|
* Adopted abbreviations : SC
- Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
170232-H
|
|
COMPANY NAME
|
:
|
TITAN TRADING CORP SDN BHD
|
|
FORMER NAME
|
:
|
TITAN POLYETHYLENE
(MALAYSIA) SDN BHD (24/11/2005)
ASIA PACIFIC POLYETHYLENE (MALAYSIA) SDN BHD (21/03/1989)
POLIETILENA ASIA PASIFIK (MALAYSIA) SDN BHD (24/05/1988)
|
|
INCORPORATION DATE
|
:
|
27/04/1988
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
BANGUNAN
MALAYSIA RE, 17 LORONG DUNGUN, DAMANSARA HEIGHTS, 6TH FLOOR, 50490 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PLO 312, JALAN
TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE, 81700 PASIR GUDANG, JOHOR,
MALAYSIA.
|
|
TEL.NO.
|
:
|
07-2538888
|
|
FAX.NO.
|
:
|
07-2510784 / 7880
|
|
WEB SITE
|
:
|
www.titangroup.com
|
|
CONTACT PERSON
|
:
|
JAMES CHAO ( CHAIRMAN )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51499
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING IN CHEMICALS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
310,000,000.00 DIVIDED INTO
ORDINARY SHARE 310,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
292,500,000.00 DIVIDED INTO
ORDINARY SHARES 292,500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 2,325,442,000 [2007]
|
|
NET WORTH
|
:
|
MYR 263,653,000 [2007]
|
|
M1000 OVERALL RANKING
|
:
|
174[2004]
|
|
M1000 INDUSTRY
RANKING
|
:
|
3[2004]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
45 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
PROMPT
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
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) trading in chemicals.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is 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.
|
According to the Malaysia 1000 publication, the SC's ranking are as
follows:
|
|
|
|
|
|
|
YEAR
|
2004
|
|
|
|
OVERALL RANKING
|
174
|
|
|
|
INDUSTRY RANKING
|
3
|
|
|
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
TITAN PETROCHEMICALS & POLYMERS BHD
|
BANGUNAN MALAYSIAN RE, 17 LORONG DUNGUN, DAMANSARA HEIGHTS, 6TH FLOOR,
50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
222357
|
292,500,000.00
|
|
|
|
|
---------------
|
|
|
|
|
292,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. WOON CHIAU MENG
|
|
Address
|
:
|
35 JALAN HARMONIUM 22/8, TAMAN DESA TEBRAU, 81100 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
4289419
|
|
New IC No
|
:
|
520512-01-5695
|
|
Date of Birth
|
:
|
12/05/1952
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
30/08/2007
|
DIRECTOR 2
|
Name Of Subject
|
:
|
WESLEY RAY VAUGHAN
|
|
Address
|
:
|
10 JALAN AUSTIN PERDANA 2/16, TAMAN AUSTIN PERDANA, 81100 JOHOR
BAHRU, JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
P710867008
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
26/08/2008
|
DIRECTOR 3
|
Name Of Subject
|
:
|
WARREN WILLIAM WILDER
|
|
Address
|
:
|
6645 WESTCHESTER AVE, HOUSTAN, TX 77005, UNITED STATES.
|
|
IC / PP No
|
:
|
P134540601
|
|
Nationality
|
:
|
AMERICAN
|
|
Date of Appointment
|
:
|
10/07/2008
|
DIRECTOR 4
|
Name Of Subject
|
:
|
DATIN ANIM BINTI HASSAN
|
|
Address
|
:
|
39 JALAN
TEMPINIS 1, BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
4809144
|
|
New IC No
|
:
|
550513-01-5352
|
|
Date of Birth
|
:
|
13/05/1955
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
05/11/1999
|
|
|
|
|
|
1)
|
Name of Subject
|
:
|
JAMES CHAO
|
|
|
Position
|
:
|
CHAIRMAN
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
KWA YONG HENG
|
|
|
Position
|
:
|
FINANCIAL CONTROLLER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
CHEONG TENG KHUAN
|
|
|
Position
|
:
|
VICE PRESIDENT
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
SAFUAN YUSSOF
|
|
|
Position
|
:
|
VICE PRESIDENT
|
|
|
|
|
|
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, LEVEL 23A,
50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. KONG CHOCK HOON
|
|
|
|
|
|
|
|
New IC No
|
:
|
600101-01-6001
|
|
|
Address
|
:
|
92 JALAN DATUK SULAIMAN 6, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
|
ENCUMBRANCE
(S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
17/12/2004
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
MAYBANK INTERNATIONAL (L) LTD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 4 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
17/12/2004
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
MAYBANK INTERNATIONAL (L) LTD
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 6 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
|
:
|
JAPAN,KOREA
|
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
|
[
|
X
|
]
|
|
Good
|
[
|
|
]
|
|
Average
|
[
|
|
]
|
|
|
Fair
|
[
|
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
70%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
30%
|
|
Export Market
|
:
|
AUSTRALIA, SINGAPORE, ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,LETTER OF CREDIT (LC),TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
MANUFACTURING INDUSTRIES
|
|
|
|
|
|
|
|
|
CUSTOMER(S)
|
:
|
|
1) GN PACKAGING INDUSTRIES (M) SDN BHD
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
CHEMQUEST SDN BHD
|
|
IDEMITSU CHEMICALS (M) SDN BHD
|
|
MARUBENI KABUSHIKI KAISHA (MARUBENI CORPORATION)
|
|
TEXCHEM MATERIALS SDN BHD
|
|
TEXCHEM RESOURCES BHD
|
|
|
|
|
|
|
Member(s) /
Affiliate(s)
|
:
|
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
|
|
|
|
|
|
|
Ownership of
premises
|
:
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
2007
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
45
|
20
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading in chemicals.
Besides that the SC also acts as the International Procurement Centre (IPC).
We were informed that the SC is under the Titan Chemicals Group of Companies
and it also acts as the marketing arm for its group.
The SC's products are includes Ethylene, Propylene, Olefin co-products, Low
Density Polythylene Film and others.
The SC's IPC's status allow the Group to specialize in and centralize all
procurement and international sales of raw materials, components and finished
products for its operations in Malaysia and Indonesia.
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
|
:
|
607 253 8888
|
|
Current Telephone Number
|
:
|
07-2538888
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLOT 312, JALAN TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE, 81700
PASIR GUDONG
|
|
Current Address
|
:
|
PLO 312, JALAN TEMBAGA 4, PASIR GUDANG INDUSTRIAL ESTATE, 81700
PASIR GUDANG, JOHOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Mr Jamal from the SC's Human Resource
Department. He revealed some information pertaining to the SC.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2005 - 2007
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2005 - 2007
|
]
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
47.86%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
47.72%
|
]
|
The SC's turnover increased steadily as the demand for its products / services
increased due to the goodwill built up over the years. The higher profit
could be attributed to the increase in turnover. Generally the SC was
profitable. The favourable return on shareholders' funds and return on net
assets indicate that the SC's management was efficient in utilising the
assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Nil
|
[
|
0 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
47 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
0 Days
|
]
|
As the SC is a service oriented company, the SC does not need to keep 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
|
:
|
Favourable
|
[
|
2.57 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
2.57 Times
|
]
|
A minimum liquid ratio of 1 should be maintained by the SC in order to assure
its creditors of its ability to meet short term obligations and the SC was in
a good liquidity position. Thus, we believe the SC is able to meet all its
short term obligations as and when they fall due.
Solvency
|
Interest Cover
|
:
|
Favourable
|
[
|
40.73 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The interest cover showed that the SC was able to service the interest. The favourable
interest cover could indicate that the SC was making enough profit to pay for
the interest accrued. The SC had no gearing and hence it had virtually no
financial risk. The SC was financed by its shareholders' funds and internally
generated fund. During the economic downturn, the SC, having a zero gearing,
will be able to compete better than those which are highly geared in the same
industry.
Overall Accessment:
Generally, the
SC's performance has improved with higher turnover and profit. The SC was in
good liquidity position with its total current liabilities well covered by
its total current assets. With its current net assets, the SC should be able
to repay its short term obligations. With the favourable interest cover, the
SC could be able to service all the accrued interest without facing any
difficulties. The SC was a zero gearing company, it was solely dependant on
its shareholders to provide funds to finance its business. The SC has good
chance of getting loans, if the needs arises.
Overall financial condition of the SC : STRONG
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
|
|
51499 : Wholesale of other intermediate products, waste and scrap
n.e.c.
|
|
|
|
|
INDUSTRY :
|
CHEMICAL
|
|
The chemical products industry is essentially a supporting industry, supplying
intermediates and inputs to the end-user industries such as agriculture,
electronics, automotive, construction-related industry and personal care
products. The chemicals and chemical products industry, including
agricultural and industrial chemicals, cosmetics and toiletry products,
paint and soaps, is a significant contributor to the manufacturing sector.
The growth of the industry is also highly dependent on the performance of
the other sectors of the economy.
|
|
The growth in the chemicals and chemical products sector may be constrained
by the rising raw material prices. Chemicals and chemical products, chalked
up a 16.8% year on year rise.
|
|
This industry remains an important sector and a growth engine for
manufacturing output. It accounts for the largest share of Malaysia's
non-electrical and electronic exports. Both organic and inorganic chemicals
are gaining more attention and are anticipated to continue their growth
momentum of 2007, especially driven by demand from China, Thailand and other
ASEAN countries. In particular, agricultural and industrial chemicals,
cosmetics and toiletry products are being absorbed by burgeoning economies
with large consumer bases, like China. The sub-sector that looks most
promising in this industry is the expansion of the agricultural chemicals
industry, which includes the manufacture of fertilisers and pesticides.
There have also been indications of a higher level of foreign participation
in this industry, especially in the form of strategic partnerships with
domestic firms, essentially to expand their production capacities for
export.
|
|
In January-November 2007, the industry's exports summed up to RM1.16
billion, translating into a 19% rise. However, closer scrutiny shows that
the pesticides and herbicides sub-sector posted a corresponding 34.3%
growth, with output coming up to RM561.6 million for the same period.
|
|
The chemical products industry is expected to grow in tandem with the
overall growth of other manufacturing of the economy. Besides that, the
chemical and chemical products industry raises investment to improve
efficiency and increase productivity to meet stronger demand. In addition,
the Government's emphasis on high technology and higher-skilled projects is
expected to increase investment in high value-added projects. Strong
external demand for resource-based products and the improvement in the
construction-related industries would further lend support to the expansion
of chemical sector.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS
|
Incorporated in 1988 as a private limited company, the SC is principally
engaged in the trading of chemical products. With its two decades of experience
in the business, the SC has a fairly rich experiences in the business.
Backed by strong shareholder with huge issued and paid up capital of
RM292,500,000, the SC is expected to enjoy timely financial assistance
should the needs arise.
|
|
Its good reputation built up over the years has given the SC an edge when
competing in the industry. In order to further grow the business, the SC
has ventured into the overseas markets. The SC's receptiveness towards
globalization has led to its growth and sales to Australia, Singapore and
Asia countries. Such wide market coverage has minimised its business risk
and its future growth prospect remains bright. The number of the employees
of the SC has increased to 45 compared to the last year of 20. Overall, the
management capability of the SC is good.
|
|
During the financial year under review, its turnover has increased
significantly, reaching RM2,325.44 million compared to RM17.81million
previously. Correspondingly, its pre-tax profit rose by 708.72% to RM122.74
million. This was achieved on the back of stronger performance of higher
turnover. Based on the higher profitability, the SC has generated a
favourable return based on its existing shareholders' funds which indicated
that the management was efficient in utilising its funds to generate
income. Good cash flow management has enabled the SC to meet its short term
obligations as and when they fall due. Moreover, being a zero geared
company, the SC virtually has no financial risk as it is mainly dependent
on its internal funds to finance its business. Overall, the SC has strong
financial standing.
|
|
The SC might be exposed to the forex risk as some of its raw materials are
sourced from overseas suppliers. With its long presence in the market, it
should have developed a strong supplier. Thus, it eliminates the risk of
dependency on deliveries from a number of key suppliers and insufficient
quantities of its raw materials.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is prompt. The SC is capable to meet small and medium commitments.
|
|
The chemical industry remains an important sector and a growth
engine for manufacturing output. Moreover, the continuous efforts implemented
by the government to boost the economic growth will further enhance the
industry. The SC's business opportunity in the future should be bright.
|
|
In view of the above favourable condition, we recommend a large
amount credit be proceeded to the SC with favourable term.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
TITAN TRADING
CORP SDN BHD
|
|
For The Year
Ended 31-December-2007
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
2,325,442,000
|
17,809,000
|
16,786,000
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
122,739,000
|
15,177,000
|
8,335,000
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
122,739,000
|
15,177,000
|
8,335,000
|
|
Taxation
|
3,434,000
|
<3,860,000>
|
<2,533,000>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
126,173,000
|
------------
11,317,000
|
------------
5,802,000
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
126,173,000
|
------------
11,317,000
|
------------
5,802,000
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
126,173,000
|
------------
11,317,000
|
------------
5,802,000
|
|
As previous reported
|
<280,107,000>
|
<291,424,000>
|
<158,085,000>
|
|
|
|
|
|
|
As restated
|
------------
<280,107,000>
|
------------
<291,424,000>
|
------------
<158,085,000>
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
<153,934,000>
|
<280,107,000>
|
<152,283,000>
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
<153,934,000>
==========
|
------------
<280,107,000>
==========
|
------------
<152,283,000>
==========
|
|
RETAINED BY: The Company
|
<153,934,000>
|
<280,107,000>
|
<152,283,000>
|
|
|
------------
<153,934,000>
==========
|
------------
<280,107,000>
==========
|
------------
<152,283,000>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
|
|
Bank overdraft
|
-
|
29,000
|
23,000
|
|
|
|
|
|
|
Hire purchase
|
-
|
11,000
|
-
|
|
|
|
|
|
|
Other interest expenses
|
3,089,000
|
83,000
|
-
|
|
|
|
|
|
|
|
------------
3,089,000
=========
|
------------
123,000
==========
|
------------
23,000
==========
|
BALANCE SHEET
|
TITAN TRADING
CORP SDN BHD
|
|
As At
31-December-2007
|
|
|
|
|
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
-
|
-
|
524,000
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
Subsidiary companies
|
3,000
|
4,000
|
-
|
|
|
|
|
|
|
|
Deffered assets
|
845,000
|
-
|
-
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
848,000
|
------------
4,000
|
------------
-
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
848,000
|
------------
4,000
|
------------
524,000
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Trade debtors
|
301,505,000
|
-
|
-
|
|
|
Other debtors, deposits & prepayments
|
516,000
|
682,000
|
510,000
|
|
|
Short term deposits
|
29,000,000
|
-
|
1,235,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from holding company
|
1,309,000
|
1,308,000
|
1,308,000
|
|
|
Amount due from subsidiary companies
|
885,000
|
961,000
|
-
|
|
|
Amount due from related companies
|
85,022,000
|
302,449,000
|
290,058,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
11,631,000
|
45,000
|
731,000
|
|
|
|
|
|
|
|
|
Tax recoverable
|
474,000
|
647,000
|
-
|
|
TOTAL CURRENT ASSETS
|
------------
430,342,000
|
------------
306,092,000
|
------------
293,842,000
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade creditors
|
-
|
66,000
|
66,000
|
|
|
Other creditors & accruals
|
19,533,000
|
4,029,000
|
3,463,000
|
|
|
|
|
|
|
|
|
Bank overdraft
|
-
|
-
|
588,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
148,004,000
|
149,888,000
|
149,887,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
-
|
-
|
145,000
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
167,537,000
|
------------
153,983,000
|
------------
154,149,000
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
262,805,000
|
------------
152,109,000
|
------------
139,693,000
|
|
TOTAL NET ASSETS
|
------------
263,653,000
==========
|
------------
152,113,000
==========
|
------------
140,217,000
==========
|
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
|
Ordinary share capital
|
292,500,000
|
292,500,000
|
292,500,000
|
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
292,500,000
|
------------
292,500,000
|
------------
292,500,000
|
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
Exchange equalisation/fluctuation reserve
|
125,087,000
|
136,742,000
|
-
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
<153,934,000>
|
<280,107,000>
|
<152,283,000>
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
<28,847,000>
|
------------
<143,365,000>
|
------------
<152,283,000>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
263,653,000
|
------------
149,135,000
|
------------
140,217,000
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation
|
-
|
2,978,000
|
-
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
-
|
------------
2,978,000
|
------------
-
|
|
|
------------
|
------------
|
------------
|
|
|
263,653,000
|
152,113,000
|
140,217,000
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
FINANCIAL RATIOS
|
TITAN TRADING
CORP SDN BHD
|
|
As At
31-December-2007
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
|
Cash
|
40,631,000
|
45,000
|
1,966,000
|
|
|
Net Liquid Funds
|
40,631,000
|
45,000
|
1,378,000
|
|
|
Net Liquid Assets
|
262,805,000
|
152,109,000
|
139,693,000
|
|
|
Net Current Assets/(Liabilities)
|
262,805,000
|
152,109,000
|
139,693,000
|
|
|
Net Tangible Assets
|
263,653,000
|
152,113,000
|
140,217,000
|
|
|
Net Monetary Assets
|
262,805,000
|
149,131,000
|
139,693,000
|
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
|
Total Borrowings
|
0
|
0
|
588,000
|
|
|
Total Liabilities
|
167,537,000
|
156,961,000
|
154,149,000
|
|
|
Total Assets
|
431,190,000
|
306,096,000
|
294,366,000
|
|
|
Net Assets
|
263,653,000
|
152,113,000
|
140,217,000
|
|
|
Net Assets Backing
|
263,653,000
|
149,135,000
|
140,217,000
|
|
|
Shareholders" Funds
|
263,653,000
|
149,135,000
|
140,217,000
|
|
|
Total Share Capital
|
292,500,000
|
292,500,000
|
292,500,000
|
|
|
Total Reserves
|
<28,847,000>
|
<143,365,000>
|
<152,283,000>
|
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
|
Cash Ratio
|
0.24
|
0
|
0.01
|
|
|
Liquid Ratio
|
2.57
|
1.99
|
1.91
|
|
|
Current Ratio
|
2.57
|
1.99
|
1.91
|
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
|
Stock Ratio
|
0
|
0
|
0
|
|
|
Debtors Ratio
|
47
|
0
|
0
|
|
|
Creditors Ratio
|
0
|
1
|
1
|
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
|
Liabilities Ratio
|
0.64
|
1.05
|
1.10
|
|
|
Times Interest Earned Ratio
|
40.73
|
124.39
|
363.39
|
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
|
Operating Profit Margin
|
5.28
|
85.22
|
49.65
|
|
|
Net Profit Margin
|
5.43
|
63.55
|
34.56
|
|
|
Return On Net Assets
|
47.72
|
10.06
|
5.96
|
|
|
Return On Capital Employed
|
47.72
|
10.06
|
5.94
|
|
|
Return On Shareholders' Funds/Equity
|
47.86
|
7.59
|
4.14
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
