINEERING SERVICE
PROVIDER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was originally
formed on August
13, 1996 as
a private limited
company by Thai and
Danish groups, under
the registered name “L.
V. Technology Co.,
Ltd.”, with the
business objective to
provide engineering service,
specialty in the
field of cement
industry. On August
4, 2003, subject
has changed its
status to be
public company, under
the name L. V.
TECHNOLOGY PUBLIC COMPANY
LIMITED, and listed
on the Stock
Exchange of Thailand
on July 14,
2004. It currently
has expanded its
business to provide
engineering consultancy and
design and manufacture
equipment that improve
efficiency machinery for cement industry. It currently employs approximately
90 staff.
The
subject’s registered address
is 719 K.P.N.
Tower, Rama 9
Rd., Bangkapi, Huaykwang,
Bangkok 10310, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ongkoon Yooman |
[-] |
Thai |
68 |
|
Mr. Hans Jorgen Ibsen
Nielsen |
[x] |
Danish |
59 |
|
Mr. Choochart Boonnak |
[x] |
Thai |
59 |
|
Mr. Harnrith Hansen |
[x] |
Thai |
62 |
|
Mr. Adisorn Prakunahangsit |
|
Thai |
68 |
|
Mr. Chit Kiatsunthorn |
|
Thai |
65 |
|
Mr. Somnuek Jaijongrak |
|
Thai |
70 |
|
Mr. Per Meijnert Kristensen |
|
Danish |
41 |
|
Mr. Kim Pandrup Kristensen |
|
Danish |
51 |
AUTHORIZED PERSON
Two of the
above directors [x] can jointly
sign or one
of the directors
[x] can jointly
sign with the
director [-] on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Peter Kirketerp is
the Managing Director.
He is Danish
nationality with the
age of 53
years old.
Mr. Kitirach Taechamongkol is
the DMD Engineering
& Project Execution.
He is Thai
nationality.
Mrs. Kingkaew Wannaratt is the
DMD Finance & Accounting.
She is Thai
nationality.
Mr. Sanya Amornreatwat is the
DMD Marketing &
Project Management.
He is Thai
nationality.
Mr. Hans Jorgen Ibsen
Nielsen is the
Advisor Marketing &
Project Management.
He is Danish
nationality with the
age of 59
years old.
BUSINESS OPERATIONS
The subject
is engaged in
supplying and providing
services, including of
designing and developing
technology and engineering
services which can be categorized
into 4 main
types as follow:
·
Technology
improvement for vertical
mill
·
Technology
improvement for cement
mill/ ball mill
·
Technology
improvement for Rotary
kiln
·
Efficiency
improvement for cement
production process
PURCHASE
100% of engineering
equipment and components are purchased
from local suppliers.
SALES / SERVICES
The products and
services are supplied
to customers, mainly
in cement, energy
and mining industry
both locally and
overseas, such as
India, Argentina, UAE, Republic of
China, Malaysia, Philippines,
Pakistan, Iran, Taiwan,
Middle East and
etc.
THE PROPORTIONS
OF THE REVENUE
|
Type of
service |
2007 [M. Bht.] |
2006 [M.
Bht.] |
|
|
|
|
|
Technology Improvement for
Vertical Mill |
90.98 |
139.69 |
|
Technology Improvement for
Cement Mil or Ball Mill |
78.74 |
25.36 |
|
Technology
Improvement for Rotary Kiln |
14.69 |
6.38 |
|
Efficiency
Improvement for Cement
Production
Process |
194.37 |
99.57 |
|
Others, design service,
consulting service, License
fee, Royalty fee |
56.01 |
36.45 |
|
Total |
434.79 |
307.45 |
SUBSIDIARY AND
AFFILIATED COMPANIES
L. V. Europe S.A.
Business Type :
Provides engineering service
in
L. V. Technology Engineering
[
Business Type : Provides
engineering service in
Republic of China.
L N V Technology Private
Ltd.
Business Type : Provides
engineering service in
BLVT LLC
Business Type : Provides
engineering service in
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.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
90 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
REMARK
CREDIT
OF US$ 500,000
AGAINST D/A SHOULD
BE IN ORDER.
COMMENT
The
company focused on Sales
activities which have
been implemented and
its substantial new
ordered of 2007
allowed the company
to pursue its
2007 targets for
Revenue and net
profit.
The
company has commenced
active sales in China in
2007 through its
associate company L.V Technology Engineering
(Tianjin) Co., Ltd.,
and also to
undertake new relative
large scale projects
in South America
in addition to new projects
in the more
traditional markets like
Vietnam, Malaysia, Indonesia,
Pakistan, Iran, the
Middle East and
North Africa. Also,
efforts has been
made in 2007
to actively pursue
project acquisitions in
RSA and Mozambique
as well as Russia.
Moreover, representation agreements have been
concluded in 2006
with new agents
in the Middle
East, Indonesia, Vietnam
and Australia.
However
the market of
overall industrial sector
has been slowing
down more than
earlier forecast, which
has affected company
sales target in
both domestic and overseas
markets. Therefore, sales and
services condition are
tough, and growth
has experienced slowdown in
the large area
of industrial expansion.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 325,000,000 divided
into 325,000,000 shares
of Bht. 1
each with Bht.
218,378,045 paid-up.
MAIN SHAREHOLDERS
[as at
April 4, 2008]
at Bht. 218,378,045
of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
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ABN AMRO Bank
Nationality: Dutch Address : |
41,899,600 |
19.19 |
|
Thai NVDR Co.,
Ltd. Nationality: Thai Address : - |
40,357,830 |
18.48 |
|
MPA Co., Ltd. Nationality: Thai Address : Laksi, |
18,037,900 |
8.26 |
|
Mr. Hans Jorgen Ibsen
Nielsen Nationality: Danish Address : 719
Rama 9 Rd.,
Bangkapi, Huaykwang, |
17,523,278 |
8.02 |
|
Master Michael Ruby
Lauritsen Nationality: Danish Address : 65/213
Rama 9 Rd.,
Bangkapi,
Huaykwang, |
17,216,562 |
7.88 |
|
Mr. Kent Roger Fredin Nationality: Swedish Address : Sukhumvit
63 Rd.,
Wattana, |
6,283,632 |
2.88 |
|
Advance Oversea Marketing
Co., Ltd. Nationality: Thai Address : 719
Rama 9 Rd.,
Bangkapi, Huaykwang, |
5,483,000 |
2.51 |
|
Mrs. Noknoi Fredin Nationality: Thai Address : 159
Moo 4, Srisoontorn, Talang,
Phuket |
4,276,872 |
1.96 |
|
JYSKE Bank Nationality: Danish Address : 5th Floor,
968 HSBC, Rama
4 Rd., Bangrak, |
3,830,600 |
1.75 |
|
Mr. Poul Pedersen Nationality: Danish Address : 19
Jono-Bel Air 2, |
3,512,000 |
1.61 |
|
Others |
59,956,771 |
27.46 |
Total Shareholders : 612
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Prasit Tuengsrikul No.
4174
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 &
2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in hand
& at Bank
|
154,181,251 |
71,612,391 |
|
Trade Accts. Receivable |
65,063,007 |
91,092,163 |
|
Short Term Loan
to Subsidiaries Company |
22,325,569 |
21,846,940 |
|
Due from Customers on Project
Contracts |
84,854,675 |
69,139,971 |
|
Work in Process |
1,693,912 |
1,568,306 |
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Other Current Assets
|
81,903,797 |
21,509,753 |
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Total Current Assets |
410,022,211 |
276,769,524 |
|
Deposits at Financial Institutions |
207,421,654 |
142,321,324 |
|
Investment in Associates
and Joint Venture |
4,141,061 |
4,141,061 |
|
Fixed Assets |
4,697,349 |
5,977,966 |
|
Intangible Assets |
5,992,145 |
5,974,926 |
|
Other Assets |
966,728 |
3,817,396 |
|
Total Assets |
633,241,148 |
439,002,197 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2007 |
2006 |
|
|
|
|
|
Short Term Loan
from Financial Institute |
1,944,000 |
15,000,000 |
|
Trade Accts. Payable-Other companies |
21,939,606 |
32,496,355 |
|
Trade Accts. Payable-Related companies |
6,454,347 |
8,698,218 |
|
Due to Customers
on Project Contracts |
214,451,828 |
60,153,627 |
|
Accrued Commission |
8,517,597 |
9,623,000 |
|
Provision for Warranty Expenses |
6,739,650 |
8,599,930 |
|
Accrued Income Tax |
174,119 |
- |
|
Provision for Tax
Liability |
11,871,338 |
- |
|
Other Current Liabilities |
5,890,112 |
6,939,490 |
|
Total Current Liabilities |
277,982,597 |
141,510,620 |
|
Loss Investment |
18,924,118 |
15,940,882 |
|
Total Liabilities |
296,906,715 |
157,451,502 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share Capital Authorized Share
Capital |
325,500,000 |
325,500,000 |
|
Issued and Paid-up
Share Capital |
218,378,045 |
210,038,000 |
|
Premium on Share Capital |
71,512,731 |
114,759,500 |
|
Retained Earning [deficits] Appropriated- Statutory Reserve |
2,322,183 |
7,000,000 |
|
Unappropriated |
44,121,474 |
[50,246,805] |
|
Total Shareholders' Equity |
336,334,433 |
281,550,695 |
|
Total Liabilities & Shareholders' Equity |
633,241,148 |
493,939,089 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
|
Contract revenues |
434,786,146 |
307,446,493 |
|
Contract costs |
[258,730,392] |
[237,258,474] |
|
Gross profit |
176,055,754 |
70,188,019 |
|
General Administrative Expenses |
[142,995,221] |
[146,427,867] |
|
Profit/[Loss] from Services |
33,060,533 |
[76,239,848] |
|
Other Income |
25,807,330 |
32,314,138 |
|
Director’s Remuneration |
[1,700,000] |
[1,010,000] |
|
Operating Profit/[Loss] Before Interest and Tax |
57,167,863 |
[44,935,710] |
|
Interest Expenses |
[213,618] |
[3,799,645] |
|
Operating Profit/[Loss] Before
Tax |
56,954,245 |
[48,735,355] |
|
Income Tax |
[10,510,588] |
- |
|
Net Profit / [Loss] |
46,443,657 |
[48,735,355] |
FINANCIAL ANALYSIS
Annual Growth &
Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
41.42 |
|
|
Operating Profit |
[130.66] |
|
|
Net Profit |
195.30 |
|
|
Fixed Assets |
[21.42] |
|
|
Total Assets |
44.25 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
59.51 |
77.17 |
|
Operating Profit Margin |
7.60 |
[24.80] |
|
S & A
Expenses |
32.89 |
47.63 |
|
Interest Paid |
0.05 |
1.24 |
|
Net Profit Margin |
10.68 |
[15.85] |
Net Sales was
increased by 41.42%,
Operating Profit was
decreased by 130.66%,
Net Profit was
increased by 195.30%,
Fixed Assets was
decreased by 21.42%,
Total Assets was increased by
44.25%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 77.17%
to 59.51%, Operating
Profit Margin was
increased from -24.80%
to 7.60%, S
& A Expenses
was decreased from 47.63% to
32.89%, Interest Paid was
decreased from 1.24%
to 0.05%, Net
Profit Margin was
increased from -15.85%
to 10.68%.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
1.47 |
1.96 |
|
Quick-Assets Ratio |
1.17 |
1.79 |
Current Ratio was
decreased from 1.96
to 1.47, show
Current Assets can
cover Current Liabilities,
Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
1.79 to 1.17,
capacity to pay
Short Term Loan
was good too,
because Current Assets
without Inventory can
cover Current Liabilitie
Leverage
|
Leverage |
2007 |
2006 |
|
D/E Ratio |
0.88 |
0.56 |
|
Times Interest Earned |
154.76 |
[20.06] |
D/E Ratio was
increased from 0.56
to 0.88, 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 -20.06 to
154.76, capacity to pay interest
paid was good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
92.56 |
51.43 |
|
Total Assets Turnover |
0.69 |
0.70 |
|
Return on Assets |
7.33 |
[11.10] |
|
Return on Equity |
13.81 |
[17.31] |
|
Day's Payable |
18.17 |
38.05 |
|
Day’s Inventories |
1.40 |
1.84 |
|
Day’s Receivables |
53.87 |
106.66 |
Fixed Assets Turnover
was increased from
51.43 times to
92.56 times, Total
Assets Turnover was
decreased from 0.70
times to 0.69
times, show the
company could use
Fixed Assets so
efficiently, Return on
Assets was increased
from -11.10 to
7.33, Return on
Equity was increased
from -17.31 to
13.81, capacity to use Assets
to make profit
was good.
Day's Payable was
decreased from 39
days to 19
days, while Day’s
Inventories was stable
at 2 days,
but Day’s Receivables
was decreased from
107 days to 54
days.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.97 |
|
|
1 |
Rs.75.45 |
|
Euro |
1 |
Rs.64.21 |
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%)