MIRA INFORM REPORT
|
Report No. : |
346668 |
|
Report Date : |
27.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
THAI HUA METAL CO., LTD. |
|
|
|
|
Registered Office : |
22 Soi Santiphap,
Nares Road, Siphaya, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
20.09.2004 |
|
|
|
|
Com. Reg. No.: |
0105547127808 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in importing
and distributing metals mainly
steel sheets and
stainless sheets, as
well as exporting
local metal scraps. |
|
|
|
|
No. of Employees : |
60 |
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 : |
Slow but correct |
|
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 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, and generally pro-investment policies Thailand has historically had a strong
economy due in part to competitive industrial and agriculture exports - mostly
electronics, agricultural commodities, automobiles and parts, and processed
foods. The economy experienced slow growth and declining exports in 2014, in
part due to domestic political turmoil and sluggish global demand. With full
employment, Thailand attracts an estimated 2-4 million migrant workers from
neighboring countries, and faces labor shortages. Following the May 2014 coup
d'etat, tourism decreased 6-7% but is beginning to recover. The household debt
to GDP ratio is over 80%. The Thai government in 2013 implemented a nation-wide
300 baht ($10) per day minimum wage policy and deployed new tax reforms
designed to lower rates on middle-income earners. The Thai baht has remained
stable.
|
Source
: CIA |
Company
Name
THAI HUA METAL CO., LTD.
SUMMARY
BUSINESS ADDRESS : 22 SOI SANTIPHAP,
NARES ROAD, SIPHAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2631-8856-7,
2234-3758, 2266-7689
FAX : [66] 2237-5957
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2004
REGISTRATION NO. : 0105547127808
TAX ID NO. : 3031576513
CAPITAL REGISTERED : BHT.
10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MS. WANNA LORLUELERT,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 60
LINES OF BUSINESS : METALS AND
METAL SCRAPS
IMPORTER, DISTRIBUTOR
AND EXPORTER
|
|
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on September
20, 2004 as
a private limited
company under the
registered name THAI
HUA METAL CO.,
LTD., by Thai group, with
the business objective
to import, distribute
and export metals
and metal scraps.
It currently employs
approximately 60 staff.
The subject’s registered
address is 22 Soi Santiphap,
Nares Road, Siphaya,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Wanna Lorluelert |
|
Thai |
44 |
|
Ms. Wannee Lorluelert |
|
Thai |
41 |
|
Ms. Wannira Lorluelert |
|
Thai |
37 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Ms. Wanna Lorluelert is
the Managing Director.
She is Thai
nationality with the
age of 44
years old.
Ms. Wannee Lorluelert is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 41
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing metals mainly
steel sheets and
stainless sheets, as
well as exporting
local metal scraps.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas in Republic
of China, India,
Japan and Germany.
SALES [LOCAL]
100% of steel sheets
and stainless sheet
are sold locally
to wholesalers, retailers,
and end-users.
EXPORT
Metal scraps are
exported to Republic
of Republic of
China, Hong Kong
and the countries
in Europe.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or 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
according to the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 60 staff.
LOCATION DETAILS
The premise is
owned for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Branch:
58/14 Moo 5,
Bangbuathong-Suphanburi
Road, T. Sammuang, A. Ladbualuang, Ayutthaya
13230.
COMMENT
The subject is
an importer and
distributor of metals
as well as
an exporter of
metal scraps for
industrial users. Its
business performance has
been slowing down
since the previous
year. Slow economy
growth has affected
on a slowdown
of the subject’s
business.
FINANCIAL INFORMATION
The capital was
registered at Bht.
5,000,000 divided into
50,000 shares of
Bht. 100 each with
fully paid.
On June 29,
2009, the registered
capital was increased
to Bht. 10,000,000
divided into 100,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Wanna Lorluelert Nationality: Thai Address : 22
Soi Santiphap, Nares
Road, Siphaya,
Bangrak, Bangkok |
70,000 |
70.00 |
|
Ms. Wannee Lorluelert Nationality: Thai Address : 143 Soi
Chan 16, Yaek
12,
Thungwatdon, Sathorn, Bangkok |
15,000 |
15.00 |
|
Ms. Wannira Lorluelert Nationality: Thai Address : 54/10
Soi Santiphap, Siphaya,
Bangrak, Bangkok |
14,200 |
14.20 |
|
Mrs. Aranya Lorluelert Nationality: Thai Address : 9
Soi Pipat, Silom
Road, Silom,
Bangrak, Bangkok |
200 |
0.20 |
|
Mr. Vichit Lorluelert Nationality: Thai Address : 22
Soi Santiphap, Nares
Road, Siphaya, Bangrak, Bangkok
|
200 |
0.20 |
|
Ms. Pornpiwan Niramoncherdchai Nationality: Thai Address : 407-409
Charoennakorn Road, Klongtonsai,
Klongsan, Bangkok |
200 |
0.20 |
|
|
|
|
|
Mr. Suthee Kanjanajongkol Nationality: Thai Address : 44/38
Wuthakas Road, Bangkhor,
Jomthong, Bangkok |
200 |
0.20 |
Total Shareholders : 7
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
100,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
100,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Wisit Jirathitiampaiwong No.
1204
BALANCE SHEET
[BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
335,041.66 |
530,100.70 |
292,232.97 |
|
Trade Accounts Receivable
|
- |
28,358,108.05 |
72,588,149.07 |
|
Revenue Department Receivable |
25,382,343.97 |
22,688,206.55 |
19,869,096.99 |
|
Inventories |
11,512,544.75 |
3,303,223.27 |
74,760,550.10 |
|
Other Current Assets
|
104,333.94 |
3,189.59 |
3,585.81 |
|
|
|
|
|
|
Total Current Assets
|
37,334,264.32 |
54,882,828.16 |
167,513,614.94 |
|
Land |
64,256,496.00 |
64,256,496.00 |
64,256,496.00 |
|
Building |
710,150.91 |
760,326.11 |
810,501.31 |
|
Office Automation |
20,681.11 |
1,164.11 |
1.00 |
|
Vehicle |
1,365,470.44 |
12,321.05 |
23,536.01 |
|
Total Assets |
103,687,062.78 |
119,913,135.43 |
232,604,149.26 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts Payable
|
13,161,492.28 |
51,070,837.84 |
95,891,305.29 |
|
Accrued Expenses |
28,825.98 |
377,098.98 |
125,348.43 |
|
Accrued Income Tax |
250,972.35 |
1,417,218.54 |
21,846.80 |
|
Accrued Withholding Income Tax |
9,594.52 |
12,092.00 |
15,023.89 |
|
Accrued Social Securities |
- |
- |
1,956.00 |
|
Pre-received Income |
- |
- |
518,100.13 |
|
Other Current Liabilities |
2,920.00 |
1,964.00 |
- |
|
|
|
|
|
|
Total Current Liabilities |
13,453,805.13 |
52,879,211.36 |
96,573,580.54 |
|
Loan from Directors |
72,690,000.00 |
53,590,500.00 |
128,800,000.00 |
|
Total Liabilities |
86,143,805.13 |
106,469,711.36 |
225,373,580.54 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
100,000 shares |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
|
|
|
|
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
7,543,257.65 |
3,443,424.07 |
[2,769,431.28] |
|
Total Shareholders' Equity |
17,543,257.65 |
13,443,424.07 |
7,230,568.72 |
|
Total Liabilities &
Shareholders' Equity |
103,687,062.78 |
119,913,135.43 |
232,604,149.26 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
337,659,986.74 |
426,750,708.74 |
340,295,681.21 |
|
Interest Income |
5,563.18 |
4,252.80 |
1,265.22 |
|
Other Income |
1,035,646.52 |
3,215,238.58 |
61,002.29 |
|
Total Revenues |
338,701,196.44 |
429,970,200.12 |
340,357,948.72 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
327,659,428.03 |
415,102,920.73 |
330,898,795.40 |
|
Selling Administrative Expenses |
5,890,918.90 |
7,087,162.98 |
8,621,727.45 |
|
Total Expenses |
333,550,346.93 |
422,190,083.71 |
339,520,522.85 |
|
Profit / [Loss] before Income
Tax |
5,150,849.51 |
7,780,116.41 |
837,425.87 |
|
Income Tax |
[1,051,015.93] |
[1,567,261.06] |
[550,846.84] |
|
|
|
|
|
|
Net Profit / [Loss] |
4,099,833.58 |
6,212,855.35 |
286,579.03 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.77 |
1.04 |
1.73 |
|
QUICK RATIO |
TIMES |
1.91 |
0.98 |
0.96 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.09 |
6.56 |
5.23 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.26 |
3.56 |
1.46 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
12.82 |
2.90 |
82.47 |
|
INVENTORY TURNOVER |
TIMES |
28.46 |
125.67 |
4.43 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
24.25 |
77.86 |
|
RECEIVABLES TURNOVER |
TIMES |
- |
15.05 |
4.69 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
14.66 |
44.91 |
105.77 |
|
CASH CONVERSION CYCLE |
DAYS |
(1.84) |
(17.75) |
54.55 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.04 |
97.27 |
97.24 |
|
SELLING & ADMINISTRATION |
% |
1.74 |
1.66 |
2.53 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
3.27 |
3.48 |
2.78 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.53 |
1.82 |
0.25 |
|
NET PROFIT MARGIN |
% |
1.21 |
1.46 |
0.08 |
|
RETURN ON EQUITY |
% |
23.37 |
46.21 |
3.96 |
|
RETURN ON ASSET |
% |
3.95 |
5.18 |
0.12 |
|
EARNING PER SHARE |
BAHT |
41.00 |
62.13 |
2.87 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.89 |
0.97 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.91 |
7.92 |
31.17 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(20.88) |
25.41 |
|
|
OPERATING PROFIT |
% |
(33.79) |
829.05 |
|
|
NET PROFIT |
% |
(34.01) |
2,067.94 |
|
|
FIXED ASSETS |
% |
2.03 |
(0.09) |
|
|
TOTAL ASSETS |
% |
(13.53) |
(48.45) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is
-20.88%. Turnover has decreased from THB 426,750,708.74 in 2013 to THB
337,659,986.74 in 2014. While net profit has decreased from THB 6,212,855.35 in
2013 to THB 4,099,833.58 in 2014. And total assets has decreased from THB 119,913,135.43
in 2013 to THB 103,687,062.78 in 2014.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.27 |
Deteriorated |
Industrial Average |
14.51 |
|
Net Profit Margin |
1.21 |
Acceptable |
Industrial Average |
2.15 |
|
Return on Assets |
3.95 |
Deteriorated |
Industrial Average |
11.90 |
|
Return on Equity |
23.37 |
Acceptable |
Industrial Average |
36.37 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues 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 3.27%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have 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 1.21%.
When compared with the industry average, the ratio of the company was lower.
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. When compared with the
industry average, it was lower, the company's figure is 3.95%.
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 23.37%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
2.77 |
Impressive |
Industrial Average |
1.35 |
|
Quick Ratio |
1.91 |
|
|
|
|
Cash Conversion Cycle |
(1.84) |
|
|
|
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 2.77 times in 2014, increase from 1.04 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 1.91 times in 2014,
increase from 0.98 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 -2 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.83 |
Acceptable |
Industrial Average |
0.66 |
|
Debt to Equity Ratio |
4.91 |
Risky |
Industrial Average |
1.96 |
|
Times Interest Earned |
- |
|
Industrial Average |
- |
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 higher the percentage means that the company is
using less equity and has stronger leverage position.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.83 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 Stable
ACTIVITY : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.09 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
3.26 |
Acceptable |
Industrial Average |
5.54 |
|
Inventory Conversion Period |
12.82 |
|
|
|
|
Inventory Turnover |
28.46 |
Impressive |
Industrial Average |
17.86 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial Average |
9.39 |
|
Payables Conversion Period |
14.66 |
|
|
|
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 3 days at the end
of 2013 to 13 days at the end of 2014. This represents a negative trend. And
Inventory turnover has decreased from 125.67 times in year 2013 to 28.46 times
in year 2014.
The company's Total Asset Turnover is calculated as 3.26 times and 3.56
times in 2014 and 2013 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.96 |
|
|
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.71.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.