|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
555843-X
|
|
COMPANY NAME
|
:
|
SEGAMAT PANEL BOARDS SDN BHD
|
|
FORMER NAME
|
:
|
IMMEDIATE EXPANSION SDN BHD (31/07/2002)
|
|
INCORPORATION DATE
|
:
|
09/08/2001
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
SUITE 6.1A, MENARA PELANGI, JALAN KUNING, TAMAN KUNING, LEVEL 6,
80400 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
MENARA PELANGI, LEVEL 6, SUITE 6.1A, PLO 201, KAWASAN PERINDUSTRIAN
SEGAMAT II, MUKIM POGOH, 85000 SEGAMAT, JOHOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
07-9279989
|
|
FAX.NO.
|
:
|
07-9279969
|
|
EMAIL
|
:
|
inquiries@spb.com.my
|
|
WEB SITE
|
:
|
www.spb.com.my
|
|
CONTACT PERSON
|
:
|
HANS PETER FITCH ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
20212
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURER
OF MEDIUM DENSITY FIBERBOARD (MDF) & RELATED PRODUCTS
|
|
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
2,500,000.00 DIVIDED INTO
ORDINARY SHARES 2,500,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 69,784,562 [2007]
|
|
NET WORTH
|
:
|
MYR 33,347,006 [2007]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
115 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STRONG
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
INDUSTRY OUTLOOK
|
:
|
AVERAGE 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) manufacturer of medium
density fiberboard (mdf) & related products.
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 KAZO TRADING PTE LTD, a company
incorporated in SINGAPORE.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
KAZO TRADING PTE LTD
|
171 CHIN SWEE ROAD, 12-06 SAN CENTRE, 169877, SINGAPORE.
|
|
2,499,999.00
|
|
TAKESHI SAKAKIBARA
|
83, JALAN MURNI 8, TAMAN PUTRA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
|
MZ6076006
|
1.00
|
|
|
|
|
---------------
|
|
|
|
|
2,500,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
KOICHI SAITO
|
|
Address
|
:
|
50, JALAN MUTIARA EMAS 2/7, TAMAN MOUNT AUSTIN, 81100 JOHOR BAHRU,
JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
TZ0460782
|
|
|
|
|
|
Date of Birth
|
:
|
24/11/1954
|
|
Nationality
|
:
|
JAPANESE
|
DIRECTOR 2
|
Name Of Subject
|
:
|
SHIGETOYO TAKEUHI
|
|
Address
|
:
|
87 CASHEW ROAD, 06-03 CASHEW HEIGHTS, 679658, SINGAPORE.
|
|
IC / PP No
|
:
|
MZ0307181
|
|
|
|
|
|
Date of Birth
|
:
|
14/04/1962
|
|
Nationality
|
:
|
JAPANESE
|
DIRECTOR 3
|
Name Of Subject
|
:
|
HANS PETER FITCH
|
|
Address
|
:
|
41, JALAN PELANGI PAGI, COUNTRY HEIGHTS, 43000 KAJANG, SELANGOR,
MALAYSIA.
|
|
IC / PP No
|
:
|
P740200365
|
|
|
|
|
|
Date of Birth
|
:
|
16/04/1962
|
|
Nationality
|
:
|
BRITISH
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
HANS PETER FITCH
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
KPMG
|
|
Auditor' Address
|
:
|
179-3, JALAN MUNSHI ABDULLAH, 75100 MELAKA, MELAKA, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. SHAHNIZA ANOM BTE ELIAS
|
|
|
IC / PP No
|
:
|
A1172646
|
|
|
New IC No
|
:
|
680929-01-5802
|
|
|
Address
|
:
|
63, JALAN TEMBAGA MERAH 9, TAMAN SRI SKUDAI, 81300 SKUDAI, JOHOR,
MALAYSIA.
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. LEONG SIEW FOONG
|
|
|
IC / PP No
|
:
|
A0828311
|
|
|
New IC No
|
:
|
671205-10-5330
|
|
|
Address
|
:
|
3, JALAN BAYAM, TAMAN KOTA BESAR, 81900 KOTA TINGGI, JOHOR, MALAYSIA.
|
|
|
|
|
|
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,EUROPE
|
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt
|
[
|
|
]
|
|
Good
|
[
|
X
|
]
|
|
Average
|
[
|
|
]
|
|
|
Fair
|
[
|
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Export Market
|
:
|
ASIA, EUROPE
|
|
Credit Term
|
:
|
30 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
|
|
Type of Customer
|
:
|
END USERS
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
MEDIUM DENSITY FIBERBOARD (MDF) & RELATED PRODUCTS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
EVERGREEN FIBREBOARD BHD
|
|
HUME FIBREBOARD SDN BHD
|
|
JAYAKUIK SDN BHD
|
|
MERBOK HILIR BHD
|
|
ROBIN RESOURCES (MALAYSIA) SDN BHD
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
115
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturer of medium
density fiberboard (mdf) & related products.
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
|
:
|
07-9279989
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLO 201, KAW PERINDUSTRIAN SEGAMAT II, MK POGOH, 85000 SEGAMAT,
JOHOR.
|
|
Current Address
|
:
|
MENARA PELANGI, LEVEL 6, SUITE 6.1A, PLO 201, KAWASAN PERINDUSTRIAN
SEGAMAT II, MUKIM POGOH, 85000 SEGAMAT, JOHOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with the SC's staff from Account Dept, Ms Chan. She
furnished us some information on the SC.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
22.52%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
34.66%
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
29.40%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
12.47%
|
]
|
The higher turnover could be attributed to the favourable market condition
and the SC could be gaining the market share progressively. The higher profit
could be attributed to the increase in turnover. The SC's management had
generated acceptable return for its shareholders using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
23 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
20 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
16 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
|
[
|
3.95 Times
|
]
|
|
Current Ratio
|
:
|
Favourable
|
[
|
4.56 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
|
:
|
Unfavourable
|
[
|
1.16 Times
|
]
|
The SC's interest cover was nil as it did not pay any interest during the
year. The SC was highly geared, thus it had a high financial risk. The SC was
dependent on loans to finance its business needs. In times of economic
downturn and / or high interest rate, the SC will become less profitable and
competitive than other firms in the same industry, which are lowly geared.
This is because the SC has to service the interest and to repay the loan,
which will erode part of its profits. The profits will fluctuate depending on
the SC's turnover and the interest it needs to pay.
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. 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'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
|
6.0
|
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
|
|
20212 : Manufacture of laminboard, particle board and other panels
and boards
|
|
|
|
|
INDUSTRY :
|
WOOD PRODUCT
|
|
|
|
|
|
|
The capital intensive wood-based industry, comprising veneer, panel
products, mouldings, furniture and fixtures, expanded by 3.3% during the
first half of the year 2007 (January-June 2006: 0.9%). Growth was mainly
driven by increase in production of laminated boards and veneers, at 5.4%
and 2.3% (January-June 2006: -15.2%; 5.9%), respectively. Higher production
in wood-based industries was supported by product innovation in wooden
furniture to cater for the global market as well as to meet local demand of
the construction industry.
|
|
Export earnings of wood-based products recorded strong growth of 9.7%.
(January-June 2006: 5.2%) following increased demand from major markets
such as Taiwan, Japan and the EU. In addition, lower tariffs imposed under
Japan- Malaysia Economic Partnership Arrangement which became effective in
July 2006 further enhanced export receipts of wood-based products.
Sustained demand for Malaysian veneer, plywood and wooden furniture in
traditional markets as well as increasing demand from emerging markets such
as United Arab Emirates and India bode well for the industry.
|
|
Malaysia is the largest exporter of tropical plywood and second largest
exporter of plywood in the world after China. Higher exports to major
markets such as Japan and the European Union (EU) contributed to the growth
of the industry. Besides that, increasing demand for customised furniture
components as well as greater awareness for high quality and certified sawn
timber products among furniture makers is also expected to further enhance
growth of the industry.
|
|
The Malaysian Timber Council (MTC) expects plywood prices worldwide to
remain high in the near future due to strong demand from Japan, China and
India and also shortage of logs in Indonesia. In 2007, the incessant
rainfall and widespread flooding had increased the prices of Malaysian
timber products sharply. With raw material trickling in, the prices of
plywood are marked up by as much as 25% to 30%. This is an added bonus for
the timber business. The construction booms in the Middle East boost the
demand for timber products.
|
|
|
|
According to MTC's trade promotion and marketing division, the
free-on-board (FOB) prices of tropical moisture resistant BB/CC grade
plywood from Malaysia had risen 44% to more than 50% year-on-year.
Meantime, the log supplies in both Sabah and Sarawak were also in decline
due to tighter enforcement of harvesting rules and resource constraints. Nevertheless,
the local timber and timber products would remain globally competitive as
long as the strengthening ringgit lagged behind the appreciation of most
regional currencies against the US dollar. MTC said any loss in
competitiveness would be gained by the reduction of imported raw material
costs for things like glue, lacquer and logs in plywood production. The
plywood manufacturers should not rely on a weak ringgit to boost
competitiveness, but should be innovative, pursue a strong brand strategy
and be more proactive in marketing.
|
|
|
|
The challenge for the local industry in the near future came from the
increased production in Japanese plywood, new techniques that allowed for
the re-use of concrete form plywood and joint ventures between Japanese
producers in countries that were more cost-competitive.
|
|
|
|
Wood-based industry players should embrace new technologies and best
practices to increase productivity, efficiency and adapt the ever-changing
market. As a world-renowned manufacturer and exporter of rubber wood
furniture, and to meet the continuing demand for high quality furniture and
products, Malaysia is migrating to produce high-end wood-based product
inputs.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Incorporated in 2001 as a private limited company, the SC is principally
engaged in the manufacturing of medium density fiberboard (mdf) and related
products. Throughout its years of establishment, the SC has slowly been
building up contacts with its clients and competing in the industry. With
issued and paid up capital of RM2.5 million and strongly supported by its
established holding company from Singapore, the SC is expected to enjoy
timely financial and technical support should the needs arise.
|
|
About 40% of the SC's products are exported to overseas countries among
Asia and Europe while the remaining are absorbed by the local market. Such
a wide geographical spread has well diversified its business risk should
there be a slowdown in the local economy. Thereby it will increase its
ability to compete in the market. Hence, its future prospects seem to be
fairly good. The SC is a large entity with a work force of 115. Its
business operation is overseen by its managing director, Hans Peter Fitch.
Overall the management capability of the SC is average.
|
|
During the financial year under review, its turnover continued on an upward
momentum, reaching RM69.78 million. Correspondingly, its pre-tax profit
rose by 34.66% from RM7.78 million to RM10.48 million. Return on
shareholders' funds of the SC was at an acceptable range which indicated
that the management was efficient in utilising its funds to generate
income. The SC was in good liquidity position with its current liabilities
well covered by its current assets. Hence, it has sufficient working
capital to meet its short term financial obligations. Unfortunately, a high
gearing level has placed the SC on high financial risk. Nevertheless, with
huge net worth standing at RM33.35 million, the SC should be able to
maintain its business in the near terms.
|
|
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. About 40% of the SC's products are imported
from Asia and Europe. As a result, the SC is exposed to foreign currency
fluctuation risk.
|
|
Based on our historical financial data, we concluded that the SC's payment
is good. This implies a good credit control and the SC could be taking
advantage of the cash discounts and maintain a good reputation with its
creditors.
|
|
This industry shows an upward trend and this trend is likely to sustain in
the near future. With the promising outlook of the industry performance,
the SC business potential should be favourable. The SC however faces
moderate business risk as it has to compete with many well established
players in the same field.
|
|
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.
|
|
SEGAMAT PANEL
BOARDS SDN BHD
|
|
For The Year
Ended 30-June-2007
|
|
|
|
|
|
|
2007
|
2006
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
69,784,562
|
56,957,646
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
10,478,155
|
7,781,412
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
10,478,155
|
7,781,412
|
|
Taxation
|
<673,386>
|
1,821,056
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
9,804,769
|
------------
9,602,468
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
9,804,769
|
------------
9,602,468
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
9,804,769
|
------------
9,602,468
|
|
As previous reported
|
21,042,237
|
11,439,769
|
|
|
|
|
|
As restated
|
------------
21,042,237
|
------------
11,439,769
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
30,847,006
|
21,042,237
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
30,847,006
==========
|
------------
21,042,237
==========
|
|
RETAINED BY: The Company
|
30,847,006
|
21,042,237
|
|
|
|
|
|
|
|
|
|
|
------------
30,847,006
==========
|
------------
21,042,237
==========
|
BALANCE SHEET
|
SEGAMAT PANEL
BOARDS SDN BHD
|
|
As At
30-June-2007
|
|
|
|
|
|
|
2007
|
2006
|
|
|
MYR
|
MYR
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
58,471,212
|
55,322,358
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
58,471,212
|
------------
55,322,358
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
4,405,797
|
4,501,242
|
|
|
|
|
|
Trade debtors
|
3,847,410
|
2,954,364
|
|
Other debtors, deposits &
prepayments
|
3,578,312
|
2,786,760
|
|
Short term deposits
|
9,364,478
|
9,364,478
|
|
|
|
|
|
Amount due from holding company
|
-
|
548,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
11,522,716
|
4,617,802
|
|
|
|
|
|
current tax assets
|
-
|
65,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
32,718,713
|
------------
24,839,327
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
3,103,442
|
2,417,190
|
|
Other creditors & accruals
|
3,815,374
|
2,997,050
|
|
Hire purchase & lease
creditors
|
18,191
|
-
|
|
|
|
|
|
|
|
|
|
Amounts owing to holding
companies
|
222,891
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
11,763
|
-
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
7,171,661
|
------------
5,414,240
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
25,547,052
|
------------
19,425,087
|
|
TOTAL NET ASSETS
|
------------
84,018,264
==========
|
------------
74,747,445
==========
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share capital
|
2,500,000
|
2,500,000
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
2,500,000
|
------------
2,500,000
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
30,847,006
|
21,042,237
|
|
|
|
|
|
TOTAL RESERVES
|
------------
30,847,006
|
------------
21,042,237
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
33,347,006
|
------------
23,542,237
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
Long term loans
|
38,623,491
|
40,437,431
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
51,901
|
-
|
|
Deferred taxation
|
3,147,530
|
2,586,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loan from holding company
|
8,848,336
|
8,181,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
50,671,258
|
------------
51,205,208
|
|
|
------------
|
------------
|
|
|
84,018,264
|
74,747,445
|
|
|
==========
|
==========
|
|
|
|
|
FINANCIAL RATIOS
|
SEGAMAT PANEL
BOARDS SDN BHD
|
|
As At
30-June-2007
|
|
|
|
|
|
|
2007
|
2006
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
20,887,194
|
13,982,280
|
|
Net Liquid Funds
|
20,887,194
|
13,982,280
|
|
Net Liquid Assets
|
21,141,255
|
14,923,845
|
|
Net Current Assets/(Liabilities)
|
25,547,052
|
19,425,087
|
|
Net Tangible Assets
|
84,018,264
|
74,747,445
|
|
Net Monetary Assets
|
<29,530,003>
|
<36,281,363>
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
38,693,583
|
40,437,431
|
|
Total Liabilities
|
57,842,919
|
56,619,448
|
|
Total Assets
|
91,189,925
|
80,161,685
|
|
Net Assets
|
84,018,264
|
74,747,445
|
|
Net Assets Backing
|
33,347,006
|
23,542,237
|
|
Shareholders" Funds
|
33,347,006
|
23,542,237
|
|
Total Share Capital
|
2,500,000
|
2,500,000
|
|
Total Reserves
|
30,847,006
|
21,042,237
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
Cash Ratio
|
2.91
|
2.58
|
|
Liquid Ratio
|
3.95
|
3.76
|
|
Current Ratio
|
4.56
|
4.59
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
23
|
29
|
|
Debtors Ratio
|
20
|
19
|
|
Creditors Ratio
|
16
|
15
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
1.16
|
1.72
|
|
Liabilities Ratio
|
1.73
|
2.41
|
|
Times Interest Earned Ratio
|
0
|
0
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit Margin
|
15.02
|
13.66
|
|
Net Profit Margin
|
14.05
|
16.86
|
|
Return On Net Assets
|
12.47
|
10.41
|
|
Return On Capital Employed
|
12.47
|
10.41
|
|
Return On Shareholders'
Funds/Equity
|
29.40
|
40.79
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
