MIRA INFORM REPORT
|
Report Date : |
24.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
SONGKLA
CANNING PUBLIC COMPANY
LIMITED |
|
|
|
|
Registered Office : |
12th Floor, S.M. Tower, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
08.04.1981 |
|
|
|
|
Com. Reg. No.: |
0107536000641 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and exporter of canned seafoods and
pet food products |
|
|
|
|
No. of Employees : |
1,400 |
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 |
|
|
|
|
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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
SONGKLA CANNING
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 12th FLOOR,
S.M. TOWER,
979/9-10 PHAHOLYOTHIN
ROAD, SAMSENNAI,
PHYATHAI, BANGKOK
10400, THAILAND
TELEPHONE : [66] 2298-0029,
2298-0433-9
FAX :
[66] 2298-0442-3
E-MAIL
ADDRESS : rachada_yi@thaiunion.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1981
REGISTRATION
NO. : 0107536000641 [Former
: 766/2524]
CAPITAL REGISTERED : BHT. 360,000,000
CAPITAL PAID-UP : BHT. 360,000,000
SHAREHOLDER’S PROPORTION : THAI :
93.70%
FOREIGN :
6.30%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. CHUAN TANGCHANSIRI,
THAI
CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 1,400
LINES
OF BUSINESS : CANNED SEAFOODS
AND PET FOOD
PRODUCTS
MANUFACTURER 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
originally established on April
8, 1981 as a
private limited company
under the name
style “Songkla Canning
Co., Ltd.” by
Thai groups. The
subject was listed on the
Stock Exchange of Thailand on
November 11, 1988
and changed to the public limited
company, named SONGKLA CANNING PUBLIC COMPANY
LIMITED, on July
5, 1993.
Its business objective
is to manufacture
canned seafood and
pet foods for
export. 80% of
the subject’s income
was from canned
tuna, and the
remaining came from canned
shrimp, crabs and
clams. It is
one among the
three largest canned
tuna exporters in the
country.
In January 1999,
subject was delisted from
the Stock Exchange
of Thailand. It
currently employs approximately
1,400 staff.
The subject’s registered address is 12th Flr., S.M. Tower,
979/9-10 Phaholyothin Rd., Samsennai,
Phyathai, Bangkok 10400,
and this is
the subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chan Hon Kit |
|
Chinese |
71 |
|
Mr. Kraisorn Chansiri |
|
Thai |
76 |
|
Mr. Teerapong Chansiri |
|
Thai |
46 |
|
Mr. Chuan Tangchansiri |
|
Thai |
66 |
|
Mr. Chan Tin
King |
|
Chinese |
43 |
|
Mr. Nakorn Niruttinanont |
|
Thai |
40 |
|
Mr. Thavee Tangchansiri |
|
Thai |
- |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Chuan Tangchansiri is
the Chief Executive
Officer.
He is Thai
nationality with the
age of 66
years old.
Mr. Chaiwat Charoenjittranont is
the Vice President.
He is Thai nationality.
Ms. Chomnit Sathityathiwat is
the Account Manager.
She is Thai
nationality.
Mr. Praveen Srisuvipha
is the Factory
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity is a
manufacturing contractor and exporter of Canned Sea-food Products such as Frozen Tuna Loin, Frozen
Shrimp, Frozen Cephalopod, Canned Tuna, Canned Seafood. Canned Shrimps, Canned Crabmeat,
Canned Baby Clams,
as well as
Canned Tuna Pet-food
specially for cat,
under various customer’s
brands.
PRODUCTION CAPACITY
100,320 tons/year
IMPORT [COUNTRIES]
Raw material, chemical
and ingredient are
imported from France
whereas tuna fish
is from India,
Malaysia, Indonesia, Myanmar
and Pacific Oceans.
MAJOR SUPPLIERS
Asian - Pacific Can Co.,
Ltd. : Thailand
Thai Union Frozen
Products Co., Ltd. : Thailand
Thai Union Seafood
Co., Ltd. : Thailand
EXPORT [COUNTRY]
100% of the products
is exported to Japan,
U.S.A., Australia, Canada,
Europe, Asia and
Middle East Countries.
PARENT COMPANY
Thai Union Frozen Products Co., Ltd.
Business Type: Manufacturer of
frozen food products
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
Local bills are paid by
cash or on
the credits term
of 30-60-90 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd. :
[Hualumpong Branch]
Krung Thai Bank
Public Co., Ltd. : [Petchburi
Branch]
Bank of Ayudhya
Public Co., Ltd. : [Head
Office : Rama
3 Road]
EMPLOYMENT
The subject employs
approximately 1,400 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
owned for operating
administrative office at
the heading address.
Premise is located
in commercial area.
The factory is
located at 333
Moo 2, Karnchanavanich Rd.,
T. Pavong, A. Muang,
Songkla Province 90000,
on 16,000 square
meters of area.
Tel : [66]
74 334-005-8, Fax
: [66] 74 334-009.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 500,000.
COMMENT
The company was
able to achieve significantly
net profit growth
in 2010, while 2011
began with a
positive prospect of the
world consumption. It
managed to sustain
sales at nearly
the same level of
last year.
Thailand's economy in
2011 relied heavily
on resilient export
growth, particularly in the
automobile, petrochemicals, electronic
and food products. Although
the economy has demonstrated moderate
positive growth in
the first half
of this year,
current floods in
large area in
middle region has
heavily impact to industrial as
a whole excluding
canned foods due to
demand has outstanding
increased. However, future
performance depends on
industrial revamp in
December 2011.
FINANCIAL INFORMATION
The capital was
registered at Bht. 6,000,000 divided into 600 shares of Bht. 10,000 each.
Bht. 80,000,000
on June 1,
1988
Bht. 120,000,000
on June 16,
1988
Bht. 180,000,000
in 1993
Bht. 360,000,000
in 1999
The latest registered
capital was increased
to Bht. 360,000,000 divided
into 36,000,000 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS : [as at April
27, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Thai Union Frozen
Products Co., Ltd. Nationality: Thai Address : 979/12
S.M. Tower, Phaholyothin Rd.,
Samsennai, Phyathai, Bangkok |
32,556,819 |
90.44 |
|
Nippon Suisan Kaisha
Ltd. Nationality: Japanese Address : Japan |
2,250,000 |
6.25 |
|
Mr. Cheng Niruttinanon Nationality: Thai Address : 979/9-10 S.M. Tower, Phaholyothin Rd.,
Samsennai, Phyathai, Bangkok |
938,000 |
2.60 |
|
Mr. Dechapol Chansiri Nationality: Thai Address : 336/7
Rama 4 Rd., Bangrak,
Bangkok |
72,000 |
0.20 |
|
Cimic Finance &
Securities Public Co.,
Ltd. Nationality: Thai Address : 209
Sukhumvit Rd., Klongtoey, Bangkok |
59,900 |
0.17 |
|
Mr. Sanguan Uasudkij Nationality: Thai Address : 457/2
Bamrungmuang Rd., Pomprap, Bangkok |
17,500 |
0.05 |
|
Dr. Pairoj Pongpipat Nationality: Thai Address : 84
Charansanitwong Rd., Bangplad, Bangkok |
15,000 |
0.04 |
|
Other Shareholders |
90,781 |
0.25 |
Total Shareholders :
85
Share Structure [as
at April 27,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
80 |
33,731,400 |
93.70 |
|
Foreign |
5 |
2,268,600 |
6.30 |
|
Total |
85 |
36,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Sophon Permsiriwallop No.
3182
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank |
50,323,719 |
62,131,797 |
|
Trade Accounts Receivable |
|
|
|
Related Company |
52,225,605 |
166,447,399 |
|
Other Company |
685,131,928 |
695,300,050 |
|
Less: Provision
for Doubtful Accounts |
[10,006,598] |
[2,012,389] |
|
|
|
|
|
Trade Accounts Receivable
- Net |
727,350,935 |
859,735,060 |
|
Short-term Loan to
Parent Company |
245,840,000 |
430,760,000 |
|
Inventories |
888,559,718 |
743,035,648 |
|
Other Current Assets
Material Supplies |
12,706,087 |
12,404,341 |
|
Refundable Value
Added Tax |
16,767,433 |
18,024,520 |
|
Forward Contract
Receivable |
57,453,643 |
19,281,365 |
|
Others |
19,111,266 |
30,458,918 |
|
|
|
|
|
Total Current Assets
|
2,018,112,801 |
2,175,831,649 |
|
Investment in Subsidiary
|
262,138,537 |
262,138,537 |
|
Long-term Loan to
Other Company – Net |
2,500,000 |
- |
|
Fixed Assets |
821,059,854 |
766,961,745 |
|
Intangible Assets |
138,375 |
110,978 |
|
Deferred Income Tax |
827,035 |
2,073,861 |
|
Prepayment for Assets |
20,389,839 |
11,452,303 |
|
Other Assets |
16,778,729 |
6,512,735 |
|
Total Assets |
3,141,945,170 |
3,225,081,808 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
- |
9,307,459 |
|
Trade Accounts Payable Related Company |
147,122,213 |
140,652,266 |
|
Other Company |
209,234,221 |
115,805,514 |
|
|
|
|
|
Trade Accounts Payable
- Net |
356,356,434 |
256,457,780 |
|
Short-term Loan from
Parent Company |
- |
200,000,000 |
|
Other Current Liabilities Accrued Income Tax |
17,832,936 |
13,872,430 |
|
Accrued Expenses |
43,733,461 |
41,377,584 |
|
Assets Payable |
13,399,222 |
21,864,616 |
|
Forward Contract
Payable |
8,229,685 |
7,678,356 |
|
Others |
69,695,561 |
52,791,596 |
|
|
|
|
|
Total Current Liabilities |
509,247,299 |
603,349,821 |
|
Total Liabilities |
509,247,299 |
603,349,821 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 36,000,000 shares |
360,000,000 |
360,000,000 |
|
|
|
|
|
Capital Paid |
360,000,000 |
360,000,000 |
|
Surplus on Share Capital |
240,000,000 |
240,000,000 |
|
Retained Earning Appropriated for Statutory Reserve |
36,000,000 |
36,000,000 |
|
Other Reserve |
44,042 |
44,042 |
|
Unappropriated |
1,996,653,829 |
1,985,687,945 |
|
Total Shareholders' Equity |
2,632,697,871 |
2,621,731,987 |
|
Total Liabilities & Shareholders' Equity |
3,141,945,170 |
3,225,081,808 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
5,930,874,300 |
6,261,862,907 |
|
Other Income Interest Income |
6,424,302 |
4,997,457 |
|
Dividend Income |
120,609,878 |
123,604,530 |
|
Gain on Exchange
Rate |
132,202,540 |
- |
|
Compensation from Goods |
54,885,363 |
32,557,206 |
|
Others |
36,658,505 |
44,941,840 |
|
Total Sales |
6,281,654,888 |
6,467,963,940 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
5,466,134,360 |
5,385,067,768 |
|
Selling Expenses |
180,506,545 |
146,981,690 |
|
Administrative Expenses |
126,438,462 |
122,596,081 |
|
Other Expenses |
604,082 |
122,134 |
|
Total Expenses |
5,773,683,449 |
5,654,767,673 |
|
|
|
|
|
Profit / [Loss] before Interest
Expenses & Income Tax |
507,971,439 |
813,196,267 |
|
Interest Expenses |
[17,526,449] |
[20,640,273] |
|
Income Tax |
[29,479,106] |
[10,284,399] |
|
|
|
|
|
Net Profit / [Loss] |
460,965,884 |
782,271,595 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.96 |
3.61 |
|
QUICK RATIO |
TIMES |
2.01 |
2.24 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.22 |
8.16 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.89 |
1.94 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
59.33 |
50.36 |
|
INVENTORY TURNOVER |
TIMES |
6.15 |
7.25 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
42.16 |
40.53 |
|
RECEIVABLES TURNOVER |
TIMES |
8.66 |
9.01 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
13.97 |
7.85 |
|
CASH CONVERSION CYCLE |
DAYS |
87.53 |
83.04 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.16 |
86.00 |
|
SELLING & ADMINISTRATION |
% |
5.18 |
4.31 |
|
INTEREST |
% |
0.30 |
0.33 |
|
GROSS PROFIT MARGIN |
% |
13.75 |
17.29 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.56 |
12.99 |
|
NET PROFIT MARGIN |
% |
7.77 |
12.49 |
|
RETURN ON EQUITY |
% |
17.51 |
29.84 |
|
RETURN ON ASSET |
% |
14.67 |
24.26 |
|
EARNING PER SHARE |
BAHT |
12.80 |
21.73 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.16 |
0.19 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.19 |
0.23 |
|
TIME INTEREST EARNED |
TIMES |
28.98 |
39.40 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(5.29) |
|
|
OPERATING PROFIT |
% |
(37.53) |
|
|
NET PROFIT |
% |
(41.07) |
|
|
FIXED ASSETS |
% |
7.05 |
|
|
TOTAL ASSETS |
% |
(2.58) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
13.75 |
Impressive |
Industrial Average |
12.58 |
|
Net Profit Margin |
7.77 |
Impressive |
Industrial Average |
1.98 |
|
Return on Assets |
14.67 |
Impressive |
Industrial Average |
6.12 |
|
Return on Equity |
17.51 |
Impressive |
Industrial Average |
15.81 |
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 13.75%. 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 7.77%, 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
14.67%, 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 17.51%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
3.96 |
Impressive |
Industrial Average |
1.79 |
|
Quick Ratio |
2.01 |
|
|
|
|
Cash Conversion Cycle |
87.53 |
|
|
|
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 3.96 times in 2010, increase from 3.61 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 2.01 times in 2010,
decrease from 2.24 times, although excluding inventory so the company still
have good short-term financial strength.
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 88 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.16 |
Impressive |
Industrial Average |
0.59 |
|
Debt to Equity Ratio |
0.19 |
Impressive |
Industrial Average |
1.46 |
|
Times Interest Earned |
28.98 |
Impressive |
Industrial Average |
1.89 |
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 28.99 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 0.16 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 |
7.22 |
Satisfactory |
Industrial Average |
8.56 |
|
Total Assets Turnover |
1.89 |
Acceptable |
Industrial Average |
2.90 |
|
Inventory Conversion Period |
59.33 |
|
|
|
|
Inventory Turnover |
6.15 |
Impressive |
Industrial Average |
4.55 |
|
Receivables Conversion Period |
42.16 |
|
|
|
|
Receivables Turnover |
8.66 |
Impressive |
Industrial Average |
7.56 |
|
Payables Conversion Period |
13.97 |
|
|
|
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
UK Pound |
1 |
Rs.86.84 |
|
Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.