MIRA
INFORM REPORT
|
Report Date : |
17.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THE SIAM UNITED STEEL [1995] CO., LTD. |
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Registered Office : |
9
Soi G-5, Eastern
Industrial Estate, Pakorn Songkrohraj Road, Muang,
Rayong Province 21150 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
27.07.1995 |
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Com. Reg. No.: |
0105538088749 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor and
Exporter of Cold Rolled Steel
Sheet in Coil |
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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
THE SIAM UNITED STEEL [1995] CO., LTD.
SUMMARY
BUSINESS ADDRESS : 9
SOI G-5, EASTERN
INDUSTRIAL ESTATE,
PAKORN SONGKROHRAJ
ROAD, MUANG,
RAYONG PROVINCE
21150
TELEPHONE : [66] 38 685-155
FAX :
[66] 38
685-147
REGISTRATION ADDRESS : 1
SIAM CEMENT ROAD,
BANGSUE, BANGKOK 10800
ESTABLISHED : 1995
REGISTRATION NO.
: 0105538088749
CAPITAL REGISTERED
: BHT. 9,000,000,000
CAPITAL PAID-UP
: BHT. 9,000,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. PAYUNGSAK CHARTSUTTHIPHOL, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 800
LINES OF
BUSINESS : COLD
ROLLED STEEL SHEET
IN COIL
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 July 27,
1995 as a private limited
company under the name
style THE SIAM
UNITED STEEL [1995]
CO., LTD., by
Thai and foreign
groups, with the
business objective to
manufacture and supply
cold rolled steel
sheet in coil
to both domestic
and international markets.
It currently employs
approximately 800 staff. Subject was granted the
investment privilege promotional by Board of
Investment [BOI].
The
subject is a
joint venture among
Nippon Steel Corporation
of Japan, POSCO
of Korea and
The Siam Cement
group of Thailand.
AWARD/CERTIFICATE
The
prime minister’s industry
award for safety
management in 2000.
The
first of Thailand’s
TIS certified manufacturer of CRS in
2002.
EIA
awards 20002 from
natural resources and
environment Ministry.
The
subject’s registered address
is 1 Siam Cement Rd.,
Bangsue, Bangkok 10800,
while the current
operation address is
at 9 Soi G-5, Pakorn
Songkrohraj Rd., A. Muang,
Rayong 21150.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
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Mr. Tetsuo Imakubo |
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Japanese |
54 |
|
Mr. Bantoon Juicharoen |
|
Thai |
46 |
|
Mr. Tomomi Ohara |
|
Japanese |
59 |
|
Mr. Shigeto Yasuura |
|
Japanese |
52 |
|
Mr. Payungsak
Chartsutthiphol |
|
Thai |
57 |
|
Mr. Chayanont Visawapholboon |
|
Thai |
65 |
|
Mr. Yasushi Aoki |
|
Japanese |
48 |
|
Mr. Masakazu Iwaki |
|
Japanese |
59 |
|
Mr. Hiroyoshi Tsumura |
|
Japanese |
53 |
|
Mr. Eiji Hashimoto |
|
Japanese |
53 |
|
Mr. Mikio Kinoshita |
|
Japanese |
56 |
|
Mr. Cheol Hohan |
|
Korean |
51 |
|
Mr. Takashi Yamauchi |
|
Japanese |
57 |
|
Mr. Ichiro Miyasaka |
|
Japanese |
60 |
|
Mr. Te Han Yoon |
|
Korean |
- |
AUTHORIZED PERSON
Two of the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Payungsak Chartsutthiphol is
the Managing Director.
He is Thai nationality with
the age of
57 years old.
Mr. Tomomi Ohara is
the Factory Manager.
He is Japanese nationality with
the age of
59 years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing and supplying of
cold rolled steel
sheet in coil.
Its products are as
follows:
·
Cold Rolled Sheet [CRS];
for general use, such as
automotive body parts,
electrical appliances, steel
furniture, pipe, drum
and etc.
·
Gavalnized Iron Substrate [CRS]; such as base
materials for making
galvanized sheet for
construction
·
Tin Mill Black
Plate [TMBP]; such as
base materials for
tin plate and
tin steel for
can making.
PRODUCTION
1
million tons per
annum
PURCHASE
Raw materials, mainly steels
are purchased from
suppliers in both domestic
and overseas, mainly
Japan, Germany, Australia
and Singapore.
SALES
50% of the products are
sold locally by
wholesale to manufacturers
EXPORT
50% of the products
are exported to
Japan, Korea, Hong
Kong, Singapore, Malaysia
and European countries.
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.
Exports are against
T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately 800 staff.
LOCATION DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading address. Premise
is located in
provincial.
Bangkok
Office is located on
the 22nd Flr.,
Thosapol Land 3
Bldg., 947 Moo
12, Bangna-Trad Rd.,
Bangna, Bangkok 10260.
Tel: [66] 2361-8181, Fax:
[66] 2361-8187-8.
REMARK
CREDIT
OF US$ 500,000 DA SHOULD
BE IN ORDER.
COMMENT
The
subject was formed
in 1995 as
a manufacture of
Cold Rolling Steel
Sheet in Coil.
Thailand political overpowered by
The Council for Democratic
Reform under Constitutional Monarchy at the end of
2006 caused the unavoidably intermission and slow down
economy. The foreign investors waveringly suspended their investments in
various industries: manufacturing,
construction, real estates etc.
The subject as
one of the Thailand major Cold Rolling Steel Sheets was also affected by this economic slowdown. However, through and by the most effective
and professional management, the company was able to overcome these
challenges and recorded another year of sound operational result and proudly
with high and well known reputation acknowledged by both local and international customers
in terms of quality and technical services, confirming the strong
confidence among business partners and reflecting in the
outcome and continuous profit amidst
the instability of local politic, competition in
global market and
fluctuation of oil price and currency exchange.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 10,000
shares of Bht. 100 each.
The
capital was increased
later as following:
Bht. 720,000,000 on September 14,
1995
Bht. 5,000,000,000 on January 23,
1996
Bht. 6,000,000,000 on May 22,
1998
Bht. 9,000,000,000 on November 28,
2001
The
latest registered capital
was increased to
Bht. 9,000 million, divided into 90,000,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at
June 13, 2008]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Nippon Steel Corporation Nationality: Japanese Address : 6-3
Otemashi, 2 Chome,
Shiyoda-ku, Tokyo,
Japan |
40,227,000 |
44.70 |
|
POSCO Nationality: Korean Address : Soul,
Korea |
11,071,000 |
12.30 |
|
Mitsui & Co.,
Ltd. Nationality: Japanese Address : 2-1
Otemashi, 1-Chome, Shiyoda-ku, Tokyo, Japan |
7,750,000 |
8.61 |
|
Metal One Corporation Nationality: Japanese Address : 3-231 Chiba
Minato-ku, Tokyo, Japan |
6,170,000 |
6.85 |
|
Thai Tinplate Products
Co., Ltd. Nationality: Thai Address : 33
Moo 10, Poochasamingprai Rd.,
Phrapradaeng, Samutprakarn |
6,000,000 |
6.67 |
|
JFE Steel Corporation Nationality: Japanese Address : 2-3
Uchizaiwai-sho, Chome, Tokyo,
Japan |
5,100,000 |
5.67 |
|
The Siam Cement
Public Company Limited Nationality: Thai Address : 1
Siam Cement Rd.,
Bangsue, Bangkok |
4,500,000 |
5.00 |
|
Sumitomo Corporation Nationality: Japanese Address : 1-8-11
Harumi, Chuo-ku, Tokyo,
Japan |
4,292,000 |
4.77 |
|
Sumitomo Metal Industries Ltd. Nationality: Japanese Address : 1-8-11
Harumi, Chuo-ku, Tokyo,
Japan |
2,250,000 |
2.50 |
|
\Kobe Steel Ltd. Nationality: Japanese Address : 9-12
kita-shinakawa, 5 Chome,
Chinakawa-ku, Tokyo, Japan |
2,250,000 |
2.50 |
|
Nippon Steel Trading
Co., Ltd. Nationality: Japanese Address : 2-1
Otemashi, 2-chome, Shiyoda-ku, Tokyo, Japan |
390,000 |
0.43 |
Total Shareholders :
11
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Valeerat Akarasrisawad No.
4411
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 &
2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in Hand
& at Bank |
44,775,476 |
56,561,282 |
|
Trade Accts. Receivable |
550,888,249 |
309,476,110 |
|
Related Company Receivable |
449,211,070 |
427,563,184 |
|
Inventories |
3,243,284,957 |
3,766,569,502 |
|
Other Current Assets
|
47,788,787 |
66,878,317 |
|
|
|
|
|
Total Current Assets
|
4,335,948,539 |
4,627,048,395 |
|
Long-term Investment |
25,000,000 |
25,000,000 |
|
Fixed Assets |
13,032,180,923 |
13,812,664,055 |
|
Intangible Assets |
77,405,971 |
116,736,249 |
|
Other Assets |
2,285,772 |
2,144,264 |
|
Total Assets |
17,472,821,205 |
18,583,592,963 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2007 |
2006 |
|
|
|
|
|
Short-term Loan from
Bank |
3,933,000,000 |
4,292,813,325 |
|
Trade Accts. Payable |
214,515,534 |
160,738,315 |
|
Related Company Payable |
3,527,498,125 |
2,591,945,705 |
|
Current Portion of Long-term
Loan |
2,787,291,055 |
2,799,799,403 |
|
Other Current Liabilities |
307,234,963 |
214,889,890 |
|
|
|
|
|
Total Current Liabilities |
10,769,539,677 |
10,060,186,638 |
|
Long-term Loan |
- |
2,799,550,213 |
|
Total Liabilities |
10,769,539,677 |
12,859,736,851 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 90,000,000 shares |
9,000,000,000 |
9,000,000,000 |
|
|
|
|
|
Capital Paid |
9,000,000,000 |
9,000,000,000 |
|
Retained Earning -
Unappropriated |
[2,296,718,472] |
[3,276,143,888] |
|
Total Shareholders' Equity |
6,703,281,528 |
5,723,856,112 |
|
Total Liabilities & Shareholders' Equity |
17,472,821,205 |
18,583,592,963 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
|
Sales |
22,252,062,186 |
19,959,747,892 |
|
Gain on Exchange
Rate |
224,285,282 |
654,336,802 |
|
Other Income |
34,566,163 |
20,164,652 |
|
Total Revenues |
22,510,913,631 |
20,634,249,346 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
20,794,422,058 |
19,933,745,325 |
|
Selling & Administrative Expenses |
426,759,989 |
436,136,953 |
|
Total Expenses |
21,221,182,047 |
20,369,882,278 |
|
|
|
|
|
Profit / [Loss] before Interest
& Financial Expenses |
1,289,731,584 |
264,367,068 |
|
Interest & Financial
Expenses |
[310,306,168] |
[465,030,898] |
|
|
|
|
|
Net Profit / [Loss] |
979,425,416 |
[200,663,830] |
FINANCIAL ANALYSIS
Annual Growth &
Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
11.48 |
|
|
Operating Profit |
337.60 |
|
|
Net Profit |
588.09 |
|
|
Fixed Assets |
[5.65] |
|
|
Total Assets |
[5.98] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
93.45 |
99.87 |
|
Operating Profit Margin |
5.80 |
1.32 |
|
S & A
Expenses |
1.92 |
2.19 |
|
Interest Paid |
1.39 |
2.33 |
|
Other Revenues |
1.16 |
3.38 |
|
Net Profit Margin |
4.40 |
[1.01] |
|
Earning Per Shares |
10.88 |
[2.23] |
|
No. of Shares |
90,000,000 |
90,000,000 |
Net Sales was
increased by 11.48%,
Operating Profit was
increased by 337.60%,
Net Profit was
increased by 588.09%,
Fixed Assets was
decreased by 5.65%,
Total Assets was
decreased by 5.98%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 99.87%
to 93.45%, Operating
Profit Margin was
increased from 1.32%
to 5.80%, S & A
Expenses was decreased
from 2.19% to
1.92%, Interest Paid was
decreased from 2.33%
to 1.39%, Other
Revenues was decreased
from 3.38% to
1.16%, Net Profit
Margin was increased
from -1.01% to
4.40%.
Earning Per Shares
was increased from
-2.23 baht per
share to 10.88
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
0.40 |
0.46 |
|
Quick-Assets Ratio |
0.10 |
0.08 |
Current Ratio was
decreased from 0.46
to 0.40, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company was not
good, Quick-Assets Ratio
was increased from
0.08 to 0.10,
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 |
1.61 |
2.25 |
|
Times Interest Earned |
4.16 |
0.57 |
D/E Ratio was
decreased from 2.25 to 1.61, 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
0.57 to 4.16,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
1.71 |
1.45 |
|
Total Assets Turnover |
1.27 |
1.07 |
|
Return on Assets |
5.61 |
[1.08] |
|
Return on Equity |
14.61 |
[3.51] |
|
Day's Payable |
3.47 |
2.90 |
|
Day’s Inventories |
52.47 |
67.93 |
|
Day’s Receivables |
8.91 |
5.58 |
Fixed Assets Turnover
was increased from
1.45 times to
1.71 times, Total
Assets Turnover was
increased from 1.07
times to 1.27
times, show the
company could use
Assets so efficiently, Return on Assets
was increased from
-1.08 to 5.61,
Return on Equity
was increased from
-3.51 to 14.61,
capacity to use
Assets to make
profit was good.
Day's Payable was
increased from 3
days to 4
days, while Day’s
Inventories was decreased
from 68 days
to 53 days, but Day’s
Receivables was increased
from 6 days to 9
days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.68 |
|
UK Pound |
1 |
Rs.84.37 |
|
Euro |
1 |
Rs.65.70 |
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%)