MIRA
INFORM REPORT
|
Report Date : |
28.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
PALM - OLEO SDN BHD |
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|
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Registered Office : |
Wisma Taiko, 1 Jalan S.P. Seenivasagam, 30000 Ipoh, Perak |
|
|
|
|
Country : |
Malaysia |
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|
|
|
Financials (as on) : |
30.09.2006 |
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|
|
Date of Incorporation : |
23.08.1989 |
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Com. Reg. No.: |
185886-V |
|
|
|
|
Legal Form : |
Private Limited Company |
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|
|
|
Line of Business : |
Manufacturing of Fatty acid Product |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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|
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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 .:
185886-V
COMPANY NAME : PALM-OLEO
SDN BHD
FORMER NAME :
N/A
INCORPORATION DATE :
23/08/1989
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 1245, KUNDANG INDUSTRIAL ESTATE, 48020 RAWANG, SELANGOR,
MALAYSIA.
TEL.NO. :
03-60344800
FAX.NO. :
03-60341279
EMAIL :
enquiry.pol@palmoleo.com.my
WEB SITE :
www.palmoleo.com.my
CONTACT PERSON :
GOH ENG CHOOR ( EXECUTIVE DIRECTOR )
INDUSTRY CODE :
15149
PRINCIPAL ACTIVITY :
MANUFACTURING OF FATTY ACID PRODUCT
AUTHORISED CAPITAL : MYR
500,000,000.00 DIVIDED INTO
ORDINARY SHARE 500,000,000.00 OF MYR 1.00
EACH.
ISSUED AND PAID UP CAPITAL:MYR
141,500,000.00 DIVIDED INTO
ORDINARY
SHARES 141,500,000 CASH OF MYR 1.00 EACH.
SALES :MYR
646,413,000 [2006]
NET WORTH :MYR
312,657,000 [2006]
STAFF STRENGTH :
300 [2008]
BANKER (S) :
MALAYAN BANKING BHD
LITIGATION :
CLEAR
FINANCIAL CONDITION : STRONG
PAYMENT :
GOOD
MANAGEMENT CAPABILITY : AVERAGE
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) manufacturing of fatty acid 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 BERHAD, 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 |
112,900,000.00 |
|
MITSUI & CO LTD |
2-1, OHTEMACHI,
1-CHOME, CHIYODA-KU, TOKYO, JAPAN. |
|
9,295,000.00 |
|
ASAHI DENKA
KOGYO K.K. |
2-35 HISASIOKU,
7-CHOME, ARAKAWA-KU, TOKYO, JAPAN. |
|
8,937,500.00 |
|
MIYOSHI OIL & FAT CO LTD |
66-1 HORIKIRI, 4-CHOME,
KATSUSHIKA-KU, TOKYO, JAPAN. |
|
8,937,500.00 |
|
MITSUI & CO LTD |
REGENT OFFICE BLOCK, 160 JALAN BUKIT BINTANG, 5TH FLOOR, 55100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA. |
992287 |
1,430,000.00 |
|
|
|
|
--------------- |
|
|
|
|
141,500,000.00 |
|
|
|
|
============ |
+ Also Director
DIRECTORS
DIRECTOR 1
Name Of Subject : DATO' SERI LEE OI HIAN
Address :
55, JALAN KELAB GOLF, 30350 IPOH, PERAK, MALAYSIA.
IC / PP No :
8023079
New IC No :
510207-08-5743
Date of Birth :
07/02/1951
Nationality :
MALAYSIAN CHINESE
Date of Appointment :
24/12/1990
DIRECTOR 2
Name Of Subject : MR.
YEOW AH KOW
Address :
36, JALAN USJ 5/3, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No :
8391290
New IC No : 540203-05-5085
Date of Birth :
03/02/1954
Nationality :
MALAYSIAN CHINESE
Date of Appointment :
16/03/1998
DIRECTOR 3
Name Of Subject :MR. GOH
ENG CHOOR
Address :77, JALAN JELAI 3, PANDAMARAN, 42000 PELABUHAN KLANG, SELANGOR,.
MALAYSIA
IC / PP No :5485745
New IC No :571002-10-5199
Date of Birth :02/10/1957
Nationality :MALAYSIAN
CHINESE
DIRECTOR 4
Name Of Subject :
OLIVIERJEAN-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
DIRECTOR 5
Name Of Subject : NOBORU
NAGASAWA
Address :
6C-1-11, CONDOMINIUM 8, 6 JALAN AMPANG, HILIR, 55000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No :
TZ6062800
Date of Birth :
23/07/1963
Nationality :
JAPANESE
Remark :ALT
DIR TO AKITA DAISABURO
DIRECTOR 6
Name Of Subject :MAMORU
SUGISAKI
Address :2209-1, GOI ITIHARA-SI, CHIBA-PREF, JAPAN.
IC / PP No :TE8995630
Date of Birth :12/06/1945
Nationality :JAPANESE
DIRECTOR 7
Name Of Subject : AKITA
DAISABURO
Address :
6-3-39, TSUCHIHASHI MIYAMAE-KE, KAWASAKI-SHI, KANAGAWA, 216-0005,
JAPAN.
IC / PP No :MR4065834
Date of Birth :19/11/1953
Nationality :JAPANESE
DIRECTOR 8
Name Of Subject : KAZUO
HOSODA
Address : 3-786-3, MIYASHIRO-MACHI MIYASHIRO, MINAMI-SAITAMAGUN, SAITAMA,
JAPAN.
IC / PP No :
TH1677689
Date of Birth :25/02/1949
Nationality :JAPANESE
Date of Appointment :30/05/2007
DIRECTOR 9
Name Of Subject :MASAHIRO
HAYASHI
Address :104,
HOLLAND ROAD, #01-04, DE LENTE, 278547, SINGAPORE.
IC / PP No :MR4693746
Date of Birth :14/11/1950
Nationality :JAPANESE
Remark :ALT
DIR MAMORU SUGISAKI
MANAGEMENT
1) Name of Subject :GOH ENG
CHOOR
Position :EXECUTIVE DIRECTOR
2) Name of Subject :YEOW AH
KOW
Position :DIRECTOR
AUDITOR
Auditor :KPMG
Auditor' Address :WISMA
KPMG, JALAN DUNGUN, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA
COMPANY SECRETARIES
1) 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 :27/11/1993
2) Company Secretary : MR. PUNG
KOK HOOI
IC / PP No :
A0410964
New IC No :660414-07-5357
Address :42,
JALAN WANGSA 2/2, TAMAN WANGSA PERMAI, KEPONG, 52200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Date of Appointment :01/09/2004
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
Percentage: 60%
Overseas :YES
Percentage: 40%
Import Countries :ASIA
The SC refused to provide any name of trade/service supplier and we are unable
to conduct any trade enquiry. However, from financial historical data we
conclude that :
OVERALL PAYMENT HABIT
Prompt [ ] Good [ X ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 40%
Domestic Markets : MALAYSIA
Overseas : YES Percentage : 60%
Export Market : MIDDLE EAST, UNITED STATES, EUROPE
Credit Term : 30 DAYS
Payment
Mode : CHEQUES
Type of Customer : END USERS
OPERATIONS
Products manufactured :FATTY
ACIDS, GLYCERINE AND PALM OIL DERIVATIVES
Award :1
) MS ISO 9001 : 2000 Year :0
Competitor(s) :CENTRAL
EDIBLE OIL SDN BHD
MEWAHOLEO
INDUSTRIES SDN BHD
MM VITAOILS SDN
BHD
SMALLHOLDERS
EDIBLE OIL SDN BHD
SOON SOON OILMILLS
SDN BHD
Total Number of Employees:
YEAR 2008 2007 2006 2005
GROUP N/A N/A N/A N/A
COMPANY 300 300 347 348
Branch :NO
Other Information:
The SC is principally engaged in the (as a /
as an) manufacturing of fatty acid product.
The SC's products are mainly used for soap, detergent, food emulsifier,
varnishes, paints and others.
The SC uses the latest processing technology and online computer process system
on its production site.
The SC manufactures the products based on the customers' requirements.
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations
carried out on the SC indicated that :
Telephone Number Provided By Client :
N/A
Current Telephone Number :
03-60344800
Match :
N/A
Address Provided by Client :
LOT 1245, KUNDANG INDUSTRIAL ESTATE, 48020, RAWANG,
SELANGOR.
Current Address :
LOT 1245, KUNDANG INDUSTRIAL ESTATE, 48020 RAWANG,
SELANGOR, MALAYSIA.
Match :
YES
Latest Financial Accounts :YES
Other Investigations
We conducted an interview with
one of the SC's staff from Accounts Department, Ms Amy. She revealed some
information on the SC.
FINANCIAL COMMENTS
Profitability:
Turnover : Erratic [ 2004 – 2006 ]
Profit/(Loss) Before Tax : Decreased [ 2004 – 2006 ]
Return on Shareholder Funds : Unfavourable [ 9.34% ]
Return on Net Assets : Acceptable [ 11.23% ]
The fluctuating turnover reflects the fierce competition among the existing and
new market players. The dip in profit could be due to the stiff market
competition which reduced the SC's profit margin. 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 : Favourable [ 45 Days ]
Debtors Ratio : Favourable [ 37 Days ]
Creditors Ratio : Favourable [ 11 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The favourable debtors' days could be
due to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days. The
SC could be taking advantage of the cash discounts and also wanting to maintain
goodwill with its creditors.
Liquidity:
Liquid Ratio : Favourable [ 3.46 Times ]
Current Ratio : Favourable [ 5.61 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 : Nil [ 0.00 Times ]
Gearing Ratio : Favourable [ 0.00 Times ]
The SC's interest cover was nil as it did not pay any interest during the year.
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. 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. The SC did not make any interest payment during the
year. The SC was dependent on its shareholders' funds to finance its business
needs. 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: |
2004 |
2005 |
2006 |
2007* |
2008** |
|
|
|
|
|
|
|
|
Population ( Million) |
25.58 |
26.13 |
26.64 |
27.17 |
27.73 |
|
Gross Domestic Products ( % ) |
7.1 |
5.3 |
5.8 |
6.0 |
6.5 |
|
Domestic Demand ( % ) |
7.5 |
7.3 |
7.0 |
9.0 |
6.8 |
|
Private Expenditure ( % ) |
13.1 |
9.5 |
7.0 |
8.6 |
8.2 |
|
Consumption ( % ) |
10.5 |
9.2 |
7.1 |
9.0 |
7.9 |
|
Investment ( % ) |
25.8 |
8.5 |
7.0 |
7.1 |
9.5 |
|
Public Expenditure ( % ) |
<2.1> |
3.6 |
6.8 |
10.1 |
3.2 |
|
Consumption ( % ) |
6.0 |
5.4 |
5.0 |
10.8 |
5.5 |
|
Investment ( % ) |
<8.7> |
1.9 |
8.9 |
9.3 |
0.5 |
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million ) |
80,663 |
99,760 |
108,192 |
99,965 |
99,599 |
|
Government Finance ( MYR Million ) |
<19,419> |
<18,684> |
<19,109> |
<19,948> |
<20,933> |
|
Government Finance to GDP / Fiscal Deficit ( % ) |
<4.3> |
<3.8> |
<3.3> |
<3.2> |
<3.1> |
|
Inflation ( % Change in Composite CPI) |
1.4 |
3.1 |
3.9 |
4.0 |
4.0 |
|
Unemployment Rate |
3.5 |
3.5 |
3.4 |
3.5 |
3.3 |
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion ) |
254 |
266 |
290 |
- |
- |
|
Average Risk-Weighted Capital Adequacy Ratio ( % ) |
13.84 |
13.63 |
12.91 |
- |
- |
|
Average 3 Months of Non-performing Loans ( % ) |
8.46 |
6.74 |
5.41 |
- |
- |
|
Average Base Lending Rate ( % ) |
5.99 |
6.00 |
6.61 |
- |
- |
|
Business Loans Disbursed( % ) |
10.5 |
8.7 |
<2.5> |
- |
- |
|
Foreign Investment ( MYR Million ) |
13,143.9 |
17,882.9 |
20,228.0 |
- |
- |
|
Consumer Loans ( % ) |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Registration of New Companies ( No. ) |
38,580 |
37,474 |
38,293 |
- |
- |
|
Registration of New Companies ( % ) |
6.8 |
<2.9> |
2.2 |
- |
- |
|
Liquidation of Companies ( No. ) |
3,334 |
3,069 |
8,647 |
- |
- |
|
Liquidation of Companies ( % ) |
<15.8> |
<7.9> |
181.8 |
- |
- |
|
|
|
|
|
|
|
|
Registration of New Business ( No. ) |
189,206 |
193,095 |
216,147 |
- |
- |
|
Registration of New Business ( % ) |
4.6 |
2.1 |
11.9 |
- |
- |
|
Business Dissolved ( No. ) |
51,301 |
73,355 |
52,879 |
- |
- |
|
Business Dissolved ( % ) |
7.0 |
43.0 |
<27.9> |
- |
- |
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit ) |
380.6 |
400.8 |
374.1 |
- |
- |
|
Cellular Phone Subscribers ( Million ) |
14.6 |
18.5 |
19.5 |
21.3 |
- |
|
Tourist Arrival ( Million Persons ) |
15.7 |
16.7 |
17.5 |
20.1 |
- |
|
Hotel Occupancy Rate ( % ) |
60.8 |
63.6 |
64.8 |
- |
- |
|
|
|
|
|
|
|
|
Credit Cards Spending ( % ) |
19.3 |
13.9 |
15.4 |
- |
- |
|
Bad Cheque Offenders (No.) |
70,465 |
57,316 |
36,555 |
- |
- |
|
Individual Bankruptcy ( No.) |
16,251 |
15,868 |
13,596 |
- |
- |
|
Individual Bankruptcy ( % ) |
31.6 |
<2.4> |
<14.3> |
- |
- |
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ): |
2004 |
2005 |
2006 |
2007* |
2008** |
|
|
|
|
|
|
|
|
Agriculture |
5.0 |
2.5 |
5.3 |
3.1 |
3.5 |
|
Palm Oil |
3.9 |
7.1 |
5.8 |
<0.6> |
- |
|
Rubber |
16.5 |
<2.9> |
12.6 |
1.0 |
- |
|
Forestry & Logging |
4.3 |
2.0 |
<0.4> |
2.8 |
- |
|
Fishing |
5.5 |
<0.4> |
9.3 |
5.2 |
- |
|
Other Agriculture |
2.4 |
3.2 |
5.3 |
7.0 |
- |
|
Industry Non-Performing Loans ( MYR Million
) |
620.3 |
563.7 |
516.5 |
487.3 |
0 |
|
% of Industry Non-Performing Loans |
1.38 |
1.19 |
1.06 |
1.08 |
0 |
|
|
|
|
|
|
|
|
Mining |
3.9 |
0.8 |
<0.4> |
3.3 |
4.0 |
|
Oil & Gas |
4.5 |
1.6 |
4.6 |
- |
- |
|
Other Mining |
<8.0> |
<1.0> |
5.1 |
- |
- |
|
Industry Non-performing Loans ( MYR Million
) |
62.6 |
68.8 |
55.4 |
42.2 |
- |
|
% of Industry Non-performing Loans |
0.1 |
0.1 |
0.1 |
0.1 |
- |
|
|
|
|
|
|
|
|
Manufacturing # |
9.8 |
5.1 |
7.3 |
3.1 |
3.8 |
|
Exported-oriented Industries |
15.5 |
3.0 |
11.1 |
<1.9> |
- |
|
Electrical & Electronics |
17.8 |
3.6 |
13.4 |
3.0 |
- |
|
Rubber Products |
14.8 |
2.4 |
0.4 |
8.0 |
- |
|
Wood Products |
12.7 |
0.9 |
0.7 |
3.3 |
- |
|
Textiles & Apparel |
<11.7> |
<4.4> |
12.6 |
<10.1> |
- |
|
Domestic-oriented Industries |
9.7 |
6.9 |
5.0 |
5.3 |
- |
|
Food, Beverages & Tobacco |
3.8 |
7.7 |
4.8 |
5.6 |
- |
|
Chemical & Chemical Products |
14.6 |
6.9 |
1.7 |
9.2 |
- |
|
Plastic Products |
13.5 |
18.6 |
21.3 |
<3.6> |
- |
|
Iron & Steel |
2.7 |
<6.7> |
<6.9> |
17.5 |
- |
|
Fabricated Metal Products |
29.2 |
<7.5> |
20.0 |
26.2 |
- |
|
Non-metallic Mineral |
<4.8> |
<6.0> |
<1.9> |
6.6 |
- |
|
Transport Equipment |
8.6 |
10.4 |
5.3 |
<19.0> |
- |
|
Paper & Paper Products |
2.3 |
4.6 |
4.1 |
14.9 |
- |
|
Crude Oil Refineries |
<2.4> |
8.2 |
12.1 |
8.6 |
- |
|
Industry Non-Performing Loans ( MYR Million
) |
7,765.4 |
6,035.6 |
6,181.3 |
6,366.2 |
- |
|
% of Industry Non-Performing Loans |
17.3 |
12.7 |
12.7 |
14.1 |
- |
|
|
|
|
|
|
|
|
Construction |
<1.5> |
<1.6> |
<0.5> |
5.2 |
6.3 |
|
Industry Non-Performing Loans ( MYR Million ) |
5,547.7 |
5,172.7 |
5,527.3 |
5,116.7 |
- |
|
% of Industry Non-Performing Loans |
12.4 |
10.9 |
11.4 |
11.3 |
- |
|
|
|
|
|
|
|
|
Services |
6.8 |
6.6 |
7.2 |
9.0 |
8.6 |
|
Electric, Gas & Water |
8.1 |
5.5 |
5.2 |
4.6 |
5.0 |
|
Transport, Storage & Communication |
8.5 |
6.3 |
5.2 |
7.6 |
7.8 |
|
Wholesale, Retail, Hotel & Restaurant |
7.1 |
8.0 |
7.1 |
11.6 |
10.0 |
|
Finance, Insurance & Real Estate |
6.3 |
7.0 |
7.7 |
10.7 |
9.2 |
|
Government Services |
6.5 |
7.6 |
9.8 |
4.6 |
8.6 |
|
Other Services |
4.9 |
5.0 |
4.7 |
5.0 |
5.9 |
|
Industry Non-Performing Loans ( MYR Million
) |
8,913.7 |
8,716.8 |
11,593.2 |
10,207.8 |
- |
|
% of Industry Non-Performing Loans |
19.9 |
18.4 |
23.9 |
22.6 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary |
|
|
|
|
|
|
** Forecast |
|
|
|
|
|
|
# Based On Manufacturing Production Index |
|||||
|
|
|
|
|
|
|
INDUSTRY COMMENTS
MSIC CODE
15149 : Manufacture of other vegetable and animal oils and fats
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 1989, the SC is principally engaged in the manufacturing of
fatty acid products. Having been in the industry for 19 years, the SC should
have built up a good reputation in the market. With a large issued and paid up
capital of RM141,500,000 and strong backing from its established holding
company, the SC enjoys timely financial assistance should the needs arise. With
these favourable conditions, the SC has minimised its risk in the industry
compared to other players.
With its continuous expansion, the SC has slowly been expanding its business
operations to overseas countries such as Middle East, United States and Europe.
This global move should have benefited the SC in term of higher earnings and
lower its business risks. The SC is a large entity with a work force of 300.
Its business operation is headed by Goh Eng Choor and considered stable.
Overall the management capability of the SC is average.
During the financial year under review, the SC's business performance showed a
reverse trend as both its turnover and pre-tax profit have decreased compared
to the previous year. Its turnover has moderated by 4.17% to RM646,413,000
whilst its pre-tax profit dropped to RM39,148,000. Due to this reverse trend,
the SC has generated an unfavourable return on shareholders' funds indicating
that the management was inefficient in utilising its funds to generate return.
However, the SC possesses a good liquidity and low gearing ratio. With its good
liquidity position, the SC does not face working capital deficiency. Overall
financial risk of the SC is low. Moreover, with a healthy net worth standing at
RM312.66 million, the SC should be able to maintain its business in the near
terms.
Our investigation revealed that the SC imports its raw material from both local
and overseas market among Asia countries. Its long presence in the market has
built up a stable supplier base. Hence, it may not have problems in getting its
raw material when needs arise.
Based on the historical financial data, we concluded that the SC's payment
record is good.
The industry remains robust with continuing strong global demand for its
products. There is no doubt that the food industry is growing, in tandem with
the rising population. However, we are of the opinion that there are large
numbers of other companies in the same industry. With the SC's favourable
conditions, it should have acquired competitive edge from its competitors.
Based on the above condition, we recommend a fairly large amount of credit be
granted to the SC promptly.
PROFIT AND LOSS
ACCOUNT
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
PALM-OLEO SDN BHD
For The Year Ended
30-09-2006
|
|
|
|
|
|
|
2006 |
2005 |
2004 |
|
|
MYR |
MYR |
MYR |
|
|
|
|
|
|
|
|
|
|
|
TURNOVER |
646,413,000 |
674,565,000 |
615,240,000 |
|
|
========== |
========== |
========== |
|
PROFIT/(LOSS) FROM OPERATIONS |
39,148,000 |
47,358,000 |
48,219,000 |
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
PROFIT/(LOSS) BEFORE TAXATION |
39,148,000 |
47,358,000 |
48,219,000 |
|
Taxation |
<9,935,000> |
<5,261,000> |
<6,433,000> |
|
|
------------ |
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
As previous reported |
163,169,000 |
142,297,000 |
128,811,000 |
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
------------ |
------------ |
------------ |
|
PROFIT AVAILABLE FOR APPROPRIATIONS |
192,382,000 |
184,394,000 |
170,597,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS - Ordinary (paid & proposed) |
<21,225,000> |
<21,225,000> |
<28,300,000> |
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
RETAINED BY: The Company |
171,157,000 |
163,169,000 |
142,297,000 |
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
INTEREST EXPENSE (as per notes to PL) |
|
|
|
BALANCE SHEET
|
PALM-OLEO SDN
BHD |
|
As At 30-09-2006 |
|
|
|
|
|
|
|
2006 |
2005 |
2004 |
|
|
MYR |
MYR |
MYR |
|
|
|
|
|
|
ASSET EMPLOYED: |
|
|
|
|
FIXED ASSETS |
156,552,000 |
161,211,000 |
172,669,000 |
|
LONG TERM INVESTMENTS/OTHER ASSETS |
|
|
|
|
|
|
|
|
|
Associated companies |
21,500,000 |
11,500,000 |
1,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS |
------------ |
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS |
------------ |
------------ |
------------ |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks |
79,665,000 |
98,093,000 |
71,176,000 |
|
|
|
|
|
|
Trade debtors |
65,180,000 |
61,795,000 |
67,258,000 |
|
Other debtors, deposits &
prepayments |
2,923,000 |
1,831,000 |
1,559,000 |
|
Short term deposits |
29,100,000 |
33,289,000 |
21,550,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits with financial
institution |
- |
- |
5,000,000 |
|
Amount due from holding company |
5,000 |
- |
- |
|
|
|
|
|
|
Amount due from related companies |
3,804,000 |
2,700,000 |
788,000 |
|
Amount due from associated company |
23,142,000 |
6,944,000 |
7,569,000 |
|
|
|
|
|
|
Cash & bank balances |
1,649,000 |
1,034,000 |
1,448,000 |
|
|
|
|
|
|
tax recoverable |
1,997,000 |
4,100,000 |
1,715,000 |
|
ultimate holding company |
25,000 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Trade creditors |
18,759,000 |
27,534,000 |
21,441,000 |
|
Other creditors & accruals |
11,389,000 |
13,355,000 |
10,897,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to holding companies |
862,000 |
- |
- |
|
|
|
|
|
|
Amounts owing to related companies |
3,621,000 |
108,000 |
518,000 |
|
Amounts owing to associated
companies |
422,000 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others (please specify) |
1,932,000 |
1,931,000 |
1,579,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
------------ |
------------ |
------------ |
|
NET CURRENT ASSETS/(LIABILITIES) |
------------ |
------------ |
------------ |
|
TOTAL NET ASSETS |
------------ |
------------ |
------------ |
|
|
|
|
|
|
FINANCED BY: |
|
|
|
|
|
|
|
|
|
SHARE CAPITAL |
|
|
|
|
Ordinary share capital |
141,500,000 |
141,500,000 |
141,500,000 |
|
|
|
|
|
|
TOTAL SHARE CAPITAL |
------------ |
------------ |
------------ |
|
|
|
|
|
|
RESERVES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward |
171,157,000 |
163,169,000 |
142,297,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation |
35,900,000 |
34,900,000 |
34,000,000 |
|
|
|
|
|
|
|
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
------------ |
------------ |
------------ |
|
|
348,557,000 |
339,569,000 |
317,797,000 |
|
|
========== |
========== |
========== |
|
|
|
|
|
FINANCIAL RATIOS
|
PALM-OLEO SDN
BHD |
|
As At 30-09-2006 |
|
|
|
|
|
|
|
2006 |
2005 |
2004 |
|
|
MYR |
MYR |
MYR |
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS |
|
|
|
|
Cash |
30,749,000 |
34,323,000 |
22,998,000 |
|
Net Liquid Funds |
30,749,000 |
34,323,000 |
22,998,000 |
|
Net Liquid Assets |
90,840,000 |
68,765,000 |
72,452,000 |
|
Net Current Assets/(Liabilities) |
170,505,000 |
166,858,000 |
143,628,000 |
|
Net Tangible Assets |
348,557,000 |
339,569,000 |
317,797,000 |
|
Net Monetary Assets |
54,940,000 |
33,865,000 |
38,452,000 |
|
|
|
|
|
|
BALANCE SHEET ITEMS |
|
|
|
|
Total Borrowings |
0 |
0 |
0 |
|
Total Liabilities |
72,885,000 |
77,828,000 |
68,435,000 |
|
Total Assets |
385,542,000 |
382,497,000 |
352,232,000 |
|
Net Assets |
348,557,000 |
339,569,000 |
317,797,000 |
|
Net Assets Backing |
312,657,000 |
304,669,000 |
283,797,000 |
|
Shareholders" Funds |
312,657,000 |
304,669,000 |
283,797,000 |
|
Total Share Capital |
141,500,000 |
141,500,000 |
141,500,000 |
|
Total Reserves |
171,157,000 |
163,169,000 |
142,297,000 |
|
|
|
|
|
|
LIQUIDITY(Times) |
|
|
|
|
Cash Ratio |
0.83 |
0.80 |
0.67 |
|
Liquid Ratio |
3.46 |
2.60 |
3.10 |
|
Current Ratio |
5.61 |
4.89 |
5.17 |
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days) |
|
|
|
|
Stock Ratio |
45 |
53 |
42 |
|
Debtors Ratio |
37 |
33 |
40 |
|
Creditors Ratio |
11 |
15 |
13 |
|
|
|
|
|
|
SOLVENCY RATIOS (Times) |
|
|
|
|
Gearing Ratio |
0 |
0 |
0 |
|
Liabilities Ratio |
0.23 |
0.26 |
0.24 |
|
Times Interest Earned Ratio |
0 |
0 |
0 |
|
|
|
|
|
|
PERFORMANCE RATIO (%) |
|
|
|
|
Operating Profit Margin |
6.06 |
7.02 |
7.84 |
|
Net Profit Margin |
4.52 |
6.24 |
6.79 |
|
Return On Net Assets |
11.23 |
13.95 |
15.17 |
|
Return On Capital Employed |
11.23 |
13.95 |
15.17 |
|
Return On Shareholders'
Funds/Equity |
9.34 |
13.82 |
14.72 |
|
Dividend Pay Out Ratio (Times) |
0.73 |
0.50 |
0.68 |
|
|
|
|
|
|
NOTES TO ACCOUNTS |
|
|
|
|
Contingent Liabilities |
0 |
0 |
0 |
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%)