MIRA INFORM REPORT
|
Report No. : |
341634 |
|
Report Date : |
22.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
SUNSTAR CHEMICAL
[THAILAND] CO., LTD. |
|
|
|
|
Registered Office : |
624 Moo 4, Bangpoo Industrial Estate, Soi 7, Sukhumvit Road, Praeksa, Muang, Samutprakarn 10280, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2015 |
|
|
|
|
Date of Incorporation : |
24.11.1993 |
|
|
|
|
Com. Reg. No.: |
0115536007326 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Distributor and Exporter of Adhesive
& Sealant Products. |
|
|
|
|
No. of Employees : |
126 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
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’tat, 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
SUNSTAR CHEMICAL [THAILAND] CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 624
MOO 4, BANGPOO INDUSTRIAL ESTATE, SOI
7, SUKHUMVIT ROAD, PRAEKSA, MUANG,
SAMUTPRAKARN
10280, THAILAND
TELEPHONE : [66] 2709-4531-5
FAX :
[66] 2324-0310
E-MAIL
ADDRESS : sunstarcsc@th.sunstar.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0115536007326
[Former : SOR POR. 4508]
TAX
ID NO. : 3271051023
CAPITAL REGISTERED : BHT. 25,000,000
CAPITAL PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
MASAKI UKAI, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 126
LINES
OF BUSINESS : ADHESIVE
& SEALANT 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 November 24,
1993 as a
private limited company under
the registered name
SUNSTAR CHEMICAL [THAILAND]
CO., LTD. by
foreign groups, in order to manufacture, distribute and
export adhesives and sealant
products for automotive and
electronics industries. It
currently employs 126
staff.
Subject
is a subsidiary
of Sunstar Singapore Pte. Ltd.,
which is a member
of Sunstar
Group.
The
subject’s registered address is
624 Moo 4,
Bangpoo Industrial Estate,
Soi 7, Sukhumvit
Rd., Praeksa, Muang,
Samutprakarn 10280, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Masaki Ukai |
[x] |
Japanese |
50 |
|
Mr. Matsuhisa Miyamoto |
|
Japanese |
55 |
|
Mr. Toshiyuki Tomura |
|
Japanese |
50 |
AUTHORIZED
PERSON
The mentioned director
[x] signs on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Masaki Ukai is
the Managing Director.
He is Japanese
nationality with the
age of 50
years old.
Mr. Masaru Nakatsuka is
the General Manager
& Production Manager.
He is Japanese
nationality.
Mr. Yasuhisa Asumi is
the Sales & Marketing Manager.
He is Japanese
nationality.
BUSINESS
OPERATIONS
The subject is engaged in
manufacturing, distributing and
exporting adhesives and
sealant products for various
industries such as
automobiles, electronics and
general repair shop
under its own
brands, “SUNSTAR” and
“PENGUIN SEAL”, as
well as providing
contract manufacturing service
under OEM customer’s
brand. The products
are supplied to
automotive assemblers such as
Toyota, Isuzu, Nissan,
Mitsubishi, Honda, Mazda,
Ford and etc.,
as well as
electronics industry and
general repair shops.
PURCHASE
Most of raw materials and
chemicals are purchased
from local suppliers,
the remaining is
imported from Singapore,
Republic of China,
Japan, and Germany.
MAJOR SUPPLIER
Sunstar Engineering Inc. : Japan
SALES
70% of the
products is sold locally
to manufacturers, wholesalers
and end-users, the
remaining 30% is
exported to Malaysia,
Philippines, Vietnam, Republic
of China, Japan,
Indonesia, India, Korea, Hong Kong,
Pakistan, U.K., Italy,
and Taiwan.
MAJOR
CUSTOMERS
Aisin Chemical [Thailand]
Ltd. : Thailand
Eftec India Private
Limited : India
Unico Paint Industries
Pvt. Ltd. :
Pakistan
RELATED AND AFFILIATED COMPANY
Sunstar Engineering [Thailand]
Co., Ltd.
Business Type :
Manufacturer and distributor
of automotive parts
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 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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
126 staff.
LOCATION
DETAILS
The premise
is owned for administrative
office, factory and
warehouse at the
heading address. Premise is
located in industrial
area.
COMMENT
The
subject’s operating performance
as of March
31, 2015 was
reported lower than
the previous years.
The subject’s sales were declined
in relation to
slowdown of industrial
sector.
Its business performance closely links with
the condition of overall
economy, which is
expanding slowly this
year.
FINANCIAL
INFORMATION
The capital was registered at Bht.
25,000,000 divided into 25,000 shares of Bht. 1,000 each with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as
at July 31,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Sunstar Singapore Pte.
Ltd. Nationality: Singaporean Address : 10
Science Park Rd., #04-16/17, The Alpha Singapore, Science Park
II,
Singapore 117684 |
24,994 |
99.98 |
|
Maple Marketing Limited Nationality: Hong Kong Address : 250-254
Gloucester Road, Causeway
Bay, Hong Kong |
3 |
0.01 |
|
PT. Sunstar Engineering Indonesia Nationality: Indonesian Address : Java,
Indonesia |
3 |
0.01 |
Total Shareholders : 3
Share Structure [as
at July 31,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
25,000 |
100.00 |
|
Total |
3 |
25,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Chupong Surachutikarl
No. 4325
BALANCE
SHEET [BAHT]
The
latest financial figures
published for March
31, 2015, 2014
& 2013 were:
ASSETS
|
Current Assets |
2015 |
2014 |
2013 |
|
|
|
|
|
|
Cash and Cash Equivalents |
80,750,972 |
47,722,958 |
57,116,415 |
|
Trade Accounts & Other
Receivable |
154,760,448 |
162,843,699 |
168,617,190 |
|
Inventories |
37,740,833 |
45,171,740 |
47,548,210 |
|
Other Current Assets
|
2,697,712 |
4,153,641 |
2,148,616 |
|
Total Current Assets
|
275,949,965 |
259,892,038 |
275,430,431 |
|
Investment in Subsidiaries |
202,069,485 |
202,069,485 |
202,069,485 |
|
Fixed Assets |
109,980,916 |
117,830,464 |
122,518,429 |
|
Intangible Assets |
1,560,015 |
2,053,336 |
798,837 |
|
Other Non-current Assets |
338,000 |
490,000 |
1,615,930 |
|
Total Assets |
589,898,381 |
582,335,323 |
602,433,112 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2015 |
2014 |
2013 |
|
|
|
|
|
|
Short-term Loan from
Financial Institution |
12,000,000 |
12,000,000 |
12,000,000 |
|
Trade Accounts & Other Payable |
190,974,047 |
210,957,513 |
245,989,458 |
|
Current Portion of Financial
Lease Contract Liabilities |
953,705 |
1,204,666 |
1,518,629 |
|
Accrued Income Tax |
24,952,128 |
23,848,200 |
35,898,289 |
|
Other Current Liabilities |
845,732 |
1,370,423 |
1,078,611 |
|
Total Current Liabilities |
229,725,612 |
249,380,802 |
296,484,987 |
|
Financial Lease Contract Liabilities, Net of
Current Portion |
1,022,417 |
1,976,122 |
3,180,788 |
|
Employee Benefits Obligation |
2,498,539 |
1,912,607 |
1,366,517 |
|
Total Liabilities |
233,246,568 |
253,269,531 |
301,032,292 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 25,000 shares |
25,000,000 |
25,000,000 |
25,000,000 |
|
Capital Paid |
25,000,000 |
25,000,000 |
25,000,000 |
|
Retained Earning Appropriated - Statutory Reserve |
2,500,000 |
2,500,000 |
2,500,000 |
|
Unappropriated |
329,151,813 |
301,565,792 |
273,900,820 |
|
Total Shareholders' Equity |
356,651,813 |
329,065,792 |
301,400,820 |
|
Total Liabilities &
Shareholders' Equity |
589,898,381 |
582,335,323 |
602,433,112 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2015 |
2014 |
2013 |
|
|
|
|
|
|
Sales Income |
1,007,020,230 |
1,071,485,287 |
1,125,814,601 |
|
Gain on Exchange Rate |
270,214 |
3,004,692 |
52,381 |
|
Other Income |
4,439,476 |
2,741,852 |
4,048,164 |
|
Total Revenues |
1,011,729,920 |
1,077,231,831 |
1,129,915,146 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
626,961,445 |
689,556,081 |
757,044,124 |
|
Selling Expenses |
61,908,004 |
60,553,618 |
63,933,801 |
|
Administrative Expenses |
69,874,707 |
73,736,052 |
69,576,518 |
|
Total Expenses |
758,744,156 |
823,845,751 |
890,554,443 |
|
Profit before Financial
Cost & Income Tax |
252,985,764 |
253,386,080 |
239,360,703 |
|
Financial Cost |
[760,006] |
[2,122,087] |
[1,872,955] |
|
Profit before Income Tax |
252,225,758 |
251,263,993 |
237,487,748 |
|
Income Tax |
[50,139,737] |
[49,099,021] |
[53,770,998] |
|
Net Profit / [Loss] |
202,086,021 |
202,164,972 |
183,716,750 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2015 |
2014 |
2013 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.20 |
1.04 |
0.93 |
|
QUICK RATIO |
TIMES |
1.03 |
0.84 |
0.76 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
9.16 |
9.09 |
9.19 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.71 |
1.84 |
1.87 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
21.97 |
23.91 |
22.92 |
|
INVENTORY TURNOVER |
TIMES |
16.61 |
15.27 |
15.92 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
56.09 |
55.47 |
54.67 |
|
RECEIVABLES TURNOVER |
TIMES |
6.51 |
6.58 |
6.68 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
111.18 |
111.67 |
118.60 |
|
CASH CONVERSION CYCLE |
DAYS |
(33.11) |
(32.28) |
(41.01) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
62.26 |
64.36 |
67.24 |
|
SELLING & ADMINISTRATION |
% |
13.09 |
12.53 |
11.86 |
|
INTEREST |
% |
0.08 |
0.20 |
0.17 |
|
GROSS PROFIT MARGIN |
% |
38.21 |
36.18 |
33.12 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
25.12 |
23.65 |
21.26 |
|
NET PROFIT MARGIN |
% |
20.07 |
18.87 |
16.32 |
|
RETURN ON EQUITY |
% |
56.66 |
61.44 |
60.95 |
|
RETURN ON ASSET |
% |
34.26 |
34.72 |
30.50 |
|
EARNING PER SHARE |
BAHT |
8,083.44 |
8,086.60 |
7,348.67 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.40 |
0.43 |
0.50 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.65 |
0.77 |
1.00 |
|
TIME INTEREST EARNED |
TIMES |
332.87 |
119.40 |
127.80 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(6.02) |
(4.83) |
|
|
OPERATING PROFIT |
% |
(0.16) |
5.86 |
|
|
NET PROFIT |
% |
(0.04) |
10.04 |
|
|
FIXED ASSETS |
% |
(6.66) |
(3.83) |
|
|
TOTAL ASSETS |
% |
1.30 |
(3.34) |
|
ANNUAL
GROWTH: RISKY
An annual sales growth is -6.02%. Turnover has decreased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
38.21 |
Impressive |
Industrial
Average |
7.97 |
|
Net Profit Margin |
20.07 |
Impressive |
Industrial
Average |
12.09 |
|
Return on Assets |
34.26 |
Impressive |
Industrial
Average |
16.22 |
|
Return on Equity |
56.66 |
Impressive |
Industrial
Average |
27.57 |
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 38.21%. When
compared with the industry average, the ratio of the company was higher,
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 20.07%, 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 34.26%, 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 56.66%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.20 |
Acceptable |
Industrial
Average |
1.65 |
|
Quick Ratio |
1.03 |
|
|
|
|
Cash Conversion Cycle |
(33.11) |
|
|
|
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 1.2 times in 2015, increased 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 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 1.03 times in 2015,
increased from 0.84 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 -34 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.40 |
Acceptable |
Industrial
Average |
0.38 |
|
Debt to Equity Ratio |
0.65 |
Impressive |
Industrial
Average |
0.58 |
|
Times Interest Earned |
332.87 |
Impressive |
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 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 332.88 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 0.4 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 Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
9.16 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.71 |
Impressive |
Industrial
Average |
1.30 |
|
Inventory Conversion Period |
21.97 |
|
|
|
|
Inventory Turnover |
16.61 |
Impressive |
Industrial
Average |
7.05 |
|
Receivables Conversion Period |
56.09 |
|
|
|
|
Receivables Turnover |
6.51 |
Impressive |
Industrial
Average |
4.92 |
|
Payables Conversion Period |
111.18 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.51 and
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 decreased from 24 days at the
end of 2014 to 22 days at the end of 2015. This represents a positive trend.
And Inventory turnover has increased from 15.27 times in year 2014 to 16.61
times in year 2015.
The company's Total Asset Turnover is calculated as 1.71 times and 1.84
times in 2015 and 2014 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 Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.75 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.74.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
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.