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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

505302

Report Date :

23.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

HYH INTER METAL COMPANY LIMITED

 

 

Registered Office :

40  Naradhiwat  Ratchanakarin  Road, Chongnonsi, Yannawa, Bangkok 10120

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2016

 

 

Date of Incorporation :

11.10.2013

 

 

Com. Reg. No.:

0105556165334

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

The  subject  is  engaged  in  manufacturing,  distributing  and exporting  of  recycling  ferrous  and  non-ferrous  metals  such  as  tin [ingot/ solder/ bar/ plate],  lead,  antimony  ingot,  copper  wire,   zinc   ingot  and  etc.

 

 

No. of Employees :

26

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

 

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

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

 

Country Name

                Previous Rating               

(30.09.2017)

Current Rating

(31.12.2017)

Thailand

A2

A2

 

Risk Category

 

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

THAILAND - ECONOMIC OVERVIEW

 

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

 

Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

 

Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

 

Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.

 

Source : CIA

 

 

Company name

 

HYH INTER METAL COMPANY LIMITED

 

 

SUMMARY

 

BUSINESS  ADDRESS                          :           40  NARADHIWAT  RATCHANAKARIN  ROAD,

                                                                        CHONGNONSI, YANNAWA, BANGKOK 10120,

                                                                        THAILAND

TELEPHONE                                        :           [66]   2678-9007, 2286-0563, 089 245-4619

FAX                                                      :           [66]   2287-3898

E-MAIL  ADDRESS                               :           sale@hyhintermetal.com

REGISTRATION  ADDRESS                  :           SAME  AS  BUSINESS  ADDRESS

ESTABLISHED                                    :           2013

REGISTRATION  NO.                           :           0105556165334

TAX  ID  NO.                                         :           3036140146

CAPITAL REGISTERED                        :           BHT.   1,000,000

CAPITAL PAID-UP                                :           BHT.   1,000,000

SHAREHOLDER’S  PROPORTION        :           THAI     :    100%

FISCAL YEAR CLOSING DATE             :           DECEMBER   31            

LEGAL  STATUS                                  :           PRIVATE LIMITED COMPANY

EXECUTIVE                                         :           MS. RATTANAWILAI  JANTHIMAPORNKIJ,  THAI

                                                                        MANAGING  DIRECTOR           

NO.  OF  STAFF                                   :           26

LINES  OF  BUSINESS                         :           RECYCLING  FERROUS  AND  NON-FERROUS

METALS MANUFACTURER, DISTRIBUTOR  AND  EXPORTER

                                                                         

 

CORPORATE  PROFILE

 

OPERATING  TREND                            :           STABLE                       

PRESENT  SITUATION                         :           OPERATING  NORMALLY                     

REPUTATION                                       :           FAIR  WITH  NORMAL  BUSINESS  ENGAGEMENT

MANAGEMENT  STANDARD                 :           MANAGEMENT  WITH  FAIR  PERFORMANCE              

 

 

HISTORY

 

The  subject  was  established on October  11,  2013  as  a  private  limited  company  under  the registered name HYH  INTER  METAL COMPANY  LIMITED, by Thai group,  with  the  business  objective  to  manufacture  recycling  ferrous  and  non-ferrous  metals  for  various  industries  of  both  local  and  overseas  markets.  It  currently  employs  26  staff.  

 

The  subject’s  registered  address  is  40  Naradhiwat  Ratchanakarin  Road,  Chongnonsi, 

Yannawa,  Bangkok  10120,  and  this  is  the  subject’s  current  operation  address.  

 

 

THE  BOARD  OF  DIRECTOR

 

     Name

 

Nationality

Age

 

 

 

 

Ms. Jinnita  Sriwarakulkij

 

Thai

36

Ms. Rattanawilai  Janthimapornkij

 

Thai

33

 

 

AUTHORIZED  PERSON

 

Both  of  the  above  directors  can  jointly  sign  on  behalf  of  the  subject  with  company’s  affixed.

 

 

MANAGEMENT

 

Ms. Rattanawilai  Janthimapornkij   is  the  Managing  Director.

She  is  Thai  nationality  with  the  age  of  33  years  old.  

 

 

BUSINESS  OPERATIONS

 

The  subject  is  engaged  in  manufacturing,  distributing  and exporting  of  recycling  ferrous  and  non-ferrous  metals  such  as  tin [ingot/ solder/ bar/ plate],  lead,  antimony  ingot,  copper  wire,   zinc   ingot  and  etc.

 

 

PURCHASE

 

100%  of  the  products  is  purchased  from  local  suppliers.

 

 

SALES 

 

79%  of  the  products  is  sold  locally  by  wholesale  to  manufacturers  and  end-users,  the  remaining  21%  is  exported  to  many  countries  in  Asia  and  Europe.

 

 

RELATED  AND  AFFILIATED  COMPANY

 

Hua  Yong  Heng  Metal  Co.,  Ltd.

Business  Type  :  Distributor  of  recycling  ferrous  and  non-ferrous  metals 

 

 

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.

Exports  are  against  T/T.

 

 

BANKING

 

Bangkok  Bank  Public  Company  Limited

Kasikornbank  Public  Company  Limited

 

 

EMPLOYMENT

 

The  subject  currently  employs  26  staff.  

 

LOCATION  DETAILS

 

The  premise  is  rented for  administrative  office  at  the  heading  address.  Premise  is  located 

in  commercial/residential  area.

 

Recycling  factory  and  warehouse  is  located  at  145  Moo  6,  T. Praeksa,  A. Muang, 

Samutprakarn  10280.

 

 

COMMENT

 

Despite  an  increase  in  sales  or  service  income  in  2016,  it  obtained  higher  net  loss  caused  by  an  increase  in  other  expenses  including  financial  cost  and  income  tax  which  eroded  the  profit margin.  Nevertheless,  its  business  is  still  promising  in  line  with  an  improvement  and  recovery  of  many  industries  which  generated  more  consumption  of  recycling  ferrous  and  non-ferrous  metals.

 

 

FINANCIAL  INFORMATION

 

The  capital  was  registered  at  Bht.  1,000,000  divided  into  10,000  shares  of  Bht.  100    

each  with  fully  paid.

 

 

THE  SHAREHOLDERS  LISTED  WERE  :  [as  at  April  30,  2017]

 

       NAME

HOLDING

%

 

 

 

Ms. Sirirat  Janthimapornkij

Nationality:  Thai

Address     :  44  Naradhiwat  Ratchanakarin  Road, 

                    Chongnonsi,  Yannawa,  Bangkok 

2,500

25.00

Mr. Watcharasak  Janthimapornkij

Nationality:  Thai

Address     :  44  Naradhiwat  Ratchanakarin  Road, 

                     Chongnonsi,  Yannawa,  Bangkok   

2,500

25.00

Ms. Rattanawilai  Janthimapornkij

Nationality:  Thai

Address     :  23  Nongbon,  Prawet,  Bangkok

2,500

25.00

Ms. Patcharawee  Jantimapornkij

Nationality:  Thai

Address     :  44  Naradhiwat  Ratchanakarin  Road, 

                    Chongnonsi,  Yannawa,  Bangkok 

2,500

25.00

 

Total  Shareholders  :    4

 

Share  Structure  [as  at  April  30,  2017]

 

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

4

10,000

100.00

Foreign

-

-

-

 

Total

 

4

 

10,000

 

100.00

 

 

NAME  OF  AUDITOR  &  CERTIFIED  PUBLIC  ACCOUNTANT  NO. :

 

Ms. Angkana  Kamnueng  No.  6217

 

 

BALANCE SHEET [BAHT]

 

The  latest  financial  figures  published  for December  31,  2016,  2015  and  2014  were:

          

ASSETS

                                                                                                 

Current Assets

2016

2015

2014

 

 

 

 

Cash   and Cash Equivalents     

167,284.85

1,843,731.51

3,375,093.11

Trade  Accounts  and  Other  Receivable 

2,229,599.21

527,941.37

825,466.24

Short-term Loans

-

-

4,000,000.00

Inventories                     

3,880,747.51

2,656,888.74

1,478,965.64

 

Total  Current  Assets                

 

6,277,631.57

 

5,028,561.62

 

9,679,524.99

 

 

 

 

Long-term Loans

14,200,000.00

12,000,000.00

-

Property, Plant  and Equipment             

973,640.49

828,738.52

1,091,060.67

 

Total  Assets                 

 

21,451,272.06

 

17,857,300.14

 

10,770,585.66

 

                                          

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

 

Current Liabilities

2016

2015

2014

 

 

 

 

Trade Accounts  and Other Payable

4,510,932.26

298,653.66

1,761,146.39

Current Portion of Long-term Liabilities

128,260.00

128,260.00

128,260.00

Accrued Income Tax

52,235.59

51,405.15

57,280.88

 

Total Current Liabilities

 

4,691,427.85

 

478,318.81

 

1,946,687.27

 

 

 

 

Long-term Loan

-

16,000,000.00

7,263,000.00

Other Non-current  Liabilities

16,001,048.83

109,035.39

222,937.35

 

Total  Liabilities            

 

20,692,476.68

 

16,587,354.20

 

9,432,624.62

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

Share  capital : Baht  100  par  value 

  authorized,  and  issued  share  capital 

     10,000  shares   

 

 

1,000,000.00

 

 

1,000,000.00

 

 

1,000,000.00

 

Capital  Paid                     

 

1,000,000.00

 

1,000,000.00

 

1,000,000.00

Retained Earning -Unappropriated

    [Deficit]

 

[241,204.62]

 

269,945.94

 

337,961.04

 

Total  Shareholders’ Equity

 

758,795.38

 

1,269,945.94

 

1,337,961.04

 

Total  Liabilities  and  Shareholders’ 

  Equity

 

 

21,451,272.06

 

 

17,857,300.14

 

 

10,770,585.66

 

 

PROFIT  &  LOSS  ACCOUNT

 

Revenue

2016

2015

2014

 

 

 

 

Sales  or Services Income           

69,877,701.62

45,283,061.13

67,516,652.23

Interest  Income              

115,824.70

46.55

50,015.84

 

Total  Revenues           

 

69,993,526.32

 

45,283,107.68

 

67,566,668.07

 

Expenses

 

 

 

 

 

 

 

Other Expenses

69,243,115.95

44,429,781.48

67,054,643.87

 

Total Expenses             

 

69,243,115.95

 

44,429,781.48

 

67,054,643.87

 

 

 

 

Profit  /[Loss]  before  Financial Cost  and

   Income Tax

 

750,410.37

 

853,326.20

 

512,024.20

Financial Cost

[1,157,173.76]

[841,935.69]

[246,656.30]

 

 

 

 

Profit /[Loss]  before  Income  Tax

[406,763.49]

11,390.51

265,367.90

Income  Tax  

[104,387.07]

[79,405.61]

[57,280.88]

 

Net  Profit / [Loss]

 

[511,150.56]

 

[68,015.10]

 

208,087.02

 

 

FINANCIAL  ANALYSIS

 

ITEM

UNIT

2016

2015

2014

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

1.34

10.51

4.97

QUICK RATIO

TIMES

0.51

4.96

4.21

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

71.77

54.64

61.88

TOTAL ASSETS TURNOVER

TIMES

3.26

2.54

6.27

INVENTORY CONVERSION PERIOD

DAYS

-

-

-

INVENTORY TURNOVER

TIMES

-

-

-

RECEIVABLES CONVERSION PERIOD

DAYS

11.65

4.26

4.46

RECEIVABLES TURNOVER

TIMES

31.34

85.77

81.79

PAYABLES CONVERSION PERIOD

DAYS

-

-

-

CASH CONVERSION CYCLE

DAYS

11.65

4.26

4.46

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

-

-

-

SELLING & ADMINISTRATION

%

-

-

-

INTEREST

%

1.66

1.86

0.37

GROSS PROFIT MARGIN

%

100.17

100.00

100.07

NET PROFIT MARGIN BEFORE EX. ITEM

%

1.07

1.88

0.76

NET PROFIT MARGIN

%

(0.73)

(0.15)

0.31

RETURN ON EQUITY

%

(67.36)

(5.36)

15.55

RETURN ON ASSET

%

(2.38)

(0.38)

1.93

EARNING PER SHARE

BAHT

(51.12)

(6.80)

20.81

 

 

 

 

 

LEVERAGE RATIO

 

 

 

 

DEBT RATIO

TIMES

0.96

0.93

0.88

DEBT TO EQUITY RATIO

TIMES

27.27

13.06

7.05

TIME INTEREST EARNED

TIMES

0.65

1.01

2.08

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

54.31

(32.93)

 

OPERATING PROFIT

%

(12.06)

66.66

 

NET PROFIT

%

(651.53)

(132.69)

 

FIXED ASSETS

%

17.48

(24.04)

 

TOTAL ASSETS

%

20.13

65.80

 

 

 

ANNUAL GROWTH : SATISFACTORY

 

An annual sales growth is 54.31%. Turnover has increased from THB 45,283,061.13 in 2015 to THB 69,877,701.62 in 2016. While net profit has decreased from THB -68,015.10 in 2015 to THB -511,150.56 in 2016. And total assets has increased from THB 17,857,300.14 in 2015 to THB 21,451,272.06 in 2016.                       

                       

                       

PROFITABILITY : ACCEPTABLE

 

 

 

PROFITABILITY RATIO

 

Gross Profit Margin

100.17

Impressive

Industrial Average

19.69

Net Profit Margin

(0.73)

Deteriorated

Industrial Average

2.97

Return on Assets

(2.38)

Deteriorated

Industrial Average

2.87

Return on Equity

(67.36)

Deteriorated

Industrial Average

8.64

 

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. Gross Profit Margin is 100.17%. 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 -0.73%. 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 -2.38%.

 

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 -67.36%.

 

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

1.34

Satisfactory

Industrial Average

1.55

Quick Ratio

0.51

 

 

 

Cash Conversion Cycle

11.65

 

 

 

 

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 1.34 times in 2016, decrease from 10.51 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 0.51 times in 2016, decrease from 4.96 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 12 days.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Uptrend

 

 

LEVERAGE : RISKY

 

 

 

LEVERAGE RATIO

 

Debt Ratio

0.96

Acceptable

Industrial Average

0.63

Debt to Equity Ratio

27.27

Risky

Industrial Average

1.73

Times Interest Earned

0.65

Risky

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.

 

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 0.65 lower than 1, so the company is not generating enough cash from EBIT to meet its interest obligations.

 

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.96 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 : EXCELLENT

 

 

 

ACTIVITY RATIO

 

Fixed Assets Turnover

71.77

Impressive

Industrial Average

-

Total Assets Turnover

3.26

Impressive

Industrial Average

0.97

Inventory Conversion Period

-

 

 

 

Inventory Turnover

-

 

Industrial Average

3.18

Receivables Conversion Period

11.65

 

 

 

Receivables Turnover

31.34

Impressive

Industrial Average

4.59

Payables Conversion Period

-

 

 

 

 

The company's Account Receivable Ratio is calculated as 31.34 and 85.77 in 2016 and 2015 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2016 decreased from 2015. This would suggest the company had deteriorated in the management of its debt collections.

 

The company's Total Asset Turnover is calculated as 3.26 times and 2.54 times in 2016 and 2015 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                     Downtrend

Receivables Turnover                Uptrend

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 66.02

UK Pound

1

INR 92.72

Euro

1

INR 81.45

Thai Baht

1

INR 2.11

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

TPT

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.