|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
548644-P
|
|
COMPANY NAME
|
:
|
HAGECAPS (M) SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
24/05/2001
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
SUITE 10.02, BANGUNAN YAYASAN SELANGOR, 74, JALAN RAJA MUDA ABDUL
AZIZ, 10TH FLOOR, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
LOT 5365, LORONG JELAWAT 2, SEBERANG JAYA INDUSTRIAL PARK, 13700
BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
TEL.NO.
|
:
|
04-3990259
|
|
FAX.NO.
|
:
|
04-3993259
|
|
EMAIL
|
:
|
info@hagecaps.com
|
|
WEB SITE
|
:
|
www.hagecaps.com
|
|
CONTACT PERSON
|
:
|
IBRAHIM ZAINOL ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
24230
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING EMPTY HALAL HARD GELATIN CAPSULE AND RELATED
ACTIVITIES
|
|
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
5,000,000.00 DIVIDED INTO
ORDINARY SHARES 2 CASH AND 4,999,998 OTHERWISE OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 1,621,861 [2007]
|
|
NET WORTH
|
:
|
MYR 57,749 [2007]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
20 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
LIMITED
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
HIGH
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
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) manufacturing empty halal
hard gelatin capsule and related activities.
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. IBRAHIM BIN ZAINOL +
|
49, JALAN USJ 17/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
|
520428-02-5671
4323453
|
2,750,000.00
|
|
MS. NORAINI BTE CHE SAB +
|
49, JALAN USJ 17/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
|
590522-07-6030
5538345
|
2,250,000.00
|
|
|
|
|
---------------
|
|
|
|
|
5,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. NORAINI BTE CHE SAB
|
|
Address
|
:
|
49, JALAN USJ 17/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
5538345
|
|
New IC No
|
:
|
590522-07-6030
|
|
Date of Birth
|
:
|
22/05/1959
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
24/05/2001
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. IBRAHIM BIN ZAINOL
|
|
Address
|
:
|
49, JALAN USJ 17/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
4323453
|
|
New IC No
|
:
|
520428-02-5671
|
|
Date of Birth
|
:
|
28/04/1952
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
24/05/2001
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
IBRAHIM ZAINOL
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
YUSAINI SABIAN
|
|
|
Position
|
:
|
SALES MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
MOHD IZHAR
|
|
|
Position
|
:
|
ASSISTANT PRODUCTION MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
AFRIZAN TARMILI KHAIRUL AZHAR
|
|
Auditor' Address
|
:
|
BANGUNAN YAYASAN SELANGOR, 74, JALAN RAJA MUDA ABDUL AZIZ, 10TH
FLOOR, 50300 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. NORMALA BTE EMBI
|
|
|
IC / PP No
|
:
|
A0046627
|
|
|
New IC No
|
:
|
650220-07-5122
|
|
|
Address
|
:
|
C-1-5, VISTA TASIK CONDOMINIUM, 12 JALAN SRI PERMAISURI, BANDAR SRI
PERMAISURI, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
Date of Appointment
|
:
|
10/03/2008
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. ZAIMIDAH BTE AB MAJID
|
|
|
|
|
|
|
|
New IC No
|
:
|
610420-05-5242
|
|
|
Address
|
:
|
8, JALAN BU 1/6, TAMAN BUKIT UTAMA, BUKIT ANTARABANGSA, 68000
AMPANG, SELANGOR, MALAYSIA.
|
|
|
Date of Appointment
|
:
|
10/03/2008
|
|
|
|
|
|
|
|
|
|
|
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)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
19/07/2002
|
|
Description Of Charge
|
:
|
|
|
Amount Secured
|
:
|
RM3,380,000.00
|
|
Description Of Property Affected
|
:
|
|
|
Name & Address Of Chargee
|
:
|
|
BANK INDUSTRI TEKNOLOGI MALAYSIA BHD
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 1 In The Register of Charges
|
LEGAL
CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our databank.
PAYMENT
RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
Local
|
:
|
YES
|
|
Overseas
|
:
|
YES
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
|
|
Type of Customer
|
:
|
PHARMACIES,CLINICS,HOSPITALS,MEDICAL INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
HALAL TWO-PIECE EMPTY HARD CAPSULES
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
SMI ASSOCIATION OF MALAYSIA
|
|
|
|
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
2005
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
COMPANY
|
20
|
18
|
15
|
12
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing empty halal
hard gelatin capsule and related activities.
The SC's high quality capsules are manufactured to the highest standard and
are suitable for various applications. Each and every capsule is manufactured
to exact customer's requirements and suitable for filling likes;
* Pharmaceutical active ingredients
* Herbal and traditional madecines ingredients
* Food supplements
The SC's capsules can takes fillings in form of;
* Normal powder
* Compacted powders
* Oil based liquids (liquid capsule filling machine with sealer required)
The SC's capsules comes in varoius basic colours from Trans Clear/Trans
Clear, Trans Blue/Trans Clear, Red/White, Black/Scarlet, Maroon/Maroon,
Green/White, Ivory/Ivory to Orange/Orange, Blue/White etc. However as colour
combinations are numerous, it is up to the SC's customers specification of
colour requirements.
The SC's high quality coloured capsules or clear capsules are suiteble for
uses in pharmaceutical, supplement as well as herbal/traditional madecines.
Besides that the SC will print customised text and/or logo on the capsules
based on its customers' requirements.
The SC's high quality 2-piece hard capsules are produced from high quality
raw materials certified halal by JAKIM and free from any kind of
preservatives.
The SC only use halal gelatin from Rousselot manufactured in their halal
certified facility in Guandong, China. This factory has been inspected and
certified by China Halal Authority, Malaysia's JAKIM and Malaysia's
Department of Veterinary Services.
This halal gelatine is also approved by the Australian Quarantine and
Inspection Services (AQIS) and the European Directorate for the Quality of
Medicines (EDQM).
We were informed that the SC put great emphasize on treacability on each and
every capsule that manufacture, from it own batch to the gelatin batch, right
to the slaughterhouse and the farms the cattle are from.
The SC has invested heavily on a one of the kind, state-of-the-art facility
to manufacture 2-piece hard capsules in Malaysia.
PROJECTS
No projects found in our databank
RECENT
DEVELOPMENT
26 JUNE 2007
Welli Multi Corp Bhd, which plans to build the world's largest halal gelatine
plant by year-end, is no longer buying a stake in SC, currently Malaysia's
only halal-certified gelatine capsule manufacturer. Nonetheless, Welli Multi
chief executive officer Dr Abdul Rashid Tang Abdullah said the termination
does not change the company's plan to build its halal gelatin plant. "We
will apply for halal certification for our plant," Abdul Rashid told The
Edge Financial Daily, while adding that details on the plant would be
released in "a few days". In a statement to Bursa Malaysia
yesterday, Welli Multi said the agreement to buy a proposed 65% stake in SC
from Ibrahim Zainol had been "terminated with immediate effect by mutual
consent" as both parties could not agree on the terms to be included in
the final agreement, it added. On May 24, Welli Multi said it agreed to pay
RM1.63 million for the 65% stake in SC. The price represents five times its
share of expected earnings from SC this year. Loss-making SC expects to book
RM500,000 in profit on revenue of RM3 million this year.
CURRENT
INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
04-3990259
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
LOT 5365, LORONG JELAWAT 2, SEBERANG JAYA INDUSTRIAL PARK, 13700
BUTTERWORTH, PULAU PINANG.
|
|
Current Address
|
:
|
LOT 5365, LORONG JELAWAT 2, SEBERANG JAYA INDUSTRIAL PARK, 13700
BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with Ms Rohani from the SC's Admin Department. She
revealed some information pertaining to the SC.
FINANCIAL
COMMENTS
The financial
summary of the SC in Year 2007 showed that it was financially LIMITED. Return
on shareholders' funds of the SC was high indicating that the SC was
efficient in utilising its shareholders' funds to generate favourable
returns. However, due to its weak liquidity position, the SC will be face
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 has high
liabilities ratio and it may face financial difficulties if no additional
capital is injected.
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
|
6.3
|
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
|
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
|
3.4
|
|
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
|
|
24230 : Manufacture of pharmaceuticals, medicinal chemicals and
botanical products
|
|
|
|
|
INDUSTRY :
|
PHARMACEUTICAL
|
|
|
|
|
|
|
The market for the pharmaceutical industry is growing due to increased
public awareness about health matters, resulting in greater spending on
healthcare. The pharmaceutical industry in Malaysia has good growth
potential in the light of its inherent strength in the production of
generic drugs and its capability to capitalize on the scheduled patent
expiry of several branded drugs over the next few years. The industry is
also well-positioned to produce more pharmaceuticals of international
quality as the country has adopted and enforced the Good Manufacturing
Practice (GMP) standards of the European Pharmaceutical Inspection
Cooperation Scheme (PICS).
|
|
|
|
In 2006, pharmaceutical companies invested substantially to upgrade their
facilities to adhere to the GMP standards of PICS. These efforts, aimed at
raising the standards of locally manufactured pharmaceuticals, will have
favourable impact on export potential for local manufacturers as newer
versions of generic drugs are launched in the next few years. Exports in
2006 (January-November) amounted to RM410 million.
|
|
The pharmaceutical market in South East Asia and China estimated at USD20.1
billion. However, zooming in on the local pharmaceutical industry, there
are several structural weaknesses including the sector's inability to
compete effectively with low-cost generic drugs producers in India and
China, coupled with the rising production cost due to increasing compliance
expenditure.
|
|
Nonetheless, in 2006, it was announced that a Health Tourism Unit will be
established under the Ministry of health service in Malaysia. The number of
foreign patients treated in private hospitals under the health tourism
programme is envisaged to record a healthy growth of 35.3% in 2006 with
over 75% patients from Indonesia, 6% from Japan, 3% from Europe and the
rest from India, Singapore, Australia, China and the US.
|
|
The growth prospects for the pharmaceutical and healthcare sector are
positive, underpinned by rising awareness and affluence of the population.
In particular the private healthcare sector has experienced continuous
growth since the beginning of 90s. The Malaysian health care system is
divided into two sectors; the public and the private health care sector.
Both health care sectors are still to be expanded and bear a high potential
for growth. Currently approximately 3% of the GDP are dedicated towards the
health care sector. For 2006, the government has announced to allocate
about US $0.4 billion (RM1.3 billion ) for development expenditure to the
Ministry of Health, up 8.3%from RM1.2 billion a year ago.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Incorporated in 2001, the SC is a private limited company, focusing on
manufacturing of empty halal hard gelatin capsule and related activities.
Throughout its years of establishment, the SC has slowly been building up
contacts with its clients and competing in the industry. We noted that the
SC's issued and paid up capital has increased to RM5 million. Thus, the SC
should has the ability to further expand its business in the future.
|
|
The SC solely concentrates on the local market only. This narrow market
segment limits its business expansion opportunities and placed the SC at
higher business risk. The SC should venture into the international market
to expand its business. At present, the SC has 20 staff in its operation
and it's daily operation is overseen by its Managing Director, Ibrahim
Zainal. Its management capability is considered weak.
|
|
For the financial year ended 2007, the SC registered a pre-tax profit of
RM240,785 based on its turnover of RM1,621,861. The SC has generated a
favourable return based on its existing shareholders' funds which indicated
that the management was efficient in utilising its funds to generate
income. However, we noted that the SC's current liabilities well exceed its
current assets. Due to its weak liquidity position, the SC may face working
capital deficiency in meeting its short term financial obligations if no
fresh capital are injected into the SC. The high gearing ratio clearly
implied that the SC was supported by more debt than equity. Thus, the SC is
exposed to high financial risk. The SC's overall financial performance is
regarded as limited as its networth stands at only RM57,749
|
|
The SC's suppliers are from local market and also from overseas market. As
a result, the SC is exposed to foreign currency fluctuation risk.
|
|
Investigation revealed that the SC is clear of litigation.
|
|
The market for the pharmaceutical industry is growing due to increase
public awareness about health matters, resulting in greater spending on
healthcare. 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.
|
|
Despite showing an increasing of its paid up capital, we noted that the
SC's has huge accumulated losses of RM2.44 million. In view of this and
based on our assessment, we recommend credit be granted to the SC with
guarantee.
|
|
THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA
ACCOUNTING STANDARD.
|
|
|
|
PROFIT AND LOSS ACCOUNT
|
|
HAGECAPS (M) SDN BHD
|
|
31-December-2007
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Turnover
|
1,621,861.00
|
|
Operating Revenue
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Before Tax
|
240,785.00
|
|
|
---------------------
|
|
|
|
Profit/(Loss) After Tax
|
240,785.00
|
|
Extraordinary Item
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Profit/(Loss) Attributable to Shareholders
|
240,785.00
|
|
|
---------------------
|
|
|
|
Prior Period Adjustment
|
0.00
|
|
Net Dividend
|
0.00
|
|
Transferred To/From Reserved
|
0.00
|
|
Others
|
0.00
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Brought Forward
|
<2,683,036.00>
|
|
|
---------------------
|
|
Unappropriated Profit/(Loss) Carried Forward
|
<2,442,251.00>
|
|
|
================
|
|
|
|
BALANCE SHEET
|
|
HAGECAPS (M) SDN BHD
|
|
31-December-2007
|
|
Consolidated Accounts
|
:
|
NO
|
|
UnQualified Reports
|
:
|
YES
|
|
|
|
|
RM
|
|
Fixed Assets
|
6,256,987.00
|
|
Total Investment
|
0.00
|
|
Amount Owing By
|
0.00
|
|
Current Assets
|
633,073.00
|
|
Intangible Assets
|
0.00
|
|
Other Assets
|
0.00
|
|
|
---------------------
|
|
Total Assets
|
6,890,060.00
|
|
|
================
|
|
|
|
|
Working Capital
|
<2,831,777.00>
|
|
|
|
|
Issued Capital
|
2,500,000.00
|
|
Paid Up Capital
|
2,500,000.00
|
|
Share Premium & Reserved
|
0.00
|
|
Unappropriated Profit/(Loss)
|
<2,442,251.00>
|
|
|
---------------------
|
|
Shareholder's Fund/Equity
|
57,749.00
|
|
|
---------------------
|
|
|
|
Current Liabilities
|
3,464,850.00
|
|
Amount Owing To
|
0.00
|
|
Long-term and Deferred Liabilities
|
3,367,461.00
|
|
Share Application Account
|
0.00
|
|
Minority Interest
|
0.00
|
|
|
---------------------
|
|
Total Equity Liability
|
6,890,060.00
|
|
|
================
|
|
|
|
|
Contingent Liabilities
|
0.00
|
|
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