|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
476000-K
|
|
COMPANY NAME
|
:
|
TIMPLAS INDUSTRIES (M) SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
26/01/1999
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
LOT 22-24, INDUSTRIAL ZONE (IZ4) SELATAN 1, 1G KKIP SELATAN, JALAN SEPANGAR,
MENGGATAL, 88460 KOTA KINABALU, SABAH, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 22-24, INDUSTRIAL IZ 4, SELATAN 1, 1G KKIP SELATAN, KKIP,
P.O.BOX NO. 12551, 88828 KOTA KINABALU, 88460 KOTA KINABALU, SABAH,
MALAYSIA.
|
|
TEL.NO.
|
:
|
088-498616
|
|
FAX.NO.
|
:
|
088-498290
|
|
CONTACT PERSON
|
:
|
HOH THAU MIN@JOSEPH F HOH ( CEO )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
25209
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURER OF PIPES AND RELATED PRODUCTS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
18,000,000.00 DIVIDED INTO
ORDINARY SHARES 18,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 1,872,891 [2006]
|
|
NET WORTH
|
:
|
MYR 5,699,974 [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
34 [2008]
|
|
BANKER (S)
|
:
|
|
SABAH DEVELOPMENT BANK BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
POOR
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE 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) manufacturer of pipes and
related products.
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. HOH THAU MIN @ JOSEPH F HOH +
|
LOT 5, JALAN PEDADA, OFF JALAN KOMPLEKS JKR, PUTATAN, 88300 KOTA
KINABALU, SABAH, MALAYSIA.
|
521117-12-5063
H0160823
|
9,540,000.00
|
|
SABAH ECONOMIC DEVELOPMENT CORPORATION
|
WISMA SEDCO, LORONG PLAZA WAWASAN OFF COASTAL HIGHWAY, PO BOX 12159,
LEVEL 8-10, 88823 KOTA KINABALU, SABAH, MALAYSIA.
|
|
6,000,000.00
|
|
MS. HO LEE TSHIN @ MARGARET HO +
|
7, LOT 72, PHASE 3, LORONG BUNGA RAJA 11, TAMAN BUNGA RAJA, OFF JALAN
LINTAS, 88828 KOTA KINABALU, SABAH, MALAYSIA.
|
540709-12-5036
H0059749
|
300,000.00
|
|
MS. CHEW MARY
|
LOT 5, JALAN PEDADA, OFF JALAN KOMPLEKS JKR, PUTATAN, 88828 KOTA
KINABALU, SABAH, MALAYSIA.
|
570226-12-5100
H0144336
|
2,160,000.00
|
|
|
|
|
---------------
|
|
|
|
|
18,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. HO LEE TSHIN @ MARGARET HO
|
|
Address
|
:
|
7, LOT 72, PHASE 3, LORONG BUNGA RAJA 11, TAMAN BUNGA RAJA, OFF
JALAN LINTAS, 88828 KOTA KINABALU, SABAH, MALAYSIA.
|
|
IC / PP No
|
:
|
H0059749
|
|
New IC No
|
:
|
540709-12-5036
|
|
Date of Birth
|
:
|
09/07/1954
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
26/01/1999
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. HOH THAU MIN @ JOSEPH F HOH
|
|
Address
|
:
|
LOT 5, JALAN PEDADA, OFF JALAN KOMPLEKS JKR, PUTATAN, 88300 KOTA
KINABALU, SABAH, MALAYSIA.
|
|
IC / PP No
|
:
|
H0160823
|
|
New IC No
|
:
|
521117-12-5063
|
|
Date of Birth
|
:
|
17/11/1952
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
26/01/1999
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
HOH THAU MIN@JOSEPH F HOH
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
ANDREW NG SWEE CHING
|
|
|
Position
|
:
|
FINANCE & ADMIN MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
S C YONG CHIA & CO
|
|
Auditor' Address
|
:
|
LOT 9, BLOCK A, DAMAI POINT COMMERCIAL CENTRE, OFF JALAN DAMAI, LUYANG,
2ND FLOOR, 88300 KOTA KINABALU, SABAH, MALAYSIA.
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. NG SWEE CHING
|
|
|
IC / PP No
|
:
|
H0146112
|
|
|
New IC No
|
:
|
530705-12-5195
|
|
|
Address
|
:
|
KAMPUNG SINULIHAN, INANAM, PO BOX A256, 89357 KOTA KINABALU, SABAH,
MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
SABAH DEVELOPMENT BANK 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
|
:
|
01/12/2003
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
SABAH DEVELOPMENT BANK BHD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
15/03/2005
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM1,000,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
CREDIT GUARANTEE CORPORATION MALAYSIA BHD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 2 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
|
|
|
Overseas
|
:
|
YES
|
|
|
Import Countries
|
:
|
INDONESIA,EUROPE,GERMANY
|
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
|
[
|
|
]
|
|
|
Fair
|
[
|
X
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
Domestic Markets
|
:
|
SABAH
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
Export Market
|
:
|
SINGAPORE, PHILIPPINES
|
|
Credit Term
|
:
|
30 - 60 DAYS,AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC),CHEQUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Brand Name
|
:
|
|
|
|
|
|
|
Certification of Products
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
BASF (MALAYSIA) SDN BHD
|
|
GREEN POINT PRECISION (M) SDN BHD
|
|
LUSTER INDUSTRIES BHD
|
|
PLASTRADE TECHNOLOGY BHD
|
|
SABIC INNOVATIVE PLASTICS LNP MALAYSIA SDN BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)
|
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
34
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturer of pipes and
related products.
The SC's wide range products are:
* Polyvinylchloride (PVC)
* HDPE Pipes
The SC's sales capacity is based on its customers' orders and requirements.
The SC's products are:
* PVC Pressure Pipes
* PVC S.W.V Pipes
* PVC Telecommunication
* PVC Sewarage Pipes and etc.
According to the SC, its has a warehouse at its premises to keep its products
and materials.
Its also providing a transportation services to its customers.
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
|
:
|
088-498616
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT 22, INDUSTRIAL ZONE (IZ4), SELATAN 1, KKIP, JALAN SEPANGAR,
MENGGATAL, 88450 KOTA KINABALU, SABAH.
|
|
Current Address
|
:
|
LOT 22-24, INDUSTRIAL IZ 4, SELATAN 1, 1G KKIP SELATAN, KKIP, P.O.BOX
NO. 12551, 88828 KOTA KINABALU, 88460 KOTA KINABALU, SABAH, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with the SC's Human Resources Dept, Ms Tracy. She kindly
provided us some information pertaining on the SC and its related services
and operations.
Later we also verified and confirmed that the address provided is
incompleted.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
34.98%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
<30.83%>
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
<50.83%>
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
<6.52%>
|
]
|
The shrinking turnover could be the result of more entrants into the market
which eroded the SC's market share. Higher losses before tax during the year
could be due to the higher operating costs incurred. The SC's unfavourable
returns on shareholders' funds indicate the management's inefficiency in
utilising its assets to generate returns
.
Working Capital Control:
|
Stock Ratio
|
:
|
Unfavourable
|
[
|
167 Days
|
]
|
|
Debtors Ratio
|
:
|
Acceptable
|
[
|
59 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
86 Days
|
]
|
The SC could be incurring higher holding cost. As its capital was tied up in
stocks, it could face liquidity problems. The SC's management was quite
efficient in handling its debtors. The SC's debtors days were at an acceptable
range, thus the risk of its debts turning bad was minimised. The unfavourable
creditors' ratio could be due to the SC taking advantage of the credit
granted by its suppliers. However this may affect the goodwill between the SC
and its suppliers and the SC may inadvertently have to pay more for its
future supplies.
Liquidity:
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.16 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.39 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
|
[
|
<1.08
Times>
|
]
|
|
Gearing Ratio
|
:
|
Unfavourable
|
[
|
3.25 Times
|
]
|
The SC incurred losses in the year. It did not generate sufficient income to
service its interest. If the situation does not improve, the SC may be vulnerable
to default in servicing the interest. The SC was highly geared, thus it had a
high financial risk. The SC was dependent on loans to finance its business
needs. In times of economic downturn and / or high interest rate, the SC will
become less profitable and competitive than other firms in the same industry,
which are lowly geared. This is because the SC has to service the interest
and to repay the loan, which will erode part of its profits. The profits will
fluctuate depending on the SC's turnover and the interest it needs to pay.
Overall Accessment:
The SC's losses could be attributed to the
lower turnover which in turn could be the result of unfavourable market
conditions. 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. The SC's interest cover
was negative, indicating that it did not generate sufficient income to
service its interest. If its result does not show impressive improvements or
succeed obtaining short term financing or capital injection, it may not be
able to service its interest and repay the loans. The SC's gearing level was
high and its going concern will be in doubt if there is no injection of
additional shareholders' funds in times of economic downturn and / or high
interest rates.
Overall financial condition of the SC : POOR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2005
|
2006
|
2007
|
2008*
|
2009**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
26.13
|
26.64
|
27.17
|
27.73
|
28.31
|
|
Gross Domestic Products ( % )
|
5.3
|
5.8
|
6.3
|
5.0
|
3.5
|
|
Domestic Demand ( % )
|
7.3
|
7.0
|
9.0
|
6.1
|
6.0
|
|
Private Expenditure ( % )
|
9.5
|
7.0
|
8.6
|
6.6
|
6.4
|
|
Consumption ( % )
|
9.2
|
7.1
|
9.0
|
6.8
|
6.5
|
|
Investment ( % )
|
8.5
|
7.0
|
7.1
|
6.2
|
5.8
|
|
Public Expenditure ( % )
|
3.6
|
6.8
|
10.1
|
4.7
|
5.1
|
|
Consumption ( % )
|
5.4
|
5.0
|
10.8
|
5.7
|
4.0
|
|
Investment ( % )
|
1.9
|
8.9
|
9.3
|
3.6
|
6.4
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
99,760
|
108,192
|
100,340
|
115,563
|
126,650
|
|
Government Finance ( MYR Million )
|
<18,684>
|
<19,109>
|
<19,948>
|
<34,462>
|
<28,450>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.8>
|
<3.3>
|
<3.2>
|
<4.8>
|
<4.8>
|
|
Inflation ( % Change in Composite CPI)
|
3.1
|
3.9
|
2.0
|
4.4
|
5.0
|
|
Unemployment Rate
|
3.5
|
3.4
|
3.2
|
3.3
|
3.2
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
266
|
290
|
336
|
388
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
5.13
|
4.21
|
3.04
|
1.91
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.63
|
12.91
|
13.30
|
13.24
|
-
|
|
Average Base Lending Rate ( % )
|
6.00
|
6.61
|
6.72
|
6.72
|
-
|
|
Business Loans Disbursed( % )
|
8.7
|
<2.5>
|
9.1
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
17,882.9
|
20,228.0
|
33,426.0
|
23,261.4
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
37,474
|
38,293
|
43,337
|
-
|
-
|
|
Registration of New Companies ( % )
|
<2.9>
|
2.2
|
13.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
3,069
|
8,647
|
22,629
|
-
|
-
|
|
Liquidation of Companies ( % )
|
<7.9>
|
181.8
|
161.5
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
193,095
|
216,147
|
227,410
|
-
|
-
|
|
Registration of New Business ( % )
|
2.1
|
11.9
|
5.2
|
-
|
-
|
|
Business Dissolved ( No. )
|
73,355
|
52,879
|
20,431
|
-
|
-
|
|
Business Dissolved ( % )
|
43.0
|
<27.9>
|
<61.4>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
400.8
|
446.2
|
442.9
|
-
|
-
|
|
Cellular Phone Subscribers ( Million )
|
18.5
|
19.5
|
23.3
|
25.1
|
-
|
|
Tourist Arrival ( Million Persons )
|
16.7
|
17.5
|
20.9
|
21.5
|
-
|
|
Hotel Occupancy Rate ( % )
|
63.6
|
64.8
|
70.0
|
68.0
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
13.9
|
15.4
|
20.1
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
57,316
|
36,555
|
30,004
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
15,868
|
13,596
|
13,238
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.4>
|
<14.3>
|
<2.6>
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2005
|
2006
|
2007
|
2008*
|
2009**
|
|
|
|
|
|
|
|
|
Agriculture
|
2.5
|
5.3
|
3.1
|
3.6
|
3.7
|
|
Palm Oil
|
7.1
|
5.8
|
<0.6>
|
7.0
|
-
|
|
Rubber
|
<2.9>
|
12.6
|
1.0
|
<1.1>
|
-
|
|
Forestry & Logging
|
2.0
|
<0.4>
|
2.8
|
<1.5>
|
-
|
|
Fishing
|
<0.4>
|
9.3
|
5.2
|
4.0
|
-
|
|
Other Agriculture
|
3.2
|
5.3
|
7.0
|
5.9
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
563.7
|
516.5
|
487.3
|
393
|
0
|
|
% of Industry Non-Performing Loans
|
1.19
|
1.06
|
1.08
|
0
|
0
|
|
|
|
|
|
|
|
|
Mining
|
0.8
|
<0.4>
|
3.3
|
2.8
|
3.4
|
|
Oil & Gas
|
1.6
|
4.6
|
2.2
|
12.7
|
-
|
|
Other Mining
|
<1.0>
|
5.1
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
68.8
|
55.4
|
42.2
|
36.0
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
-
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
5.1
|
7.3
|
3.1
|
4.7
|
4.3
|
|
Exported-oriented Industries
|
3.0
|
11.1
|
<1.9>
|
2.7
|
-
|
|
Electrical & Electronics
|
3.6
|
13.4
|
3.0
|
2.4
|
-
|
|
Rubber Products
|
2.4
|
0.4
|
8.0
|
4.2
|
-
|
|
Wood Products
|
0.9
|
0.7
|
3.3
|
<6.0>
|
-
|
|
Textiles & Apparel
|
<4.4>
|
12.6
|
<10.1>
|
1.9
|
-
|
|
Domestic-oriented Industries
|
6.9
|
5.0
|
5.3
|
9.9
|
-
|
|
Food, Beverages & Tobacco
|
7.7
|
4.8
|
5.6
|
9.5
|
-
|
|
Chemical & Chemical Products
|
6.9
|
1.7
|
9.2
|
1.4
|
-
|
|
Plastic Products
|
18.6
|
21.3
|
<3.6>
|
6.5
|
-
|
|
Iron & Steel
|
<6.7>
|
<6.9>
|
17.5
|
16.8
|
-
|
|
Fabricated Metal Products
|
<7.5>
|
20.0
|
26.2
|
14.7
|
-
|
|
Non-metallic Mineral
|
<6.0>
|
<1.9>
|
6.6
|
8.3
|
-
|
|
Transport Equipment
|
10.4
|
5.3
|
<19.0>
|
27.1
|
-
|
|
Paper & Paper Products
|
4.6
|
4.1
|
14.9
|
8.6
|
-
|
|
Crude Oil Refineries
|
8.2
|
12.1
|
8.6
|
7.8
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,035.6
|
6,181.3
|
6,366.2
|
5,729.4
|
-
|
|
% of Industry Non-Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
<1.6>
|
<0.5>
|
4.6
|
4.0
|
3.1
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,172.7
|
5,527.3
|
5,116.7
|
4,149.8
|
-
|
|
% of Industry Non-Performing Loans
|
10.9
|
11.4
|
11.3
|
-
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.6
|
7.2
|
9.7
|
7.7
|
6.9
|
|
Electric, Gas & Water
|
5.5
|
5.2
|
4.6
|
5.0
|
4.3
|
|
Transport, Storage & Communication
|
6.3
|
5.2
|
7.6
|
7.8
|
7.3
|
|
Wholesale, Retail, Hotel & Restaurant
|
8.0
|
7.1
|
11.6
|
10.0
|
7.4
|
|
Finance, Insurance & Real Estate
|
7.0
|
7.7
|
10.7
|
9.2
|
8.1
|
|
Government Services
|
7.6
|
9.8
|
4.6
|
8.6
|
4.0
|
|
Other Services
|
5.0
|
4.7
|
5.0
|
5.9
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
8,716.8
|
11,593.2
|
10,207.8
|
8,281.4
|
-
|
|
% of Industry Non-Performing Loans
|
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
|
|
25209 : Manufacture of other plastic products n.e.c
|
|
|
|
|
INDUSTRY :
|
PLASTIC
|
|
The Malaysian plastic products industry is one of the most established industries
within the country's manufacturing sector. The industry has developed into
a highly diversified sector, encompassing an extensive range of plastic
products such as components for the telecommunications industry,
construction materials, household goods, acrylic sheets, bags, bathroom
accessories, bottles, containers, toys games and packing materials.
|
|
Malaysia's plastic manufacturing industry is expected to grow up to 12% in
2009, as new capacity come on-stream. The Malaysian Plastics Manufacturers
Association (MPMA) said the domestic industry is on track to meet its
projected growth between 5% and 8% in 2008, after expanding 8.3% in the
first six months in 2008. Resin prices are expected to ease over 2009 and
2010 as new supplies come on-stream from the Middle East. The price of
resin which make up as much as 80% of a maker's operating costs have fallen
over 15% from the record in July 2008.
|
|
The plastic industry recorded sales of RM7.96billion in the first half of
the year 2008 (January - June 2007: RM7.35 billion). Output of plastic
products grew significantly by 6.5% (January - June 2007: -4.3%) led by
higher demand from the transport equipment industries. This was shown by
the strong growth in the components, such as blow moulded plastics (16.6%)
and extruded plastic products (14.5%). In addition, the strong recovery in
output of computers and computer peripherals also supported the demand for
plastic products. Exports of chemicals and plastic products grew 14.9%
(January - June 2007: 22.1%), mainly due to rising demand for organic
chemicals, essential oils and non-primary form plastics.
|
|
In 2008, the government has developed the first and only specialized
industrial park, The Kertih Plastic Park in the country which focusing on
the plastic industry. According to MPMA, the park is developed under the
East Coast Economic Region (ECER) and it is well positioned to attract more
investments. Development for the park means that both the federal and state
governments are aware of the importance of the plastic industry to the
country's economy and are seriously looking into developing further the
plastic industry.
|
|
The plastic manufacturers could leverage on the existing Eastern Corridor
incentives to enhance their competitiveness. The MPMA stated that if the
park could be developed into an attractive location for investment, it
would boost the plastic industry in the region and the petrochemicals
industry would stand to benefit from it due to higher demand for resins.
Meanwhile, industry experts said the setting up of plastics park will
further value-add and extend the oil, gas and petrochemical value chain,
via downstream manufacturing of plastic products and integration with
related plants and services within the existing Petronas Petroleum Industry
Complex.
|
|
Investors in the park will be able to reap economies of scale and direct
cost savings through tapping into operational and infrastructural synergies
at site and obtaining "just-in-time" raw materials supply. Besides,
the park development will also be supported by world-class research and
development (R&D) input from the Petronas Polymer Technology Centre.
The centre aims to spur the growth and global competitiveness of the
plastic industry in the Kertih Plastic Park by carrying out R&D for
plastic application, joint venture projects with manufacturers and end
users, and offering technical services including products testing,
technology development and training.
|
|
Overall, the industry's outlook for 2009 is still bright. However, the
industry is still clouded by the current financial turmoil in major
economies including the US, Europe, Japan and Australia which will affect
demand for plastic.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Incorporated in 1999 as a private limited company, the SC is principally
engaged as a manufacturer of pipes and related products. Throughout its
years of establishment, the SC has slowly been building up contacts with its
clients and competing in the industry. With RM18 million in issued and paid
up capital, the SC has the potential of capturing a higher market shares as
it is competing aggressively in the market.
|
|
About 50% of the SC's products are exported to countries like Singapore and
Philippines while another 50% absorbed by the local market. Such a wide
geographical spread has well diversified its business risk should there be
a slowdown in the local economy. Thereby it will increase its ability to
compete in the market. Assisted by 34 manpower, the SC does not have a
strong management team. Its unfavourable return on shareholders' funds
implied that the SC's management capability is weak.
|
|
In 2006, the SC posted a poor financial performance. The decreasing in its
turnover from RM2.88 million to RM1.87 million has widen its pre-tax losses
to RM2.89 million. Due to these losses, the SC has generated an
unfavourable return on shareholders' funds indicating that the management
was inefficient in utilising its funds to generate return. Besides, the SC
possesses a weak liquidity position and we believe that the SC may face
some difficulties in meeting its short term financial obligations.
Moreover, the SC has a high gearing ratio of 3.25 times which has placed
the SC at high financial risk.
|
|
Investigation revealed that the SC's raw materials are sourced from both
local and overseas suppliers. Hence, the SC is subjected to currency
fluctuation risk and high operating costs.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is fair. The unfavourable creditors' ratio clearly implied a weak
credit control.
|
|
The plastic industry continues to be attractive with encouraging global and
domestic demand. Hence, we believe there will be more business
opportunities available for the SC. Nonetheless, the SC will still faces
moderate business risk as it has to compete with many well established
players in the same field.
|
|
Due to its poor financial performance, we only recommend a small amount of
credit be proceeded to the SC with guarantee.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
TIMPLAS INDUSTRIES
(M) SDN BHD
|
|
For The Year
Ended 31-December-2006
|
|
|
|
11 month
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
TURNOVER
|
1,872,891
|
2,880,519
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
<2,897,106>
|
<2,214,469>
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
<2,897,106>
|
<2,214,469>
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
<2,897,106>
|
------------
<2,214,469>
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
<2,897,106>
|
------------
<2,214,469>
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
<2,897,106>
|
------------
<2,214,469>
|
|
As previous reported
|
<3,402,920>
|
<1,188,451>
|
|
|
|
|
|
As restated
|
------------
<3,402,920>
|
------------
<1,188,451>
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<6,300,026>
|
<3,402,920>
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
<6,300,026>
==========
|
------------
<3,402,920>
==========
|
|
RETAINED BY: The Company
|
<6,300,026>
|
<3,402,920>
|
|
|
|
|
|
|
------------
<6,300,026>
==========
|
------------
<3,402,920>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Term loan
|
1,200,245
|
930,891
|
|
Bank overdraft
|
70,365
|
41,612
|
|
|
|
|
|
Hire purchase
|
124,493
|
39,452
|
|
|
|
|
|
|
------------
1,395,103
==========
|
------------
1,011,955
==========
|
BALANCE SHEET
|
TIMPLAS
INDUSTRIES (M) SDN BHD
|
|
As At
31-December-2006
|
|
|
|
11 month
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
25,333,413
|
23,920,911
|
|
TOTAL LONG TERM ASSETS
|
------------
25,333,413
|
------------
23,920,911
|
|
CURRENT ASSETS
|
|
|
|
|
Stocks
|
856,616
|
719,156
|
|
|
Trade debtors
|
301,265
|
841,383
|
|
|
Other debtors, deposits & prepayments
|
280,762
|
1,317,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
3,288
|
1,123
|
|
TOTAL CURRENT ASSETS
|
------------
1,441,931
|
------------
2,879,454
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
442,388
|
120,240
|
|
|
Other creditors & accruals
|
1,263,944
|
1,266,587
|
|
|
Hire purchase & lease creditors
|
274,803
|
162,883
|
|
|
Bank overdraft
|
909,465
|
900,381
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to director
|
851,026
|
2,435,579
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
3,741,626
|
------------
4,885,670
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<2,299,695>
|
------------
<2,006,216>
|
|
TOTAL NET ASSETS
|
------------
23,033,718
==========
|
------------
21,914,695
==========
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
12,000,000
|
12,000,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
12,000,000
|
------------
12,000,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
<6,300,026>
|
<3,402,920>
|
|
TOTAL RESERVES
|
------------
<6,300,026>
|
------------
<3,402,920>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
5,699,974
|
------------
8,597,080
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
Long term loans
|
14,493,188
|
12,856,199
|
|
|
|
|
|
|
|
Hire purchase creditors
|
2,840,556
|
461,416
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
17,333,744
|
------------
13,317,615
|
|
|
------------
|
------------
|
|
|
23,033,718
|
21,914,695
|
|
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
TIMPLAS
INDUSTRIES (M) SDN BHD
|
|
As At
31-December-2006
|
|
|
|
11 month
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
3,288
|
1,123
|
|
|
Net Liquid Funds
|
<906,177>
|
<899,258>
|
|
|
Net Liquid Assets
|
<3,156,311>
|
<2,725,372>
|
|
|
Net Current Assets/(Liabilities)
|
<2,299,695>
|
<2,006,216>
|
|
|
Net Tangible Assets
|
23,033,718
|
21,914,695
|
|
|
Net Monetary Assets
|
<20,490,055>
|
<16,042,987>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
18,518,012
|
14,380,879
|
|
|
Total Liabilities
|
21,075,370
|
18,203,285
|
|
|
Total Assets
|
26,775,344
|
26,800,365
|
|
|
Net Assets
|
23,033,718
|
21,914,695
|
|
|
Net Assets Backing
|
5,699,974
|
8,597,080
|
|
|
Shareholders" Funds
|
5,699,974
|
8,597,080
|
|
|
Total Share Capital
|
12,000,000
|
12,000,000
|
|
|
Total Reserves
|
<6,300,026>
|
<3,402,920>
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0
|
0
|
|
|
Liquid Ratio
|
0.16
|
0.44
|
|
|
Current Ratio
|
0.39
|
0.59
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
167
|
91
|
|
|
Debtors Ratio
|
59
|
107
|
|
|
Creditors Ratio
|
86
|
15
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
3.25
|
1.67
|
|
|
Liabilities Ratio
|
3.70
|
2.12
|
|
|
Times Interest Earned Ratio
|
<1.08>
|
<1.19>
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
<154.69>
|
<76.88>
|
|
|
Net Profit Margin
|
<154.69>
|
<76.88>
|
|
|
Return On Net Assets
|
<6.52>
|
<5.49>
|
|
|
Return On Capital Employed
|
<6.20>
|
<5.23>
|
|
|
Return On Shareholders' Funds/Equity
|
<50.83>
|
<25.76>
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
%20SDN%20BHD%20-%2066781%2010-Dec-2008_files/image002.jpg){kind=small}