|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
64175-U
|
|
COMPANY NAME
|
:
|
PACIFIC OLEOCHEMICALS SDN BHD
|
|
FORMER NAME
|
:
|
AKZO NOBEL
OLEOCHEMICALS SDN BHD (10/05/2006)
AKZO & PACIFIC OLEOCHEMICALS SDN BHD (08/12/1994)
MALAYSIAN OLEO CHEMICALS SDN BHD (23/11/1988)
|
|
INCORPORATION DATE
|
:
|
11/11/1980
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
WISMA DLS, 6 JALAN JURUNILAI U1/20, HICOM-GLENMARIE INDUSTRIAL PARK,
40150 SHAH ALAM, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
PLO 285, JALAN PEKELILING TIMUR, 81707 PASIR GUDANG, JOHOR,
MALAYSIA.
|
|
TEL.NO.
|
:
|
07-2518000
|
|
FAX.NO.
|
:
|
07-2511066
|
|
CONTACT PERSON
|
:
|
TAN GEOK CHAI ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
24290 2411
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF OLEOCHEMICALS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
100,000,000.00 DIVIDED INTO
ORDINARY SHARE 100,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
20,000,000.00 DIVIDED INTO
ORDINARY SHARES 10,000,000 CASH AND 10,000,000 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 196,678,233 [2007]
|
|
NET WORTH
|
:
|
MYR 40,412,023 [2007]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
200 [2008]
|
|
|
|
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
oleochemicals.
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 LAM SOON PLANTATIONS SDN BHD, a
company incorporated in MALAYSIA.
The ultimate holding company of the SC is LAM SOON (M) BHD, a company
incorporated in MALAYSIA.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
LAM SOON PLANTATIONS SDN BHD
|
WISMA DLS, 6 JALAN JURUNILAI U1/20, HICOM-GLENMARIE INDUSTRIAL PARK,
40150 SHAH ALAM, SELANGOR, MALAYSIA.
|
40857
|
20,000,000.00
|
|
|
|
|
---------------
|
|
|
|
|
20,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. KHOO HENG SUAN
|
|
Address
|
:
|
21, JALAN SS 2/57, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
0869939
|
|
New IC No
|
:
|
470109-04-5509
|
|
Date of Birth
|
:
|
09/01/1947
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
15/12/1987
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. TAN GEOK CHAI
|
|
Address
|
:
|
44, JALAN SURIA 2, TAMAN SURIA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
4424813
|
|
New IC No
|
:
|
530404-01-5419
|
|
Date of Birth
|
:
|
04/04/1953
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
02/11/1999
|
DIRECTOR 3
|
Name Of Subject
|
:
|
LT. JEN. (B) DATO' RAJA ABDUL RASHID BIN RAJA BADIOZAMAN
|
|
Address
|
:
|
DL64, LORONG NILAM, TAMAN BUKIT AMPANG, JALAN BUKIT BELACAN, 68000
AMPANG, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
T0012220
|
|
New IC No
|
:
|
400718-08-5289
|
|
Date of Birth
|
:
|
18/07/1940
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR.MICHAEL WOO FONG MENG
|
|
Address
|
:
|
54, NAMLY AVENUE, 267625, SINGAPORE.
|
|
IC / PP No
|
:
|
S0353019A
|
|
|
|
|
|
Date of Birth
|
:
|
25/09/1947
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
28/12/1998
|
DIRECTOR 5
|
Name Of Subject
|
:
|
WHANG SHANG YING
|
|
Address
|
:
|
26A TUDOR CLOSE, 297953, SINGAPORE.
|
|
IC / PP No
|
:
|
S1483019G
|
|
|
|
|
|
Date of Birth
|
:
|
18/09/1961
|
|
|
|
|
|
Nationality
|
:
|
SINGAPOREAN
|
|
Date of Appointment
|
:
|
24/04/1999
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
TAN GEOK CHAI
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
JOLYN YEO
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
W S TAN
|
|
|
Position
|
:
|
MARKETING MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
ERNST & YOUNG
|
|
Auditor' Address
|
:
|
SUITE 11.2A, MENARA PELANGI 2, JALAN KUNING, TAMAN PELANGI, LEVEL
11, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. THIAN YEW FONG
|
|
|
IC / PP No
|
:
|
5493695
|
|
|
New IC No
|
:
|
581201-10-6150
|
|
|
Address
|
:
|
206B, FRASER EAST TOWER, GASING HEIGHTS CONDO, 92 JALAN 5/60, 46000
PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
Date of Appointment
|
:
|
19/03/2004
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Overseas
|
:
|
YES
|
|
|
Import Countries
|
:
|
ASIA
|
We were informed that the SC obtains the palm oil from FELDA and other
companies in Malaysia.
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
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
|
|
|
|
Export Market
|
:
|
SOUTHEAST ASIA, EUROPE, MIDDLE EAST
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
MANUFACTURING INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
OLEOCHEMICALS, FATTY ACIDS, GLYCERINE
|
|
|
|
|
|
|
Award
|
:
|
|
1 ) MS ISO 14001 Year :2000
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
BP CHEMICALS (MALAYSIA) SDN BHD
|
|
COGNIS OLEOCHEMICALS (M) SDN BHD
|
|
NATURAL OLEOCHEMICALS SDN BHD
|
|
NYLEX (MALAYSIA) BHD
|
|
SOUTHERN ACIDS (M) BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
|
|
SMI ASSOCIATION OF MALAYSIA
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
2005
|
2004
|
|
|
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
COMPANY
|
200
|
175
|
160
|
160
|
170
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of
oleochemicals.
The SC is mainly involved in manufacturing of oleo chemical products such as
distilled fatty and stearic acid.
The SC is currently producing the semi finished products which is widely used
in cosmetic products, food, rubbers and other related products.
The SC's products are derived from vegetable based oils and they are all
based on natural renewal vegetable raw materials such as the Tropical oils of
palm and palm kernel.
PROJECTS
No projects found in our databank
RECENT
DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT
INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
07-2518000
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLO 285, JALAN OEKELLING TIMUR, P O BOX 143, B1707, PASIR GUDANG
JOHOR DARUL TAKZIM
|
|
Current Address
|
:
|
PLO 285, JALAN PEKELILING TIMUR, 81707 PASIR GUDANG, JOHOR,
MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the Senior staff from the Finance Department. She provided
some information on the SC.
We have verified and confirmed that the address provided is the SC's postal
address.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2005 - 2007
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2005 - 2007
|
]
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
32.15%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
40.87%
|
]
|
The SC's turnover increased steadily as the demand for its products / services
increased due to the goodwill built up over the years. The higher profit
could be attributed to the increase in turnover. Generally the SC was
profitable. The favourable return on shareholders' funds and return on net
assets indicate that the SC's management was efficient in utilising the
assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
23 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
43 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
13 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
|
[
|
1.82 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
2.46 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
|
[
|
225.14 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The interest cover showed that the SC was able to service the interest. The
favourable interest cover could indicate that the SC was making enough profit
to pay for the interest accrued. The SC had no gearing and hence it had
virtually no financial risk. The SC was financed by its shareholders' funds
and internally generated fund. During the economic downturn, the SC, having a
zero gearing, will be able to compete better than those which are highly
geared in the same industry.
Overall Accessment:
Generally, the
SC's performance has improved with higher turnover and profit. The SC was in
good liquidity position with its total current liabilities well covered by
its total current assets. With its current net assets, the SC should be able
to repay its short term obligations. With the favourable interest cover, the
SC could be able to service all the accrued interest without facing any
difficulties. The SC's gearing level was high and its going concern will be
in doubt if there is no injection of additional shareholders' funds in times
of economic downturn and / or high interest rates.
Overall financial condition of the SC : 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
|
6.3
|
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
|
5.0
|
|
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
|
3.4
|
|
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
|
6.0
|
|
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
|
1.8
|
|
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
|
5.5
|
|
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
|
7.7
|
|
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
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
24290 : Manufacture of other chemical products n.e.c
|
|
2411 : Manufacture of basic chemicals, except fertilizers and
nitrogen compounds
|
|
|
|
|
INDUSTRY :
|
CHEMICAL
|
|
|
|
|
|
|
The chemical products industry is essentially a supporting industry, supplying
intermediates and inputs to the end-user industries such as agriculture,
electronics, automotive, construction-related industry and personal care
products. The chemicals and chemical products industry, including
agricultural and industrial chemicals, cosmetics and toiletry products,
paint and soaps, is a significant contributor to the manufacturing sector.
The growth of the industry is also highly dependent on the performance of
the other sectors of the economy.
|
|
The growth in the chemicals and chemical products sector may be constrained
by the rising raw material prices. Chemicals and chemical products, chalked
up a 16.8% year on year rise.
|
|
This industry remains an important sector and a growth engine for manufacturing
output. It accounts for the largest share of Malaysia's non-electrical and
electronic exports. Both organic and inorganic chemicals are gaining more
attention and are anticipated to continue their growth momentum of 2007,
especially driven by demand from China, Thailand and other ASEAN countries.
In particular, agricultural and industrial chemicals, cosmetics and
toiletry products are being absorbed by burgeoning economies with large
consumer bases, like China. The sub-sector that looks most promising in
this industry is the expansion of the agricultural chemicals industry,
which includes the manufacture of fertilisers and pesticides. There have
also been indications of a higher level of foreign participation in this
industry, especially in the form of strategic partnerships with domestic
firms, essentially to expand their production capacities for export.
|
|
In January-November 2007, the industry's exports summed up to RM1.16
billion, translating into a 19% rise. However, closer scrutiny shows that
the pesticides and herbicides sub-sector posted a corresponding 34.3%
growth, with output coming up to RM561.6 million for the same period.
|
|
The chemical products industry is expected to grow in tandem with the
overall growth of other manufacturing of the economy. Besides that, the
chemical and chemical products industry raises investment to improve
efficiency and increase productivity to meet stronger demand. In addition,
the Government's emphasis on high technology and higher-skilled projects is
expected to increase investment in high value-added projects. Strong
external demand for resource-based products and the improvement in the
construction-related industries would further lend support to the expansion
of chemical sector.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS
|
Incorporated in 1980, the SC is principally engaged in manufacturing of
oleochemicals. Over the years, the SC has growing steadily in the market with
a paid up capital standing at RM20 million. This given the SC an edge to
compete in the market. With its long presence in the market, the SC has
established good rapport with its customers to support its growth. As a
wholly owned subsidiary of Lam Soon Plantations Sdn Bhd, the SC is expected
to enjoy timely assistance when the needs arise.
|
|
Our investigation revealed that the SC serves both local and overseas
clients. Penetrating into the overseas countries such as Southeast Asia,
Europe and Middle East has well diversified its business risk and at the
same time added strength to its capabilities in capturing higher market
shares. As the SC's products are used in myriad of businesses, it
eliminates the risk of dependency on one business line. Presently, the
management of the SC is assisted by 200 employees in the operations.
|
|
During the financial year 2007, the SC reported a favourable turnover and
pre-tax profit of RM196.68 million and RM17.2 million respectively. The SC
has generated a favourable return on shareholders' funds indicating that
the SC was efficient in utilising its funds to generate return. Besides
that, The liquidity risk of the SC is minimal as it maintains adequate
working capital to meet its obligations as and when they fall due. A low
gearing ratio indicates that the SC is supported by more equity rather than
debt. Overall, the financial standing of the SC is regarded as strong.
|
|
We noted that the SC's supplies are sourced locally and imported from
overseas countries. Thus, it eliminates the risk of dependency on
deliveries from a number of key suppliers and insufficient quantities of
its raw materials or other necessary components.
|
|
Based on our historical financial data, we concluded that the SC's pattern
of payment habit is good. This implies good credit control and the SC could
be taking advantage of the cash discounts while maintaining a good
reputation with its creditors.
|
|
The industry continues to be attractive with encouraging global and domestic
demand for its products. With the promising outlook of the industry, the SC
should be able to further enhance its business.
|
|
Based on the favourable conditions as above, we recommend credit be granted
to the SC with favourable terms.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
PACIFIC
OLEOCHEMICALS SDN BHD
|
|
For The Year
Ended 31-December-2007
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
196,678,233
|
129,292,703
|
110,568,308
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
17,200,183
|
7,160,140
|
7,672,470
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
17,200,183
|
7,160,140
|
7,672,470
|
|
Taxation
|
<4,208,365>
|
<1,744,552>
|
<2,161,000>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
12,991,818
|
------------
5,415,588
|
------------
5,511,470
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
12,991,818
|
------------
5,415,588
|
------------
5,511,470
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
12,991,818
|
------------
5,415,588
|
------------
5,511,470
|
|
As previous reported
|
17,420,205
|
20,926,279
|
15,914,809
|
|
|
|
|
|
|
As restated
|
------------
17,420,205
|
------------
20,926,279
|
------------
15,914,809
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
30,412,023
|
26,341,867
|
21,426,279
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALISATION FOR BONUS ISSUES
|
<10,000,000>
|
-
|
-
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
-
|
<8,921,662>
|
<500,000>
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
20,412,023
==========
|
------------
17,420,205
==========
|
------------
20,926,279
==========
|
|
RETAINED BY: The Company
|
20,412,023
|
17,420,205
|
20,926,279
|
|
|
|
|
|
|
|
|
|
|
|
|
------------
20,412,023
==========
|
------------
17,420,205
==========
|
------------
20,926,279
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
-
|
-
|
244,513
|
|
|
|
|
|
|
Other interest expenses
|
-
|
-
|
122,973
|
|
Borrowings
|
76,737
|
154,689
|
-
|
|
|
|
|
|
|
|
------------
76,737
==========
|
------------
154,689
==========
|
------------
367,486
==========
|
|
|
|
|
|
BALANCE SHEET
|
PACIFIC
OLEOCHEMICALS SDN BHD
|
|
As At
31-December-2007
|
|
|
|
|
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
14,389,471
|
13,608,988
|
13,582,841
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
14,389,471
|
------------
13,608,988
|
------------
13,582,841
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
12,270,370
|
6,079,006
|
4,479,987
|
|
|
|
|
|
|
Trade debtors
|
23,302,350
|
15,375,420
|
18,068,210
|
|
Other debtors, deposits &
prepayments
|
2,115,480
|
410,056
|
561,335
|
|
Short term deposits
|
5,198,900
|
6,509,700
|
4,971,160
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from related
companies
|
3,525,622
|
1,070,818
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
515,138
|
673,598
|
320,382
|
|
|
|
|
|
|
Tax recoverable
|
-
|
1,475,332
|
954,374
|
|
TOTAL CURRENT ASSETS
|
------------
46,927,860
|
------------
31,593,930
|
------------
29,355,448
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
7,068,679
|
1,511,692
|
1,298,144
|
|
Other creditors & accruals
|
7,057,039
|
5,755,979
|
5,280,395
|
|
|
|
|
|
|
Bank overdraft
|
56,758
|
-
|
45,895
|
|
|
|
|
|
|
Bill & acceptances payable
|
1,690,000
|
1,029,000
|
3,008,000
|
|
|
|
|
|
|
Amounts owing to related
companies
|
2,349,830
|
6,405,565
|
233,798
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
823,171
|
-
|
-
|
|
|
|
|
|
|
Export credit refinancing
|
-
|
1,033,000
|
-
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
19,045,477
|
------------
15,735,236
|
------------
9,866,232
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
27,882,383
|
------------
15,858,694
|
------------
19,489,216
|
|
TOTAL NET ASSETS
|
------------
42,271,854
==========
|
------------
29,467,682
==========
|
------------
33,072,057
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
20,000,000
|
10,000,000
|
10,000,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
20,000,000
|
------------
10,000,000
|
------------
10,000,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
20,412,023
|
17,420,205
|
20,926,279
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
20,412,023
|
------------
17,420,205
|
------------
20,926,279
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
40,412,023
|
------------
27,420,205
|
------------
30,926,279
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxation
|
1,859,831
|
2,047,477
|
2,145,778
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
1,859,831
|
------------
2,047,477
|
------------
2,145,778
|
|
|
------------
|
------------
|
------------
|
|
|
42,271,854
|
29,467,682
|
33,072,057
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
PACIFIC
OLEOCHEMICALS SDN BHD
|
|
As At
31-December-2007
|
|
|
|
|
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
5,714,038
|
7,183,298
|
5,291,542
|
|
Net Liquid Funds
|
5,657,280
|
7,183,298
|
5,245,647
|
|
Net Liquid Assets
|
15,612,013
|
9,779,688
|
15,009,229
|
|
Net Current Assets/(Liabilities)
|
27,882,383
|
15,858,694
|
19,489,216
|
|
Net Tangible Assets
|
42,271,854
|
29,467,682
|
33,072,057
|
|
Net Monetary Assets
|
13,752,182
|
7,732,211
|
12,863,451
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
56,758
|
0
|
45,895
|
|
Total Liabilities
|
20,905,308
|
17,782,713
|
12,012,010
|
|
Total Assets
|
61,317,331
|
45,202,918
|
42,938,289
|
|
Net Assets
|
42,271,854
|
29,467,682
|
33,072,057
|
|
Net Assets Backing
|
40,412,023
|
27,420,205
|
30,926,279
|
|
Shareholders" Funds
|
40,412,023
|
27,420,205
|
30,926,279
|
|
Total Share Capital
|
20,000,000
|
10,000,000
|
10,000,000
|
|
Total Reserves
|
20,412,023
|
17,420,205
|
20,926,279
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.30
|
0.46
|
0.54
|
|
Liquid Ratio
|
1.82
|
1.62
|
2.52
|
|
Current Ratio
|
2.46
|
2.01
|
2.98
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
23
|
17
|
15
|
|
Debtors Ratio
|
43
|
43
|
60
|
|
Creditors Ratio
|
13
|
4
|
4
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0
|
0
|
0
|
|
Liabilities Ratio
|
0.52
|
0.65
|
0.39
|
|
Times Interest Earned Ratio
|
225.14
|
47.29
|
21.88
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
8.75
|
5.54
|
6.94
|
|
Net Profit Margin
|
6.61
|
4.19
|
4.98
|
|
Return On Net Assets
|
40.87
|
24.82
|
24.31
|
|
Return On Capital Employed
|
40.82
|
24.82
|
24.28
|
|
Return On Shareholders'
Funds/Equity
|
32.15
|
19.75
|
17.82
|
|
Dividend Pay Out Ratio (Times)
|
0
|
1.65
|
0.09
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
