|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
287476-U
|
|
COMPANY NAME
|
:
|
A1 RUBBER SDN BHD
|
|
FORMER NAME
|
:
|
SINMEX RUBBER SDN BHD (29/05/2007)
|
|
INCORPORATION DATE
|
:
|
19/01/1994
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
422, JALAN HARUAN 4, OAKLAND COMMERCIAL CENTRE, GROUND FLOOR, 70200
SEREMBAN, NEGERI SEMBILAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
5-G & 1, JALAN S2 B1, LAKE VIEW SQUARE, SEREMBAN 2, 70300
SEREMBAN, NEGERI SEMBILAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
06-6012468
|
|
FAX.NO.
|
:
|
06-6012469
|
|
CONTACT PERSON
|
:
|
LIM KWEE FATT ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
25199
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURING
OF LATEX CONCENTRATE
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
2,500,000.00 DIVIDED INTO
ORDINARY SHARES 2,500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 239,795,743 [2006]
|
|
NET WORTH
|
:
|
MYR 5,848,579 [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
125 [2008]
|
|
BANKER (S)
|
:
|
|
AMBANK (M)
BHD
EON BANK BHD
MALAYAN BANKING BHD
STANDARD CHARTERED BANK MALAYSIA BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
|
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum of one
and a maximum of forty-nine shareholders. As a private limited company, the
SC must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the
equity they have taken up and the creditors cannot claim on shareholders'
personal assets even if the SC is insolvent. The SC is governed by the Companies
Act, 1965 and the company must file its annual returns, together with its
financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) manufacturing of latex
concentrate.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the
Malaysia 1000 (M1000) publication, a directory jointly published by Companies
Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and
Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The major shareholder(s) of the
SC are shown as follows
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
MR. LIM KWEE FATT +
[APPOINTED AS MD ON 20.3.2000]
|
87, TAMAN TITI, TITI, 71650 KUALA KLAWANG, NEGERI SEMBILAN,
MALAYSIA.
|
560316-05-5477
4948035
|
1,350,000.00
|
|
MR. CHEW KEE FOO
|
1, JALAN CERMAI 19, TAMAN SURIA, 86000 KLUANG, JOHOR, MALAYSIA.
|
640312-01-5363
7341482
|
280,500.00
|
|
MR. LIM CHIN CHONG
|
87, TAMAN TITI, TITI, 71650 KUALA KLAWANG, NEGERI SEMBILAN,
MALAYSIA.
|
790623-05-5171
|
250,000.00
|
|
MS. LEE LWE LAN
|
6-12, CONDOMINIUM TASEK MEWAH, BANDAR SEREMBAN, 70000 SEREMBAN,
NEGERI SEMBILAN, MALAYSIA.
|
570825-05-5028
5461047
|
225,000.00
|
|
MR. YAP WAH HEE +
|
58, TAMAN TITI, JELEBU, 71650 KUALA KLAWANG, NEGERI SEMBILAN,
MALAYSIA.
|
600514-10-6443
5862421
|
176,000.00
|
|
MR. SIOW FOO WAH +
|
76, JALAN HOSAPA, TITI, JELEBU, 71650 KUALA KLAWANG, NEGERI
SEMBILAN, MALAYSIA.
|
670107-05-5531
A0649867
|
168,500.00
|
|
MS. LIM SOOK CHIN
|
87, TAMAN TITI, TITI, 71650 KUALA KLAWANG, NEGERI SEMBILAN,
MALAYSIA.
|
830610-05-5248
|
50,000.00
|
|
|
|
|
---------------
|
|
|
|
|
2,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. SIOW FOO WAH
|
|
Address
|
:
|
76, JALAN HOSAPA, TITI, JELEBU, 71650 KUALA KLAWANG, NEGERI
SEMBILAN, MALAYSIA.
|
|
IC / PP No
|
:
|
A0649867
|
|
New IC No
|
:
|
670107-05-5531
|
|
Date of Birth
|
:
|
07/01/1967
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
17/03/2001
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. YAP WAH HEE
|
|
Address
|
:
|
58, TAMAN TITI, JELEBU, 71650 KUALA KLAWANG, NEGERI SEMBILAN,
MALAYSIA.
|
|
IC / PP No
|
:
|
5862421
|
|
New IC No
|
:
|
600514-10-6443
|
|
Date of Birth
|
:
|
14/05/1960
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
20/03/2000
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. LIM KWEE FATT
|
|
Address
|
:
|
87, TAMAN TITI, TITI, 71650 KUALA KLAWANG, NEGERI SEMBILAN,
MALAYSIA.
|
|
IC / PP No
|
:
|
4948035
|
|
New IC No
|
:
|
560316-05-5477
|
|
Date of Birth
|
:
|
16/03/1956
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
13/01/2000
|
|
Remark
|
:
|
APPOINTED AS MD ON 20.3.2000
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
LIM KWEE FATT
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
AUDITOR
|
Auditor
|
:
|
TAN KIM HENG & CO
|
|
Auditor' Address
|
:
|
A1-2, TAMAN PANGSAPURI MALIM, JALAN MALIM, 75250 MELAKA, MELAKA,
MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. WONG LEONG PIAU
|
|
|
IC / PP No
|
:
|
A3671816
|
|
|
New IC No
|
:
|
770711-05-5755
|
|
|
Address
|
:
|
690, TAMAN MARIDA, SENAWANG, 70450 SEREMBAN, NEGERI SEMBILAN,
MALAYSIA.
|
|
|
Date of Appointment
|
:
|
02/08/2005
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
3)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
4)
|
Name
|
:
|
STANDARD CHARTERED BANK MALAYSIA BHD
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
01/10/2004
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM600,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
08/04/2005
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM5,000,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated
|
|
Registered and Numbered 4 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
07/07/2005
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM21,800,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated
|
|
Registered and Numbered 5 In The Register of Charges
|
ENCUMBRANCE 4
|
Date of Creation
|
:
|
23/08/2005
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM3,000,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated
|
|
Registered and Numbered 6 In The Register of Charges
|
ENCUMBRANCE 5
|
Date of Creation
|
:
|
27/02/2006
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
o/d
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
STANDARD CHARTERED BANK MALAYSIA BHD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 7 In The Register of Charges
|
ENCUMBRANCE 6
|
Date of Creation
|
:
|
27/02/2006
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
o/d
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
STANDARD CHARTERED BANK MALAYSIA BHD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 8 In The Register of Charges
|
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our databank.
PAYMENT RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Import Countries
|
:
|
ASIA
|
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt
|
[
|
|
]
|
|
Good
|
[
|
|
]
|
|
Average
|
[
|
X
|
]
|
|
|
Fair
|
[
|
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
70%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
30%
|
|
Export Market
|
:
|
ASIA
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
LETTER OF CREDIT (LC),CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
2005
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
125
|
120
|
93
|
61
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of latex
concentrate.
The SC's produces a wide range of rubber products includes Standard Malaysia
Rubber SMR, Natural Latex Concentrate 60% DRC, Ribbed Smokes Sheet, Skim
Block, 5l, SVR 3l AND Compounded Rubber.
The SC utilises advanced automated and semi-automated machinereis to ensure
production of high quality products.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
06-6012468
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
5-G & 1, JALAN S2 B1, LAKE VIEW SQUARE, SEREMBAN 2, 70300
SEREMBAN, NEGERI SEMBILAN.
|
|
Current Address
|
:
|
5-G & 1, JALAN S2 B1, LAKE VIEW SQUARE, SEREMBAN 2, 70300
SEREMBAN, NEGERI SEMBILAN, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Ms Au from the SC's Human Resource Department.
She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
5.44%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
14.92%
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
17.76%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
28.88%
|
]
|
The higher turnover could be attributed to the favourable market condition.
The SC's management have been efficient in controlling its operating costs.
The SC's management had generated acceptable return for its shareholders
using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
10 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
15 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
14 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The favourable debtors' days could be
due to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days.
The SC could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
Liquidity:
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.61 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.89 Times
|
]
|
A low liquid ratio means that the SC may be facing working capital
deficiency. If the SC cannot obtain additional financing or injection of
fresh capital, it may face difficulties in meeting its short term
obligations.
Solvency
|
Interest Cover
|
:
|
Unfavourable
|
[
|
2.43 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.09 Times
|
]
|
The SC's interest cover was low. If its profits fall or when interest rate
rises, it may not be able to meet all its interest payment. The SC was lowly
geared thus it had a low financial risk. The SC was mainly financed by its
shareholders' funds and internally generated funds. In times of economic
slowdown / downturn, the SC being a lowly geared company, will be able to
compete better than those companies which are highly geared in the same
industry.
Overall
Accessment:
Generally, the
SC's performance has improved with higher turnover and profit. Due to its
weak liquidity position, the SC will be faced with problems in meeting all
its short term obligations if no short term loan is obtained or additional
capital injected into the SC. If there is a fall in the SC's profit or any
increase in interest rate, the SC may not be able to generate sufficient
cash-flow to service its interest. The SC as a lowly geared company, will be
more secured compared to those highly geared companies. It has the ability to
meet all its long term obligations.
Overall financial condition of the SC : LIMITED
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
25.58
|
26.13
|
26.64
|
27.17
|
27.73
|
|
Gross Domestic Products ( % )
|
7.1
|
5.3
|
5.8
|
6.0
|
6.5
|
|
Domestic Demand ( % )
|
7.5
|
7.3
|
7.0
|
9.0
|
6.8
|
|
Private Expenditure ( % )
|
13.1
|
9.5
|
7.0
|
8.6
|
8.2
|
|
Consumption ( % )
|
10.5
|
9.2
|
7.1
|
9.0
|
7.9
|
|
Investment ( % )
|
25.8
|
8.5
|
7.0
|
7.1
|
9.5
|
|
Public Expenditure ( % )
|
<2.1>
|
3.6
|
6.8
|
10.1
|
3.2
|
|
Consumption ( % )
|
6.0
|
5.4
|
5.0
|
10.8
|
5.5
|
|
Investment ( % )
|
<8.7>
|
1.9
|
8.9
|
9.3
|
0.5
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
80,663
|
99,760
|
108,192
|
99,965
|
99,599
|
|
Government Finance ( MYR Million )
|
<19,419>
|
<18,684>
|
<19,109>
|
<19,948>
|
<20,933>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<4.3>
|
<3.8>
|
<3.3>
|
<3.2>
|
<3.1>
|
|
Inflation ( % Change in Composite CPI)
|
1.4
|
3.1
|
3.9
|
4.0
|
4.0
|
|
Unemployment Rate
|
3.5
|
3.5
|
3.4
|
3.5
|
3.3
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
254
|
266
|
290
|
-
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
13.84
|
13.63
|
12.91
|
-
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
8.46
|
6.74
|
5.41
|
-
|
-
|
|
Average Base Lending Rate ( % )
|
5.99
|
6.00
|
6.61
|
-
|
-
|
|
Business Loans Disbursed( % )
|
10.5
|
8.7
|
<2.5>
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
13,143.9
|
17,882.9
|
20,228.0
|
-
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
38,580
|
37,474
|
38,293
|
-
|
-
|
|
Registration of New Companies ( % )
|
6.8
|
<2.9>
|
2.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
3,334
|
3,069
|
8,647
|
-
|
-
|
|
Liquidation of Companies ( % )
|
<15.8>
|
<7.9>
|
181.8
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
189,206
|
193,095
|
216,147
|
-
|
-
|
|
Registration of New Business ( % )
|
4.6
|
2.1
|
11.9
|
-
|
-
|
|
Business Dissolved ( No. )
|
51,301
|
73,355
|
52,879
|
-
|
-
|
|
Business Dissolved ( % )
|
7.0
|
43.0
|
<27.9>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
380.6
|
400.8
|
374.1
|
-
|
-
|
|
Cellular Phone Subscribers ( Million )
|
14.6
|
18.5
|
19.5
|
21.3
|
-
|
|
Tourist Arrival ( Million Persons )
|
15.7
|
16.7
|
17.5
|
20.1
|
-
|
|
Hotel Occupancy Rate ( % )
|
60.8
|
63.6
|
64.8
|
-
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
19.3
|
13.9
|
15.4
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
70,465
|
57,316
|
36,555
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
16,251
|
15,868
|
13,596
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
31.6
|
<2.4>
|
<14.3>
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.0
|
2.5
|
5.3
|
3.1
|
3.5
|
|
Palm Oil
|
3.9
|
7.1
|
5.8
|
<0.6>
|
-
|
|
Rubber
|
16.5
|
<2.9>
|
12.6
|
1.0
|
-
|
|
Forestry & Logging
|
4.3
|
2.0
|
<0.4>
|
2.8
|
-
|
|
Fishing
|
5.5
|
<0.4>
|
9.3
|
5.2
|
-
|
|
Other Agriculture
|
2.4
|
3.2
|
5.3
|
7.0
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
620.3
|
563.7
|
516.5
|
487.3
|
0
|
|
% of Industry Non-Performing Loans
|
1.38
|
1.19
|
1.06
|
1.08
|
0
|
|
|
|
|
|
|
|
|
Mining
|
3.9
|
0.8
|
<0.4>
|
3.3
|
4.0
|
|
Oil & Gas
|
4.5
|
1.6
|
4.6
|
-
|
-
|
|
Other Mining
|
<8.0>
|
<1.0>
|
5.1
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
62.6
|
68.8
|
55.4
|
42.2
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
9.8
|
5.1
|
7.3
|
3.1
|
3.8
|
|
Exported-oriented Industries
|
15.5
|
3.0
|
11.1
|
<1.9>
|
-
|
|
Electrical & Electronics
|
17.8
|
3.6
|
13.4
|
3.0
|
-
|
|
Rubber Products
|
14.8
|
2.4
|
0.4
|
8.0
|
-
|
|
Wood Products
|
12.7
|
0.9
|
0.7
|
3.3
|
-
|
|
Textiles & Apparel
|
<11.7>
|
<4.4>
|
12.6
|
<10.1>
|
-
|
|
Domestic-oriented Industries
|
9.7
|
6.9
|
5.0
|
5.3
|
-
|
|
Food, Beverages & Tobacco
|
3.8
|
7.7
|
4.8
|
5.6
|
-
|
|
Chemical & Chemical Products
|
14.6
|
6.9
|
1.7
|
9.2
|
-
|
|
Plastic Products
|
13.5
|
18.6
|
21.3
|
<3.6>
|
-
|
|
Iron & Steel
|
2.7
|
<6.7>
|
<6.9>
|
17.5
|
-
|
|
Fabricated Metal Products
|
29.2
|
<7.5>
|
20.0
|
26.2
|
-
|
|
Non-metallic Mineral
|
<4.8>
|
<6.0>
|
<1.9>
|
6.6
|
-
|
|
Transport Equipment
|
8.6
|
10.4
|
5.3
|
<19.0>
|
-
|
|
Paper & Paper Products
|
2.3
|
4.6
|
4.1
|
14.9
|
-
|
|
Crude Oil Refineries
|
<2.4>
|
8.2
|
12.1
|
8.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
7,765.4
|
6,035.6
|
6,181.3
|
6,366.2
|
-
|
|
% of Industry Non-Performing Loans
|
17.3
|
12.7
|
12.7
|
14.1
|
-
|
|
|
|
|
|
|
|
|
Construction
|
<1.5>
|
<1.6>
|
<0.5>
|
5.2
|
6.3
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,547.7
|
5,172.7
|
5,527.3
|
5,116.7
|
-
|
|
% of Industry Non-Performing Loans
|
12.4
|
10.9
|
11.4
|
11.3
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.8
|
6.6
|
7.2
|
9.0
|
8.6
|
|
Electric, Gas & Water
|
8.1
|
5.5
|
5.2
|
4.6
|
5.0
|
|
Transport, Storage & Communication
|
8.5
|
6.3
|
5.2
|
7.6
|
7.8
|
|
Wholesale, Retail, Hotel & Restaurant
|
7.1
|
8.0
|
7.1
|
11.6
|
10.0
|
|
Finance, Insurance & Real Estate
|
6.3
|
7.0
|
7.7
|
10.7
|
9.2
|
|
Government Services
|
6.5
|
7.6
|
9.8
|
4.6
|
8.6
|
|
Other Services
|
4.9
|
5.0
|
4.7
|
5.0
|
5.9
|
|
Industry Non-Performing Loans ( MYR Million )
|
8,913.7
|
8,716.8
|
11,593.2
|
10,207.8
|
-
|
|
% of Industry Non-Performing Loans
|
19.9
|
18.4
|
23.9
|
22.6
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
25199 : Manufacture of other rubber products, n.e.c
|
|
|
|
|
INDUSTRY :
|
RUBBER PRODUCTS
|
|
|
|
|
Rubber continues to be an important source of export earnings for Malaysia
as well as a vital raw material for the rubber products manufacturing
industries. Malaysia's rubber products industry covers four sectors, namely
latex, tyre and tyre-related products, industrial and general rubber
products and footwear. Growth in rubber-based industries was supported by
the booming automotive industry, particularly in China.
|
|
The rubber-based industry continued to register growth of 8.0%
(January-June 2006: 0.4%), contributing 3.9% share to total manufacturing
output. In line with higher domestic and external demand, sales of rubber
products also increased 7.4% (January-June 2006: 34.6%) during the same
period. Rubber gloves, the largest component of the rubber-based industry,
recorded a turnaround of 3.6% (January-June 2006: -1.8%), arising from
higher usage in health services. Likewise, sales of latex-based catheters
also registered double-digit growth of 66.5% (January-June 2006: -21.9%).
Malaysian rubber gloves and catheters made from natural rubber latex are
highly demanded for their unique mix of high elasticity and tensile
strength of properties as well as excellent film-forming characteristics.
|
|
Exports of rubber-based products rose 16.7% during the first six months of
2007(January-June 2006: 28.1%) despite a global shortage in the supply of
natural rubber, which pushed up the price of latex. However,
rationalisation and optimization undertaken in the production process has
made Malaysian rubber products more competitive to synthetic products. The
US remains the largest export market, with a share of 24.1% of total
exports valued at RM1,197 million (January-June 2006: 25.6%; RM1,089
million). China is the fastest growing market for Malaysia, with exports
increasing by 32.7% during the first six months of 2007.
|
|
Despite strong rubber prices, rubber production for the first six months of
2007 declined 3.5% to 589,379 tonnes (January-June 2006: 17.9%; 610,512
tonnes). The decline was mainly due to the wintering season and excessive
rainfall, especially in the first quarter of the year, which disrupted
tapping activity. For the year, production of rubber is projected to expand
1.3% (2006: 14.0%) with output expected to increase in the second half of
the year. Meanwhile, rubber planted areas continued to decline to 1,201,000
hectares (2006: 1,225,000 hectares) as a result of low prices prior to
2006, which discouraged replanting activities. Nevertheless, given the
importance of downstream activities, the Government continues to provide
assistance to small holders to increase the acreage under rubber. Efforts
are also being made to consolidate and rehabilitate rubber smallholdings to
increase productivity.
|
|
Production of rubber is also expected to expand, supported by firm rubber
prices, which are likely to encourage smallholders to increase tapping
activity. Utilisation of better clones and low intensity tapping system as
well as the use of stimulants is also envisaged to contribute to higher
output of rubber.
|
|
The Government continues to promote the development of Malaysia's
resourced-based industries to diversify the country's sources of growth. In
addition to fiscal incentives which are currently available for promoted
products and activities, the government has further fine-tuned the
incentives to promote specific activities among which is the rubber
products industry. To further encourage investments in resource-based
industries, local companies in the rubber industry that reinvest to expand
their projects are eligible for Pioneer Status or Investment Tax Allowance.
The rubber-based products industry needs to diversify into automated
manufacturing of value-added high technology, industrial and engineering
inputs for the automotive, construction, petroleum and transport industries
to sustain the momentum of its growth.
|
|
Malaysia is the world's leading producer and exporter of rubber products,
mainly consisting of catheters, latex thread and natural rubber medical
gloves. Malaysia is also the fifth largest consumer of natural rubber,
after People's Republic of China, USA, Japan and India. Malaysian exporters
should take advantage of the close relationship with OIC countries to grow
their exports. Other emerging markets are South Africa and South America,
particularly Brazil and Chile. The rubber products industry is dominated by
Malaysians and many Malaysian companies have developed into global players,
such as in rubber gloves and rubber thread. The future development of the
industry will depend on its ability to diversify and deepen the range of
products, especially with more synthetic rubber materials becoming
available.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS
|
Formed in 1994, the SC is focusing on manufacturing of latex concentrate.
Being a private limited company, the SC's paid up capital stands at
RM2.5million. With its long track record in the industry, the SC should
have built up its own image and reputation over times.
|
|
Throughout its years of establishment, the SC has developed a wide and
stable clientele base in the market. Besides catering to the domestic
market, the SC has expanded its business to the foreign market as 30% of
its income is derived from the Asia countries. In view of its wide market
segment, the SC is likely to be exposed to lower business risk. Hence,
better growth prospect can be expected. With a staff strength of 120, the
SC is led by Managing Director, Lim Kwee Fatt. More efforts are expected
from the management in order to sustain its growth momentum.
|
|
In 2006, the SC has generated a pre-tax profit of RM1.04million on the back
of RM239.79million in its turnover. Return on shareholders' funds was at an
acceptable range, indicating that the management was efficient in utilising
its funds to generate returns. Besides, a low gearing ratio has placed the
SC at low financial risk. However, the SC's liquidity ratio was slightly
low at 0.61 times, which demonstrates that the SC was not be able to meet
its current obligations.
|
|
Information revealed that 60% of the SC's raw materials are imported from
overseas countries and the rest are obtained locally. Being highly
dependent on overseas suppliers, the SC might be exposed to forex risk.
|
|
Based on the historical data we concluded that the payment habit of the SC
is average. The SC is clear of any litigation.
|
|
The industry continues to be attractive with the encouraging global and
domestic demand for its products. With the promising outlook of the
industry performance, this will present more business opportunities for the
SC.
|
|
In view of the above, we recommend credit be granted to the SC normally.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
A1 RUBBER SDN
BHD
|
|
For The Year
Ended 31-December-2006
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
239,795,743
|
227,430,774
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
1,045,789
|
910,020
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
1,045,789
|
910,020
|
|
Taxation
|
<7,318>
|
<101,298>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
1,038,471
|
------------
808,722
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
1,038,471
|
------------
808,722
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
1,038,471
|
------------
808,722
|
|
As previous reported
|
2,310,108
|
1,501,386
|
|
|
|
|
|
As restated
|
------------
2,310,108
|
------------
1,501,386
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
3,348,579
|
2,310,108
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
3,348,579
==========
|
------------
2,310,108
==========
|
|
RETAINED BY: The Company
|
3,348,579
|
2,310,108
|
|
|
|
|
|
|
|
|
|
|
------------
3,348,579
==========
|
------------
2,310,108
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Term loan
|
14,399
|
24,202
|
|
|
|
|
|
Other interest expenses
|
189,424
|
49,464
|
|
banker's bills interest
|
473,790
|
128,765
|
|
|
|
|
|
Lease interest
|
55,281
|
152,815
|
|
|
|
|
|
|
|
|
|
|
------------
732,894
==========
|
------------
355,246
==========
|
|
|
|
|
BALANCE SHEET
|
A1 RUBBER SDN
BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
4,946,033
|
4,949,837
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
3,762,322
|
3,762,322
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
3,762,322
|
------------
3,762,322
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
8,708,355
|
------------
8,712,159
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
6,390,442
|
7,318,731
|
|
|
|
|
|
Trade debtors
|
9,614,804
|
20,236,533
|
|
|
|
|
|
Short term deposits
|
2,178,732
|
2,120,530
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
1,985,397
|
74,813
|
|
|
|
|
|
tax refundable
|
34,735
|
19,703
|
|
TOTAL CURRENT ASSETS
|
------------
20,204,110
|
------------
29,770,310
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
9,232,959
|
8,798,064
|
|
Other creditors & accruals
|
2,514,390
|
2,377,187
|
|
|
|
|
|
Bank overdraft
|
372,396
|
313,381
|
|
Short term borrowings/Term
loans
|
178,513
|
201,385
|
|
|
|
|
|
|
|
|
|
Bill & acceptances payable
|
9,383,725
|
13,528,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to director
|
1,071,354
|
7,875,932
|
|
Provision for taxation
|
-
|
54,766
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
22,753,337
|
------------
33,149,593
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<2,549,227>
|
------------
<3,379,283>
|
|
TOTAL NET ASSETS
|
------------
6,159,128
==========
|
------------
5,332,876
==========
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share capital
|
2,500,000
|
2,500,000
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
2,500,000
|
------------
2,500,000
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
3,348,579
|
2,310,108
|
|
|
|
|
|
TOTAL RESERVES
|
------------
3,348,579
|
------------
2,310,108
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
5,848,579
|
------------
4,810,108
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
Long term loans
|
-
|
178,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation
|
310,549
|
344,231
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
310,549
|
------------
522,768
|
|
|
------------
|
------------
|
|
|
6,159,128
|
5,332,876
|
|
|
==========
|
==========
|
|
|
|
|
FINANCIAL RATIOS
|
A1 RUBBER SDN
BHD
|
|
As At
31-December-2006
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
4,164,129
|
2,195,343
|
|
Net Liquid Funds
|
3,613,220
|
1,680,577
|
|
Net Liquid Assets
|
<8,939,669>
|
<10,698,014>
|
|
Net Current Assets/(Liabilities)
|
<2,549,227>
|
<3,379,283>
|
|
Net Tangible Assets
|
6,159,128
|
5,332,876
|
|
Net Monetary Assets
|
<9,250,218>
|
<11,220,782>
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
550,909
|
693,303
|
|
Total Liabilities
|
23,063,886
|
33,672,361
|
|
Total Assets
|
28,912,465
|
38,482,469
|
|
Net Assets
|
6,159,128
|
5,332,876
|
|
Net Assets Backing
|
5,848,579
|
4,810,108
|
|
Shareholders" Funds
|
5,848,579
|
4,810,108
|
|
Total Share Capital
|
2,500,000
|
2,500,000
|
|
Total Reserves
|
3,348,579
|
2,310,108
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
Cash Ratio
|
0.18
|
0.07
|
|
Liquid Ratio
|
0.61
|
0.68
|
|
Current Ratio
|
0.89
|
0.90
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
10
|
12
|
|
Debtors Ratio
|
15
|
32
|
|
Creditors Ratio
|
14
|
14
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
0.09
|
0.14
|
|
Liabilities Ratio
|
3.94
|
7.00
|
|
Times Interest Earned Ratio
|
2.43
|
3.56
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit Margin
|
0.44
|
0.40
|
|
Net Profit Margin
|
0.43
|
0.36
|
|
Return On Net Assets
|
28.88
|
23.73
|
|
Return On Capital Employed
|
26.51
|
21.64
|
|
Return On Shareholders'
Funds/Equity
|
17.76
|
16.81
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
