|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
247716-T
|
|
COMPANY NAME
|
:
|
NIRO CERAMIC SALES & SERVICES (M) SDN BHD
|
|
FORMER NAME
|
:
|
TROMPEAK SDN BHD (20/08/1993)
|
|
INCORPORATION DATE
|
:
|
26/08/1992
|
|
|
|
|
|
|
|
|
|
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
|
:
|
LOT 1,LORONG 19/1A, 46300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-76529333
|
|
FAX.NO.
|
:
|
03-76529323
|
|
CONTACT PERSON
|
:
|
BONG KUAN SHIN ( MANAGING DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51432
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING, SALE & SERVICES OF CERAMIC TILES
|
|
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 200,002.00
DIVIDED INTO
ORDINARY SHARES 200,002 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 79,148,225 [2006]
|
|
NET WORTH
|
:
|
MYR 626,406 [2006]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
50 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
GOOD
|
|
MANAGEMENT CAPABILITY
|
:
|
GOOD
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
GOOD
|
|
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) trading, sale &
services of ceramic tiles.
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 NIRO CERAMIC (M) SDN BHD, a
company incorporated in MALAYSIA.
The ultimate holding company of the SC is GLENMARIE ESTATES SDN BHD, a
company incorporated in MALAYSIA.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
NIRO CERAMIC (M) SDN BHD
|
UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN, LEVEL 14, 47400
PETALING JAYA, SELANGOR, MALAYSIA.
|
169869
|
200,002.00
|
|
|
|
|
---------------
|
|
|
|
|
200,002.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. BONG KUAN SHIN
|
|
Address
|
:
|
LOT 1, 46 JALAN KUDA LARI, COUNTRY HEIGHTS, 43100 HULU LANGAT,
SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
K397100
|
|
New IC No
|
:
|
561015-13-5005
|
|
Date of Birth
|
:
|
15/10/1956
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. NG LU SIONG @ NG SOON HUAT
|
|
Address
|
:
|
30, JALAN U-THANT, 55000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
2764428
|
|
New IC No
|
:
|
470323-10-5007
|
|
Date of Birth
|
:
|
23/03/1947
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS. CHUA HUI CHOO
|
|
Address
|
:
|
3 JALAN BIRU, TAMAN PELNGI, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A0947480
|
|
New IC No
|
:
|
680324-01-6036
|
|
Date of Birth
|
:
|
24/03/1968
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
30/05/2003
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. IAN KOK FAI TET
|
|
Address
|
:
|
29, JALAN 35/70A, DESA SRI HARTAMAS, 50480 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
New IC No
|
:
|
631030-07-5611
|
|
Date of Birth
|
:
|
30/10/1963
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
BONG KUAN SHIN
|
|
|
Position
|
:
|
MANAGING DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
SALEHA
|
|
|
Position
|
:
|
FINANCE MANAGER
|
|
|
|
|
|
|
3)
|
Name of Subject
|
:
|
AZIZAH
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
DELOITTE KASSIMCHAN
|
|
Auditor' Address
|
:
|
21, JALAN TUN ABDUL RAZAK, SUSUR 1/1, 80000 JOHOR BAHRU, JOHOR,
MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. LIM LEE KUAN
|
|
|
|
|
|
|
|
New IC No
|
:
|
711203-10-5656
|
|
|
Address
|
:
|
40, JALAN H13, TAMAN MELAWATI, 53100 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. WONG WEI FONG
|
|
|
IC / PP No
|
:
|
A0668782
|
|
|
New IC No
|
:
|
670301-10-6208
|
|
|
Address
|
:
|
20, LORONG BURUNG UPIH 1, TAMAN BUKIT MALURI, KEPONG, 52100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, 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
|
|
Overseas
|
:
|
YES
|
|
Import Countries
|
:
|
ASIA
|
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
|
:
|
50%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
Export Market
|
:
|
AUSTRALIA, EUROPE, SINGAPORE, INDIA,
SOUTHEAST ASIA
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT), LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
DEALERS,DISTRIBUTORS,END USERS
|
|
|
|
|
|
|
|
OPERATIONS
|
Goods Traded
|
:
|
|
CERAMIC TILES & RELATED PRODUCTS
|
|
|
|
|
|
|
Certification of Products
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
ANN JOO METAL SDN BHD
|
|
ASTINO BHD
|
|
IPMUDA BHD
|
|
PILECON ENGINEERING BHD
|
|
WOODLANDOR HOLDINGS BHD
|
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
|
FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
|
|
|
|
|
|
|
Ownership of premises
|
:
|
|
|
Total Number of Employees:
|
|
|
YEAR
|
2008
|
2007
|
2006
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
|
COMPANY
|
50
|
40
|
45
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading, sale &
services of ceramic tiles.
The SC sells a wide range of both ceramic tiles, homogeneous tiles and
others.
The SC also imports some of the ceramic tiles from overseas markets
especially from China.
The SC acts as a marketing arm for its related company, Niro Ceramic (M) Sdn
Bhd, which is engaged in the manufacturing of ceramic products. The factory
is located in Johor.
The SC also has show room in Taman Molek,Johor.
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
|
:
|
03-76529333
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
PLO 419-421 JALAN EMAS 2, PASIR GUDANG INDUSTRIAL ESTATE, 81700
PASIR GUDANG, JOHOR.
|
|
Current Address
|
:
|
LOT 1,LORONG 19/1A, 46300 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one of the Senior staff from
the Finance Department. She proivided some information on the SC.
We have verified and confirmed that the address provided to the SC's related
company, Niro Ceramic (M) Sdn Bhd.
FINANCIAL
COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
24.67%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
<300.24%>
|
]
|
|
Return on Shareholder Funds
|
:
|
Favourable
|
[
|
405.75%
|
]
|
|
Return on Net Assets
|
:
|
Favourable
|
[
|
624.59%
|
]
|
The higher turnover could be attributed to the favourable market condition
and the SC could be gaining the market share progressively. The management
had succeeded in turning the SC into a profit making company. The profit
could be due to better control of its operating costs and efficiency in
utilising its resources. Generally the SC was profitable. The favourable
return on shareholders' funds and return on net assets indicate that the SC's
management was efficient in utilising the assets to generate returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
46 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
47 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
5 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
|
:
|
Unfavourable
|
[
|
0.65 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
0.97 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
|
[
|
3.55 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.00 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 had no gearing and hence it had virtually no financial risk. The SC was
financed by its shareholders' funds and internally generated fund. During the
economic downturn, the SC, having a zero gearing, will be able to compete
better than those which are highly geared in the same industry.
Overall Accessment:
The higher
turnover had helped to reduce the SC's losses. 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 was a zero gearing company, it was solely dependant on its
shareholders to provide funds to finance its business. The SC has good chance
of getting loans, if the needs arises.
Overall financial condition of the SC : FAIR
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
|
|
51432 : Wholesale of construction materials, builders hardware,
plumbing and heating equipment and supplies
|
|
|
|
|
INDUSTRY :
|
BUILDING MATERIALS
|
|
|
|
|
|
|
The building materials industry is expected to benefit from the improving
construction activities, with cement and steel being the two sub-sectors to
reach significant gains in year 2008. Whilst taking advantage of improving
domestic construction/infrastructure activities, analyst expected there is
a pick up in property activities with strong demand from Singapore for
their resorts built and a healthy export market (i.e Middle East
construction boom) will further lend support for higher demand of cement.
Demand for cement is expected to grow by about 6 percent per annum over
2008 and 2009.
|
|
Speculation is rife that the prices of controlled building materials like
steel bars and cement are set to increase further in the second half of
this year 2008. Late last month of Jan 2008, the Economic Planning Unit
(EPU) held its first special committee meeting with cement and steel
industry players to get feedback on their escalating raw material and
operational costs. It is believed that the Government will review the
ceiling price of major building materials given the serious
"pricing" issue especially in the domestic cement and steel
markets.
|
|
The Government has also set up the National Price Council to review and
evaluate the price control regime to ensure fair prices based on domestic
and global markets and supply and demand situations.
|
|
For steel, the Government had increased the ceiling prices of steel bars
and billets effective Dec 1, 2007. The 12% price hike was the third in 2007,
after a 20% adjustment for both billets and bars in April and a second
increase of about 7% to 9% in June. Billet prices now range from RM1,907 to
RM2,035 per tonne depending on the type and size, while prices for steel
bars are from RM2,225 to RM2,419. With this latest increase, the price gaps
between the local ceiling prices and international prices have narrowed.
But the new ceiling prices for both billets and bars are still below the
international prices.
|
|
The stable cement price averaging at RM215 per metric tonne coupled with
better utilisation rate, should help to partly offset the rising operation
costs from electricity, paper bags, fuel and raw materials. Steel,
meanwhile, is envisaged to exhibit better performance supported by domestic
construction activities, higher selling prices, and stronger export market.
Steel prices are expected to remain firm in the near term, mainly supported
by strong demand from the single largest consumer namely China. The
International Iron and Steel Institute (IISI) has projected the global
demand for steel this year 2008 to grow by 6.1 percent, while predicting
China who consumes 35 percent of the total world steel to expand by an
additional 10 percent this year of 2008.
|
|
While for the ceramic tiles sector, the outlook is unexciting on the back
of the softening property market, commissioning of new capacities by a few
players, they still heavy reliance on the domestic market. It is believe
that a price war is brewing. The new 9MP projects have come at the most appropriate
time to alleviate the woes of building materials and construction
companies. The players are excited by the Government's allocation for
infrastructure projects such as airports, bridges, water dams and highways,
which are spread throughout Peninsular Malaysia. Even the small contractors
will benefit from the plan, as the projects will be awarded in small
parcels. As the Government has made it clear that the private sector will
be main growth driver going forward, this should result in more spin-offs
from private sector driven projects.
|
|
Note : The Ninth Malaysia Plan (9MP) was tabled in Parliament on March 31,
2006, is the five-year blueprints within the new National Mission policy
and implementation framework from now until 2010. Malaysia is expected to
see some structural changes and improved performance in the economy.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS
|
Established in 1992 as a private limited company, the SC is principally
engaged in the trading, sale and services of ceramic tiles. Having been in
the industry for 16 years, the SC should have received strong support from
its regular customers. Strongly supported by its holding company, Niro
Ceramic (M) Sdn Bhd, the SC is expected to enjoy timely financial and
technical support should the needs arise.
|
|
About 50% of the SC's products are exported to countries like Singapore,
Australia, Europe and others 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. Moreover, we noted that the SC has
been accredited with MS ISO 13006. These awards have enabled the SC to
compete better than other rivals in the same field. Hence, its future
prospects seem to be fairly good. The SC growing steadily with staff
strength about 50 and its operation is overseen by its Managing Director,
Bong Kuan Shin. The SC was in good management capability.
|
|
During the financial year under review, its turnover continued on an upward
momentum, reaching RM79.15 million in year 2006 compared to RM63.49 million
previously. Its pre-tax profit rose to RM2.81 million. This was achieved on
the back of stronger performance of higher turnover. Based on the higher
profitability, 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. As a zero geared
company, the SC virtually has no financial risk as it is mainly dependent
on its internal funds to finance its business needs. Unfortunately, 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 SC however still maintain a positive worth
standing at RM626,406.
|
|
To reduce the risk of component shortages, the SC sources its raw materials
locally and imported from overseas countries especially Asia countries.
Thus, it is subjected to the currency fluctuation risk.
|
|
Based on our historical financial data, we concluded that the SC's pattern
of payment habit is good. This implies good credit control and the SC could
be taking advantage of the cash discounts while maintaining a good
reputation with its creditors.
|
|
The potential growth for the industry is marginal and it is quite
competitive. It very much depends on the SC's capability in sustaining its
performance in the market. With the SC's favourable conditions, it should
have acquired competitive edge from its competitors.
|
|
Based on the above condition, we recommend a fairly large amount of credit
be granted to the SC promptly.
|
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
NIRO CERAMIC
SALES & SERVICES (M) SDN BHD
|
|
For The Year
Ended 31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
79,148,225
|
63,487,884
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
2,811,194
|
<1,403,884>
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
2,811,194
|
<1,403,884>
|
|
Taxation
|
<269,528>
|
<9,006>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
2,541,666
|
------------
<1,412,890>
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
2,541,666
|
------------
<1,412,890>
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
2,541,666
|
------------
<1,412,890>
|
|
As previous reported
|
<2,115,262>
|
-
|
|
|
|
|
|
As restated
|
------------
<2,115,262>
|
------------
-
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
426,404
|
<1,412,890>
|
|
|
|
|
|
TRANSFER TO RESERVES - General
|
-
|
<702,372>
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
426,404
==========
|
------------
<2,115,262>
==========
|
|
RETAINED BY: The Company
|
426,404
|
<2,115,262>
|
|
|
|
|
|
|
|
|
|
|
------------
426,404
==========
|
------------
<2,115,262>
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
Term loan
|
198,758
|
-
|
|
|
|
|
|
Bankers acceptance
|
806,332
|
203,674
|
|
Other borrowings
|
96,214
|
-
|
|
|
|
|
|
|
------------
1,101,304
==========
|
------------
203,674
==========
|
|
|
|
|
BALANCE SHEET
|
NIRO CERAMIC
SALES & SERVICES (M) SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
1,595,052
|
1,499,495
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
1,595,052
|
------------
1,499,495
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
9,869,636
|
7,777,954
|
|
|
|
|
|
Trade debtors
|
10,291,046
|
9,549,251
|
|
Other debtors, deposits &
prepayments
|
515,835
|
1,661,649
|
|
|
|
|
|
|
|
|
|
Amount due from related
companies
|
3,779,229
|
632,571
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
5,141,423
|
2,910,666
|
|
TOTAL CURRENT ASSETS
|
------------
29,597,169
|
------------
22,532,091
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade creditors
|
1,042,013
|
1,512,677
|
|
Other creditors & accruals
|
1,542,598
|
1,709,255
|
|
|
|
|
|
|
|
|
|
Bill & acceptances payable
|
81,396
|
3,758,745
|
|
|
|
|
|
Amounts owing to holding
companies
|
21,162,376
|
14,711,263
|
|
|
|
|
|
Amounts owing to related
companies
|
6,670,036
|
4,254,906
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
67,396
|
-
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
30,565,815
|
------------
25,946,846
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
<968,646>
|
------------
<3,414,755>
|
|
TOTAL NET ASSETS
|
------------
626,406
==========
|
------------
<1,915,260>
==========
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share capital
|
200,002
|
200,002
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
200,002
|
------------
200,002
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
426,404
|
<2,115,262>
|
|
|
|
|
|
TOTAL RESERVES
|
------------
426,404
|
------------
<2,115,262>
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
626,406
|
------------
<1,915,260>
|
|
|
|
|
|
|
------------
|
------------
|
|
|
626,406
|
<1,915,260>
|
|
|
==========
|
==========
|
|
|
|
|
FINANCIAL RATIOS
|
NIRO CERAMIC
SALES & SERVICES (M) SDN BHD
|
|
As At
31-December-2006
|
|
|
|
|
|
|
2006
|
2005
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
5,141,423
|
2,910,666
|
|
Net Liquid Funds
|
5,141,423
|
2,910,666
|
|
Net Liquid Assets
|
<10,838,282>
|
<11,192,709>
|
|
Net Current Assets/(Liabilities)
|
<968,646>
|
<3,414,755>
|
|
Net Tangible Assets
|
626,406
|
<1,915,260>
|
|
Net Monetary Assets
|
<10,838,282>
|
<11,192,709>
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
0
|
0
|
|
Total Liabilities
|
30,565,815
|
25,946,846
|
|
Total Assets
|
31,192,221
|
24,031,586
|
|
Net Assets
|
626,406
|
<1,915,260>
|
|
Net Assets Backing
|
626,406
|
<1,915,260>
|
|
Shareholders" Funds
|
626,406
|
<1,915,260>
|
|
Total Share Capital
|
200,002
|
200,002
|
|
Total Reserves
|
426,404
|
<2,115,262>
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
Cash Ratio
|
0.17
|
0.11
|
|
Liquid Ratio
|
0.65
|
0.57
|
|
Current Ratio
|
0.97
|
0.87
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
46
|
45
|
|
Debtors Ratio
|
47
|
55
|
|
Creditors Ratio
|
5
|
9
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
0
|
0
|
|
Liabilities Ratio
|
48.80
|
<13.55>
|
|
Times Interest Earned Ratio
|
3.55
|
<5.89>
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit Margin
|
3.55
|
<2.21>
|
|
Net Profit Margin
|
3.21
|
<2.23>
|
|
Return On Net Assets
|
624.59
|
62.67
|
|
Return On Capital Employed
|
624.59
|
62.67
|
|
Return On Shareholders'
Funds/Equity
|
405.75
|
73.77
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
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