%20SDN%20BHD%2030-Jan-2008_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
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Report Date : |
30.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHIN HEONG (PG) SDN BHD |
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Formerly Known As : |
CHIN HEONG (B.W.) SDN BHD |
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Registered Office : |
10-01, Wisma Suria, 7010 Jalan Kampung Gajah, 12200 Butterworth, Pulau Pinang |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
13/09/1993 |
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Com. Reg. No.: |
276151-X |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Wholesale And Retail Of Spices |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
* Adopted
abbreviations : SC - Subject
Company (the comp any enquired by you)
N/A - Not Applicable
EXECUTIVE
SUMMARY
REGISTRATION NO. :276151-X
COMPANY NAME CHIN HEONG (PG) SDN BHD
FORMER NAME :CHIN HEONG (B.W.) SDN BHD (19/11/1993)
INCORPORATION DATE :13/09/1993
COMPANY STATUS :EXIST
LEGAL STATUS :PRIVATE LIMITED
LISTED STATUS :NO
REGISTERED ADDRESS :10-01, WISMA SURIA, 7010 JALAN KAMPUNG GAJAH, 12200
BUTTERWORTH, PULAU PINANG, MALAYSIA.
BUSINESS ADDRESS :PLOT 1, LORONG INDUSTRY RINGAN 1, JURU ESTATE, 14100 SIMPANG
AMPAT, PULAU PINANG, MALAYSIA.
TEL.NO. :04-5082336
FAX.NO. :04-5081788
CONTACT PERSON :TEH ENG JOO ( MANAGING DIRECTOR )
INDUSTRY CODE :51239
PRINCIPAL ACTIVITY :WHOLESALE AND RETAIL OF SPICES
AUTHORISED CAPITAL :MYR
500,000.00 DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL:MYR 500,000.00 DIVIDED INTO
ORDINARY SHARES 500,000 CASH OF MYR 1.00 EACH.
SALES :MYR 21,692,849 [2006]
NET WORTH :MYR 5,867,487 [2006]
STAFF STRENGTH :20 [2008]
BANKER (S) :HSBC BANK MALAYSIA BHD
LITIGATION :CLEAR
FINANCIAL CONDITION :STRONG
PAYMENT :PROMPT
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) wholesale and retail of spices.
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. TEH ENG JOO + |
7-09, PANTAI APARTMENT, JALAN WISMA PANTAI, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA. |
600601-07-5403 5909553 |
250,000.00 |
|
MR. TEH ENG CHIAT + |
7, TINGKAT BULAN 2, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA. |
610916-07-5191 6257538 |
250,000.00 |
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--------------- |
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500,000.00 |
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============ |
+ Also Director
DIRECTORS
DIRECTOR 1
Name Of Subject :MR. TEH ENG JOO
Address :7-09, PANTAI APARTMENT, JALAN WISMA PANTAI, 12200 BUTTERWORTH, PULAU
PINANG, MALAYSIA.
IC / PP No :5909553
New IC No :600601-07-5403
Date of Birth :01/06/1960
Nationality :MALAYSIAN CHINESE
DIRECTOR 2
Name Of Subject :MR. TEH ENG CHIAT
Address :7, TINGKAT BULAN 2, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
IC / PP No :6257538
New IC No :610916-07-5191
Date of Birth :16/09/1961
Nationality :MALAYSIAN CHINESE
MANAGEMENT
1) Name of Subject :TEH ENG JOO
Position :MANAGING DIRECTOR
AUDITOR
Auditor : A LIM & ASSOCIATES
Auditor' Address :16, JALAN KAMPUNG KASTAM, 12300 BUTTERWORTH, PULAU PINANG,
MALAYSIA.
COMPANY
SECRETARIES
1) Company Secretary :MS. LOH GAAK BOYE
IC / PP No :4603687
New IC No :540402-07-5230
Address :26, JALAN PANTAI JERJAK 5, TAMAN SAWKIT, 11900 BAYAN LEPAS, PULAU PINANG, MALAYSIA.
2) Company Secretary :MR. LIM SIN HIN
IC / PP No :4093292
New IC No :430725-07-5019
Address :10, LORONG LEMBAH PERMAI 3, 11200 TANJONG BUNGAH, PULAU PINANG, MALAYSIA.
BANKING
Banking relations are maintained principally with :
1) Name :HSBC BANK MALAYSIA BHD
The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE
(S)
ENCUMBRANCE 1
Date of Creation :24/10/1994
Description Of Charge :LETTER OF PLEDGE
Amount Secured :O/D
Description Of Property Affected :FIXED & FLOATING CHARGE
Name & Address Of Chargee :HONGKONG BANK MALAYSIA BHD
1 LEBUH DOWNING, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.
Form 40 Dated 20/01/1995
Registered and Numbered 1 In The Register of Charges
ENCUMBRANCE 2
Date of Creation :24/10/1994
Description Of Charge :MEMO OF DEPOSIT
Amount Secured :O/D
Description Of Property Affected :FD
Name & Address Of Chargee :HONGKONG BANK MALAYSIA BHD
1 LEBUH DOWNING, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.
Form 40 Dated 20/01/1995
Registered and Numbered 2 In The Register of Charges
ENCUMBRANCE 3
Date of Creation :24/10/1994
Description Of Charge :AGREEMENT
Amount Secured :O/D
Description Of Property Affected:FIXED & FLOATING CHARGE
Name & Address Of Chargee :HONGKONG BANK MALAYSIA BHD
1 LEBUH DOWNING, 10300 PULAU PINANG, PULAU PINANG, MALAYSIA.
Form 40 Dated 20/01/1997
Registered and Numbered 3 In The Register of Charges
ENCUMBRANCE 4
Date of Creation :15/10/2003
Description Of Charge :N/A
Amount Secured :O/D
Description Of Property Affected :N/A
Name & Address Of Chargee :HSBC BANK MALAYSIA BHD
Form 40 Dated
Registered and Numbered 5 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 :NO
Percentage:0%
Overseas :YES
Percentage:100%
Import Countries :CHINA,INDIA,CANADA,UNITED KINGDOM
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:80%
Domestic Markets :PENINSULAR MALAYSIA
Overseas: YES
Percentage:20%
Export Market :INDONESIA, THAILAND
Credit Term :30 - 60 DAYS
Payment Mode :CHEQUES
Type of Customer :RETAIL,SUPERMARKETS,MINI-MARKETS,WALK IN CUSTOMERS
OPERATIONS
Goods Traded :SPICES
Competitor(s) :A CLOUET & COMPANY (KUALA LUMPUR) SDN BHD
HARPERS TRADING (MALAYSIA) SDN BHD
LUN HENG SDN BHD
MAGRI FOODS SDN BHD
SUSHI KIN SDN BHD
Total Number of Employees:
YEAR 2008 2007 2006 2005
GROUP N/A N/A N/A N/A
COMPANY 20 16 13 12
Branch :NO
Other Information:
The SC is principally engaged in the (as a / as an) wholesale and retail of
spices.
The SC mainly sells two types of spices as follows:
1) Whole Spice - Black pepper, cummin seed, nutmeg, cardamon, fennal seed,
poppy seed, chilly, garlic flakes, star ani seed, cinnamon bark, ginger, white
pepper, cloves, mace, tumeric and others.
2) Ground Spice - Black pepper powder, fenugreek powder, garam masala, onion
powder, briyani masala, fish curry powder, kurma curry powder, star ani seed
powder, cardamon powder, fish head curry powder, keema masala, tumeric powder,
chilly powder, five spice powder, lemon grass powder, tandoori masala, cinnamon
bark powder, galangal powder, mace powder, vindaloo masala, corriander powder,
garlic powder, meat curry powder, white pepper powder, cummin seed powder,
ginger powder and nutmeg powder etc.
The SC has more than 100 types of products.
The SC normally spent about RM 12,000 to RM 15,000 to purchase the spices every
month.
The SC has a store located at the same premises to keep stocks.
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 :006045082336/5083228
Current Telephone Number :04-5082336
Match :YES
Address Provided by Client :PLOT NO 1, LORONG INDUSTRY RIGON-1 JURU 14000 BUKIT MERTAJAM PW
Current Address :PLOT 1, LORONG INDUSTRY RINGAN 1, JURU ESTATE, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.
Match :NO
Latest Financial Accounts :YES
Other Investigations
We conducted an interview with
one of the SC's Sales staff. She revealed some relevant information on the SC.
FINANCIAL COMMENTS
Profitability:
Turnover : Increased [ 25.53% ]
Profit/(Loss) Before Tax : Increased [ 153.41% ]
Return on Shareholder Funds : Acceptable [ 11.70% ]
Return on Net Assets : Acceptable [ 15.31% ]
The higher turnover could be attributed to the favourable market condition and
the SC could be gaining the market share progressively. The higher profit could
be attributed to the increase in turnover. The SC's management had generated
acceptable return for its shareholders using its assets.
Working Capital Control:
Stock Ratio : Favourable [ 26 Days ]
Debtors Ratio : Acceptable [ 64 Days ]
Creditors Ratio : Favourable [ 18 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. 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 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 [ 2.40 Times ]
Current Ratio : Favourable [ 3.02 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 [ 151.68 Times ]
Gearing Ratio : Favourable [ 0.03 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 was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Accessment:
Generally, the SC's performance
has improved with higher turnover and profit. 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 as a
lowly geared company, will be more secured compared to those highly geared
companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : STRONG
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 |
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Gross Domestic Products ( % ) |
7.1 |
5.3 |
5.8 |
6.0 |
6.5 |
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Domestic Demand ( % ) |
7.5 |
7.3 |
7.0 |
9.0 |
6.8 |
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Private Expenditure ( % ) |
13.1 |
9.5 |
7.0 |
8.6 |
8.2 |
|
Consumption ( % ) |
10.5 |
9.2 |
7.1 |
9.0 |
7.9 |
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Investment ( % ) |
25.8 |
8.5 |
7.0 |
7.1 |
9.5 |
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Public Expenditure ( % ) |
<2.1> |
3.6 |
6.8 |
10.1 |
3.2 |
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Consumption ( % ) |
6.0 |
5.4 |
5.0 |
10.8 |
5.5 |
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Investment ( % ) |
<8.7> |
1.9 |
8.9 |
9.3 |
0.5 |
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Balance of Trade ( MYR Million ) |
80,663 |
99,760 |
108,192 |
99,965 |
99,599 |
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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 |
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|
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 ( % ) |
- |
- |
- |
- |
- |
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|
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 |
- |
- |
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Registration of New Business ( No. ) |
189,206 |
193,095 |
216,147 |
- |
- |
|
Registration of New Business ( % ) |
4.6 |
2.1 |
11.9 |
- |
- |
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Business Dissolved ( No. ) |
51,301 |
73,355 |
52,879 |
- |
- |
|
Business Dissolved ( % ) |
7.0 |
43.0 |
<27.9> |
- |
- |
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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 |
- |
- |
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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 |
- |
- |
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Individual Bankruptcy ( % ) |
31.6 |
<2.4> |
<14.3> |
- |
- |
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INDUSTRIES ( % of Growth ): |
2004 |
2005 |
2006 |
2007* |
2008** |
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|
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 |
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** Forecast |
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# Based On Manufacturing Production Index |
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INDUSTRY COMMENTS
MSIC CODE
51239 : Wholesale of other foodstuffs e.g mee,kueh teow, wantan skin and related products,cooking oil, tinned food, etc
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
COMMENTS
Incorporated in 1993, the SC is a private limited company, focusing on
wholesale and retail of spices. Over the years, the SC has a paid up capital of
RM500,000. With this paid up capital, the SC's management should put more efforts
in its business operation to keep its business going. Through years'
establishment, the SC should have built up pretty sound supply channels. Under
the control of Teh's family members, the SC's business position in the market
is considered quite stable.
Apart from the local market, the SC also has business operations in other
countries. The wider range of its market segments has benefited the SC in terms
of higher earnings and minimized its business risk. Having a stable customer
network through its years of establishment, the SC's future prospect is bright.
Presently, the SC has a work force of 20 employees in the operations. Its
management capability is regarded as average.
During the financial year 2006, the SC turnover and pre-tax profit had increased
to RM21,692,849 and RM901,792 respectively. Return on shareholders' funds is at
an acceptable level, indicating that the SC was efficient in utilising its
funds to generate return. Besides that, the SC is in a good liquidity position
and it is able to repay its short term obligations. Being a lowly geared
company, the SC faces low financial risk. The overall financial performance of
the SC is strong. A networth of RM5.87 million allows the SC to maintain its
business in the near term.
Our check revealed that the SC's supplies are 100% sourced from overseas
countries. As an imported oriented company, its forex exposure is high. A small
movement in currency exchange rates would result in a change in operating
profit or costs.
Based on its financial historical data, the SC's pattern of payment habit is
prompt and it is clear of litigation.
The food industry continues to grow and the growth prospect is bright. With the
promising outlook of the industry, the SC should be able to further enhance its
business.
In view of its strong financial performance and based on our assessment, we
recommend credit be granted to the SC promptly.
PROFIT AND LOSS ACCOUNT
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
CHIN HEONG (PG)
SDN BHD
For The Year Ended 31-December-2006
|
|
|
|
|
|
2006 |
2005 |
|
|
MYR |
MYR |
|
|
|
|
|
|
|
|
|
TURNOVER |
21,692,849 |
17,280,444 |
|
|
========== |
========== |
|
PROFIT/(LOSS) FROM OPERATIONS |
901,792 |
355,867 |
|
|
|
|
|
|
------------ |
------------ |
|
PROFIT/(LOSS) BEFORE TAXATION |
901,792 |
355,867 |
|
Taxation |
<215,509> |
<53,971> |
|
|
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
|
|
|
|
|
------------ |
------------ |
|
As previous reported |
4,681,204 |
4,379,308 |
|
|
|
|
|
|
------------ |
------------ |
|
|
------------ |
------------ |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
5,367,487 |
4,681,204 |
|
|
|
|
|
|
------------ |
------------ |
|
RETAINED BY: The Company |
5,367,487 |
4,681,204 |
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
INTEREST EXPENSE (as per notes to PL) |
|
|
|
|
|
|
|
Hire purchase |
5,985 |
1,546 |
|
|
|
|
|
|
------------ |
------------ |
|
|
|
|
BALANCE SHEET
|
CHIN HEONG (PG)
SDN BHD |
|
As At
31-December-2006 |
|
|
|
|
|
|
2006 |
2005 |
|
|
MYR |
MYR |
|
|
|
|
|
ASSET EMPLOYED: |
|
|
|
FIXED ASSETS |
960,001 |
733,434 |
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS |
------------ |
------------ |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Stocks |
1,535,952 |
1,490,017 |
|
|
|
|
|
Trade debtors |
3,793,486 |
2,173,883 |
|
Other debtors, deposits &
prepayments |
543,431 |
920,448 |
|
Short term deposits |
548,642 |
531,955 |
|
|
|
|
|
|
|
|
|
Cash & bank balances |
658,288 |
996,515 |
|
|
|
|
|
tax recoverable |
347,112 |
267,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
Trade creditors |
1,067,886 |
602,690 |
|
Other creditors & accruals |
1,253,116 |
800,943 |
|
Hire purchase & lease
creditors |
106,830 |
7,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to director |
28,883 |
507,211 |
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
------------ |
------------ |
|
NET CURRENT ASSETS/(LIABILITIES) |
------------ |
------------ |
|
TOTAL NET ASSETS |
------------ |
------------ |
|
|
|
|
|
FINANCED BY: |
|
|
|
|
|
|
|
SHARE CAPITAL |
|
|
|
Ordinary share capital |
500,000 |
500,000 |
|
|
|
|
|
TOTAL SHARE CAPITAL |
------------ |
------------ |
|
|
|
|
|
RESERVES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward |
5,367,487 |
4,681,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors |
53,830 |
- |
|
Deferred taxation |
8,880 |
14,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
|
------------ |
------------ |
|
|
5,930,197 |
5,195,443 |
|
|
========== |
========== |
|
|
|
|
FINANCIAL RATIOS
|
CHIN HEONG (PG)
SDN BHD |
|
As At
31-December-2006 |
|
|
|
|
|
|
2006 |
2005 |
|
|
MYR |
MYR |
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS |
|
|
|
Cash |
1,206,930 |
1,528,470 |
|
Net Liquid Funds |
1,206,930 |
1,528,470 |
|
Net Liquid Assets |
3,434,244 |
2,971,992 |
|
Net Current Assets/(Liabilities) |
4,970,196 |
4,462,009 |
|
Net Tangible Assets |
5,930,197 |
5,195,443 |
|
Net Monetary Assets |
3,371,534 |
2,957,753 |
|
|
|
|
|
BALANCE SHEET ITEMS |
|
|
|
Total Borrowings |
160,660 |
7,945 |
|
Total Liabilities |
2,519,425 |
1,933,028 |
|
Total Assets |
8,386,912 |
7,114,232 |
|
Net Assets |
5,930,197 |
5,195,443 |
|
Net Assets Backing |
5,867,487 |
5,181,204 |
|
Shareholders" Funds |
5,867,487 |
5,181,204 |
|
Total Share Capital |
500,000 |
500,000 |
|
Total Reserves |
5,367,487 |
4,681,204 |
|
|
|
|
|
LIQUIDITY(Times) |
|
|
|
Cash Ratio |
0.49 |
0.80 |
|
Liquid Ratio |
2.40 |
2.55 |
|
Current Ratio |
3.02 |
3.33 |
|
|
|
|
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
Stock Ratio |
26 |
31 |
|
Debtors Ratio |
64 |
46 |
|
Creditors Ratio |
18 |
13 |
|
|
|
|
|
SOLVENCY RATIOS (Times) |
|
|
|
Gearing Ratio |
0.03 |
0 |
|
Liabilities Ratio |
0.43 |
0.37 |
|
Times Interest Earned Ratio |
151.68 |
231.19 |
|
|
|
|
|
PERFORMANCE RATIO (%) |
|
|
|
Operating Profit Margin |
4.16 |
2.06 |
|
Net Profit Margin |
3.16 |
1.75 |
|
Return On Net Assets |
15.31 |
6.88 |
|
Return On Capital Employed |
15.04 |
6.87 |
|
Return On Shareholders' Funds/Equity |
11.70 |
5.83 |
|
Dividend Pay Out Ratio (Times) |
0 |
0 |
|
|
|
|
|
NOTES TO ACCOUNTS |
|
|
|
Contingent Liabilities |
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%)