Bangkok--Jun 23--Kim Eng Securities
M.C.S. Steel Public Company Limited was founded in 1992 with experienced
management in steel and construction industry with start up registered capital of
Baht 15 Million. Currently, the company’s registered capital and paid up capital
are Baht 500 and 400 Million respectively. Dr. Naiyuan Chi is the Chief Executive
Officer and Mr. Sompong Metasatidsuk is the Managing Director. MCS is the leading
steel fabricating company in Thailand in Beam and Column-Box. This kind of steel
is tolerance to vibration and used in building construction in earthquake area.
MCS currently has production capacity of approximately 40,000 tons per year. In
2003, MCS expanded its business into agricultural business by production and
distribution of biofertilizer which is currently under research and development
phase.
Business Objective
MCS plans to increase its production capacity to 50,000 tons per year
in 2006 in order to serve the increasing demand from its customers and gain cost
competitive advantage. In addition, MCS has its policy to maintain its standard
and continuously improve its production quality.
Strength
1. Stable market in Japan which is approximately 6-7 million tons per
year for the last 3 years — MCS is one of the large foreign fabricators that
export structure steel to Japan. Its production capacity is in top 20 among
structure steel producers in Japan.
2. Long-term relationship — MCS has orders approximately 6 months to 1
year in advance with its customers.
3. MCS production meets international standards, e.g. “H” Class
fabricator, JASS 6, ISO9001:2000, and Thai Industrial Standard Institute (TISI).
4. Continuously development — MCS has its policy to invest in
developing the production technology and support employees training and
development.
5. Strong financial status — MCS has conservative financial policy
with low debt commitment. At the end of 2004, MCS has Debt to Equity ratio of
1.1 times and Net Debt to Equity ratio equivalent to cash.
6. MCS Village — MCS provides accommodation to its employees in MCS
village. This facilitates employees and enhances production capacity of employees.
Revenue Structure
Unit: Million Baht
2002 2003 2004
Amount % Amount % Amount %
1. Structure Steel
1.1 Domestic 6.33 0.84 15.24 1.48 63.74 4.12
1.2 Export 735.58 97.74 996.56 96.45 1,441.70 93.17
2. Sale of scrap iron 1.96 0.26 2.31 0.22 9.64 0.62
3. Other revenue 2.32 0.31 19.15 1.85 5.52 0.36
4. Gain on exchange rate* 6.39 0.85 - - 26.78 1.73
Total 752.58 100 1,033.28 100 1,547.38 100
Note: in 2003, the company obtained loss from exchange of Baht 4.07 million. End.