News Detail

Date/Time
13 Feb 2020 17:01:00
Headline
Management Discussion and Analysis Quarter 3 Ending 31 Dec 2019
Symbol
TMW
Source
TMW
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                Management Discussion and Analysis

Company name                             : THAI MITSUWA PUBLIC COMPANY LIMITED
Year                                     : 2019
Quarter                                  : Quarter 3
Ending                                   : 31-Dec-2019
Note                                     :
To      :  President  of  The Stock Exchange of Thailand
From  :  Thai  Mitsuwa Public Company Limited    
Date   :  13  February  2020

Subject  :  Operating  results   for the third quarter  2019
Thai  Mitsuwa Public Company Limited (TMW) summarizes   the operation results  
for the three-month periods  from 1 October  2019  to 31 December  2019 and  for
nine-month periods compared from 1 April 2019 - 31 December 2019 with the same
period of 2018 as follows :
                                                   (unit in thousand)
Income Statement ( Q3 : Oct. -  Dec.)    2019         2018         Change
Revenue from sales - plastic parts    460,177    100.0%    505,862    100.0%    -9.0%
Revenue from sales -  magnesium parts    288,763    100.0%    337,319    100.0%    -14.4%
Revenue from sales - mold    51,828    100.0%    31,201    100.0%    66.1%
     Total revenue from sales    800,768    100.0%    874,382    100.0%    -8.4%
Cost of sales  - plastic parts    356,129    77.4%    411,490    81.3%    -13.5%
Cost of sales  - magnesium  parts    227,131    78.7%    259,479    76.9%    -12.5%
Cost of sales  - mold parts    35,671    68.8%    18,463    59.2%    93.2%
     Total  cost of sales     618,931    77.3%    689,432    78.8%    -10.2%
Gross profit  -  plastic parts    104,048    22.6%    94,372    18.7%    10.3%
Gross profit  -  magnesium parts    61,632    21.3%    77,840    23.1%    -20.8%
Gross profit  -  molds    16,157    31.2%    12,738    40.8%    26.8%
     Total  gross profit     181,837    22.7%    184,950    21.2%    -1.7%
Other income    7,525    0.9%    4,266    0.5%    76.4%
Selling  expenses    16,143    2.0%    21,754    2.5%    -25.8%
Administrative expenses    60,192     7.5%    50,820     5.8%    18.4%
Finance cost    1,751     0.2%    1,862     0.2%    -6.0%
Income tax expenses    17,478     2.2%    12,648     1.4%    38.2%
Net profit    93,798    11.7%    102,132    11.7%    -8.2%

                                                      (unit in thousand)
Income Statement( 9 months : Apr.- Dec.)    2019         2018          Change
Revenue from sales - plastic parts    1,391,159    100.0%    1,520,960    100.0%    -8.5%
Revenue from sales -  magnesium parts    761,376    100.0%    875,590    100.0%    -13.0%
Revenue from sales - mold    125,739    100.0%    98,984    100.0%    27.0%
     Total revenue from sales    2,278,274    100.0%    2,495,534    100.0%    -8.7%
Cost of sales  - plastic parts    1,111,091    79.9%    1,215,075    79.9%    -8.6%
Cost of sales  - magnesium  parts    626,588    82.3%    673,926    77.0%    -7.0%
Cost of sales  - mold parts    84,653    67.3%    62,818    63.5%    34.8%
     Total  cost of sales     1,822,332    80.0%    1,951,819    78.2%    -6.6%
Gross profit  -  plastic parts    280,068    20.1%    305,885    20.1%    -8.4%
Gross profit  -  magnesium parts    134,788    17.7%    201,664    23.0%    -33.2%
Gross profit  -  molds     41,086    32.7%    36,166    36.5%    13.6%
     Total  gross profit     455,942    20.0%    543,715    21.8%    -16.1%
Other income    15,480    0.7%    15,108    0.6%    2.5%
Selling  expenses    48,794    2.1%    55,488    2.2%    -12.1%
Administrative expenses    172,814     7.6%    150,661     6.0%    14.7%
Finance cost    5,102     0.2%    6,815     0.3%     - 25.1%
Income tax expenses    38,225     1.7%    48,046     1.9%    -20.4%
Net profit    206,487    9.1%    297,813    11.9%    -30.7%


  
For the accounting period from 1 April 2019 - 31 December 2019 :
Total the revenue from sales decreased by 8.7%, consisting of plastic products 
revenue fell 8.5%, magnesium product revenue fell 13.0% and mold sales revenue
increased 27.0%.
The total cost of sales decreased by 6.6%. The cost of sales in each segment is 
as follows:
- The cost of plastic product sales at Pathum Thani and Korat factory decreased 
by 8.6%. The gross profit margin compared to sales revenue is very similar by
79.9%.
  - The cost of magnesium product sales  at the Korat factory decreased by 7.0% 
and the ratio of cost of sales to sales revenue increased from 77.0% to 82.3%,
resulting in a 33.2% decrease in gross profit. The main reason was the cost of
goods sold in the second quarter for magnesium products that are quite
difficult, resulting in increased production costs in order to obtain the
quality work as the customers' requirement.
- The cost of mold product sales  increased by 34.8%, which was higher than the 
increase in sales of molds which was 27.0%.
From the information mentioned above, the revenue of the magnesium products 
segment decreased by 13% and the administrative expenses increased by 14.7% due
to the expenses related to employees increased by approximately 12 million baht
and depreciation of computer systems was about 6 million baht, affecting the net
 profit downward by 30.7%
 
      Please be informed accordingly.


                         Signature
(Mr.Tetsuji  Takeguchi)
Account and Finance Manager
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