MIRA
INFORM REPORT
|
Report Date : |
24.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
KL-KEPONG COCOA PRODUCTS SDN BHD |
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Registered Office : |
Wisma Taiko, 1 Jalan S P Seenivasagam, 30000 Ipoh, Perak, |
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Country : |
Malaysia |
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Financials (as on) : |
30.09.2006 |
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Date of Incorporation : |
27.06.1990 |
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Com. Reg. No.: |
200081-D |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing of Chocolates and Cocoa Product |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Adopted abbreviations : SC - Subject Company ( the company enquired
by you)
N/A - Not Applicable
EXECUTIVE
SUMMARY
REGISTRATION NO. :
200081-D
COMPANY NAME :KL-KEPONG
COCOA PRODUCTS SDN BHD
FORMER NAME :
N/A
INCORPORATION DATE :
27/06/1990
COMPANY STATUS :
EXIST
LEGAL STATUS :
PRIVATE LIMITED
LISTED STATUS :
NO
REGISTERED ADDRESS :
WISMA TAIKO, 1 JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK,
MALAYSIA.
BUSINESS ADDRESS :
LOT 2 LEBUH SULTAN MOHAMED 1, BANDAR SULTAN SULEIMAN, 42000
PELABUHAN KLANG, SELANGOR, MALAYSIA.
TEL.NO. :
03-31765050/31693333
FAX.NO. :
03-31762948
EMAIL :mktg@klkcp.com.my
WEB SITE :http://www.klkcp.com.my/klkcp
CONTACT PERSON :NG
BOON YEAP ( MANAGING DIRECTOR )
INDUSTRY CODE :15432
15431 1549
PRINCIPAL ACTIVITY :MANUFACTURING
OF CHOCOLATES AND COCOA PRODUCT
AUTHORISED CAPITAL :MYR
40,000,000.00 DIVIDED INTO
ORDINARY SHARE 35,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 50,000,000.00 OF MYR 0.10 EACH.
ISSUED AND PAID UP CAPITAL:MYR 36,000,000.00
DIVIDED INTO ORDINARY SHARES 35,000,000 CASH
OF MYR 1.00 EACH.
PREFERENCE SHARES
10,000,000 CASH OF MYR 0.10 EACH.
SALES
:MYR 240,571,000 [2006]
NET WORTH
:MYR 138,905,000 [2006]
STAFF STRENGTH
:230 [2008]
BANKER (S)
:MALAYAN BANKING BHD
LITIGATION
:CLEAR
FINANCIAL CONDITION :FAIR
PAYMENT
:AVERAGE
MANAGEMENT CAPABILITY :AVERAGE
COMMERCIAL RISK :MODERATE
CURRENCY EXPOSURE :HIGH
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 chocolates
and cocoa product.
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 immediate holding company of the SC is KL-KEPONG INDUSTRIAL HOLDINGS SDN
BHD, a company incorporated in MALAYSIA.
The ultimate holding company of the SC is
KUALA LUMPUR KEPONG BHD, a company incorporated in MALAYSIA.
The major shareholder(s) of the SC are shown as follows :
|
Name |
Address |
IC/PP/Loc No |
Shareholding |
|
KL-KEPONG INDUSTRIAL HOLDINGS SDN BHD |
WISMA TAIKO, 1 JALAN S P SEENIVASAGAM, 30000 IPOH, PERAK, MALAYSIA. |
300525 |
45,000,000.00 |
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--------------- |
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|
45,000,000.00 |
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|
|
|
============ |
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR.
LEE NYIT KEAN
Address : 50
JALAN SARMUKH, TAMAN CHATEAU, 30250 IPOH, PERAK, MALAYSIA.
IC / PP No :
4775237
New IC No :
550430-08-6075
Date of Birth :
30/04/1955
Nationality :
MALAYSIAN CHINESE
Date of Appointment :
03/04/2001
DIRECTOR 2
Name of Subject : MR.
FAN CHEE KUM
Address :
15, LALUAN IPOH PERDANA, TAMAN IPOH PERDANA, 31400 IPOH, PERAK,
MALAYSIA.
IC / PP No :
4403240
New IC No :
520918-08-5765
Date of Birth :
18/09/1952
Nationality :
MALAYSIAN CHINESE
Date of Appointment :26/07/2001
DIRECTOR 3
Name Of Subject : MR. NG
BOON YEAP
Address : 51
JALAN USJ 4/6G, TAMAN SEAFIELD JAYA, 47600 SUBANG JAYA, SELANGOR,
MALAYSIA.
IC / PP No :
7171924
New IC No :
631210-08-5067
Date of Birth :
10/12/1963
Nationality :
MALAYSIAN CHINESE
Date of Appointment : 08/06/1999
DIRECTOR 4
Name Of Subject : OLIVIER
JEAN-MARIE MEURZEC
Address :13,
LENCONGAN SEMARAK API, SIERRAMAS, 47000 SUNGAI BULOH, SELANGOR,
MALAYSIA.
IC / PP No :
04AE36901
Nationality :
N/A
Date of Appointment :
17/12/2004
MANAGEMENT
1) Name of Subject : NG BOON
YEAP
Position : MANAGING DIRECTOR
2) Name of Subject : ROSLIN
NG
Position : FINANCIAL CONTROLLER
3) Name of Subject : NG SIEW
YIN
Position : SENIOR MARKETING MANAGER
4) Name of Subject : ALBERT
LIM
Position : TRADING MANAGER
5) Name of Subject : CELINE
SIOW
Position : TECHNICAL MANAGER
AUDITOR
Auditor :
KPMG
Auditor' Address: WISMA
KPMG, JALAN DUNGUN, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR,
WILAYAH
PERSEKUTUAN, MALAYSIA.
COMPANY SECRETARIES
1) Company Secretary : MS. NG
YIN PING
IC / PP No : 4876488
New IC No : 551111-10-5480
Address : A7-3, FLORA GREEN CONDOMINIUM, JALAN SUNGAI
LONG, BANDAR SUNGAI
LONG, 43000 KAJANG, SELANGOR, MALAYSIA.
2) Company Secretary :
MR. LIM JIT CHEW
IC / PP No :
0491704
New IC No :
480817-10-5639
Address :
9, PERSIARAN BUKIT MERU 4, BUKIT MERU, 30020 IPOH, PERAK,
MALAYSIA.
Date of Appointment :
27/06/1990
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)
No encumbrance was found in our databank at the time of investigation.
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 :
UNITED STATES, BRAZIL,EUROPE
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 Percentag:
30%
Domestic Markets : MALAYSIA
Overseas :
YES Percentage:
70%
Export Market : ARGENTINA, AUSTRALIA, CANADA, ASIA, EUROPE, INDIA,
MEXICO, SAUDI
ARABIA,
SINGAPORE, SOUTH AFRICA, SWITZERLAND, UNITED KINGDOM, MIDDLE
EAST,
NEW ZEALAND
Credit Term : 30
- 60 DAYS
Payment Mode :
CHEQUES, LETTER OF CREDIT (LC), TELEGRAPHIC TRANSFER (TT)
Type of Customer : FOOD
MANUFACTURERS, DISTRIBUTORS
OPERATIONS
Products manufactured: CHOCOLATE AND COMPOUND ICE CREAM COATINGS,
CHOCOLATE BLOCKS,)
CHOCOLATE
BLOCKS (COMPOUND), CHOCOLATE CHIPS (BAKABLE),
CHOCOLATE
CHIPS (COMPOUND), CHOCOLATE COUVERTURE, CHOCOLATE
GLAZE,
CHOCOLATE NUGGETS, CHOCOLATE NUGGETS COMPOUND,
CHOCOLATE
PASTE, CHOCOLATE SPREADS, COCOA BUTTER, COCOA LIQUORS, COCOA
MASS, COCOA POWDER, COCOA POWDER (LECITHINATED), COCOA
PREPARATION,
HAZELNUT GLAZE, PASTE (HAZELNUT), SPREADS (HAZELNUT
Brand Name :
KLK COCOA, MAYER, SELBOURNE
Award :
1) MS ISO 9001 : 2000 Year :1995
Competitor(s) :
APOLLO FOOD INDUSTRIES (M) SDN BHD
Member(s) / Affiliate(s) : FEDERATION
OF MALAYSIAN MANUFACTURERS (FMM)
Ownership of premises : OWNED
Factory Size : 7
ACRES
Production Capacity : 300,000
TO 350,000 TONNES PER YEAR
Shifts :
3
Total Number of Employees:
YEAR 2008 2007 2006 2005 2004
GROUP N/A N/A N/A N/A N/A
COMPANY 30 210 200 249 220
Branch :
YES
No of Branches : 2
Branch(es) :LOT
2, LEBUH SULTAN MOHAMED 1, BANDAR ULTAN SULEIMAN, 42000
PELABUHAN KLANG, SELANGOR, MALAYSIA.
LOT 7.2, MENARA LIEN HOE, 8 PERSIARAN
TROPICANA, 7TH FLOOR, 47410 PETALING JAYA, SELANGOR, MALAYSIA.
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of chocolates
and cocoa product.
The SC produces a wide range of products including chocolate blocks, chocolate
nuggets, bakable chocolate chips, chocolate couverture, chocolate spread,
chocolate glaze, chocolate paste, chocolate and compound ice cream coatings,
cocoa mass and liquor, cocoa preparation, cocoa mass, compound chocolate
blocks, compound chocolate chips, compound chocolate nuggets, cocoa powder,
hazelnut spread, hazelnut glaze, hazelnut paste, cocoa butter, lecithinated
cocoa powder
The SC supplies of high quality cocoa
products using the state of art processing technologies.
The SC also manufactures premium quality couverture and compound chocolate for
various industrial confectioners and bakeries applications.
The SC has its own R & D department to
meet the customers' requirements and also to maintain the quality of the SC's
products.
RECENT DEVELOPMENT
We have checked with the Malaysian National 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 :
0331693333
Current Telephone Number :
03-31765050/31693333
Match :
YES
Address Provided by Client :LOT
2 LEBUH SULTAN MOHAMED 1,BDR SULTAN SULEIMAN,42000
PORT
KLANG,SELANGOR
Current Address :
LOT 2 LEBUH SULTAN MOHAMED 1, BANDAR SULTAN SULEIMAN,
42000
PELABUHAN KLANG, SELANGOR, MALAYSIA.
Match :
YES
Latest Financial Accounts :
YES
Other Investigations
We contacted one of the Senior staff from the Finance Department. She provided
some information on the SC. Later we contacted the Senior Manager from the
Sales Division for further information on the SC.
FINANCIAL
COMMENTS
Profitability:
Turnover : Erratic [ 2004 - 2006]
Profit/(Loss) Before Tax : Decreased [ 2004 - 2006]
Return on Shareholder Funds : Unfavourable [ 9.83%]
Return on Net Assets : Acceptable [ 11.96%]
The fluctuating turnover reflects the fierce competition among the existing and
new market players. The SC's profit fell sharply because of the high operating
costs incurred. The unfavourable return on shareholders' funds and net assets
could indicate that the SC's management was inefficient in utilising its assets
to generate returns.
Working Capital Control:
Stock Ratio : Unfavourable [ 172 Days]
Debtors Ratio : Favourable [ 28 Days]
Creditors Ratio : Favourable [ 5 Days]
The SC could be incurring higher holding cost. As its capital was tied up in
stocks, it could face liquidity problems. 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 [ 0.28 Times]
Current Ratio : Unfavourable [ 1.72 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 : Favourable [ 45.98 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:
The SC recorded lower profits as its
turnover showed a erratic trend. The SC's management was unable to control its
costs efficiently as its profit showed a downward trend. 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. 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 : FAIR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators: |
2004 |
2005 |
2006 |
2007* |
2008** |
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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 |
|||||
INDUSTRY COMMENTS
MSIC CODE
15432 : Manufacture of chocolate
products and sugar confectionery
15431 : Manufacture of cocoa
products
1549 : Manufacture of other
food products n.e.c.
INDUSTRY :FOOD &
BEVERAGES
Food production is seen to expand further with the Government's policy
to reduce the food import bill and promote self-sufficiency by 2010 through
expansion of idle lands and mechanization of farming methods as well as
promotion of good farming practices. Areas of activity that will boost this
sector include aquaculture, deep-sea fishing, floriculture as well as herbs
cultivation.
Output of the food products industry grew significantly by 12.7% (January-June 2006:
1.1%). This was driven by higher output in processing and preserving of fish
and fish products, which grew by 27.1% in tandem with increased marine fish
landings. In addition, the robust growth of food products was also supported by
increased output of dairy (16.0%) and grain mill products (7.0%), in
particular, rice milling which increased 17.7%, benefiting from higher
production of paddy. Meanwhile, other food products, particularly, sugar
refinery and biscuit products also registered double-digit growth ranging
between 23.0% and 25.0%.
Export receipts of food products increased by 15.9% (RM5,268 million) while
beverages 106.5% (RM580 million) as a result of continuous efforts by
manufacturers to attain quality assurance and accreditation for Malaysia's food
and beverages products.
The Government has identified the processed food industry as one of the major
growth sectors of the economy under the Ninth Malaysia Plan (9MP). Under the
9MP, the food commodities subsector is expected to grow at an average rate of
7.6% per annum through improvements in efficiency and productivity as well as
expansion in hectarage. Exports of food commodities will be increased to
achieve a positive food trade balance. The production of 'padi' will be
increased to meet the target of self-sufficiency level of 90%. The production
of fruits will be undertaken on a large-scale in the fruit production zones
using the cluster development approach and concentrating on nine fruit species
which have export potential. The production of vegetables will focus on high
value varieties for local consumption and selected export markets. The Green
Book Programme to promote cultivation of food crops at the community level will
be reactivated.
The Government has approved an allocation of RM11.4 billion representing an
increase of 70% compared with the Eighth Plan allocation for the sector. Among
the objectives of the plan are large-scale commercial farming and greater
application of modern technology and ICT to produce higher value-added processed
food and food products.
Production of 'halal' food will be further promoted to take advantage of the
vast potential of the 'halal' export market. This will include processing and
packaging of meat, fisheries and other food-based products. In addition,
Malaysia will be developed as the centre for the certification of 'halal'
products and the Jabatan Kemajuan Islam Malaysia (JAKIM) 'halal' certification
will be promoted worldwide. Concerted efforts to develop Malaysia as world
halal hub to capture new markets worldwide would provide impetus for further
growth of the local food industry.
The market for convenience and functional foods is expected to grow rapidly in
view of the changing consumption patterns and greater awareness of healthy
lifestyles. In this regard, the production and supply of ready-to-use seafood,
livestock products and vegetable-based convenience food will be promoted as new
areas of investment. Palm oil and cocoa-based food ingredients will be further
developed in terms of products range and quality. The better performance in the
food products industry was also due to greater efforts undertaken by the
industry to keep pace with advancement in technology.
Note : The Ninth Malaysia Plan (9MP) was tabled in Parliament on March 31,
2006, is the five-year blueprints
within the new National Mission policy and implementation framework from
now until 2010. Malaysia is expected to see some structural changes and
improved performance in the economy.
OVERALL INDUSTRY OUTLOOK : Strong Growth
BASIS COMMENTS
Incorporated in 1990 as a private limited company, the core business of the SC
is manufacturing of chocolates and cocoa products. With a large paid up capital
of RM36million, the SC has the potential to further expand its business in the
near term. Under the control of its holding company, it allows the SC to enjoy
timely assistance when the needs arise. With its long presence in the industry
coupled with its vast experiences in the business, the SC should have built up
certain goodwill with its clients over times.
With its long presence in the industry, the SC has expanded steadily in the
international arena. Our investigation revealed that the SC's products are
exported to Australia, Canada, Asia countries and etc. Its current overseas market
contributes to approximately 70% of its revenue. Being an export-oriented
company, the SC is not affected by the changes in the local economy but it is
vulnerable to the changes in the global economy. As a result, the business risk
is moderate. Being a large entity with total work force of 230 staff, the SC's
overall management capability is regarded average.
During the financial year 2006, the SC's turnover and pre-tax profit stood at
RM240.57million and RM16.91million. Return on shareholders' funds of the SC is
relatively low, indicating that the SC did not generate an acceptable amount of
profits based on its existing shareholders' funds. Due to its weak liquidity
position, the SC will be faced with problems in meeting all its short term
obligations. Fortunately, a low gearing ratio has placed the SC at low
financial risk. Given a huge net worth exceeding RM138million, the SC should be
able to maintain its business in the near term.
The SC's supplies are obtained locally and internationally. Being involved in
import and export activities, the SC is subjected to currency fluctuation risk.
Based on the historical financial data, the SC's overall payment habit is
average. There is no legal suit against the SC.
This industry shows an upward trend and this trend is likely to sustain in the
near future. With the promising outlook of the industry performance, the SC
business potential should be favourable.
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. |
|
KL-KEPONG COCOA
PRODUCTS SDN BHD |
|
For The Year
Ended 30-09-2006 |
|
|
|
|
|
|
|
2006 |
2005 |
2004 |
|
|
MYR |
MYR |
MYR |
|
|
|
|
|
|
|
|
|
|
|
TURNOVER |
240,571,000 |
277,211,000 |
271,917,000 |
|
|
========== |
========== |
========== |
|
PROFIT/(LOSS) FROM OPERATIONS |
16,913,000 |
38,112,000 |
23,944,000 |
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
PROFIT/(LOSS) BEFORE TAXATION |
16,913,000 |
38,112,000 |
23,944,000 |
|
Taxation |
<3,265,000> |
<8,798,000> |
<3,143,000> |
|
|
------------ |
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
As previous reported |
76,257,000 |
67,031,000 |
47,230,000 |
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
------------ |
------------ |
------------ |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
89,905,000 |
96,345,000 |
68,031,000 |
|
|
|
|
|
|
TRANSFER TO RESERVES - General |
- |
- |
<1,000,000> |
|
|
|
|
|
|
DIVIDENDS - Ordinary (paid & proposed) |
- |
<20,088,000> |
- |
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
RETAINED BY: The Company |
89,905,000 |
76,257,000 |
67,031,000 |
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
INTEREST EXPENSE (as per notes to PL) |
|
|
|
|
|
|
|
|
|
Other interest expenses |
376,000 |
137,000 |
110,000 |
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
BALANCE SHEET
|
KL-KEPONG COCOA
PRODUCTS SDN BHD |
|
As At 30-09-2006 |
|
|
|
|
|
|
|
2006 |
2005 |
2004 |
|
|
MYR |
MYR |
MYR |
|
|
|
|
|
|
ASSET EMPLOYED: |
|
|
|
|
FIXED ASSETS |
87,898,000 |
46,765,000 |
34,868,000 |
|
LONG TERM INVESTMENTS/OTHER ASSETS |
|
|
|
|
Subsidiary companies |
30,000 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
------------ |
------------ |
------------ |
|
|
|
|
|
|
TOTAL LONG TERM ASSETS |
------------ |
------------ |
------------ |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks |
113,558,000 |
82,227,000 |
64,383,000 |
|
|
|
|
|
|
Trade debtors |
18,696,000 |
11,204,000 |
15,215,000 |
|
Other debtors, deposits & prepayments |
1,073,000 |
3,575,000 |
6,651,000 |
|
Short term deposits |
1,500,000 |
1,450,000 |
6,500,000 |
|
|
|
|
|
|
Amount due from subsidiary
companies |
- |
112,000 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances |
529,000 |
2,446,000 |
1,110,000 |
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Trade creditors |
3,199,000 |
1,572,000 |
1,590,000 |
|
Other creditors & accruals |
10,014,000 |
7,721,000 |
9,385,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other borrowings |
- |
7,000,000 |
14,000,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to holding companies |
1,214,000 |
775,000 |
- |
|
Amounts owing to subsidiary
companies |
864,000 |
- |
6,000 |
|
Amounts owing to related companies |
231,000 |
123,000 |
153,000 |
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation |
64,000 |
2,538,000 |
954,000 |
|
|
|
|
|
|
amount due to ultimate holding company |
35,175,000 |
189,000 |
6,001,000 |
|
export credit refinancing |
28,000,000 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
------------ |
------------ |
------------ |
|
NET CURRENT ASSETS/(LIABILITIES) |
------------ |
------------ |
------------ |
|
TOTAL NET ASSETS |
------------ |
------------ |
------------ |
|
|
|
|
|
|
FINANCED BY: |
|
|
|
|
|
|
|
|
|
SHARE CAPITAL |
|
|
|
|
Ordinary share capital |
36,000,000 |
35,000,000 |
15,000,000 |
|
Preference share capital |
- |
1,000,000 |
1,000,000 |
|
TOTAL SHARE CAPITAL |
------------ |
------------ |
------------ |
|
|
|
|
|
|
RESERVES |
|
|
|
|
Share premium |
9,000,000 |
9,000,000 |
9,000,000 |
|
Capital reserve |
4,000,000 |
4,000,000 |
4,000,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward |
89,905,000 |
76,257,000 |
67,031,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation |
5,618,000 |
2,604,000 |
607,000 |
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
------------ |
------------ |
------------ |
|
|
144,523,000 |
127,861,000 |
96,638,000 |
|
|
========== |
========== |
========== |
|
|
|
|
|
FINANCIAL RATIOS
|
KL-KEPONG COCOA
PRODUCTS SDN BHD |
|
As At 30-09-2006 |
|
|
|
|
|
|
|
2006 |
2005 |
2004 |
|
|
MYR |
MYR |
MYR |
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS |
|
|
|
|
Cash |
2,029,000 |
3,896,000 |
7,610,000 |
|
Net Liquid Funds |
2,029,000 |
3,896,000 |
7,610,000 |
|
Net Liquid Assets |
<56,963,000> |
<1,131,000> |
<2,613,000> |
|
Net Current Assets/(Liabilities) |
56,595,000 |
81,096,000 |
61,770,000 |
|
Net Tangible Assets |
144,523,000 |
127,861,000 |
96,638,000 |
|
Net Monetary Assets |
<62,581,000> |
<3,735,000> |
<3,220,000> |
|
|
|
|
|
|
BALANCE SHEET ITEMS |
|
|
|
|
Total Borrowings |
0 |
7,000,000 |
14,000,000 |
|
Total Liabilities |
84,379,000 |
22,522,000 |
32,696,000 |
|
Total Assets |
223,284,000 |
147,779,000 |
128,727,000 |
|
Net Assets |
144,523,000 |
127,861,000 |
96,638,000 |
|
Net Assets Backing |
138,905,000 |
125,257,000 |
96,031,000 |
|
Shareholders" Funds |
138,905,000 |
125,257,000 |
96,031,000 |
|
Total Share Capital |
36,000,000 |
36,000,000 |
16,000,000 |
|
Total Reserves |
102,905,000 |
89,257,000 |
80,031,000 |
|
|
|
|
|
|
LIQUIDITY(Times) |
|
|
|
|
Cash Ratio |
0.03 |
0.20 |
0.24 |
|
Liquid Ratio |
0.28 |
0.94 |
0.92 |
|
Current Ratio |
1.72 |
5.07 |
2.92 |
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
|
Stock Ratio |
172 |
108 |
86 |
|
Debtors Ratio |
28 |
15 |
20 |
|
Creditors Ratio |
5 |
2 |
2 |
|
|
|
|
|
|
SOLVENCY RATIOS (Times) |
|
|
|
|
Gearing Ratio |
0 |
0.06 |
0.15 |
|
Liabilities Ratio |
0.61 |
0.18 |
0.34 |
|
Times Interest Earned Ratio |
45.98 |
279.19 |
218.67 |
|
|
|
|
|
|
PERFORMANCE RATIO (%) |
|
|
|
|
Operating Profit Margin |
7.03 |
13.75 |
8.81 |
|
Net Profit Margin |
5.67 |
10.57 |
7.65 |
|
Return On Net Assets |
11.96 |
29.91 |
24.89 |
|
Return On Capital Employed |
11.96 |
29.91 |
24.89 |
|
Return On Shareholders'
Funds/Equity |
9.83 |
23.40 |
21.66 |
|
Dividend Pay Out Ratio (Times) |
0 |
0.69 |
0 |
|
|
|
|
|
|
NOTES TO ACCOUNTS |
|
|
|
|
Contingent Liabilities |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)