Q1/2018, It is expected that the economic slowdown shall continue. However, for next 3-5 years, the automotive industry of Thailand should be expanded since many car makers still use Thailand as a production base for export activity. Such can be seen from the capacity expansion of current manufacturers while new players start business, the upcoming of new car model will be launching continuously.
In time of global sourcing policy, it can imply that all manufacturers worldwide are competitors. However, TSC has expertise in manufacturing automotive control cable for more than 39 years. We develop the qualified production, on-time delivery, and design price appropriately. We are able to compete with other effectively.
HI-LEX Corporation has been the major shareholder of the company from joint venture and alliance for over 39 years. They have contributed greatly in the field of technical assistance and support in the production as well.
Almost 40 years of establishment, our product has been awarded from customers in same manner as the imported one. We focus to generate quality to product designed by expert team and maximum safety guaranteed by in-house testing laboratory being certified by ISO/IEC 17025. Our production at the economy of scale enables the most reasonable price while we are doing business with integrity, adhering to the principles of good governance, and maintaining good relationships with customers throughout.In addition, the company keeps continue to improve in all aspects, for such as production process, delivery, peoples’ competency, etc. because we are aware that the stability of business advantages requires consistence practice.
We have no experience with such situation. Our policy is to improve the environment and employee welfares at all times to create happy workplace. Employees are welcome in giving suggestion too.
TSC has focused on our core competence, that is, production of automobile cable regulators. If there are any new products, they will mainly come from the cable regulator group.Besides additional research conducted by Hi-Lex Corporation, a major shareholder, to increase sales opportunities, TSC has been collaborating with the King Mongkut’s Institute of Technology Ladkrabang on research and development of new products. Even though these projects are time-consuming, the advantage is the body of knowledge is created Thailand and personnel can learn this too. Over the years, the Company has designed cable regulators for various automobile and motorcycle models, whereby we have earned recognition that our quality is comparable to that of Japanese companies.
Technological changes could occur. TSC has been preparing for these by collaborating with various organizations in product development projects.
The Company and the Board of Directors always recognize the importance of good governance and regularly make efforts to maintain our scores at a level which is higher than an average score of various companies, and we have participated in every project. If there are more projects in the future, the company will definitely participate.
The fluctuation of exchange rates occurs all the time and affects every currency. So this is a usual situation. TSC already has a policy to mitigate risk from currency rates.
Global economy changes all the time. During the period of sales slump, TSC takes opportunity to review how to improve operations and employees so as to be ready when the market recovers.
The revenue from sales in 2017 comprised of domestic sales at 95 %, export sales at 5%, and others at 1%.
Cost of goods sold in 2017 was 81% of total sales, comprised of raw material cost at 61% and labor costs, salary and overhead at 20%.
The gross profit margin of three products are similar.
The cable control for car is 70%, 95% for motorcycle, and 15% for window regulator.
TSC and customers will work together in cost considering and price setting base on policy of global sourcing. This allows both parties to conduct business and compete effectively against its competitors.
(1) direct: TSC exports directly to various countries in Asia, Europe, and South America.(2) indirect: TSC supplies parts to automobile manufacturers for export purpose.
(1) Increase sales: find ways to increase sales to existing customers and expand to new customers by focusing to automobile manufacturers which move their production base to Thailand, including finding new customers in all regions in the world.
(2) Lower expenses: monitor thoroughly so all spending created maximum benefit. Adjust procurement method in case of price fluctuation, for example adjust price of raw material, source the raw materials from local supplies, and lowering the import activity, etc.
(3) Continuous improvement: keep improving the quality, cost, and delivery at all times.
There is no plan at the moment. TSC prefers to do business in its expertise which is manufacture of automotive control cable. We expect constant expansion in direction of automotive industry.Meanwhile, the company has introduced new product which are power slide door and sliding window in order to expand the customer base and meets the needs of the market even better.
There are 26.18 % of steel, 7.38% of rubber, 10.70 % of plastic, 10.50 % of motor, and 45.19 % of other materials.
With new expanded area, the current capacity will be sufficient for the next several years.
The expansion of production volume shall reflect with order of customers and growth of automotive industry.
In 2019 the Company will put its best effort to increase the profit ratio. However, such also depends on production volume in the automotive industry.
The Company never dismiss employee with this reason. We would rather assign them to other jobs. Yes, the investment in machinery is worthwhile.
|Usage capacity (%)||49%||61%||56%|
|Usage capacity (%)||29%||37%||42%|
|Usage capacity (%)||34%||29%||36%|
|Usage capacity (%)||42%||52%||52%|