|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
182671-M
|
|
COMPANY NAME
|
:
|
BASF (MALAYSIA) SDN BHD
|
|
FORMER NAME
|
:
|
PAYA SERAI SDN BHD (10/10/1989)
|
|
INCORPORATION DATE
|
:
|
01/06/1989
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 14, 47400
PETALING JAYA, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
2, JALAN U8/87, SEKSYEN U8, BUKIT JELUTONG, 40706 SHAH ALAM,
SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-56283888
|
|
FAX.NO.
|
:
|
03-56283777
|
|
EMAIL
|
:
|
kevin-chyewah.chin@basf.com
|
|
WEB SITE
|
:
|
www.asiapacific.basf.com
|
|
CONTACT PERSON
|
:
|
YEE BOON YEOW ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
25209 2411 25193
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURING
OF PLASTIC COMPOUNDS FOR ENGINEERING, POLYSTYRENE (EXPANDABLE), SUPER PLASTICISIZERS
FOR CONSTRUCTION INDUSTRY (TAMOL), FEED PREMIX (LUTAVIT)
|
|
AUTHORISED
CAPITAL
|
:
|
MYR
112,000,000.00 DIVIDED INTO
ORDINARY SHARE 110,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 2,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID
UP CAPITAL
|
:
|
MYR
111,200,000.00 DIVIDED INTO
ORDINARY SHARES 109,500,000 CASH OF MYR 1.00 EACH.
PREFERENCE SHARES 1,700,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 1,169,298,568 [2006]
|
|
NET WORTH
|
:
|
MYR 211,276,632 [2006]
|
|
M1000 OVERALL RANKING
|
:
|
301[2005]
|
|
M1000 INDUSTRY RANKING
|
:
|
13[2005]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
300 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
STABLE
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
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) manufacturing of plastic
compounds for engineering, polystyrene (expandable), super plasticisizers for
construction industry (tamol), feed premix (lutavit).
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is 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.
|
According to the Malaysia 1000 publication, the SC's ranking are as
follows:
|
|
|
|
|
|
|
YEAR
|
2005
|
2004
|
|
|
OVERALL RANKING
|
301
|
381
|
|
|
INDUSTRY RANKING
|
13
|
11
|
|
The immediate holding company of the SC is BASF BETEILIGUNGSGESELLSCHAFT MBH,
a company incorporated in GERMANY.
The ultimate holding company of the SC is BASF AKTIENGESELLSCHAFT, a company
incorporated in GERMANY.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
BASF BETEILIGUNGSGESELLSCHAFT MBH
[ORD 109,500,000 & PREF 1,700,000]
|
CARL-BOSCH-STRASSE 38, 67056 LUDWIGSHAFEN, GERMANY.
|
0084
|
111,200,000.00
|
|
|
|
|
---------------
|
|
|
|
|
111,200,000.00
|
|
|
|
|
============
|
+ Also Director
The SC interest in other companies (Subsidiaries/Associates) are shown
as follow :
|
Local No
|
Company
|
(%)
|
As At
|
|
416394
|
BASF POLYURETHANES (MALAYSIA) SDN BHD
|
100.00
|
31/12/2006
|
|
|
|
|
|
|
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. YEE BOON YEOW
|
|
Address
|
:
|
31, JALAN HUJAN EMAS 3, TAMAN OVERSEAS UNION, 58200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
8362771
|
|
New IC No
|
:
|
540213-08-5157
|
|
Date of Birth
|
:
|
13/02/1954
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
01/03/2008
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. JOHN DUNCAN FASTIER
|
|
Address
|
:
|
4, ARDMORE PARK, 09-01 HERITAGE APARTMENTS, 259960, SINGAPORE.
|
|
IC / PP No
|
:
|
AB785883
|
|
|
|
|
|
Date of Birth
|
:
|
03/11/1950
|
|
|
|
|
|
Nationality
|
:
|
NEW ZEALANDER
|
|
Date of Appointment
|
:
|
01/09/2005
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. LAI MUI THIN
|
|
Address
|
:
|
35, JALAN SURIA 3, TAMAN SURIA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
K381531
|
|
New IC No
|
:
|
550726-13-5171
|
|
Date of Birth
|
:
|
26/07/1955
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
01/09/2000
|
|
|
|
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. ROBERT PARAMANATHAN
|
|
Address
|
:
|
57, JALAN SS 2/51, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A0577995
|
|
New IC No
|
:
|
661019-10-6517
|
|
Date of Birth
|
:
|
19/10/1966
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN OTHER
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
YEE BOON YEOW
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
CINDY WONG
|
|
|
Position
|
:
|
ACCOUNTANT
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
KEVIN CHIN
|
|
|
Position
|
:
|
SALES MANAGER
|
|
|
|
|
|
|
4)
|
Name of Subject
|
:
|
DEENA ABRAHAM
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
KPMG
|
|
Auditor' Address
|
:
|
WISMA KPMG, JALAN DUNGUN, DAMANSARA HEIGHTS, 50490 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MR. ROBERT PARAMANATHAN
|
|
|
IC / PP No
|
:
|
A0577995
|
|
|
New IC No
|
:
|
661019-10-6517
|
|
|
Address
|
:
|
57, JALAN SS 2/51, 47300 PETALING JAYA, SELANGOR, 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
|
:
|
JAPAN,UNITED STATES,SINGAPORE,KOREA
|
The SC refused to provide any name of trade/service supplier and we are unable
to conduct any trade enquiry. However, from financial historical data we
conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt
|
[
|
|
]
|
|
Good
|
[
|
X
|
]
|
|
Average
|
[
|
|
]
|
|
|
Fair
|
[
|
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Export Market
|
:
|
AUSTRALIA,
CHINA, HONG KONG, INDONESIA, NEW ZEALAND, THAILAND, JAPAN, CANADA,
SINGAPORE, KOREA,
BANGLADESH, EGYPT, INDIA, KUWAIT, PAKISTAN, PHILIPPINES, SAUDI ARABIA,
SOUTH AFRICA, SRI LANKA,
TAIWAN, TURKEY, UNITED ARAB EMIRATES, VIETNAM
|
|
Credit Term
|
:
|
30 - 90 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
MANUFACTURING INDUSTRIES,DISTRIBUTORS
|
|
|
|
|
|
|
|
|
CUSTOMER(S)
|
:
|
|
1) CLIPSAL MANUFACTURING (M) SDN BHD
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
PLASTIC COMPOUNDS FOR ENGINEERING, POLYSTYRENE (EXPANDABLE), SUPER
PLASTICISIZERS FOR CONSTRUCTION INDUSTRY (TAMOL), FEED PREMIX (LUTAVIT)
|
|
|
|
|
|
|
Brand Name
|
:
|
|
EUTHYLENE, LUTAVIT, SICOLENE, STYROPOR, TAMOL, ULTRADUR, ULTRAMID
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
|
|
MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)
|
|
MALAYSIAN RUBBER GLOVE MANUFACTURERS ASSOCIATION (MRGMA)
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Factory / Premises
|
:
|
|
LOT 143, JALAN CECAIR, FREE TRADE ZONE JOHOR PORT, 81700 PASIR
GUDANG, JOHOR, MALAYSIA.
|
|
Tel No: 07-2535000
|
|
Fax No: 07-2518194
|
|
|
|
|
Shifts
|
:
|
|
|
|
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
2005
|
2004
|
|
|
|
|
|
|
|
GROUP
|
300
|
350
|
300
|
298
|
342
|
|
|
|
|
|
COMPANY
|
290
|
330
|
295
|
273
|
321
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of plastic
compounds for engineering, polystyrene (expandable), super plasticisizers for
construction industry (tamol), feed premix (lutavit).
The SC is a major producer of expandable plystyrene and engineerd plastic
products.
The plant, located at Pasir Gudang, Johor is for the production of expandable
polystyrene (EPS) better known as Styropor and is also producing Tamol, a
superplasticier used in the construction industry.
According to the SC, its expandable polystyrene is also used for packaging
products.
Besides, the plant is also producing Ultramid Polyamide and Ultradur for
applications in the automotive, electric and electronic industries.
The SC's plant is equipped with both automated and semi-automated machinery.
The SC also has a warehouse located at the same premises to keep stock.
PROJECTS
No projects found in our databank
RECENT
DEVELOPMENT
20-02-2007
BASF has appointed Lau Kin Pong managing director of the SC. Lau, who is the
first Malaysian to spearhead the Germany-based company, will concurrently
lead the integration of the newly acquired Engelhard companies for the
Asia-Pacific region.
CURRENT
INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-56283888
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
2 JALAN U8/87, SEKYSEN U8, BUKIT JELUTONG SHAH ALAM, 40706 SE;ANGOR
|
|
Current Address
|
:
|
2, JALAN U8/87, SEKSYEN U8, BUKIT JELUTONG, 40706 SHAH ALAM,
SELANGOR, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with one of the SC's staff from Accounts
Department. She provided some information on the SC.
Besides that, we conducted an interview with one of the SC's staff from
Production Department. He revealed some relevant information on the SC.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
2004 - 2006
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
2004 - 2006
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
26.78%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
23.58%
|
]
|
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. The SC's management had
generated acceptable return for its shareholders using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
47 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
31 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
11 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The favourable debtors' days could be due
to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days.
The SC could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
Liquidity:
|
Liquid Ratio
|
:
|
Acceptable
|
[
|
0.84 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.41 Times
|
]
|
The SC's liquid ratio was slightly low. This could indicate that the SC's working
capital was slightly deficient. The SC will have to improve its liquidity
position either by obtaining short term financing or increase its paid up
capital so that it can meet all its short term obligations as and when they
fall due.
Solvency
|
Interest Cover
|
:
|
Favourable
|
[
|
17.53 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.31 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 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. The SC's
liquidity was at an acceptable range. If the SC is able to obtain further
short term financing, it should be able to meet all 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 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 : STABLE
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
|
|
25209 : Manufacture of other plastic products n.e.c
|
|
2411 : Manufacture of basic chemicals, except fertilizers and
nitrogen compounds
|
|
25193 : Manufacture of rubber gloves
|
|
|
|
|
INDUSTRY :
|
PLASTIC
|
|
|
|
|
In 2008, the government has developed the first and only specialized
industrial park, The Kertih Plastic Park in the country which focusing on the
plastic industry. According to the Malaysian Plastics Manufacturers
Association (MPMA), the park is developed under the East Coast Economic
Region (ECER) and it is well positioned to attract more investments.
Development for the park means that both the federal and state governments
are aware of the importance of the plastic industry to the country's
economy and are seriously looking into developing further the plastic
industry.
|
|
The plastic manufacturers could leverage on the existing Eastern Corridor
incentives to enhance their competitiveness. The MPMA stated that if the
park could be developed into an attractive location for investment, it
would boost the plastic industry in the region and the petrochemicals
industry would stand to benefit from it due to higher demand for resins.
Meanwhile, industry experts said the setting up of plastics park will
further value-add and extend the oil, gas and petrochemical value chain,
via downstream manufacturing of plastic products and integration with
related plants and services within the existing Petronas Petroleum Industry
Complex.
|
|
Investors in the park will be able to reap economies of scale and direct
cost savings through tapping into operational and infrastructural synergies
at site and obtaining "just-in-time" raw materials supply.
Besides, the park development will also be supported by world-class
research and development (R&D) input from the Petronas Polymer Technology
Centre. The centre aims to spur the growth and global competitiveness of
the plastic industry in the Kertih Plastic Park by carrying out R&D for
plastic application, joint venture projects with manufacturers and end
users, and offering technical services including products testing,
technology development and training.
|
|
Resin is the main raw material for the plastic industry and proximity to
the source of supply results in substantial savings on transportation
costs. The plastics manufacturers have been adversely affected by the
rising prices of major types of plastic resins, both local and imported,
due to various factors. The MPMA stated that the average price of certain
grades of resins on August 2007 was higher by about 20% compared to the
average price in 2006. The increase was mainly due to the strong surge in
crude oil and natural gas prices that had led to higher feedstock prices.
Feedstock is the principal raw material used in the production of plastic
resins. The unabated increase in prices of the resins, which form a major
portion of the manufacturing cost of plastic products, ranging from 50% to
70% depending on the types of plastic products, has adversely affected the
operations of the plastic manufacturers. Nevertheless, MPMA had adopted
various cost-saving measures to absorb the impact of the rising cost, the
adverse impact had left them with no avenue but to pass part of the rising
cost to intermediate users and retailers. MPMA also seeks the understanding
and cooperation of the intermediate users and retailers of plastic finished
products to bear part of the cost, which is currently being mainly borne by
the members, in order to minimise the impact of the price adjustment on
consumers.
|
|
The Malaysian plastic products industry is one of the most established
industries within the country's manufacturing sector. The industry has
developed into a highly diversified sector, encompassing an extensive range
of plastic products such as components for the telecommunications industry,
construction materials, household goods, acrylic sheets, bags, bathroom
accessories, bottles, containers, toys games and packing materials.
|
|
Local plastic manufacturers, who are mostly involved in the packaging
industry, should look to produce high value-added and precision products in
the medical device and biotechnology industries as this will help increase
the production of moulded products using engineering plastics, bringing the
industry on par with that of developed countries such as Japan, South Korea
and Taiwan. The increased interest in the manufacture of plastic components
and plastic compounds indicates that the sector is moving up the technology
and value chain.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Established in 1989 as a private limited company the SC is principally
engaged in manufacturing of plastic compounds for engineering, polystyrene,
super plasticisizers for construction industry and feed premix. Being
backed by a strong established company, allows the SC to enjoy the benefit
of timely financial assistance if the needs arise. With these favourable
conditions, the SC has minimised its risk in the industry compared to other
players. Its long presence in the industry coupled with its vast experience
has enabled the SC to remain competitive. With RM111.2 million in issued
and paid up capital, the SC has the potential of capturing higher market
shares as it is competing aggressively in the market.
|
|
Throughout its years of establishment, the SC has built up a wide and
stable clientele base in the market. Our investigation revealed that the
group serves both local and overseas clients. Penetrating into the overseas
countries has well diversified its business risk and at the same time added
strength to its capabilities in capturing higher market shares. At present
the workforce of the group is 300 and the group's business activities are
overseen by its Managing Director, Lau Kin Pong. Overall the management
capability is good.
|
|
During the financial year under review, its turnover continued on an upward
momentum, reaching RM1.17 billion. Correspondingly, its pre-tax profit rose
by 165.52% from RM20.24 million to RM53.74 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
managed to maintain an adequate liquidity level, indicating that the SC has
the ability to meet its financial obligations. Being a lowly geared
company, the SC is exposed to low financial risk as it is mainly dependent
on its internal funds to finance its business needs. Overall financial
standing of the SC is stable.
|
|
We noted that the 40% of the SC's supplies are imported from overseas
suppliers and the remaining 60% are obtained locally. Thus, it eliminates
the risk of dependency on deliveries from a number of key suppliers and
insufficient quantities of its resources.
|
|
Based on our historical financial data, we concluded that the SC's payment
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 SC is clear of litigation.
|
|
The plastic industry shows an upward trend and this trend is very likely to
sustain in the near future. With the promising outlook of the industry
performance, the business potential of the SC should be favourable.
Moreover, with the SC's strong background, the SC has a competitive edge
against other players in the same fields.
|
|
Based on the above condition, we recommend credit be granted to the SC
promptly.
|
CONSOLIDATED PROFIT AND LOSS
ACCOUNT
|
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
BASF
(MALAYSIA) SDN BHD
|
|
For The Year
Ended 31-December-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
1,169,298,568
|
999,425,363
|
880,714,007
|
|
|
=========
|
=========
|
=========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
53,739,484
|
20,239,023
|
42,160,573
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
53,739,484
|
20,239,023
|
42,160,573
|
|
Taxation
|
2,838,191
|
<3,481,953>
|
<3,663,189>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
-------------
56,577,675
|
-------------
16,757,070
|
-------------
38,497,384
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
-------------
56,577,675
|
-------------
16,757,070
|
-------------
38,497,384
|
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
-------------
56,577,675
|
-------------
16,757,070
|
-------------
38,497,384
|
|
As previous reported
|
<39,801,043>
|
<56,558,113>
|
<92,679,280>
|
|
|
|
|
|
|
As restated
|
-------------
<39,801,043>
|
-------------
<56,558,113>
|
-------------
<92,679,280>
|
|
|
-------------
|
-------------
|
-------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
16,776,632
|
<39,801,043>
|
<54,181,896>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
-
|
-
|
<5,000,000>
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
-------------
16,776,632
==========
|
-------------
<39,801,043>
==========
|
-------------
<59,181,896>
==========
|
|
RETAINED BY: The Company
|
16,776,632
|
<39,801,043>
|
<59,181,896>
|
|
|
|
|
|
|
|
|
|
|
|
|
-------------
16,776,632
==========
|
-------------
<39,801,043>
==========
|
-------------
<59,181,896>
==========
|
|
|
|
|
|
|
|
|
|
|
|
Term loan
|
3,001,383
|
2,771,843
|
5,954,626
|
|
Bank overdraft
|
-
|
38,770
|
66,675
|
|
Revolving loans
|
85,451
|
332,630
|
48,674
|
|
|
|
|
|
|
Lease interest
|
101,031
|
195,010
|
352,111
|
|
bankers' acceptance
|
26,640
|
202,127
|
1,932
|
|
commitment fees
|
37,401
|
84,220
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
--------------
3,251,906
===========
|
--------------
3,624,600
===========
|
--------------
6,424,018
===========
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET
|
BASF
(MALAYSIA) SDN BHD
|
|
As At 31-December-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
|
FIXED ASSETS
|
127,914,556
|
139,900,943
|
149,620,381
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
Deffered assets
|
5,214,000
|
273,000
|
3,181,000
|
|
distribution rights
|
-
|
-
|
1,593,408
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
5,214,000
|
------------
273,000
|
------------
4,774,408
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
133,128,556
|
------------
140,173,943
|
------------
154,394,789
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
151,506,742
|
89,077,203
|
73,742,561
|
|
|
|
|
|
|
Trade debtors
|
99,527,448
|
96,582,536
|
105,866,477
|
|
Other debtors, deposits & prepayments
|
6,627,768
|
2,604,531
|
2,869,567
|
|
Short term deposits
|
2,860,350
|
18,520,000
|
15,450,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount due from related companies
|
96,120,637
|
21,886,167
|
17,201,819
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
16,971,902
|
17,037,629
|
15,275,194
|
|
|
|
|
|
|
tax recoverable
|
579,250
|
597,936
|
40,306
|
|
amount due to ultimate holding company
|
999,395
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
375,193,492
|
------------
246,306,002
|
------------
230,445,924
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
35,811,052
|
18,264,257
|
19,993,556
|
|
Other creditors & accruals
|
25,855,497
|
26,334,591
|
24,459,506
|
|
Hire purchase & lease creditors
|
423,410
|
527,933
|
567,837
|
|
|
|
|
|
|
Short term borrowings/Term loans
|
34,635,500
|
-
|
61,400,000
|
|
|
|
|
|
|
|
|
|
|
|
Bill & acceptances payable
|
-
|
4,914,000
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities & accruals
|
2,132,374
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owing to related companies
|
115,193,041
|
63,419,506
|
79,309,873
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
-
|
-
|
546,668
|
|
|
|
|
|
|
Amount owing to ultimate holding company
|
52,610,364
|
57,882,269
|
31,579,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
266,661,238
|
------------
171,342,556
|
------------
217,856,952
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
108,532,254
|
------------
74,963,446
|
------------
12,588,972
|
|
TOTAL NET ASSETS
|
------------
241,660,810
==========
|
------------
215,137,389
==========
|
------------
166,983,761
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
111,200,000
|
111,200,000
|
109,500,000
|
|
Preference share capital
|
-
|
-
|
1,700,000
|
|
TOTAL SHARE CAPITAL
|
111,200,000
------------
|
111,200,000
------------
|
111,200,000
------------
|
|
RESERVES
|
|
|
|
|
Share premium
|
83,300,000
|
83,300,000
|
83,300,000
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
16,776,632
|
<39,801,043>
|
<59,181,896>
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
100,076,632
|
------------
43,498,957
|
------------
24,118,104
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
211,276,632
|
------------
154,698,957
|
------------
135,318,104
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
Long term loans
|
30,000,000
|
59,585,500
|
30,000,000
|
|
|
|
|
|
|
Lease obligations
|
384,178
|
852,932
|
1,665,657
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
30,384,178
|
------------
60,438,432
|
------------
31,665,657
|
|
|
------------
|
------------
|
------------
|
|
|
241,660,810
|
215,137,389
|
166,983,761
|
|
|
==========
|
==========
|
==========
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED FINANCIAL RATIOS
|
BASF
(MALAYSIA) SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
|
2006
|
2005
|
2004
|
|
|
MYR
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
19,832,252
|
35,557,629
|
30,725,194
|
|
Net Liquid Funds
|
<14,803,248>
|
35,557,629
|
<30,674,806>
|
|
Net Liquid Assets
|
<42,974,488>
|
<14,113,757>
|
<61,153,589>
|
|
Net Current Assets/(Liabilities)
|
108,532,254
|
74,963,446
|
12,588,972
|
|
Net Tangible Assets
|
241,660,810
|
215,137,389
|
166,983,761
|
|
Net Monetary Assets
|
<73,358,666>
|
<74,552,189>
|
<92,819,246>
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
65,443,088
|
60,966,365
|
93,633,494
|
|
Total Liabilities
|
297,045,416
|
231,780,988
|
249,522,609
|
|
Total Assets
|
508,322,048
|
386,479,945
|
384,840,713
|
|
Net Assets
|
241,660,810
|
215,137,389
|
166,983,761
|
|
Net Assets Backing
|
211,276,632
|
154,698,957
|
135,318,104
|
|
Shareholders" Funds
|
211,276,632
|
154,698,957
|
135,318,104
|
|
Total Share Capital
|
111,200,000
|
111,200,000
|
111,200,000
|
|
Total Reserves
|
100,076,632
|
43,498,957
|
24,118,104
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.07
|
0.21
|
0.14
|
|
Liquid Ratio
|
0.84
|
0.92
|
0.72
|
|
Current Ratio
|
1.41
|
1.44
|
1.06
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
47
|
33
|
31
|
|
Debtors Ratio
|
31
|
35
|
44
|
|
Creditors Ratio
|
11
|
7
|
8
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0.31
|
0.39
|
0.69
|
|
Liabilities Ratio
|
1.41
|
1.50
|
1.84
|
|
Times Interest Earned Ratio
|
17.53
|
6.58
|
7.56
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
4.60
|
2.03
|
4.79
|
|
Net Profit Margin
|
4.84
|
1.68
|
4.37
|
|
Return On Net Assets
|
23.58
|
11.09
|
29.10
|
|
Return On Capital Employed
|
20.60
|
11.07
|
21.22
|
|
Return On Shareholders'
Funds/Equity
|
26.78
|
10.83
|
28.45
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
0.13
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
0.00
|
|
|
|
|
|
|
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