MIRA
INFORM REPORT
|
Report Date : |
01.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THAINOX STAINLESS
PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
THAINOX STEEL LTD.] |
|
|
|
|
Registered Office : |
31st Floor, Crc
Tower, All Season Place, 87/2 Wireless Road, Lumpini,
Pathumwan, Bangkok 10330 |
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|
|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
1990 |
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|
|
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Com. Reg. No.: |
0107547000419 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of
Cold-Rolled Stainless Steel
Sheets and 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 |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name of the company
THAINOX STAINLESS
PUBLIC COMPANY LIMITED
[FORMER :
THAINOX STEEL LTD.]
SUMMARY
BUSINESS ADDRESS : 31st FLOOR,
CRC TOWER, ALL SEASON
PLACE,
87/2 WIRELESS
ROAD, LUMPINI, PATHUMWAN,
BANGKOK 10330,
THAILAND
TELEPHONE : [66]
2250-7061, 2250-7621-32
FAX : [66] 2250-7633
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1990
REGISTRATION NO.
: 0107547000419 [Former :
0107574700411]
CAPITAL REGISTERED
: BHT. 8,000,000,000
CAPITAL PAID-UP
: BHT. 8,000,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR.
PRAYUDH MAHAGITSIRI, THAI
CHIEF EXECUTIVE
OFFICER
NO. OF
STAFF : 700
LINES OF
BUSINESS : COLD-ROLLED STAINLESS STEEL SHEETS
AND
COILS
MANUFACTURER &
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
30, 1990 as
a private limited
company under registered the
name THAINOX STEEL
LTD., by a
joint venture between
Thai and foreign
groups, in order
to manufacture and
distribute premium cold
rolled stainless steel
sheets and coils
for domestic and
international markets. It
was initially a
joint venture among
Arcelor group of
France, Japanese Consortium
and the Thai
PM group with
Board of Investment
[BOI] promoted. It
currently employs 700
staff.
In 2004, the
Thai PM group
became the major
shareholder of the
subject, and was
changed the status
to be public company under
the name “THAINOX
STAINLESS PUBLIC COMPANY
LIMITED.” on April 26,
2004.
On December 14,
2004, the subject
was listed on
the Stock Exchange
of Thailand under
its symbol “TNOX”.
AWARDS
ISO 9002 : 1994 awarded by
BVQI in 1999
ISO 9001 : 2000 awarded by
BVQI in 2003
ISO/IEC 17025 : 1999 awarded
by TISI in 2004
ISO 14001 : 2004 awarded by
TUSI in 2004
OHSAS 18001 : 1999 awarded
The subject’s registered
address was initially
located at 23rd Floor, CTI Tower,
191 Ratchadapisek Rd.,
Klongtoey, Bangkok 10110.
In 2004 the
subject’s registered address
was relocated to
31st Floor, CRC
Tower, All Season Place, 87/2
Wireless Rd., Lumpini,
Pathumwan, Bangkok 10330,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prayudh Mahagitsiri |
[x] : Chairman |
Thai |
63 |
|
Mrs. Suvimol Mahagitsiri |
[x] |
Thai |
61 |
|
Mr. Jean Pual
Thevenin |
[-] |
French |
67 |
|
Mr. Wallop Kunanukornkul |
[-] |
Thai |
55 |
|
Mr. Yong Zee
Zung |
|
Korean |
53 |
|
Mr. Kenya Ishigawa |
|
Japanese |
54 |
|
Mr. Chun Jaruchaikul |
|
Thai |
59 |
|
Mr. Prakit Thienboon |
|
Thai |
55 |
|
M.R. Priyangsri Watanakun |
|
Thai |
70 |
|
Mr. Sornthep Komutbutr |
|
Thai |
64 |
|
Mr. Jitender P.
Verma |
[-] |
Indian |
44 |
|
Mr. Keerin Chuthamsatid |
|
Thai |
44 |
AUTHORIZED PERSON
One of the mentioned directors
[x] can sign
or two of the directors
[-] can jointly
sign on behalf
of the subject with company’s
affixed.
MANAGEMENT
Mr. Prayudh Mahagitsiri is
the Chief Executive
Officer.
He is Thai nationality with
the age of
63 years old.
Mr. Jean Paul
Thevenin is the Managing Director.
He is French nationality with
the age of
67 years old.
Mr. Keerin Chuthamstid is
the Deputy Managing
Director.
He is Thai nationality with
the age of
44 years old.
Mr. Teerachai Jaruvanakul is
the Financial Controller.
She is Thai nationality.
Mr. Prayoon Wonglek
is the Personnel Manager.
He is Thai nationality with
the age of
57 years old.
Mr. Nantachit Thavornbutr is
the Marketing Manager.
He is Thai nationality with
the age of
53 years old.
Dr. Chatchai Somsiri
is the Metal Works Manager.
He is Thai nationality with
the age of
54 years old.
Mr. Somchai Charoensawan is
the Factory Manager.
He is Thai nationality with
the age of
59 years old.
Mr. Boonmee Vorapatpong is
the IT Manager.
He is Thai nationality with
the age of
47 years old.
Mrs. Somsri Cherdampai
is the Financial Controller.
She is Thai nationality with
the age of
55 years old.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer of premium
cold-rolled stainless steel
sheets and coils,
which was divided
into 2 products types, cold
rolled austenitic stainless
steel and cold
rolled ferritic stainless
steel.
1. Austenitic stainless
steel
This type of
stainless steel is
non-magnetic. In addition
to chromium, typically
at a level of 18%,
austenitic stainless steel
contains nickel, which
increases corrosion resistance
and makes it
easy to fabricate.
This is the
most widely used
type of stainless
steel. Over 80%
of stainless steel
consumed in Asia is
austenitic grade. TNOX
main products in
this category include
grade 304 2B and
grade 304 BA.
2. Ferritic stainless
steel
This is a
magnetic type of stainless
steel. It has
a low carbon content and
contains chromium as a main
element, typically at a level
of 13% and 17%. Ferritic
steel has slightly
higher yield strength
than austenitic steel;
therefore, ferritic steel
finds greater use
where there is
a risk of stress-corrosion cracking.
TNOX main products
in this category
include grade 430
2B and grade 430 BA.
Its products are used in various
industries especially automotive
assembling, construction, foods,
household equipments and
electronic products, both
domestic and overseas
around 20% and
80% respectively..
PRODUCTION CAPACITY
300,000 tons/year
MAJOR BRANDS
“THAINOX” & “TNX”
IMPORT [COUNTRIES]
Some of hot-rolled
steel and steel
sheet as well
as machinery and
spare parts are
imported from France,
South Africa, Japan,
Taiwan and Korea.
MAJOR SUPPLIERS
Nippon Steel &
Sumikin Stainless Corporation : Japan
Arcelor : France
POSCO Ltd. : Korea
SALES [LOCAL]
Most of the
products are sold
directly to local
customers, and the
remaining is sold
to dealers.
EXPORT [COUNTRY]
The products are
exported by Arcelor
Stainless International Group
to over 30 countries such as, Republic of China,
Singapore, Malaysia, United States of America, Australia, Middle East, India,
Korea, Bangladesh, Denmark,
Germany, France, Egypt,
Indonesia, Vietnam, Philippines
and etc.
ASSOCIATED COMPANY
NS-Thainox Auto Co.,
Ltd.
Investment : The
subject is holding
around 49% of
the company’s total
shares.
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 30-60-90 days.
Local bills are
paid by cash
or on the credits term
of 30-90-90 days.
Imports are by
L/C at sight & T/T.
Exports are against
L/C at sight & T/T
on the credit term of
30 days.
BANKING
The Siam Commercial
Bank Public Co., Ltd.
[Head Office : 9 Ratchadapisek
Rd., Ladyao, Jatujak, Bangkok 10900]
Credit Agricole
Indosuez Bank
[Bangkok Branch
: 152 Wireless Rd., Lumpini,
Bangkok 10330]
Deutsche Bank AG.
[Bangkok Branch : 208 Wireless Rd., Lumpini,
Pathumwan, Bangkok 10330]
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Bank of Ayudhya
Public Co., Ltd.
[Head office, 1222
Rama 3 Rd.,
Bangpongpang, Yannawa, Bangkok]
EMPLOYMENT
The subject employs
approximately 700 staff
[office staff and
factory workers].
LOCATION DETAILS
The premise is rented
for administrative office
at the heading address. Premise
is located in
commercial/residential area.
Factory is located
on the 205,000 square meters
of area at
324 Moo 8,
Rayong Industrial Park, Highway no. 3191, T. Mabkha, Sub-district, Nikompattana, Rayong 21180,
Thailand. Tel :
[66] 38 636-125-31,
Fax. 38 636-099.
COMMENT
Price of nickel
in world market
continued to increase
throughout the year and
consequently effected in
priced of raw
material to reach
the ceiling. Nevertheless, with such proficient
and competent sales
teams, it was able
to achieve higher
sales target and pleasant profit turnover.
The company has
grown progressively with such
potency that resulted
in highly satisfying
turnover and profitability.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,300,000,000 divided into
23,000,000 shares of
Bht. 100 each.
The capital was
increased later as
followings :
Bht. 5,925,900,000 on December 4,
1998
Bht. 6,968,400,000 on May 25,
1999
Bht. 7,804,104,000 on September 29,
1999
Decreased were : Bht.
4,768,913,280 on May
2, 2000
Bht. 4,321,827,660 on November 6,
2003
Increased were : Bht.
7,670,411,666 on November
12, 2003
Bht. 8,000,000,000 on May 8,
2004
The latest registered
capital was increased to Bht. 8,000,000,000 divided into 8,000,000,000 shares of Bht.
1 each with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at
April 4, 2008]
|
NAME
[Shareholder Group] |
HOLDING |
% |
|
|
|
|
|
Mr. Chalermchai Mahakitsiri |
1,981,000,000 |
24.76 |
|
Ms. Usana Mahakitsiri |
1,650,997,358 |
20.64 |
|
POSCO Ltd. |
1,200,000,000 |
15.00 |
|
Goldman Sachs International |
657,117,165 |
8.21 |
|
BNP Paribas Securities Services |
498,788,135 |
6.23 |
|
Ms. Uanee Mahakitsiri |
451,261,285 |
5.64 |
|
Marizon Capital Limited |
95,000,000 |
1.19 |
|
Bank of Ayudhya
Public Co., Ltd. |
92,446,000 |
1.16 |
|
Nippon Steel &
Sumikin Stainless Steel
Corporation |
89,834,402 |
1.12 |
|
Nisshin Steel Co.,
Ltd. |
53,900,502 |
0.67 |
|
Mrs. Suvimol Mahakitsiri |
50,000,000 |
0.63 |
|
Other |
1,179,655,153 |
14.75 |
Total shareholders :
3,831
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Somchai Kurijitkosol No.
3277
KPM G Phoomchai Audit
Ltd.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 &
2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in hand
& at Bank
|
856,065,063.53 |
4,798,396,605.23 |
|
Short-term Investment |
152,343,000.00 |
- |
|
Trade Accts. Receivable |
780,320,042.25 |
1,055,350,926.11 |
|
Trade Accts. Receivable-Related Company |
58,556,350.89 |
- |
|
Inventories |
5,096,403,810.17 |
3,622,001,695.34 |
|
Other Current Assets
|
|
|
|
Revenue Department Receivable |
34,452,171.48 |
101,289,492.52 |
|
Prepaid Expenses |
20,133,409.73 |
20,400,047.88 |
|
Undue Business Tax |
8,462,194.90 |
6,193,415.80 |
|
Deferred Interest |
4,138,985.35 |
13,769,039.59 |
|
Other |
8,942,921.11 |
2,750,776.10 |
|
Total Current Assets
|
7,019,817,949.42 |
9,620,151,998.57 |
|
Long-term Investment Affiliated Company |
4,900,000.00 |
4,900,000.00 |
|
General |
810,000.00 |
810,000.00 |
|
Fixed Assets |
9,324,660,976.59 |
9,036,862,037.02 |
|
Non Operation Land |
843,209,160.00 |
- |
|
Other Assets |
|
|
|
Deposit
|
30,121,728.25 |
106,945,311.50 |
|
Other |
2,503,292.50 |
1,348,581.50 |
|
Total Assets |
17,226,023,106.76 |
18,771,017,928.59 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2007 |
2006 |
|
|
|
|
|
Trade Accts. & Notes Payable |
2,796,432,566.31 |
2,355,107,120.69 |
|
Payable Related Company |
1,478,960,418.75 |
3,647,694,201.92 |
|
Current Portion of
Long-term Loan |
45,808,002.59 |
- |
|
Other Current Liabilities |
|
|
|
Revenue Department Payable |
11,002,041.98 |
- |
|
Accrued Expenses |
108,396,610.82 |
197,864,403.15 |
|
Accrued Expenses-Related Company |
1,465,114.55 |
25,120,777.49 |
|
Pre-receipt Goods |
82,709,238.35 |
57,490,595.89 |
|
Payable Assets |
78,970,345.45 |
792,368.29 |
|
Deferred Withholding Income Tax |
10,553,764.18 |
83,802,364.85 |
|
Other |
11,323,909.97 |
2,226,982.26 |
|
Total Current Liabilities |
4,625,622,012.95 |
6,370,098,814.54 |
|
Long-term Loan-net |
341,381,228.06 |
- |
|
Provident Fund |
51,549,814.00 |
45,092,287.00 |
|
Total Liabilities |
5,018,553,055.01 |
6,415,191,101.54 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share capital : Baht 1 value authorized, issued
and fully paid share
capital 8,000,000,000 shares |
8,000,000,000.00 |
8,000,000,000.00 |
|
Capital Paid |
8,000,000,000.00 |
8,000,000,000.00 |
|
Premium on Share-Capital |
332,131,263.64 |
332,131,263.64 |
|
Revaluation Surplus |
2,364,968,803.23 |
2,648,913,019.63 |
|
Unrealized Gain in Marketable Securities |
2,343,000.00 |
- |
|
Refundable Common Share |
[249,557,679.37] |
[249,557,679.37] |
|
Statutory Reserve |
530,000,000.00 |
523,000,000.00 |
|
Reserve for Refundable Common Share |
249,557,679.37 |
249,557,679.37 |
|
Retained Earning - Unappropriated |
978,026,984.88 |
851,782,543.78 |
|
Total Shareholders' Equity |
12,207,470,051.75 |
12,355,826,827.05 |
|
Total Liabilities &
Shareholders' Equity |
17,226,023,106.76 |
18,771,017,928.59 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
|
Sales |
18,350,671,647.82 |
14,936,818,511.30 |
|
Other Income |
|
|
|
Interest Income |
168,468,183.45 |
133,637,799.59 |
|
Gain on
Exchange Rate |
330,894,752.36 |
26,472,499.02 |
|
Other |
10,722,350.53 |
11,976,932.50 |
|
Total Revenues |
18,860,756,934.16 |
15,108,905,742.41 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
17,658,444,459.11 |
12,426,663,287.37 |
|
Loss on Doubtful
Account |
311,464,221.01 |
[7,801,469.87] |
|
Selling & Administrative Expenses |
737,043,543.92 |
612,143,383.76 |
|
Director’s Remuneration |
12,753,846.18 |
10,457,272.88 |
|
Total Expenses |
18,719,706,070.22 |
13,041,462,474.14 |
|
Profit / [Loss] from Interest Expenses |
141,050,863.94 |
2,067,443,268.27 |
|
Interest Expenses |
[7,806,422.84] |
[4,891,573.46] |
|
Net Profit / [Loss] |
133,244,441.10 |
2,062,551,694.81 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
22.86 |
|
|
Operating Profit |
[81.71] |
|
|
Net Profit |
[93.54] |
|
|
Fixed Assets |
3.18 |
|
|
Total Assets |
[8.23] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
96.23 |
83.19 |
|
Operating Profit Margin |
2.54 |
13.86 |
|
S & A
Expenses |
4.02 |
4.10 |
|
Interest Paid |
0.04 |
0.03 |
|
Other Revenues |
2.78 |
1.15 |
|
Net Profit Margin |
0.73 |
13.81 |
|
Earning Per Shares |
0.02 |
0.26 |
|
No. of Shares |
8,000,000,000 |
8,000,000,000 |
Net Sales was
increased by 22.86%,
Operating Profit was
decreased by 81.71%,
Net Profit was
decreased by 93.54%,
Fixed Assets was
increased by 3.18%,
Total Assets was
decreased by 8.23%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 83.19%
to 96.23%, Operating
Profit Margin was
decreased from 13.86%
to 2.54%, S
& A Expenses
was decreased from
4.10% to 4.02%,
Interest Paid was increased
from 0.03% to
0.04%, Other Revenues
was increased from
1.15% to 2.78%,
Net Profit Margin
was decreased from
13.81% to 0.73%.
Earning Per Shares
was decreased from
0.26 baht per
share to 0.02
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
1.52 |
1.51 |
|
Quick-Assets Ratio |
0.40 |
0.92 |
Current Ratio was
increased from 1.51
to 1.52, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
0.92 to 0.40,
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 |
0.41 |
0.52 |
|
Times Interest Earned |
59.60 |
423.20 |
D/E Ratio was
decreased from 0.52
to 0.41, 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 423.20
to 59.60, capacity
to pay interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
1.97 |
1.65 |
|
Total Assets Turnover |
1.07 |
0.80 |
|
Return on Assets |
0.77 |
10.99 |
|
Return on Equity |
1.09 |
16.69 |
|
Day's Payable |
54.86 |
56.76 |
|
Day’s Inventories |
99.98 |
87.30 |
|
Day’s Receivables |
15.31 |
25.44 |
Fixed Assets Turnover
was increased from
1.65 times to
1.97 times, Total Assets Turnover was
increased from 0.80
times to 1.07
times, show the
company could use
Assets so efficiently, Return on Assets
was decreased from
10.99 to 0.77,
Return on Equity
was decreased from
16.69 to 1.09,
capacity to use
Assets to make
profit was good.
Day's Payable was
decreased from 57
days to 55
days, while Day’s
Inventories was increased
from 88 days
to 100 days, but Day’s
Receivables was decreased
from 26 days
to 16 days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.21 |
|
UK Pound |
1 |
Rs.79.76 |
|
Euro |
1 |
Rs.64.72 |
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%)