MIRA INFORM REPORT
|
Report Date : |
26.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
BANGKOK
PRODUCE MERCHANDISING PUBLIC
COMPANY LIMITED |
|
|
|
|
Registered Office : |
313
Cp Tower,
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
21.09.1979 |
|
|
|
|
Com. Reg. No.: |
0107537000262 |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Trading of Agriculture Products and Processed Meat
Production |
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 |
|
|
|
|
Payment
Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
|
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
BANGKOK
PRODUCE MERCHANDISING PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 313
CP TOWER,
BANGRAK,
TELEPHONE : [66]
2638-2000
FAX :
[66] 2631-0989
E-MAIL
ADDRESS : phongsak@cpf.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1979
REGISTRATION
NO. : 0107537000262
CAPITAL
REGISTERED : BHT.
600,000,000
CAPITAL
PAID-UP : BHT.
600,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
VORAVIT CHENTHANAKUN, THAI
PRESIDENT
NO.
OF STAFF : 5,314
LINES
OF BUSINESS : PROCESSED
MEAT PRODUCTION AND
TRADING OF AGRICULTURE PRODUCTS
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR
MANAGEMENT
STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
formed on September
21, 1979 as
a private limited
company under the registered
name style “Bangkok Produce Merchandising
Co., Ltd.” with
the purpose of
wholesale and retail
purchasing and distribution,
including import and
export of agricultural
products, used as raw materials
in animal feed such
as corn and
soybean meal. It is
an affiliated company
of Charoen Pokphand
Group of Companies.
On December 21,
1987, the subject
was listed on
the Stock Exchange
of Thailand. On
January 27, 1994,
its status was
converted into a
public limited company,
namely BANGKOK PRODUCE MERCHANDISING
PUBLIC COMPANY LIMITED. On
December 20, 1999,
it was approved
for delisting from
the Stock Exchange
of Thailand. The
subject currently employs
5,314 staff.
The subject’s registered
and business address
is located at
313 CP Tower,
Silom Rd., Silom,
Bangrak, Bangkok 10500.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Voravit Chenthanakul |
[x] |
Thai |
- |
|
Mr. Vijit Rujivipat |
|
Thai |
- |
|
Mr. Noppadol Sirijongdee |
|
Thai |
- |
|
Mr. Somchai Kungsamutr |
|
Thai |
- |
|
Ms. Patchara Chartpanchanchai |
[x] |
Thai |
- |
AUTHORIZED PERSON
Two of the
above mentioned directors [x] can jointly sign
or any of the
mentioned directors
[x] can jointly
sign with anyone
of the rest
directors on behalf
of the subject
with the company’s
affixed.
MANAGEMENT
Mr. Voravit Chenthanakun is
the President.
He is Thai
nationality.
Mr. Noppadol Sirijongdee is
the Senior Vice
President.
He is Thai
nationality.
Ms. Patchara Chartpanchachai is the
Senior Vice President.
She is Thai
nationality.
Mr. Somchai Kungsamutr is
the Senior Vice
President.
He is Thai
nationality.
Mr. Paisarn Kruawongvanich is
the Vice President.
He is Thai
nationality.
Mr. Narerk Mangkeo is
the Vice President.
He is Thai
nationality.
Mr. Nopparat Pradermsuk is
the Assistant Vice
President.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in 2
activities concerning feed
raw materials and
agricultural output trading &
chicken production and
processing business.
The Animal
Feed Raw Material
Business
Trading of agriculture
products is the
business in which
the subject purchases
raw material [such
as corn, sorghum,
fishmeal, broken rice
etc.] from farmers
and then sell
to animal feed
plants. Feed raw materials
business is considered
to be the
"base" of the
company which has
been operating since
its establishment. It
has developed itself
rapidly from a
role of purchasing
agent to that
of a leader
in agricultural product trading
business with networks comprise
almost 500 traders covering various important
sources of production.
The Integrated
Chicken Business
Manufacturing and trading
of poultry products
business, consists of
farms for raising
of grandparent stock,
parent stock and pullets, processing
and prepared food
production plants with
5 production lines:
frying, grilling, boiling,
roasting and steaming.
IMPORT
[COUNTRIES]
The machinery is
imported from Denmark
and Netherlands whereas
raw material is
imported from U.S.A.,
Republic of China,
Taiwan as well
as is purchased
locally.
MAJOR SUPPLIERS
|
Name |
Country |
|
|
|
|
Charoen Pokphand Foods
Public Co., Ltd. |
|
EXPORT
[COUNTRIES]
90% of its
products is exported
to almost European
Union countries, Korea,
Singapore, Taiwan and
Japan.
SALES
[LOCAL]
10% of its
products is sold
to companies within
CP group and
end-users.
MAJOR CUSTOMERS
|
Name |
Country |
|
|
|
|
Charoen Pokphand Foods
Public Co., Ltd. |
|
SUBSIDIARIES &
AFFILIATED COMPANY
|
Name |
Type of
Business |
% of
Investment |
|
|
|
|
|
BKP Holdings Ltd. |
Holding Company |
100.00 |
|
Charoen Pokphand Intertrade [ |
Trading |
19.00 |
|
Charoen Pokphand Holdings [ |
Holding Company |
15.75 |
|
Savee Farming Co., Ltd. |
Shrimp Farming |
12.67 |
|
CP-KFC Development [ |
Restaurant |
12.00 |
|
Thai Prawn Culture
Center Co., Ltd. |
Shrimp Farming
& Factory |
10.00 |
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
by cash or
on the credits
of 30-90 days.
Imports are by
L/C or T/T.
Selling terms are
by cash or
on the credits
of 30-90 days.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd. : [Head Office
:
Krung Thai Bank
Public Co., Ltd. : [Head
Office :
EMPLOYMENT
The subject employs
5,314 staff comprising
office staff, sales
persons and factory
workers.
LOCATION DETAILS
The premise is
owned for operating
an office at
the heading address
in a prime
commercial area.
Factory I
is located on 240,000 square
metres at 150
Moo 7, T.
Taddiew,
A. Kangkoi,
Saraburi 18110. Tel.:
[66] 36 251-970
Fax: [66] 36
251-977.
Factory II
is located at
63 Moo 7,
T. Champa, A.
Tharua, Ayudhya 13130.
Tel.: [66]
35 341-302, Fax:
[66] 35 341-303.
REMARK
CREDIT OF US$
125,000 AGAINST D/A
TERM SHOULD BE
IN ORDER
COMMENT
The subject has
been firmly established
for over 30
years as a
trader of animal
feed and manufacturer
and distributor of
integrated chicken products.
The subject’s business
is promising and
enjoys a steady
growth.
FINANCIAL INFORMATION
The capital
was initially registered
at Bht. 1,000,000
divided into 10,000
shares of Bht.
100 each.
The capital was increased
later as followings:
Bht. 5,500,000 on
February 18, 1981
Bht. 600,000,000 on
March 14, 1987
The latest capital
was divided into
60,000,000 shares of
Bht. 10 each
with fully paid.
MAIN SHAREHOLDERS : [as at April
30, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Charoen Pokphand Foods
Public Company Limited
|
59,664,871 |
99.44 |
|
Others |
335,129 |
0.56 |
No. of Shareholders
: 194 [including
the above shareholders]
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Charoen Phusamritlert No.
4068
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2009 & 2008
were:
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash and Cash Equivalent |
56,705,888 |
545,514,051 |
|
Trade Accounts &
Notes Receivable |
1,634,813,133 |
5,183,483,529 |
|
Inventories |
1,909,639,221 |
2,375,199,476 |
|
Loan Receivable |
81,358,102 |
71,580,253 |
|
Other Current Assets |
26,505,963 |
37,509,181 |
|
|
|
|
|
Total Current Assets
|
3,709,022,307 |
8,213,286,490 |
|
Investment in Related Company |
3,813,674,143 |
1,759,959,723 |
|
Fixed Assets |
3,533,572,086 |
3,836,863,791 |
|
Intangible Assets |
10,947,455 |
5,623,584 |
|
Deferred Income Tax |
76,705,694 |
88,188,606 |
|
Other Assets |
3,962,722 |
14,769,239 |
|
Total Assets |
11,147,884,407 |
13,918,691,433 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2009 |
2008 |
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institute |
3,311,162,715 |
8,773,801,130 |
|
Trade Accounts Payable |
1,542,592,155 |
1,024,420,782 |
|
Current Portion of Long-term
Loan from Financial Institute |
- |
14,555,629 |
|
Current Portion of Financial Lease Contract Liabilities |
- |
145,050 |
|
Current Portion of Long-term
Loan from Related Company |
125,000,000 |
250,000,000 |
|
Accrued Dividend |
784,983,520 |
4,410,368 |
|
Accrued Expenses |
250,658,421 |
269,631,426 |
|
Accrued Income Tax |
127,344,274 |
- |
|
Other Current Liabilities |
59,109,054 |
62,963,535 |
|
|
|
|
|
Total Current Liabilities |
6,200,850,139 |
10,399,927,920 |
|
Long-term Loan from Parent Person |
- |
125,000,000 |
|
Estimated Liabilities |
24,725,500 |
21,475,350 |
|
Deferred Income Tax Liabilities |
1,169,312,858 |
567,122,238 |
|
Total Liabilities |
7,394,888,497 |
11,113,525,508 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 60,000,000 shares |
600,000,000 |
600,000,000 |
|
|
|
|
|
Capital Paid |
600,000,000 |
600,000,000 |
|
Unrealized on Surplus
Revaluation of Assets |
558,881,908 |
558,881,908 |
|
Unrealized on Change
in Value of
Investment |
2,198,976,244 |
761,376,150 |
|
Statutory Reserve |
60,000,000 |
60,000,000 |
|
Retained Earning-
Unappropriated |
335,137,758 |
824,907,867 |
|
Total Shareholders' Equity |
3,752,995,910 |
2,805,165,925 |
|
Total Liabilities & Shareholders' Equity |
11,147,884,407 |
13,918,691,433 |
PROFIT & LOSS ACCOUNT
|
|
2009 |
2008 |
|
|
|
|
|
Sales Income |
28,746,162,548 |
31,929,126,954 |
|
Interest Income |
564,899 |
699,870 |
|
Dividend Income |
87,110,520 |
50,407,731 |
|
Rent Income |
13,590,316 |
13,551,147 |
|
Gain on Justice
Derivative |
441,044,731 |
- |
|
Other Income |
186,608,615 |
137,911,725 |
|
Total Sales |
29,475,081,629 |
32,131,697,427 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
27,886,540,010 |
30,673,364,147 |
|
Selling Expenses |
121,716,925 |
106,790,696 |
|
Administrative Expenses |
484,128,501 |
463,579,819 |
|
Management Remuneration |
28,718,000 |
24,831,000 |
|
Loss on Exchange Rate |
24,689,155 |
1,602,768 |
|
Total Expenses |
28,545,792,591 |
31,270,168,430 |
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
929,289,038 |
861,528,997 |
|
Financial Cost |
[187,829,586] |
[294,991,301] |
|
Profit / [Loss] before Income
Tax |
741,459,452 |
566,537,696 |
|
Income Tax |
[136,229,561] |
[24,455,361] |
|
|
|
|
|
Net Profit / [Loss] |
605,229,891 |
542,082,335 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.60 |
0.79 |
|
QUICK RATIO |
TIMES |
0.27 |
0.55 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.14 |
8.32 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.58 |
2.29 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
24.99 |
28.26 |
|
INVENTORY TURNOVER |
TIMES |
14.60 |
12.91 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
20.76 |
59.26 |
|
RECEIVABLES TURNOVER |
TIMES |
17.58 |
6.16 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
20.19 |
12.19 |
|
CASH CONVERSION CYCLE |
DAYS |
25.56 |
75.33 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
97.01 |
96.07 |
|
SELLING & ADMINISTRATION |
% |
2.11 |
1.79 |
|
INTEREST |
% |
0.65 |
0.92 |
|
GROSS PROFIT MARGIN |
% |
5.53 |
4.57 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.23 |
2.70 |
|
NET PROFIT MARGIN |
% |
2.11 |
1.70 |
|
RETURN ON EQUITY |
% |
16.13 |
19.32 |
|
RETURN ON ASSET |
% |
5.43 |
3.89 |
|
EARNING PER SHARE |
BAHT |
10.09 |
9.03 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.66 |
0.80 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.97 |
3.96 |
|
TIME INTEREST EARNED |
TIMES |
4.95 |
2.92 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(9.97) |
|
|
OPERATING PROFIT |
% |
7.87 |
|
|
NET PROFIT |
% |
11.65 |
|
|
FIXED ASSETS |
% |
(7.90) |
|
|
TOTAL ASSETS |
% |
(19.91) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
5.53 |
Deteriorated |
Industrial Average |
14.43 |
|
Net Profit Margin |
2.11 |
Impressive |
Industrial Average |
(1.24) |
|
Return on Assets |
5.43 |
Impressive |
Industrial Average |
(1.69) |
|
Return on Equity |
16.13 |
Impressive |
Industrial Average |
(5.23) |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales after accounting for the
cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. The company's figure is 5.53%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company was originated from the problems with control over its
costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. Net Profit Margin ratio is 2.11%
compared with those of its average competitors in the same industry, indicated
that business was an efficient operator in a dominant position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is
5.43%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profit in a dominant
position within its industry.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. Return on Equity ratio
is 16.13%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a
dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
0.60 |
Risky |
Industrial Average |
1.13 |
|
Quick Ratio |
0.27 |
|
|
|
|
Cash Conversion Cycle |
25.56 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 0.6 times in 2009, decrease from 0.79 times, then the company may not
be efficiently using its current assets. When compared with the industry
average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.27 times in 2009,
decrease from 0.55 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could
survive when no cash inflow was received from sale for 26 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.66 |
Impressive |
Industrial Average |
0.55 |
|
Debt to Equity Ratio |
1.97 |
Risky |
Industrial Average |
1.82 |
|
Times Interest Earned |
4.95 |
Impressive |
Industrial Average |
0.07 |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the shareholders
have committed. A lower the percentage means that the
company is using less leverage and has
stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 4.95 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.66 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
8.14 |
Impressive |
Industrial Average |
2.18 |
|
Total Assets Turnover |
2.58 |
Impressive |
Industrial Average |
1.37 |
|
Inventory Conversion Period |
24.99 |
|
|
|
|
Inventory Turnover |
14.60 |
Impressive |
Industrial Average |
3.43 |
|
Receivables Conversion Period |
20.76 |
|
|
|
|
Receivables Turnover |
17.58 |
Impressive |
Industrial Average |
4.13 |
|
Payables Conversion Period |
20.19 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.65 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.63.28 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.