|
|
REGISTRATION NO.
|
:
|
212575-H
|
|
COMPANY NAME
|
:
|
HONG SENG POWER SDN BHD
|
|
FORMER NAME
|
:
|
BEACON TRADING SDN BHD (12/12/1995)
|
|
INCORPORATION DATE
|
:
|
13/02/1991
|
|
|
|
|
|
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
|
:
|
WISMA SURIA, LOT 2963 & 2964, MUKIM 16, KAWASAN PERINDUSTRIAN
ACKU, BAGAN LALLANG, 13400 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-3325009
|
|
FAX.NO.
|
:
|
04-3310339
|
|
CONTACT PERSON
|
:
|
TEOH HAI HIN ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
31100 51593
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING AND TRADING OF MARINE ENGINE, POWER GENERATOR AND RELATED
SPARE PARTS
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
2,300,000.00 DIVIDED INTO
ORDINARY SHARES 2,300,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 40,568,729 [2007]
|
|
NET WORTH
|
:
|
MYR 5,644,514 [2007]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
100 [2008]
|
|
BANKER (S)
|
:
|
|
MALAYAN
BANKING BHD
RHB BANK BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
FAIR
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL 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 and trading
of marine engine, power generator and related spare parts.
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. TEOH HAI BIM +
|
4, JALAN BINTANG, BAGAN AJAM, 13000 BUTTERWORTH, PULAU PINANG,
MALAYSIA.
|
611119-07-5329
6306790
|
575,000.00
|
|
MR. TEOH HAI HIN +
|
6577, JALAN BAGAN JERMAL, 12300 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
590522-07-5601
5695491
|
575,000.00
|
|
MR. TEOH HAI SENG +
|
6583, JALAN BAGAN JERMAL, 12300 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
580328-07-5537
5427774
|
575,000.00
|
|
MR. TEOH HAI PENG
|
4, JALAN BINTANG, BAGAN AJAM, 13000 BUTTERWORTH, PULAU PINANG,
MALAYSIA.
|
630721-07-5683
7080921
|
575,000.00
|
|
|
|
|
---------------
|
|
|
|
|
2,300,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. TEOH HAI BIM
|
|
Address
|
:
|
4, JALAN BINTANG, BAGAN AJAM, 13000 BUTTERWORTH, PULAU PINANG,
MALAYSIA.
|
|
IC / PP No
|
:
|
6306790
|
|
New IC No
|
:
|
611119-07-5329
|
|
Date of Birth
|
:
|
19/11/1961
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
30/09/1995
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. TEOH HAI SENG
|
|
Address
|
:
|
6583, JALAN BAGAN JERMAL, 12300 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
5427774
|
|
New IC No
|
:
|
580328-07-5537
|
|
Date of Birth
|
:
|
28/03/1958
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
30/09/1995
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. TEOH HAI HIN
|
|
Address
|
:
|
6577, JALAN BAGAN JERMAL, 12300 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
5695491
|
|
New IC No
|
:
|
590522-07-5601
|
|
Date of Birth
|
:
|
22/05/1959
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
30/09/1995
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
TEOH HAI HIN
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
HING YOU TONG
|
|
|
Position
|
:
|
MANAGER
|
|
|
|
|
|
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.
|
|
|
Date of Appointment
|
:
|
11/06/1999
|
|
|
|
|
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.
|
|
|
Date of Appointment
|
:
|
13/07/1999
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
MALAYAN BANKING 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
|
:
|
08/09/1997
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM3,200,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
19/08/2004
|
|
Description Of Charge
|
:
|
|
1ST PARTY 1ST LEGAL CHARGE
|
|
|
Amount Secured
|
:
|
RM5,000,000.00
|
|
Description Of Property Affected
|
:
|
|
ALL PIECE OF LAND KNOWN AS LOT 187, BANDAR SELAYANG, BATU CAVES,
DAERAH GOMBAK, SELANGOR HELD UNDER PAJAKAN MUKIM 441
|
|
|
Name & Address Of Chargee
|
:
|
|
RHB BANK BHD
|
|
TOWER 3, RHB CENTRE, JALAN TUN RAZAK, LEVEL 8, 50400 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
Form 40 Dated 11/10/2004
|
|
Registered and Numbered 4 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
|
OVERALL PAYMENT HABIT
|
|
Prompt
|
[
|
|
]
|
|
Good
|
[
|
|
]
|
|
Average
|
[
|
|
]
|
|
|
Fair
|
[
|
X
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
90%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
10%
|
|
Export Market
|
:
|
SINGAPORE, CHINA
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
|
Type of Customer
|
:
|
MARINE INDUSTRY,AGENTS,DISTRIBUTORS
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
MARINE DIESEL ENGINES, DIESEL GENERATOR SET, CUMMIN, SPARE PARTS,
GENUINE & REPLACEMENT, REINTJES AND HANGZHOU MARINE GEARBOX AND PARTS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
AM SGB SDN BHD
|
|
BANDO ELECTRONICS (MALAYSIA) SDN BHD
|
|
EPE WILSON TRANSFORMER SDN BHD
|
|
HIGASHIFUJI (MALAYSIA) SDN BHD
|
|
TAMURA ELECTRONICS (M) SDN BHD
|
|
|
|
|
|
|
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
|
100
|
117
|
86
|
69
|
42
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing and trading
of marine engine, power generator and related spare parts.
The SC is under the Hong Seng Group of Companies.
The business of the Group covers mainly Japanese commercial vehicles,
machineries, Cummins marine engines, marine gear, spare parts, generators,
agricultural machineries and truck assembly, etc.
The Group imports the relevant supplies from all over the world;
reprocessing, reassembling and finally selling them to the local market as
well as exporting them to neighbouring countries.
The SC's core business are the followings:
1) Assembly of generators
2) Trading of marine engines
The SC also undertakes refurbishments of the equipment.
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
|
:
|
04-3325009
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT 2963 & 2964, MUKIM 16, KAWASAN PERINDUSTRIAN ACKU, BAGAN
LALLANG, 13400 BUTTERWORTH, PULAU PINANG.
|
|
Current Address
|
:
|
WISMA SURIA, LOT 2963 & 2964, MUKIM 16, KAWASAN PERINDUSTRIAN
ACKU, BAGAN LALLANG, 13400 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with one of the SC's staff from Human Resource
Department, Ms Nisa. She provided us some information on the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2005 - 2007
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2005 - 2007
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
11.07%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
12.53%
|
]
|
The SC's turnover increased steadily as the demand for its products /
services increased due to the goodwill built up over the years. The SC's
management have been efficient in controlling its operating costs. The SC's
management had generated acceptable return for its shareholders using its
assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
34 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
150 Days
|
]
|
|
Creditors Ratio
|
:
|
Unfavourable
|
[
|
92 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 debtors ratio was high. The
SC should tighten its credit control and improve its collection period. The
unfavourable creditors' ratio could be due to the SC taking advantage of the
credit granted by its suppliers. However this may affect the goodwill between
the SC and its suppliers and the SC may inadvertently have to pay more for
its future supplies.
Liquidity:
|
Liquid Ratio
|
:
|
Unfavourable
|
[
|
0.78 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.94 Times
|
]
|
A low liquid ratio means that the SC may be facing working capital
deficiency. If the SC cannot obtain additional financing or injection of fresh
capital, it may face difficulties in meeting its short term obligations.
Solvency
|
Interest Cover
|
:
|
Acceptable
|
[
|
6.66 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.59 Times
|
]
|
The SC's interest cover was slightly low. If there is no sharp fall in its
profit or sudden increase in the interest rates, we believe the SC is able to
generate sufficient income to service its interest and repay the loans. 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. Due to its
weak liquidity position, the SC will be faced with problems in meeting all
its short term obligations if no short term loan is obtained or additional
capital injected into the SC. The SC had an acceptable interest cover. If
there is no sudden sharp increase in interest rate or fall in the SC's
profit, we do believe the SC is able to generate sufficient cash flow to service
its interest payment. 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 : LIMITED
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
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
31100 : Manufacture of electric motors, generators and transformers
|
|
51593 : Wholesale of marine, and aircraft equipment and accessories
and other transport equipment n.e.c.
|
|
|
|
|
INDUSTRY :
|
ELECTRICAL & ELECTRONIC
|
|
|
|
|
|
|
The electrical and electronics (E&E) industry is the key driver of
Malaysia's industrial development and a major contributor to Gross Domestic
Product (GDP) growth, export earnings, investment and employment. Malaysia
is a leading exporter of semiconductors and room air-conditioners, while
the production of electronics goods such as telecommunications equipment,
computers and computer peripherals is expanding rapidly.
|
|
Output of E&E industry declined by 5.6% (January-June 2006: 13.4%) on account
of weak global demand. Export-oriented industries contracted in the first
six months of 2007 following the downtrend in the global demand for E&E
products, particularly office and accounting machines as well as video and
communication apparatus.
|
|
Export growth is expected to pick up momentum towards the second half in
2007 supported by firm commodity prices and an upswing in the global demand
for electrical and electronics products (E&E). For 2007, gross exports
are expected to remain strong despite a moderate expansion in global trade.
|
|
The slow pick up of demand from the electrical and electronic sector is
expected to be a drag on Malaysia's export growth in September 2007. The
exports are expected to post an average growth of 0.42 per cent year-on
year, supported by imports which may average 4.11 per cent year-on year and
trade balance of about RM8.53 billion. Malaysia's export, which had
remained soft for a couple of months expanded by a marginal 0.3 per cent
year-on-year in August 2007 due to a 10.9 per-cent increase in the electric
and electronic (E&E) products from July 2007.
|
|
The E&E industry continues to expand and reinvest, bringing in new
technology and processes to move further up the value chain. This is
reflected in the total approved investments and increasing
capital-investment-to-employee ratio (CIPE). As total investment approved
for the industry in the first half of this year was RM8.5 billion, Malaysia
is on track to achieve the IMP3 target.
|
|
The Third Industrial Master Plan (IMP3) provides a clear plan of action to
move the E&E industry up the value chain. Among the strategies are:
|
|
1) Strengthening and deepening the semiconductors sub-segment;
|
|
2) Deepening and widening the development of the information and
communications technology (ICT)
|
|
value chain;
|
|
3) Intensifying research and development (R&D) and design activities;
|
|
4) Promoting the application of new and emerging technologies;
|
|
5) Integrating domestic companies into the regional and global supply
chain; and
|
|
6) Making available skilled workforce.
|
|
In addition, the IMP3 proposed strengthening of institutional support,
including a comprehensive package of support schemes to encourage investments
as well as expanding the role and functions of industry associations. With
the comprehensive implementation of action plans, the E&E industry is
anticipated to further strengthen and migrate towards knowledge-intensive,
high-technology and higher value-added activities.
|
|
Robust global demand for electrical and electronics (E&E) products, is
expected to boost export- oriented industries in 2008. The rise in global
demand will be supported by sustained world growth and strengthening US
economy.
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS
|
Incorporated in 1991, the SC is principally engaged in manufacturing and
trading of marine engine, power generator and related spare parts. The SC is
a private limited company with total paid up capital of RM2.3million, it is
under the control of Teoh's family members. Having been in the market for
over a decade, the SC should have established a satisfactory reputation in
the market.
|
|
Over the years, the SC has built up a diversified clientele base in both
local and overseas countries. Currently, domestic market remains its
biggest market, contributing 90% to its revenue with the balance coming
from the overseas market. Therefore, the SC's business risk is low in view
of its wide market segment. Presently, the business activities of the SC is
overseen by Managing Director, Teoh Hai Hin assisted by 100 employees in
its operations. More efforts are expected from the management in order to
compete with its rivals.
|
|
During the financial year 2007, the SC's turnover grew slightly by 1.51% to
RM40.56million. The improvement of its turnover has led its pre-tax profit
rose 18.87% from RM710,450 to RM844,569. Return on shareholders' funds was
at an acceptable range, indicating that the management was efficient in
utilising its funds to generate returns. However, the SC's liquidity ratio
was slightly low at 0.78 times, which demonstrates that the SC was not be
able to repay all its short term obligations. Being a lowly geared company,
the SC faces low financial risk.
|
|
Investigation revealed that the SC sources all its raw materials from
overseas suppliers. Being highly dependent on overseas suppliers, the SC is
subjected to currency fluctuation risk.
|
|
Based on our historical financial data, the SC's overall payment habit is
fair. The SC is clear of any litigation.
|
|
The industry expects to enjoy a marginal growth in the near term. The SC
however faces stiff competition in the market. With the normal outlook of
the industry performance, the SC should adopt more competitive strategies
in order to capture high market shares as well as compete with other
players in the same industry.
|
|
In view of the above, we recommend credit be granted to the SC normally.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
HONG SENG
POWER SDN BHD
|
|
For The Year
Ended 31-May-2007
|
|
|
|
|
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
40,568,729
|
39,961,582
|
35,917,913
|
|
|
==========
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
844,569
|
710,450
|
512,373
|
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
844,569
|
710,450
|
512,373
|
|
Taxation
|
<219,722>
|
<428,335>
|
<125,086>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
624,847
|
------------
282,115
|
------------
387,287
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
624,847
|
------------
282,115
|
------------
387,287
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
624,847
|
------------
282,115
|
------------
387,287
|
|
As previous reported
|
2,719,667
|
2,437,552
|
2,050,265
|
|
|
|
|
|
|
As restated
|
------------
2,719,667
|
------------
2,437,552
|
------------
2,050,265
|
|
|
------------
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
3,344,514
|
2,719,667
|
2,437,552
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
3,344,514
==========
|
------------
2,719,667
==========
|
------------
2,437,552
==========
|
|
RETAINED BY: The Company
|
3,344,514
|
2,719,667
|
2,437,552
|
|
|
|
|
|
|
|
------------
3,344,514
==========
|
------------
2,719,667
==========
|
------------
2,437,552
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
Term loan
|
147,327
|
154,547
|
114,409
|
|
Bank overdraft
|
8
|
330
|
-
|
|
|
|
|
|
|
Hire purchase
|
1,974
|
8,158
|
3,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest expenses
|
-
|
-
|
276
|
|
bill payable
|
-
|
-
|
36,177
|
|
|
------------
149,309
==========
|
------------
163,035
==========
|
------------
153,888
==========
|
|
|
|
|
|
BALANCE SHEET
|
HONG SENG
POWER SDN BHD
|
|
As At
31-May-2007
|
|
|
|
|
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
9,409,991
|
9,372,834
|
8,766,082
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
9,409,991
|
------------
9,372,834
|
------------
8,766,082
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
3,751,134
|
3,895,819
|
2,683,451
|
|
|
|
|
|
|
Trade debtors
|
16,641,387
|
13,300,701
|
9,978,032
|
|
Other debtors, deposits &
prepayments
|
1,620,605
|
1,001,362
|
3,008,979
|
|
|
|
|
|
|
Amount due from director
|
403
|
-
|
-
|
|
Cash & bank balances
|
818,214
|
231,292
|
9,223
|
|
|
|
|
|
|
tax recoverable
|
-
|
-
|
23,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
22,831,743
|
------------
18,429,174
|
------------
15,702,975
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
10,274,587
|
7,845,538
|
5,913,940
|
|
Other creditors & accruals
|
7,869,064
|
6,383,918
|
5,166,205
|
|
Hire purchase & lease
creditors
|
-
|
98,574
|
125,930
|
|
Bank overdraft
|
703,861
|
822,330
|
441,415
|
|
Short term borrowings/Term
loans
|
420,591
|
407,028
|
420,703
|
|
|
|
|
|
|
|
|
|
|
|
Bill & acceptances payable
|
1,130,000
|
1,385,000
|
1,530,000
|
|
|
|
|
|
|
Amounts owing to director
|
3,864,649
|
3,894,570
|
3,742,174
|
|
Provision for taxation
|
50,131
|
36,588
|
-
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
24,312,883
|
------------
20,873,546
|
------------
17,340,367
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<1,481,140>
|
------------
<2,444,372>
|
------------
<1,637,392>
|
|
TOTAL NET ASSETS
|
------------
7,928,851
==========
|
------------
6,928,462
==========
|
------------
7,128,690
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
2,300,000
|
1,500,000
|
1,500,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
2,300,000
|
------------
1,500,000
|
------------
1,500,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
3,344,514
|
2,719,667
|
2,437,552
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
3,344,514
|
------------
2,719,667
|
------------
2,437,552
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
5,644,514
|
------------
4,219,667
|
------------
3,937,552
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
Long term loans
|
2,219,337
|
2,637,795
|
3,028,233
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
-
|
-
|
98,574
|
|
Deferred taxation
|
65,000
|
71,000
|
64,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
2,284,337
|
------------
2,708,795
|
------------
3,191,138
|
|
|
------------
|
------------
|
------------
|
|
|
7,928,851
|
6,928,462
|
7,128,690
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
HONG SENG
POWER SDN BHD
|
|
As At
31-May-2007
|
|
|
|
|
|
|
|
2007
|
2006
|
2005
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
818,214
|
231,292
|
9,223
|
|
Net Liquid Funds
|
<306,238>
|
<998,066>
|
<852,895>
|
|
Net Liquid Assets
|
<5,232,274>
|
<6,340,191>
|
<4,320,843>
|
|
Net Current Assets/(Liabilities)
|
<1,481,140>
|
<2,444,372>
|
<1,637,392>
|
|
Net Tangible Assets
|
7,928,851
|
6,928,462
|
7,128,690
|
|
Net Monetary Assets
|
<7,516,611>
|
<9,048,986>
|
<7,511,981>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
3,343,789
|
3,965,727
|
4,114,855
|
|
Total Liabilities
|
26,597,220
|
23,582,341
|
20,531,505
|
|
Total Assets
|
32,241,734
|
27,802,008
|
24,469,057
|
|
Net Assets
|
7,928,851
|
6,928,462
|
7,128,690
|
|
Net Assets Backing
|
5,644,514
|
4,219,667
|
3,937,552
|
|
Shareholders" Funds
|
5,644,514
|
4,219,667
|
3,937,552
|
|
Total Share Capital
|
2,300,000
|
1,500,000
|
1,500,000
|
|
Total Reserves
|
3,344,514
|
2,719,667
|
2,437,552
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.03
|
0.01
|
0
|
|
Liquid Ratio
|
0.78
|
0.70
|
0.75
|
|
Current Ratio
|
0.94
|
0.88
|
0.91
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
34
|
36
|
27
|
|
Debtors Ratio
|
150
|
121
|
101
|
|
Creditors Ratio
|
92
|
72
|
60
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0.59
|
0.94
|
1.05
|
|
Liabilities Ratio
|
4.71
|
5.59
|
5.21
|
|
Times Interest Earned Ratio
|
6.66
|
5.36
|
4.33
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
2.08
|
1.78
|
1.43
|
|
Net Profit Margin
|
1.54
|
0.71
|
1.08
|
|
Return On Net Assets
|
12.53
|
12.61
|
9.35
|
|
Return On Capital Employed
|
10.98
|
10.58
|
8.21
|
|
Return On Shareholders'
Funds/Equity
|
11.07
|
6.69
|
9.84
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
