|
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
79537-A
|
|
COMPANY NAME
|
:
|
SIME DARBY FUTURES TRADING SDN BHD
|
|
FORMER NAME
|
:
|
MANPOWER DEVELOPMENT CORPORATION (MALAYSIA) SDN BHD (14/09/1985)
|
|
INCORPORATION DATE
|
:
|
28/12/1981
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
WISMA CONSPLANT 1, 2, JALAN SS 16/4, 4TH FLOOR, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
4TH WISMA GUTHRIE, 21 JALAN GELENGGANG, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-20931314/73/41644
|
|
FAX.NO.
|
:
|
03-20930901
|
|
CONTACT PERSON
|
:
|
JASNI MOHAMED ( GENERAL MANAGER )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51212
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING OF PALM OIL PRODUCTS
|
|
AUTHORISED CAPITAL
|
:
|
MYR 2,000,000.00
DIVIDED INTO
ORDINARY SHARE 2,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR
2,000,000.00 DIVIDED INTO
ORDINARY SHARES 2,000,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
MYR 115,798 [2007]
|
|
NET WORTH
|
:
|
MYR 2,397,921 [2007]
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
75 [2008]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
LOW
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
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) trading of palm oil
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 major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
SIME DARBY NOMINEES SDN BHD
|
WISMA SIME DARBY, JALAN RAJA LAUT, 21ST FLOOR, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
19350
|
2,000,000.00
|
|
|
|
|
---------------
|
|
|
|
|
2,000,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MR. JASNI BIN MUHAMAD
|
|
Address
|
:
|
7, JALAN PJU 1A/24B, ARA DAMANSARA, 47301 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
6169529
|
|
New IC No
|
:
|
610323-03-5135
|
|
Date of Birth
|
:
|
23/03/1961
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
DIRECTOR 2
|
Name Of Subject
|
:
|
DATO' AZHAR BIN ABDUL HAMID
|
|
Address
|
:
|
50, JALAN TITIAN U8/41, SECTION U8, BUKIT JELUTONG, 40150 SHAH ALAM,
SELANGOR, MALAYSIA.
|
|
New IC No
|
:
|
610427-71-5477
|
|
Date of Birth
|
:
|
27/04/1961
|
|
Nationality
|
:
|
MALAYSIAN MALAY
|
|
Date of Appointment
|
:
|
27/11/2007
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MS. TONG POH KEOW
|
|
Address
|
:
|
14 JALAN SS 21/46, DAMANSARA UTAMA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
4680740
|
|
New IC No
|
:
|
541110-01-5310
|
|
Date of Birth
|
:
|
10/11/1954
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
27/11/2007
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
JASNI MOHAMED
|
|
|
Position
|
:
|
GENERAL MANAGER
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
AZHAR ABDUL HAMID
|
|
|
Position
|
:
|
EXECUTIVE VICE PRESIDENT
|
|
|
|
|
|
|
Auditor
|
:
|
PRICEWATERHOUSECOOPERS
|
|
Auditor' Address
|
:
|
1, SENTRAL, JALAN TRAVERS, KUALA LUMPUR SENTRAL, LEVEL 10, 50470
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. AZRIN NASHIHA BINTI ABDUL AZIZ
|
|
|
IC / PP No
|
:
|
A1987809
|
|
|
New IC No
|
:
|
720603-08-5564
|
|
|
Address
|
:
|
15, JALAN DM 3B, DESA MOCCIS, SUNGAI BULOH, 47400 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
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
|
:
|
10%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
90%
|
|
Import Countries
|
:
|
INDONESIA,THAILAND,SINGAPORE,CHINA,UNITED
STATES,EUROPE,INDIA,VIETNAM,FRANCE,GERMANY,WORLDWIDE
|
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
|
[
|
|
]
|
|
Average
|
[
|
X
|
]
|
|
|
Fair
|
[
|
|
]
|
|
Poor
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
Domestic Markets
|
:
|
PENINSULAR MALAYSIA,EAST MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
50%
|
|
Export Market
|
:
|
AUSTRALIA, INDONESIA, THAILAND,
TAIWAN, CHINA, HONG KONG,
WORLDWIDE
|
|
Credit Term
|
:
|
AS AGREED
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT)
|
OPERATIONS
|
Goods Traded
|
:
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
AMBROSIA SDN BHD
|
|
CARGILL SPECIALTY OILS & FATS SDN BHD
|
|
FELDA VEGETABLE OIL PRODUCTS SDN BHD
|
|
MITSHUBISHI CORPORATION
|
|
SHARIKAT KERATONG SDN BHD
|
|
|
|
|
|
|
Ownership of
premises
|
:
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
75
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading of palm oil
products.
The SC is the one of the subsidairy company of Sime Darby Plantation Sdn Bhd
and which its dealing in trading and marketing of the palm oil products.
The SC is the traded within Malaysia as well as overseas and selling its
products which is divided to two categories:
* palm products
* lauric products
The SC's Palm products are Fresh fruit bunches (FFB), Crude palm oil, Crude
palm olein, Refined Bleached Deodorised Palm Olein,
Refined Bleached Deodorised Palm Oil, Refined Bleached Deodorised Palm Stearin,
Palm Fatty Acid Distillate, Palm Acid Oil and etc.
Its Lauric products are Palm kernel, Crude palm kernel oil, Refined Bleached
Deodorised Palm Kernel Olein, Refined Bleached Deodorised Palm Kernel Oil,
Refined Bleached Deodorised Palm Kernel Stearin, Palm Kernel Fatty Acid
Distillate and etc.
We were also informed that its also selling the Packed Cooking Oil,
Shortening, Vegetable Ghee, Margarine, Dough Fat Red Palm Olein for cooking
purpose.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's ( Bernama )
database, but no latest developemnt 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
|
:
|
03-20931314/73/41644
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
WISMA GUTHNE 21- JALAN GELENGGANG BUKITDAMANSARA 50490 KUALALUMPUR
|
|
Current Address
|
:
|
4TH WISMA GUTHRIE, 21 JALAN GELENGGANG, BUKIT DAMANSARA, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We conducted an interview with one of the SC's Senior Staff from Admin Dept.
He kindly furnished us some relevant information on the SC and it Operations.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Increased
|
[
|
76.21%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Increased
|
[
|
30.47%
|
]
|
|
Return on Shareholder Funds
|
:
|
Unfavourable
|
[
|
3.57%
|
]
|
|
Return on Net Assets
|
:
|
Unfavourable
|
[
|
4.47%
|
]
|
The increase in turnover could be due to the SC adopting an aggressive marketing
strategy. The higher profit could be attributed to the increase in turnover.
The unfavourable return on shareholders' funds and net assets could indicate
that the SC's management was inefficient in utilising its assets to generate
returns.
Working Capital Control:
|
Stock Ratio
|
:
|
Nil
|
[
|
0 Days
|
]
|
|
Debtors Ratio
|
:
|
Unfavourable
|
[
|
10627 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
0 Days
|
]
|
As the SC is a service oriented company, the SC does not need to keep stocks.
The SC's debtors ratio was high. The SC should tighten its credit control and
improve its collection period. 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
|
[
|
1.72 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.72 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
|
:
|
Favourable
|
[
|
0.00 Times
|
]
|
The SC's interest cover was nil as it did not pay any interest during the year.
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:
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 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
|
5.7
|
|
Domestic Demand ( % )
|
7.5
|
7.3
|
7.0
|
9.0
|
6.1
|
|
Private Expenditure ( % )
|
13.1
|
9.5
|
7.0
|
8.6
|
6.6
|
|
Consumption ( % )
|
10.5
|
9.2
|
7.1
|
9.0
|
6.8
|
|
Investment ( % )
|
25.8
|
8.5
|
7.0
|
7.1
|
6.2
|
|
Public Expenditure ( % )
|
<2.1>
|
3.6
|
6.8
|
10.1
|
4.7
|
|
Consumption ( % )
|
6.0
|
5.4
|
5.0
|
10.8
|
5.7
|
|
Investment ( % )
|
<8.7>
|
1.9
|
8.9
|
9.3
|
3.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
80,663
|
99,760
|
108,192
|
100,340
|
115,563
|
|
Government Finance ( MYR Million )
|
<19,419>
|
<18,684>
|
<19,109>
|
<19,948>
|
<34,462>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<4.3>
|
<3.8>
|
<3.3>
|
<3.2>
|
<4.8>
|
|
Inflation ( % Change in Composite CPI)
|
1.4
|
3.1
|
3.9
|
2.0
|
4.4
|
|
Unemployment Rate
|
3.5
|
3.5
|
3.4
|
3.2
|
3.3
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
254
|
266
|
290
|
336
|
388
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
13.84
|
5.13
|
4.21
|
3.04
|
1.91
|
|
Average 3 Months of Non-performing Loans ( % )
|
8.46
|
13.63
|
12.91
|
13.30
|
13.24
|
|
Average Base Lending Rate ( % )
|
5.99
|
6.00
|
6.61
|
6.72
|
6.72
|
|
Business Loans Disbursed( % )
|
10.5
|
8.7
|
<2.5>
|
9.1
|
-
|
|
Foreign Investment ( MYR Million )
|
13,143.9
|
17,882.9
|
20,228.0
|
33,426.0
|
23,261.4
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
38,580
|
37,474
|
38,293
|
43,337
|
-
|
|
Registration of New Companies ( % )
|
6.8
|
<2.9>
|
2.2
|
13.2
|
-
|
|
Liquidation of Companies ( No. )
|
3,334
|
3,069
|
8,647
|
22,629
|
-
|
|
Liquidation of Companies ( % )
|
<15.8>
|
<7.9>
|
181.8
|
161.5
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
189,206
|
193,095
|
216,147
|
227,410
|
-
|
|
Registration of New Business ( % )
|
4.6
|
2.1
|
11.9
|
5.2
|
-
|
|
Business Dissolved ( No. )
|
51,301
|
73,355
|
52,879
|
20,431
|
-
|
|
Business Dissolved ( % )
|
7.0
|
43.0
|
<27.9>
|
<61.4>
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
380.6
|
400.8
|
446.2
|
442.9
|
-
|
|
Cellular Phone Subscribers ( Million )
|
14.6
|
18.5
|
19.5
|
23.3
|
25.1
|
|
Tourist Arrival ( Million Persons )
|
15.7
|
16.7
|
17.5
|
20.9
|
21.5
|
|
Hotel Occupancy Rate ( % )
|
60.8
|
63.6
|
64.8
|
70.0
|
68.0
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
19.3
|
13.9
|
15.4
|
20.1
|
-
|
|
Bad Cheque Offenders (No.)
|
70,465
|
57,316
|
36,555
|
30,004
|
-
|
|
Individual Bankruptcy ( No.)
|
16,251
|
15,868
|
13,596
|
13,238
|
-
|
|
Individual Bankruptcy ( % )
|
31.6
|
<2.4>
|
<14.3>
|
<2.6>
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.0
|
2.5
|
5.3
|
3.1
|
3.6
|
|
Palm Oil
|
3.9
|
7.1
|
5.8
|
<0.6>
|
7.0
|
|
Rubber
|
16.5
|
<2.9>
|
12.6
|
1.0
|
<1.1>
|
|
Forestry & Logging
|
4.3
|
2.0
|
<0.4>
|
2.8
|
<1.5>
|
|
Fishing
|
5.5
|
<0.4>
|
9.3
|
5.2
|
4.0
|
|
Other Agriculture
|
2.4
|
3.2
|
5.3
|
7.0
|
5.9
|
|
Industry Non-Performing Loans ( MYR Million )
|
620.3
|
563.7
|
516.5
|
487.3
|
393
|
|
% of Industry Non-Performing Loans
|
1.38
|
1.19
|
1.06
|
1.08
|
0
|
|
|
|
|
|
|
|
|
Mining
|
3.9
|
0.8
|
<0.4>
|
3.3
|
2.8
|
|
Oil & Gas
|
4.5
|
1.6
|
4.6
|
2.2
|
12.7
|
|
Other Mining
|
<8.0>
|
<1.0>
|
5.1
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
62.6
|
68.8
|
55.4
|
42.2
|
36.0
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
9.8
|
5.1
|
7.3
|
3.1
|
4.7
|
|
Exported-oriented Industries
|
15.5
|
3.0
|
11.1
|
<1.9>
|
2.7
|
|
Electrical & Electronics
|
17.8
|
3.6
|
13.4
|
3.0
|
2.4
|
|
Rubber Products
|
14.8
|
2.4
|
0.4
|
8.0
|
4.2
|
|
Wood Products
|
12.7
|
0.9
|
0.7
|
3.3
|
<6.0>
|
|
Textiles & Apparel
|
<11.7>
|
<4.4>
|
12.6
|
<10.1>
|
1.9
|
|
Domestic-oriented Industries
|
9.7
|
6.9
|
5.0
|
5.3
|
9.9
|
|
Food, Beverages & Tobacco
|
3.8
|
7.7
|
4.8
|
5.6
|
9.5
|
|
Chemical & Chemical Products
|
14.6
|
6.9
|
1.7
|
9.2
|
1.4
|
|
Plastic Products
|
13.5
|
18.6
|
21.3
|
<3.6>
|
6.5
|
|
Iron & Steel
|
2.7
|
<6.7>
|
<6.9>
|
17.5
|
16.8
|
|
Fabricated Metal Products
|
29.2
|
<7.5>
|
20.0
|
26.2
|
14.7
|
|
Non-metallic Mineral
|
<4.8>
|
<6.0>
|
<1.9>
|
6.6
|
8.3
|
|
Transport Equipment
|
8.6
|
10.4
|
5.3
|
<19.0>
|
27.1
|
|
Paper & Paper Products
|
2.3
|
4.6
|
4.1
|
14.9
|
8.6
|
|
Crude Oil Refineries
|
<2.4>
|
8.2
|
12.1
|
8.6
|
7.8
|
|
Industry Non-Performing Loans ( MYR Million )
|
7,765.4
|
6,035.6
|
6,181.3
|
6,366.2
|
5,729.4
|
|
% of Industry Non-Performing Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
<1.5>
|
<1.6>
|
<0.5>
|
4.6
|
4.0
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,547.7
|
5,172.7
|
5,527.3
|
5,116.7
|
4,149.8
|
|
% of Industry Non-Performing Loans
|
12.4
|
10.9
|
11.4
|
11.3
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.8
|
6.6
|
7.2
|
9.7
|
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
|
8,281.4
|
|
% 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
|
|
51212 : Wholesale of palm oil
|
|
|
|
|
INDUSTRY :
|
PALM OIL
|
|
|
|
|
|
|
In July 2008, Malaysia's
Crude Palm Oil (CPO) production rose by 6.2% month-on-month (mom) to
1.56million tonnes, while exports rose by 25.2% mom to 1.4million tonnes.
Despite the rise in the production, stock levels fell from 2.03million
tonnes to 1.97million tonnes in July, as a result of the increase in
exports. The main mom rise in exports came from Bangladesh,
China, India, Jordan,
|
|
Europe, Singapore, Turkey and United Arab Emirates. However,
this was offset by a drop in exports to Iran,
Pakistan and United States.
|
|
On a year-on-year (yoy) basis, CPO production for the year-to-date (YTD)
rose by 21.5%, due to a rise in matured hectarage, while exports rose
16.4%. The main rise in exports was to China,
Bangladesh, India, Japan,
Pakistan, Turkey, United
States, United Arab
Emirates and Ukraine. On the other hand,
this was slightly offset by a decline to Europe, Vietnam,
Iran and Egypt.
|
|
Going forward, the production is expected to pick up speed in the coming
peak production months, while exports would also rise, heading towards the
festive seasons. Besides, the stock levels are expected to remain at close
to the 2million tonne mark in the medium term.
|
|
Nonetheless, the industry is facing inherent risks which include a
convincing reversal in crude oil price trend resulting in reversal of CPO
and other vegetable oil price trend, weather abnormalities resulting in
excess or shortage of vegetable oil. Aside by that, other risks such as
increased emphasis on implementation global biofuel mandates and trans-fat
policies, a quick global economic recovery, resulting in higher than
expected demand for vegetable oils have to be taken into consideration.
|
|
In support of the falling CPO prices, the Plantation Industry Minister has
recently discussed about the issue of using palm oil surpluses to produce
biodiesel. At present, the production of biodiesel is feasible at the
current levels, which would obviously attract renewed demand for vegetable
oils from biodiesel producers. Hence, it helps to support prices at above
RM2,000/tonne in the longer term. However, due to the volatility of both
crude oil and CPO prices, Malaysian government may not officially implement
a mandated biodiesel policy until the direction of the prices is clearer.
|
|
Despite the significant drop in all vegetable oil prices over the last few
weeks, which has seen soya oil prices coming off from highs recorded in
beg-July by 14.5% to current level, rapeseed oil prices by 13.9% and CPO prices
by a larger 20.4%, CPO continues to trade at a relatively wide discount to
soya oil and rapeseed oil. Hence, this could potentially result in large
declines in soya oil and rapeseed oil prices against CPO in the near term.
|
|
CPO prices assumed to be RM3,300/tonne for 2008, RM2,900/tonne for 2009 and
RM2,700/tonne for 2010. Crude oil prices are expected to remain a volatile
trigger, while demand uncertainties could also persist for the rest of 2008
and 2009. Post-2009 and into 2010, CPO prices are expected to trade lower
due to the more fundamental reason of a rise in CPO supply coming from
Indonesia, additional plantation land starts coming into maturity.
|
|
However, CPO prices would be limited to RM2,500/tonne in the medium term
and RM2,000/tonne in the long term due to the downside risk. These downside
limits would be held up until and unless global biofuel policies are
completely scrapped, resulting in a reversal in the structural change in
the industry in the past five years. If CPO and other vegetable oil prices
continue on a downward trend, it would become more attractive to the
biofuel sector, which would shore up demand, keeping prices above the
RM2,000/tonne mark in the long term.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Average Growth
|
COMMENTS
|
Established in 1981, the SC is a private limited company with core business
in the trading of palm oil products. With over 2 decades of experience in the
business, the SC has fairly rich experiences in the business and has
achieved a certain market share. With an issued and paid up capital of RM2
million and strong shareholders' backing, the SC has the ability to further
expand its business in the future.
|
|
Its good reputation built up over the years has given the SC an edge when
competing in the industry. In order to further grow the business, the SC
has ventured into the overseas markets. The SC's receptiveness towards
globalization has led to its growth and sales to Australia,
Thailand, Taiwan, China and so forth. Such wide
market coverage has minimised its business risk and its future growth
prospect remains bright. Assisted by 75 employees in the operation, the
SC's overall management capability is regarded as average.
|
|
During the financial year under review, the SC's turnover continued on an
upward momentum, reaching RM115,798 in year 2007, an increased of 76.21%
over the previous year. Correspondingly, its pre-tax profit rose by 30.47%
to RM107,159. This was achieved on the back of stronger performance of
higher turnover. However, the SC has generated a low return on
shareholders' funds indicates that the management was inefficient in
utilising the SC's assets to generate income. Fortunately, good cash flow
management has enabled the SC to meet its short term obligations as and
when they fall due. Moreover, being a zero geared company, the SC virtually
has no financial risk as it is mainly dependent on its internal funds to
finance its business. The SC had a fair financial standing.
|
|
Our investigation revealed that the SC sources only 10% of its products
locally while the rest are obtained from overseas suppliers. As an
export-oriented company and being involved in import activities, the SC is exposed
to high foreign exchange risk.
|
|
Based on the historical financial data, we concluded that the SC's payment
habit is average. The SC had a favourable creditors' ratio as evidenced by
its favourable collection days.
|
|
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 moderate amount of credit be
granted to the SC normally.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL STATEMENTS
WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
SIME DARBY
FUTURES TRADING SDN BHD
|
|
For The Year
Ended 30-June-2007
|
|
|
2007
|
2006
|
|
|
MYR
|
MYR
|
|
|
|
|
|
TURNOVER
|
115,798
|
65,715
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
107,159
|
82,135
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
107,159
|
82,135
|
|
Taxation
|
<21,500>
|
<16,427>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
85,659
|
------------
65,708
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
85,659
|
------------
65,708
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
85,659
|
------------
65,708
|
|
As previous reported
|
312,262
|
287,594
|
|
|
|
|
|
As restated
|
------------
312,262
|
------------
287,594
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
397,921
|
353,302
|
|
|
|
|
|
DIVIDENDS - Ordinary (paid & proposed)
|
-
|
<41,040>
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
397,921
==========
|
------------
312,262
==========
|
|
RETAINED BY: The Company
|
397,921
|
312,262
|
|
|
------------
397,921
==========
|
------------
312,262
==========
|
|
|
|
|
BALANCE SHEET
|
SIME DARBY
FUTURES TRADING SDN BHD
|
|
As At
30-June-2007
|
|
|
2007
|
2006
|
|
|
MYR
|
MYR
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Trade debtors
|
3,371,479
|
271,860
|
|
Other debtors, deposits &
prepayments
|
4,849
|
5,014
|
|
Short term deposits
|
2,338,000
|
2,285,000
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
3,114
|
3,064
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
5,717,442
|
------------
2,564,938
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Other creditors & accruals
|
2,398
|
1,858
|
|
|
|
|
|
Amounts owing to holding
companies
|
13,792
|
32,864
|
|
|
|
|
|
Amounts owing to related
companies
|
3,296,892
|
214,160
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
6,439
|
3,794
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
3,319,521
|
------------
252,676
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
2,397,921
|
------------
2,312,262
|
|
TOTAL NET ASSETS
|
------------
2,397,921
==========
|
------------
2,312,262
==========
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
Ordinary share capital
|
2,000,000
|
2,000,000
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
2,000,000
|
------------
2,000,000
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss)
carried forward
|
397,921
|
312,262
|
|
TOTAL RESERVES
|
------------
397,921
|
------------
312,262
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
2,397,921
|
------------
2,312,262
|
|
|
|
|
|
|
------------
|
------------
|
|
|
2,397,921
|
2,312,262
|
|
|
==========
|
==========
|
|
|
|
|
FINANCIAL RATIOS
|
SIME DARBY
FUTURES TRADING SDN BHD
|
|
As At
30-June-2007
|
|
|
2007
|
2006
|
|
|
MYR
|
MYR
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
Cash
|
2,341,114
|
2,288,064
|
|
Net Liquid Funds
|
2,341,114
|
2,288,064
|
|
Net Liquid Assets
|
2,397,921
|
2,312,262
|
|
Net Current Assets/(Liabilities)
|
2,397,921
|
2,312,262
|
|
Net Tangible Assets
|
2,397,921
|
2,312,262
|
|
Net Monetary Assets
|
2,397,921
|
2,312,262
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
Total Borrowings
|
0
|
0
|
|
Total Liabilities
|
3,319,521
|
252,676
|
|
Total Assets
|
5,717,442
|
2,564,938
|
|
Net Assets
|
2,397,921
|
2,312,262
|
|
Net Assets Backing
|
2,397,921
|
2,312,262
|
|
Shareholders" Funds
|
2,397,921
|
2,312,262
|
|
Total Share Capital
|
2,000,000
|
2,000,000
|
|
Total Reserves
|
397,921
|
312,262
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
Stock Ratio
|
0
|
0
|
|
Debtors Ratio
|
10627
|
1510
|
|
Creditors Ratio
|
0
|
0
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
Gearing Ratio
|
0
|
0
|
|
Liabilities Ratio
|
1.38
|
0.11
|
|
Times Interest Earned Ratio
|
0
|
0
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
Operating Profit Margin
|
92.54
|
124.99
|
|
Net Profit Margin
|
73.97
|
99.99
|
|
Return On Net Assets
|
4.47
|
3.55
|
|
Return On Capital Employed
|
4.47
|
3.55
|
|
Return On Shareholders'
Funds/Equity
|
3.57
|
2.84
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0.62
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
