Somboon Advance Technology Public Co., Ltd. Business Report FY ended Dec. 2017
Financial Overview |
(in million THB) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change (%) | Factors | |
| Net Sales | 8,593.2 | 8,298.8 | 3.5 | 1) |
| Net Profit | 811.2 | 607.6 | 33.5 | 2) |
Factors
1) Net Sales
-The Company’s sales for the fiscal year ended December 31, 2017 totaled THB 8,593.2 million, a increase of 3.5% from the previous year. The increase in sales was caused by mainly from the Automotive industry and Agricultural industry improvement.
2) Net Profit
-In the fiscal year ended December 31, 2017, the Company’s net profit is increased by 33.5% to THB 811.2 million, mainly from the higher of sales volume and gain on disposal of subsidiary's business.
Awards
-Awards from Customers for 2017
- Quality Award and Deliverables : Kubota
- Quality Award and Delivery : ISUZU
- SKC Delivery Skill Contest 2017 : Kubota
- RUNNER UP SKC Delivery Kaizen Award 2017 : Kubota
The Winner TPS Awards 2017 : Toyota
Outlook
-The company is confident that 2017-2019 sales will improve and production will reach 2 million from 1.9 million in 2016. The first-car policy together with the economy recovery will help push the industry further. For the company, its sales will depend on the economy as well and hope to recover in next year at least 3-5%. This year, the company declares its revenue at THB 8.87 billion, decline from last year 3% but is still making profit and net profit at 14% and 7%, respectively. Additionally, the company is negotiating to add a new production line and will be ready by 2018. For the past 9 months, the company revenue is THB 6,325.07 million, declines from last year 4.87% and profit at THB 436.78 million. (From Bangkokbiznews article on December 9, 2016)
Market share of Major Products |
(%) |
| Products | Company | FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 |
| Rear axle shafts | Somboon Advance Technology Public Co., Ltd. (SAT) | 70 | 76 | 81 |
| Disc and drum brakes | Somboon Malleable Iron Industrial Co,. Ltd. (SBM) | 25 | 25 | 28 |
| Coil springs | Bangkok Spring Industrial Co., Ltd. (BSK) | 25 | 31 | 29 |
| Stabilizer bars | Bangkok Spring Industrial Co., Ltd. (BSK) | 21 | 27 | 28 |
| Leaf springs | Bangkok Spring Industrial Co., Ltd. (BSK) | - | - | - |
| Hubs | Somboon Forging Technology Co., Ltd. (SFT) | 11 | 12 | 14 |
R&D Expenditure
-In the fiscal year ended December 31, 2017, the Company and its subsidiary have the cost for the research and development of technology, total of 78.30 million baht.
Technical Assistance Agreements
| Company | Technical assistance from |
| Somboon Advance Technology Public Co., Ltd. (SAT) | Ibara Seiki |
| Somboon Malleable Iron Industrial Co,. Ltd. (SBM) | Ibara Seiki |
Capital Expenditure |
(in million THB) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Overall | 295 | 508.3 | 359.7 |
Investments in Thailand
-The company has set up a joint venture with a German company, Mubea Engineering AG, the affiliate of Mubea Group, to manufacture vehicle springs from next year. Mubea Group is a leading German parts manufacturer with 12,000 employees at 36 production, sales, and development sites worldwide. The new joint venture company has yet to be named. However, the company will hold a 50.01% stake in the company, while Mubea will own 49.99%. The company will sell its assets under management for its subsidiary, Bangkok Spring Industrial Co (BSK), to the new joint venture company, including land, buildings, machinery, tools, equipment, and inventories in Samut Prakan and Rayong. At present, BSK plants in Samut Prakan and Rayong have monthly production capacity of 700,000 pieces of coil springs and stabiliser bars and 1,100 tonnes of leaf springs. (From an article of Bangkok Post on August 7, 2017)