MIRA INFORM REPORT
|
Report Date : |
14.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
PHOENIX
PULP & PAPER
PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
1 Siam Cement
Road, Kwang Bangsue, Khet Bangsue,
Bangkok 10800 |
|
|
|
|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
24.03.1975 |
|
|
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Com. Reg. No.: |
0107537002354 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of pulps and
papers |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment
Behaviour : |
No Complaints |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company
name
PHOENIX PULP &
PAPER PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 1
SIAM CEMENT ROAD,
KWANG BANGSUE,
KHET BANGSUE,
BANGKOK 10800,
THAILAND
TELEPHONE : [66] 2586-6260,
2586-6030
FAX : [66] 2586-6771,
2586-2164
E-MAIL
ADDRESS : scgpa_scg@hotmail.co.th
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.
RUNGROJ RANGSIYOPAS, THAI
PRESIDENT OF
SCG PAPER GROUP
NO.
OF STAFF : 3,500
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 its status
was converted to public company limited
under the name PHOENIX
PULP & PAPER PUBLIC COMPANY
LIMITED on June 28, 1994. It
currently employs approximate
3,500 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.
In 2004, the
subject was delisted
from the Stock
Exchange of Thailand.
The subject’s registered address
is 1 Siam Cement Rd., Kwang
Bangsue, Khet Bangsue, Bangkok 10800, and
this is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rungroj Rangsiyopas |
|
Thai |
48 |
|
Mr. Pramote Taechasupatkul |
|
Thai |
59 |
|
Mr. Amnuay Pholpuech |
|
Thai |
50 |
|
Mr. Chartchai Luekulwattanachai |
|
Thai |
55 |
|
Mr. Pasakorn Buranawit |
|
Thai |
52 |
AUTHORIZED PERSON
Two of the above
directors can jointly sign
on behalf of
the subject with
the company’s affixed.
MANAGEMENT
Mr. Rungroj Rangsiyopas
is the President
of SCG Paper
Group.
He is Thai
nationality with the
age of 48
years old.
Mr. Amnuay Pholpuech
is the Managing
Director.
He is Thai
nationality with the
age of 50
years old.
Mr. Jessada Sae-Lieng
is the Factory
Manager.
He is Thai
nationality.
Mr. Terdsak Yutthanavaraporn is
the Human Resources
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of Eucalyptus pulp
for the production
of paper, tissue
paper and cigarette
paper, as well
as paper products.
At present, the
products can be
divided into 2
main product groups
comprising:
Pulp products:
1.
Eucalyptus
Bleached Kraft Pulp
2.
Eucalyptus
Bleached Kraft Pulp
ECF
Paper products:
[“Idea Work”]
1.
White paper
2.
Printing
paper
etc.
PRODUCTIONS
Pulps : 465,000
tons/year
Paper : 100,000
tons/year
PURCHASE [LOCAL]
Raw materials and
chemical are purchased
locally. Eucalyptus, bamboo
and kenaf are
purchased mainly from
local planters in
North-Eastern region of
Thailand.
IMPORT [COUNTRIES]
Some of raw
material and chemical
are also imported
from Germany, Japan,
Republic of China,
Singapore and Taiwan.
MAJOR SUPPLIER
Siam Forestry Co.,
Ltd. : Thailand
SALES [LOCAL]
100% of the
products has been
marketed by SCG
Paper Public Company
Limited.
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
approximately 3,500 staff,
comprising 1,000 permanent
staff and 2,500
temporary factory workers.
LOCATION DETAILS
The premise is
rented for operating
an office at the
heading
address. Premise is
located in commercial/residential area.
Factory is located
on 4,800,000 square
meters of total
land, at 99
Moo 3,
T. Kudnamsai, A.
Nampong, Khon Kaen
40310.
Tel : [66]
43 433-104-6, 43
433-355
Fax : [66] 43
433-101, 43 373-412
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 1,000,000.
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 company has developed partnerships with farmers by
offering training, as well as seedlings, fertilizer, and guaranteed prices for
trees.
Coming
off a severe recession, most companies were able to post earnings figures that
were in the black. The company
showed remarkable turnarounds
in 2010, and
upbeat that the demand of
the products will raise
sale from the previous
year’s level.
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 registered
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 26, 2010]
|
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 :
1,555
NAME OF AUDITOR
AND CERTIFIED PUBLIC
ACCOUNTANT NO.:
Mr. Sureerat Thongaroonsaeng No.
4409
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
[Thousand Baht]
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash
Equivalents |
27,431 |
29,775 |
|
Trade Accounts Receivable - Related Company |
234,292 |
176,059 |
|
- General Company |
489,061 |
419,652 |
|
Account Receivable - Related
Company |
5,758 |
20,006 |
|
Inventories |
878,342 |
840,255 |
|
Other Current Assets
|
55,523 |
42,583 |
|
|
|
|
|
Total Current Assets
|
1,690,407 |
1,528,330 |
|
|
|
|
|
Fixed Assets |
9,232,662 |
8,557,366 |
|
Intangible Assets |
26,036 |
28,144 |
|
Deferred Income Tax |
- |
2,880 |
|
Deferred Expenses |
19,185 |
23,697 |
|
Other Assets |
24,840 |
101,275 |
|
Total Assets |
10,993,130 |
10,241,692 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Thousand Baht]
|
Current Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
|
|
|
- Related Company |
109,985 |
63,961 |
|
- General Company |
257,963 |
216,172 |
|
Account Payable & Short-term
Loan from Related Company |
965,278 |
1,665,948 |
|
Accrued Income Tax |
126,815 |
- |
|
Other Current Liabilities |
161,958 |
87,225 |
|
|
|
|
|
Total Current Liabilities |
1,621,999 |
2,033,306 |
|
Other Liabilities |
- |
1,012 |
|
Total Liabilities |
1,621,999 |
2,034,318 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
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 |
|
Retained Earning Statutory Reserve |
120,000 |
120,000 |
|
Unappropriated |
5,892,313 |
4,728,556 |
|
Total Shareholders' Equity |
9,371,131 |
8,207,374 |
|
Total Liabilities & Shareholders' Equity |
10,993,130 |
10,241,692 |
PROFIT & LOSS ACCOUNT
[Thousand Baht]
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
7,688,782 |
6,349,295 |
|
Profit/[Loss] on Exchange Rate |
[32,829] |
12,319 |
|
Other Income |
42,899 |
73,995 |
|
Total Sales |
7,698,852 |
6,435,609 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
5,352,881 |
5,477,165 |
|
Selling Expenses |
499,689 |
401,398 |
|
Administrative Expenses |
204,612 |
167,366 |
|
Total Expenses |
6,057,182 |
6,045,929 |
|
|
|
|
|
Profit before Financial Costs &
Income Tax |
1,641,670 |
389,680 |
|
Financial Costs |
[76,957] |
[119,736] |
|
Income Tax |
[271,150] |
[17,155] |
|
Net Profit / [Loss] |
1,293,563 |
252,789 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.04 |
0.75 |
|
QUICK RATIO |
TIMES |
0.47 |
0.32 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.83 |
0.74 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.70 |
0.62 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
59.89 |
55.99 |
|
INVENTORY TURNOVER |
TIMES |
6.09 |
6.52 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
23.22 |
24.12 |
|
RECEIVABLES TURNOVER |
TIMES |
15.72 |
15.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
17.59 |
14.41 |
|
CASH CONVERSION CYCLE |
DAYS |
65.52 |
65.71 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
69.62 |
86.26 |
|
SELLING & ADMINISTRATION |
% |
9.16 |
8.96 |
|
INTEREST |
% |
1.00 |
1.89 |
|
GROSS PROFIT MARGIN |
% |
30.51 |
15.10 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
21.35 |
6.14 |
|
NET PROFIT MARGIN |
% |
16.82 |
3.98 |
|
RETURN ON EQUITY |
% |
13.80 |
3.08 |
|
RETURN ON ASSET |
% |
11.77 |
2.47 |
|
EARNING PER SHARE |
BAHT |
10.78 |
2.11 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.15 |
0.20 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.17 |
0.25 |
|
TIME INTEREST EARNED |
TIMES |
21.33 |
3.25 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
21.10 |
|
|
OPERATING PROFIT |
% |
321.29 |
|
|
NET PROFIT |
% |
411.72 |
|
|
FIXED ASSETS |
% |
7.89 |
|
|
TOTAL ASSETS |
% |
7.34 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
30.51 |
Impressive |
Industrial Average |
14.64 |
|
Net Profit Margin |
16.82 |
Impressive |
Industrial
Average |
13.65 |
|
Return on Assets |
11.77 |
Impressive |
Industrial
Average |
(1.18) |
|
Return on Equity |
13.80 |
Impressive |
Industrial
Average |
(7.30) |
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 30.51%. When compared with the industry
average, the ratio of the company was higher, this indicated that company was
more profitable than the same industry.
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. The company’s figure is 16.82%,
higher figure when 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
11.77%, 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 13.8%, 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 |
1.04 |
Deteriorated |
Industrial
Average |
21.55 |
|
Quick Ratio |
0.47 |
|
|
|
|
Cash Conversion Cycle |
65.52 |
|
|
|
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 1.04 times in 2010, increase from 0.75 times, then it is generally
considered to have good short-term financial strength. 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 0.47 times in 2010,
increase from 0.32 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 66 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.15 |
Impressive |
Industrial
Average |
0.38 |
|
Debt to Equity Ratio |
0.17 |
Impressive |
Industrial
Average |
0.86 |
|
Times Interest Earned |
21.33 |
Impressive |
Industrial
Average |
9.16 |
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 a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 21.34 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 0.15 less than 0.5, most of the company's
assets are financed through equity.
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 |
0.83 |
Satisfactory |
Industrial
Average |
1.03 |
|
Total Assets Turnover |
0.70 |
Impressive |
Industrial
Average |
0.38 |
|
Inventory Conversion Period |
59.89 |
|
|
|
|
Inventory Turnover |
6.09 |
Impressive |
Industrial
Average |
4.65 |
|
Receivables Conversion Period |
23.22 |
|
|
|
|
Receivables Turnover |
15.72 |
Impressive |
Industrial
Average |
8.55 |
|
Payables Conversion Period |
17.59 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.10 |
|
UK Pound |
1 |
Rs.74.64 |
|
Euro |
1 |
Rs.64.42 |
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 |
|
---- |
NB |
New Business |
---- |
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.