MIRA INFORM REPORT
|
Report Date : |
07.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
SIAM
YAMATO STEEL CO.,
LTD. |
|
|
|
|
Registered Office : |
12th Floor, Siam Cement Building Ii, 1 Siam Cement Road, Bangsue, Bangkok 10800 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
07.04.1992 |
|
|
|
|
Com. Reg. No.: |
0105535060339 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and exporter of Steel products |
|
|
|
|
No. of Employees
: |
760 |
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 : |
Good |
|
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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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
SIAM YAMATO
STEEL CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 12th FLOOR,
SIAM CEMENT BUILDING
II,
1 SIAM
CEMENT ROAD, BANGSUE,
BANGKOK 10800,
THAILAND
TELEPHONE : [66] 2586-2783-5,
2586-5563, 2586-2371-2
FAX :
[66] 2586-2687,
2910-3123
E-MAIL
ADDRESS : sys@syssteel.com
yamato@syssteel.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535060339 [Former: 6032/2535]
CAPITAL REGISTERED : BHT. 3,000,000,000
CAPITAL PAID-UP : BHT.
3,000,000,000
SHAREHOLDER’S PROPORTION : THAI :
10%
JAPANESE :
90%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PAITHOON JIRANANTARAT, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 760
LINES
OF BUSINESS : STEEL
PRODUCTS
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 April
7, 1992 as
a private limited
company under the
name style “SIAM
YAMATO STEEL CO., LTD.”
by a joint
venture among Yamato Kogyo Co., Ltd. [64.18%], Mitsui & Co., Ltd. [18%], Siam Cement Public Co., Ltd. [10%], Sumitomo Corporation [5.82%]
and Mitsui & Co.
[Thailand] Ltd. [2%] to produce
hot rolled structural
steel and sheet
piles in Thailand.
The products are certified for
international standard by TIS, JIS BS, ASTM,
EURONORM and AS in order
to serve diverse
requirements of both domestic
and international. It currently
employs approximate 760 staff.
The subject received
the promotion privilege
from the Board
of Investment.
Subject is also
a member of the Siam
Cement Group.
The subject’s registered
address is 12th Floor,
Siam Cement Building
II, 1 Siam Cement
Rd., Bangsue, Bangkok 10800,
and this is
the subject’s current
operation address.
Certification/Award:
-
ISO 9002
-
ISO/IEC
Guide 25
-
TIS 1227-1996
-
JIS G 3101,
G 3106, G 3136
-
TIS 1390-1996
-
TUV
Certificate
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tomoyuki Mochizuki |
|
Japanese |
48 |
|
Mr. Chaovalit Ekabutr |
|
Thai |
53 |
|
Mr. Damri Tanchevawong |
|
Thai |
59 |
|
Mr. Hiroyuki Inoue |
|
Japanese |
67 |
|
Mr. Masao Koshi |
|
Japanese |
53 |
|
Mr. Paithoon Jiranantarat |
|
Thai |
49 |
|
Mr. Kazutaka Motobayashi |
|
Japanese |
57 |
|
Mr. Osamu Ishimura |
|
Japanese |
52 |
|
Mr. Aree Chavalitchewinkul |
|
Thai |
49 |
|
Mr. Takafumi Yoshida |
|
Japanese |
57 |
AUTHORIZED PERSON
Two of the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Paithoon Jiranantarat is
the Managing Director & Marketing Manager.
He is Thai
nationality with the
age of 49
years old.
Mr. Jesada Plangmanee
is the Production
Manager.
He is Thai
nationality.
Mr. Chaiwat Lertamornvichaiyuth is
the Personnel Manager.
He is Thai
nationality.
Mr.
Chalermkiat Itsarangkoon Na
Ayudhya is the
Project Sales &
Technical Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of structure steel,
wide plant steel
& hot rolled
shape steel including
H-Beam, I-Beam, Channel, Angle,
Sheet Pile, cut-beam
and etc. Its
production has been
received manufacturing technology
from Yamato Kogyo Co.,
Ltd. in Japan.
The subject also has
a cut-to-length service
for lengths other
than the standard 6 m.
and 12
m.
PRODUCTION
700,000 tons/year
MAJOR BRAND
“SYS”
PURCHASE
Most of raw materials are
purchased from local
suppliers, the remaining including
scrap and iron are imported from
Japan, Germany, Republic of China, Malaysia, India, South Africa and
Korea.
MAJOR SUPPLIERS
Yamato Kogyo Ltd. : Japan
Mitsui & Co., Ltd. : Japan
Sumitomo Corporation
[Thailand] Ltd. : Thailand
SALES [LOCAL]
85% of its products is sold locally
to Thai Government, construction
contractor, wholesalers, retailers
and end-users.
EXPORT
15% of the products is exported
to Laos, Indonesia, Taiwan, Vietnam,
Malaysia, Australia, Republic
of China, Hong
Kong, Korea and
India.
PARENT COMPANY
Yamato Kogyo Co., Ltd. : Japan
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
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head
Office : 333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Kasikornbank Public
Co., Ltd.
[Head
Office : 1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok 10140]
Siam Commercial
Bank Public Co., Ltd.
[Bangsue
Branch : Siam Cement Rd., Bangsue, Bangkok 10800]
Sumitomo Mitsui
Banking Corporation
[Bangkok
Office : 138 Silom Rd.,
Silom, Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 760 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
at 9, I - 7
Mabtapud Industrial Estate,
A. Muang, Rayong
21150. Tel: [66]
38 683-723, 38
683-732 Fax: [66]
38 683-200
Warehouse is located
at 321/7 Moo 6,
Sriracha, Chonburi.
Tel & Fax
: [66] 38
774-454-8
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT US$
10,000,000.
COMMENT
The
subject is the manufacturer of hot
rolled structural steel in
Thailand and also
the company within the Siam Cement Group. Its business performance
in 2010 had outstanding improved
with increasing sales compared to
the previous year.
Economy improvement since
2010 has resulted
to improve demand of
steel products in local
market. Despite massive
floods in the
last quarter of 2011
which was diluted
demand of steel products,
subject still has growth
potential after floods
relief.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1 million, divided
into 10,000 shares
of Bht. 100
each.
The capital were
increased & decreased later
as followings:
Increased were: Bht.
1,200,000,000 on June
15, 1992
Bht. 3,000,000,000 on
November 4, 1993
Bht. 7,000,000,000 on
October 2, 1998
Bht. 7,800,000,000 on
December 21, 1999
Decreased were: Bht.
7,000,000,000 on December
2, 2002
Bht. 6,200,000,000 on
June 11, 2003
Bht. 3,000,000,000 on
December 18, 2003
The latest
registered capital was
decreased to Bht. 3,000,000,000
divided into 30,000,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at April
20, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Yamato Kogyo Co., Ltd. Nationality: Japanese Address : 380 Kibi, Ohtsu-ku. Himeji-shi, 671-1192
Japan |
19,255,343 |
64.18 |
|
Mitsui & Co.,
Ltd. Nationality: Japanese Address : 2-1, Ohtemachi 1-chome,Chiyoda-ku, Tokyo, 100-0004,
Japan |
5,400,000 |
18.00 |
|
Siam Cement Public
Co., Ltd. Nationality: Thai Address : 1
Siam Cement Rd.,
Bangkok |
3,000,000 |
10.00 |
|
Sumitomo Corporation Nationality: Japanese Address : 1-8-11, Harumi, 1-chome, Chuo-ku, Tokyo,
104-8610, Japan |
1,744,657 |
5.82 |
|
Mitsui & Co.,
[Thailand] Ltd. Nationality: Japanese Address : 175
South Sathorn Rd.,
Thunmahamek,
Sathorn, Bangkok |
600,000 |
2.00 |
Total Shareholders : 5
Share Structure [as
at April 20,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
3,000,000 |
10.00 |
|
Foreign - Japanese |
4 |
27,000,000 |
90.00 |
|
Total |
5 |
30,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vichien Kingmontree No.
3977
BALANCE SHEET [BAHT]
The latest financial figures published as at December 31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents
|
740,579,081 |
1,409,643,462 |
|
Short-term Investment |
735,389,296 |
946,324,531 |
|
Trade Accounts Receivable |
101,691,268 |
36,059,888 |
|
Inventories |
3,118,662,395 |
2,126,899,703 |
|
Receivable - Value Added
Tax |
62,206,499 |
158,975,159 |
|
Other Current Assets |
24,192,281 |
26,368,634 |
|
|
|
|
|
Total Current Assets
|
4,782,720,820 |
4,704,271,377 |
|
Long-term Investment |
15,534,000 |
25,000,000 |
|
Fixed Assets
|
11,329,049,678 |
12,026,493,580 |
|
Intangible Assets |
110,115,569 |
89,883,384 |
|
Deferred Expenses |
1,331,617,371 |
993,115,821 |
|
Other Assets |
3,193,744 |
3,189,369 |
|
Total Assets |
17,572,231,182 |
17,841,953,531 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
971,751,709 |
667,172,861 |
|
Payable from Related
Company |
77,049,926 |
61,322,614 |
|
Current Portion of
Long-term Loan from Financial Institutions |
295,000,000 |
170,000,000 |
|
Current Portion of Long-term Loan from Related Company |
3,159,000,000 |
- |
|
Accrued Income Tax |
- |
228,592,245 |
|
Accrued Expenses |
364,284,889 |
328,973,510 |
|
Work Guarantee |
11,047,264 |
578,183,136 |
|
Other Current Liabilities |
14,036,032 |
20,594,488 |
|
|
|
|
|
Total Current Liabilities |
4,892,169,820 |
2,054,838,854 |
|
|
|
|
|
Long-term Loan from Related Company |
3,435,000,000 |
3,730,000,000 |
|
Long-term Loan from Financial
Institutions |
- |
3,159,000,000 |
|
|
|
|
|
Total Liabilities |
8,327,169,820 |
8,943,838,854 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share Capital :
Baht. 100 par value
authorized issued
and fully paid
share capital 30,000,000
shares |
3,000,000,000 |
3,000,000,000 |
|
|
|
|
|
Capital Paid |
3,000,000,000 |
3,000,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve |
300,000,000 |
300,000,000 |
|
Unappropriated |
5,945,061,362 |
5,598,114,677 |
|
Total Shareholders' Equity |
9,245,061,362 |
8,898,114,677 |
|
|
|
|
|
Total Liabilities & Shareholders' Equity
|
17,572,231,182 |
17,841,953,531 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
16,383,566,238 |
12,320,678,020 |
|
Other Sales |
142,234,559 |
69,705,469 |
|
Total Sales |
16,525,800,797 |
12,390,383,489 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
14,717,558,539 |
9,415,369,663 |
|
Selling Expenses |
382,670,974 |
247,334,498 |
|
Administrative Expenses |
734,894,471 |
552,554,203 |
|
Other Expenses |
27,522,242 |
107,841,840 |
|
Total Expenses |
15,862,646,226 |
10,323,100,204 |
|
|
|
|
|
Profit before Financial Cost & Income Tax |
663,154,571 |
2,067,283,285 |
|
Financial Cost |
[316,207,886] |
[44,989,606] |
|
|
|
|
|
Profit before Income Tax |
346,946,685 |
2,022,293,679 |
|
Income Tax |
- |
[488,232,050] |
|
Net Profit / [Loss] |
346,946,685 |
1,534,061,629 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.98 |
2.29 |
|
QUICK RATIO |
TIMES |
0.34 |
1.24 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.45 |
1.02 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.93 |
0.69 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
77.34 |
82.45 |
|
INVENTORY TURNOVER |
TIMES |
4.72 |
4.43 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
2.27 |
1.07 |
|
RECEIVABLES TURNOVER |
TIMES |
161.11 |
341.67 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
24.10 |
25.86 |
|
CASH CONVERSION CYCLE |
DAYS |
55.51 |
57.66 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
89.83 |
76.42 |
|
SELLING & ADMINISTRATION |
% |
6.82 |
6.49 |
|
INTEREST |
% |
1.93 |
0.37 |
|
GROSS PROFIT MARGIN |
% |
11.04 |
24.15 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.05 |
16.78 |
|
NET PROFIT MARGIN |
% |
2.12 |
12.45 |
|
RETURN ON EQUITY |
% |
3.75 |
17.24 |
|
RETURN ON ASSET |
% |
1.97 |
8.60 |
|
EARNING PER SHARE |
BAHT |
11.56 |
51.14 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.47 |
0.50 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.90 |
1.01 |
|
TIME INTEREST EARNED |
TIMES |
2.10 |
45.95 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
32.98 |
|
|
OPERATING PROFIT |
% |
(67.92) |
|
|
NET PROFIT |
% |
(77.38) |
|
|
FIXED ASSETS |
% |
(5.80) |
|
|
TOTAL ASSETS |
% |
(1.51) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
11.04 |
Acceptable |
Industrial
Average |
17.31 |
|
Net Profit Margin |
2.12 |
Impressive |
Industrial
Average |
(2.43) |
|
Return on Assets |
1.97 |
Impressive |
Industrial
Average |
1.96 |
|
Return on Equity |
3.75 |
Deteriorated |
Industrial
Average |
7.93 |
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 11.04%. When
compared with the industry average, the ratio of the company was lower,
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. The company's figure is 2.12%,
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
1.97%, 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. When compared with the
industry average, it was lower, the company's figure is 3.75%.
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 |
0.98 |
Risky |
Industrial
Average |
23.89 |
|
Quick Ratio |
0.34 |
|
|
|
|
Cash Conversion Cycle |
55.51 |
|
|
|
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 0.98 times in 2010, decreased from 2.29 times, then the company may
have problems meeting its short-term obligations. 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 0.34 times in 2010,
decreased from 1.24 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 56 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.47 |
Impressive |
Industrial
Average |
0.97 |
|
Debt to Equity Ratio |
0.90 |
Impressive |
Industrial
Average |
2.02 |
|
Times Interest Earned |
2.10 |
Deteriorated |
Industrial
Average |
138.77 |
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 2.1 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 0.47 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.45 |
Deteriorated |
Industrial
Average |
73.16 |
|
Total Assets Turnover |
0.93 |
Acceptable |
Industrial
Average |
1.69 |
|
Inventory Conversion Period |
77.34 |
|
|
|
|
Inventory Turnover |
4.72 |
Deteriorated |
Industrial
Average |
18.72 |
|
Receivables Conversion Period |
2.27 |
|
|
|
|
Receivables Turnover |
161.11 |
Impressive |
Industrial
Average |
18.70 |
|
Payables Conversion Period |
24.10 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.68 |
|
UK Pound |
1 |
Rs.76.75 |
|
Euro |
1 |
Rs.63.57 |
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.