Bangkok--Dec 9--Kim Eng Securities (Thailand)
Company History
The Company was established on September 25, 1992 (under the former name “Inter-hides & Leather Company Limited) with the initial registered capital of Baht 5 million by Mr.Ongart Thumrongsakunvong and Ms.Chutima Busayapoka to run the tannery business at Samutprakarn province. In the initial period, the Company imported the raw hide for tanning leathers and used such leathers to produce furniture production. In 1994, the Company diversified its business by developing leather for automobiles since the management had the vision that there was the bright opportunity for the automotive industry. Then in 2000, the Company decided to cease the furniture production business since there were lots competitions in the furniture business. Currently, the Company is the Second Tier Original Equipment Manufacturer (2nd Tier OEM) of the carmakers such as Toyota, Honda, Nissan, Ford, Mitsubishi, Isuzu, Mazda and Subaru. The Company is trusted to be the supplier of more than 30 car models of such carmakers. The Company product consists of the leather to be used for car seat and car accessories such as steering wheel and the gear knob.
On August 24, 2005, the Company converted to the Public Company Limited with the registered capital of Baht 300 Million and the paid-up capital of Baht 225 Million at Baht 5 par value. Before IPO, the Company’s major shareholders are Mr.Ongart Thumrongsakunvong’s group at 62.87% and Sumitomo group at 26.67%. After IPO, Mr.Ongart Thumrongsakunvong’s group will held 47.15% and Sumitomo group at 20.00%.
Products and Services
The company’s product lines can be broken down to 4 groups as follows:
1. Leather to be used as raw material for car seat and car accessories such as steering wheel and gear knob etc.
2. Leather cut parts for car seat and car accessories such as steering wheel and gear knob etc.
3. Sewing services for car seat and car accessories such as steering wheel, and gear knob
4. Car seat replacement for after market
Company’s Customer
The main customers of the Company are the First Tier Original Equipment Manufacturers (1st Tier OEM) who supply the car seat to the carmakers such as Toyota, Honda, Nissan, Ford, Mitsubishi, Isuzu, Mazda and Subaru. However, to obtain the sales order from the 1st tier OEM, the Company must first be selected as the 2nd tier OEM of each carmaker.
Capital Structure
Registered Capital : Baht 300 Million
Paid-up Capital (Pre IPO) : Baht 225 Million
Paid-up Capital (Post IPO) : Baht 300 Million (60 Million Shares at Baht 5 par value)
Number of Offered Shares : 15 Million Shares
Dividend Policy
The Company sets the dividend policy at not less than 40% of the net profit.
However, the Company plans to offset the retained loss as of the 3rd quarter of 2005 at Baht 52.40 Million with the premium of Baht 73.50 Million. The Company will be recovered with the retained earning by 2005 and be capable to pay the dividend in the near future.
Future Project
The Company has the future project that is to enhance its capacity from 12 million sq.feet per year to 24 million sq.feet per year by construction of the new plant (Plant #6) on 17-rai land with utilized area of 15,000 sq.m. The estimated investment (excluding land) is Baht 290 million. The new factory will be ready to operate by the 3rd quarter to 4th quarter of 2006. End.