News Detail

Date/Time
13 Nov 2019 17:01:00
Headline
Management Discussion and Analysis Quarter 2 Ending 30 Sep 2019
Symbol
TMW
Source
TMW
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                Management Discussion and Analysis

Company name                             : THAI MITSUWA PUBLIC COMPANY LIMITED
Year                                     : 2019
Quarter                                  : Quarter 2
Ending                                   : 30-Sep-2019
Note                                     :
  
To       :  President  of  The Stock Exchange of Thailand
From       :  Thai  Mitsuwa Public Company Limited    
Date       :  13  November   2019
Subject  :  Operating  results   for the second quarter  2019
Thai  Mitsuwa Public Company Limited (TMW) summarizes   the operation results  
for the three-month periods  from 1 July  2019  to 30 September 2019 and  for
six-month periods compared from 1 April 2019 - 30 September 2019 with the same
period of 2018 as follows :
                                                   (unit in thousand)
Income Statement  (July  - September )    2019         2018          Change
Revenue from sales  - plastic parts    453,780    100.0%    529,106    100.0%    -14.2%
Revenue from sales-magnesium parts    260,024    100.0%    277,944    100.0%    -6.4%
Revenue from sales - mold    31,806    100.0%    41,670    100.0%    -23.7%
     Total revenue from sales    745,610    100.0%    848,720    100.0%    -12.1%
Cost of sales  - plastic parts    369,962    81.5%    413,487    78.1%    -10.5%
Cost of sales  - magnesium  parts    210,689    81.0%    208,566    75.0%    1.0%
Cost of sales  - molds     17,012    53.5%    28,406    68.2%    -40.1%
     Total  cost of sales     597,663    80.2%    650,459    76.6%    -8.1%
Gross profit  -  plastic parts    83,818    18.5%    115,619    21.9%    -27.5%
Gross profit  -  magnesium parts    49,335    19.0%    69,378    25.0%    -28.9%
Gross profit  -  molds    14,794    46.5%    13,264    31.8%    11.5%
     Total  gross profit     147,947    19.8%    198,261    23.4%    -25.4%
Other income    5,620    0.8%    3,340    0.4%    68.3%
Selling  expenses    16,189    2.2%    18,708    2.2%    -13.5%
Administrative expenses    58,047    7.8%    50,688    6.0%    14.5%
Finance cost    2,242    0.3%    2,267    0.3%    -1.1%
Income tax expenses    16,048    2.2%    20,253    2.4%    -20.8%
Net profit    61,041    8.2%    109,685    12.9%    -44.3%


                                       (unit in thousand)
Income Statement ( April - September )    2019         2018          Change
Revenue from sales  - plastic parts    930,982    100.0%    1,015,098    100.0%    -8.3%
Revenue from sales -  magnesium parts    472,613    100.0%    538,271    100.0%    -12.2%
Revenue from sales - mold    73,911    100.0%    67,783    100.0%    9.0%
     Total revenue from sales    1,477,506    100.0%    1,621,152    100.0%    -8.9%
Cost of sales  - plastic parts    754,962    81.1%    803,585    79.2%    -6.1%
Cost of sales  - magnesium  parts    399,457    84.5%    414,448    77.0%    -3.6%
Cost of sales  - molds    48,982    66.3%    44,354    65.4%    10.4%
     Total  cost of sales     1,203,401    81.4%    1,262,387    77.9%    -4.7%
Gross profit  -  plastic parts    176,020    18.9%    211,513    20.8%    -16.8%
Gross profit  -  magnesium parts    73,156    15.5%    123,823    23.0%    -40.9%
Gross profit  -  molds     24,929    33.7%    23,429    34.6%    6.4%
     Total  gross profit     274,105    18.6%    358,765    22.1%    -23.6%
Other income    7,955    0.5%    10,842    0.7%    -26.6%
Selling  expenses    32,651    2.2%    33,734    2.1%    -3.2%
Administrative expenses    112,622    7.6%    99,841    6.2%    12.8%
Finance cost    3,348    0.2%    4,953    0.3%    -32.4%
Income tax expenses    20,747    1.4%    35,398    2.2%    -41.4%
Net profit    112,692    7.6%    195,681    12.1%    -42.4%

     For  the accounting period from 1 July 2019 - 30 September 2019
Total sales revenue decreased by 12.1%, consisting of the  plastic product sales
decreased by 14.2%, magnesium product sales decreased by 6.4% and mold sales
decreased by 23.7%.
Total cost of sales decreased by 8.1%. The costs of sales in each segment  were 
as follows:
- Cost of sales of plastic products at Pathum Thani and Korat factories 
decreased by 10.5% but the ratio of cost of sales to sales  increased from 78.1%
to 81.5% resulting in a 27.5% decrease in gross profit and a proportion of
gross profit compared to revenue from sales for the year 2019 decreased from
21.9% to 18.5% compared to the same period in 2018.
      - Cost of sales of magnesium products at the Korat plant increased by 1% and 
the proportion to sales revenue increased from 75.0% to 81.0% resulting in a
28.9% decrease in gross profit. The important reason why cost of sales increased
was that the difficulty level of production of some magnesium workpieces,
causing the workpiece produced to not meet  the customers' requirement.
- Mold cost decreased by 40.1%, which was more than  a decrease in mold sales by
23.7% , together with a decrease in cost of sales to sales from 68.2% to 53.5%
resulting in an increase in gross profit of 11.5%.
Selling expenses decreased by 13.5% with the proportion  to  sales was 2.2%, 
close to the previous year and the  administrative expenses increased by 14.5%.
with the proportion to sales  increased from 6.0% to 7.8%.
Financial expenses are usually interest paid under financial lease agreements, 
staying  at the same proportion as last year at 0.3%, as well as the income tax
expenses stayed at the same proportion as last year at 2.2% - 2.4%
Cash and Current Investments, which are fixed deposits in commercial banks from 
the beginning of the accounting period from April 1, 2019 to September 30, 2019,
reduced by approximately 3 million baht. Quick ratio was 1.58 times, close to
1.59 times and the ratio of debt to the shareholders' equity was approximately
0.37 times, close to 0.32 times in the previous year and the interest coverage
ratio [(cashflow from operating activities + interest paid + income tax) /
interest expense] for April to September for 6 months for the year 2019 and 2018
 for approximately 70 times and 50 times respectively.
Based on some important financial ratios as mentioned previously, they would 
help reflect  the company's financial status in terms of liquidity and ability
to pay interest that it  would be still good.
Please be informed accordingly.


                  Signature
(Mr.Tetsuji  Takeguchi)
Account and Finance Manager
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